An ERC20 token is a blockchain-based asset with similar functionality to Bitcoin, Ether or Litecoin in the sense that it can hold value and be sent or received by
users of the network. However, the major difference in the case of the ERC20 token is that on the contrary of those other cryptocurrencies, ERC20 tokens are not the native currencies of their
respective blockchain but are instead all created and hosted on the Ethereum blockchain. Indeed, all ERC20 tokens are stored and sent using Ethereum transactions and adresses, and use gas
to cover their transactions fees.
What is the ERC20 standard ?
The ERC20 standard standing for Ethereum Request for Comment number 20 is a set of rules created by the Ethereum community aiming to normalize the creation of
tokens on the Ethereum network in order to ease the integration of those tokens into the already exisiting wallets and exchanges of the ecosystem and facilitate exchanges between ERC20
tokens and other cryptocurrencies.
ERC 20 standard rules
Optional :
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Token name
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Symbol
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Decimal ( up to 18 )
Mandatory:
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totalSupply function
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balanceOf method
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transfer function
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transferFrom function
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approve function
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allowance method
