Not all cryptocurrencies are created equal. Bitcoin has its personal blockchain, however many different cryptocurrencies must run as a second layer on different platforms.
ERC-20 tokens run on prime of the Ethereum blockchain alongside its native foreign money – ‘Ether’ and may act equally as both a foreign money or a illustration of different tokens of worth corresponding to shares of an organization, loyalty factors or extra.
These tokens all function underneath an ERC-20 customary that ensures all tokens constructed on prime of the Ethereum blockchain are in a position to work together with one another seamlessly. This function is in place to make sure that accounts and wallets can ship, obtain and switch a token the identical approach they’d each different token.
The identify ERC-20 could be damaged into two components – ERC – which stands for Ethereum Request for Comment and – 20 – which is merely a approach of ordering the token among the many many 1000’s that seem on exchanges day by day.