What are ERC20 tokens?
ERC20 tokens is a token standard that is widely used in the Ethereum platform for the ICO processes.
Benefits of ERC20 Tokens
- The ERC20 is highly convenient. If every user on the ethereum platform create their own version of tokens and try list them on exchanges, also make them compatible with the wallets; it would be chaotic. So, a specific standard such as ERC20 with a set of rules helps to over come these muddle.
- This also saves the time for developers to develop the Token as ERC20 follows specific Blueprint for its development.
- The liquidity of ERC20 tokens in the Ethereum network is another factor implying its importance. If present projects on the network is active and is interacting with each other, then it will bring more project to the network and more users to the Ethereum Network.
Future of ERC20 tokens
ERC20 has become like a parent of other tokens since people have already started to develop many other token standards under ERC20 such as ERC223, ERC721, ERC1400, ERC1440 etc. But ERC20 has have proved its importance more than enough because of which it still remains at the top of Crypto ecosystem
The reasons for which ERC20 is still the preferred Ethereum standard :
- Because ERC20 token standard has got a Strong support from Ethereum foundation
- Because the reason for token development is fund raising then for product creation
- Because using different standard will lead to higher network problems.
In Ethereum network, ERC20 tokens cannot be displaced or substituted with any other token easily. Even if it has to happen it will take more time.
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