What Are ERC-20 Tokens?
Updated: Jun 22
The blockchain world is one crazy space to be in, and there seems to be no stopping the ever-growing ecosystem. This rush of growth has also given a massive rise to various Layer-1 blockchains, and they all have set their token standards across the board. Let's dive a little deeper to see the different offerings:
The above tokens and their corresponding blockchains facilitate developers' deployment of various cryptocurrencies. There are multiple projects across the different blockchains and each of them service their own advantages & disadvantages depending on their ecosystems. Today we will take a look exclusively at ERC20 tokens.
Ethereum Blockchain- ERC20
ERC20 is the oldest in the blockchain circuit and has seen tremendous growth YoY. As a result, an investor today can find the significant offerings of the crypto universe across the Ethereum blockchain: from DeFi, DEXs, Layer-2s, NFTs, and Yield Farming. Every one of these offerings has been born on the Ethereum blockchain.
Let's find out what makes ERC20 such a hit with developers across the board:
So if ever it comes to your mind, "how to create a crypto token?" rest assured you will find many resources to your question as far as ERC20 is concerned. Everything across the board cannot be all rosy, and like everything else in existence, even ERC20 has certain downsides to it, they being:
● Gas Fees: ERC20 tokens are plagued with the issue of insanely high gas fees, which has to do with network congestion. The number of transactions that enter the system is sky-rocketing high, leading to gas wars (who is willing to pay higher transactional fees for successful contract interaction). This is not the network's fault but has to do with the demand and framework of Ethereum.
● TPS (Transactions per second): Another issue is due to the popularity of the Ethereum network, ERC20 network is always high in demand, and everyone is executing transactions on-chain through ERC20. This causes massive network inflows and slows down the overall data transmission on the network
ERC20 A Game-Changer?
ERC20 is an absolute game-changer for the crypto world. It's through ERC20 standards that we got Decentralised exchanges like Uniswap. These Decentralised exchanges changed the way people traded crypto.
We went from submitting KYC documents on Centralised exchanges to being able to provide liquidity to newly launched projects through the concept of liquidity pools. This was the dawn of the elimination of the middleman.
Is Token Creation An Easy Task?
Well, the term easy here is quite relative. If you have no coding background, then yeah, it's not all that easy—But if you are a developer and familiar with blockchain coding, then yeah, the whole token creation is an easy system for you.
Even though I say the above statement with much conviction, the reality is quite different, and token creation is not a simple task, not even in the remotest possible way. To begin with, a developer should have a high understating of Solidity (a coding language) and includes the following steps:
Creating an ERC-20 token
Ø Set the events of the token
Ø Set the name, symbol, and decimal of the token
Ø Declare the total supply
Ø Set the amount of the total supply and the balances
Ø Get the balance of an owner
Ø Transfer tokens to an account
Ø Approve a token transfer
Ø Transfer tokens from an account to another account
Ø The full code
Source: How to create a crypto token
So yeah, the above steps might deter you from your creating your shiny new token, but this is precisely where I would touch upon a project Enterprise Legion Management. Deploying a token by a startup might not be the easiest thing to do. Even outsourcing the work might become a massive task in the long run. However, enterprise Legion Management has made tokenization a very straightforward task. They have accomplished this by deploying a 6 step process as seen in the image below:
Crypto can be a super tricky world to swim around in, and ELM also ensures that the customer is provided with the proper support through their 24x7 client support service. Something that stands out for me as a user is that ELM provides a suite of services for its clients and enables them to tokenize their business and other layers of Web 3.0 offers. These include the development of NFT, the Staking mechanism, and the marketing services of the token.
Socials of the Project.