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The ERC-20 token is developed on the basis of Ethereum. The platform consists of a blockchain that stores transactions and a virtual machine that codes the smart contracts that guarantee their execution. The standard simplifies the creation of projects in
a decentralized registry optimizes network operation.
General information on a token
Coins based on the Ethereum blockchain are designed to represent a developed project or technology. This financial resource is created with the help of smart contracts. One company leads ICO and issues a token for sale to investors and the initial offering. The
The goal is to raise capital for the launch and development of the project.
The disposal of tokens, the payment of fees for smart contracts are made for ETH or BTC, thus increasing the demand for these currencies. An investor buys coins, transferring the cryptocurrency from his address to the ICO wallet.
ERC-20 standard tokens are unified. They play the role of cryptocurrency, resources and digital shares. It is important that they respect the accepted address format. Symbolic actions are profitable as they produce income in the form of dividends. Furthermore,
the owner participates in the management of the company, controls the transfer and consumption of coins, keeps track of how many assets are held in the accounts in the defined period.
Properties of the standard
ERC-20 – the unified protocol official, designed to solve the problem of the compatibility of different currencies and improve the functioning of the network. The standard token on the Ethereum blockchain is characterized by the following properties:
- It makes interchangeable activities;
- Used on platforms, projects, compatible exchanges;
- Ensures operation with compatible decentralized applications (DApps);
- Simplify transactions by receiving and sending coins;
- Interacts with other currencies, smart contracts;
Blockchain-based standard tokens are decentralized and open source.
Protocol functions
When creating a token and creating an intelligent contract, there are 6 simple but obligatory functions:
- Control of the initial number of coins and issue;
- Assignment of the initial quantity to the address of the company and to the owner of the ICO;
- Sending resources to investors, balance recording;
- Distribution of coins between users for transactions, verification of their movement;
- Verification of the remaining balance;
- Check the adequacy of the currency at the transmission address.
In addition, Soft-FX's cryptocurrency experts recommend using three functions to identify coin parameters: symbol, name and size. Smart contracts provide for the use of additional functions. For example, authorize an investor to vote for a project.
The Ether-based token developer with the specified parameters can be any user who is about to create their own project. It can easily expand functionality and add the right project options to the smart contract.
The ERC-20 standard has its pros and cons, since a large number of identical signs are created.
Technical specifications of the intelligent contract
The intelligent contract, written in the form of a code, carries out the following actions:
- Conducts transactions, transfers tokens;
- Confirmation of cost;
- Trace the account balance.
Contains information on compliance with the terms of the contract and the specified set of functions. It is forbidden to modify or not comply with the requirements of the contract. If a developer does not include all the standard parameters, compatibility
with ERC-20 and interaction with other features will be incomplete.
The contract and related information can be found contained in the blockchain. Payments are executed automatically and the blockchain protects the transactions.
The smart contract is not without vulnerabilities. The mistake committed in its development leads to the loss of means. An add-on is being developed to reject a transaction that does not meet the requirements of the contract.
Adding a custom token to MyEtherWallet
The ERC-20 standard is compatible with MyEtherWallet (MEW). We recommend that you register and create a portfolio on the official website.
The process of adding tokens involves the following steps:
- Visit the official website of MyEtherWallet;
- Login and unlock your wallet;
- Go to the "View Wallet Information" tab;
- Click "Add custom token";
- Fill in the contract address, the number of decimals and the token symbol provided by the token creators in a custom token form;
- Click "Save" and the tokens will be displayed in MEW.
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