What is the ERC-20 network? And how is it related to Ethereum?
ERC-20 is a smart contract rule system which is based on Ethereum Blockchain.
We can say ERC-20 network as a facility of Ethereum blockchain network. Where we can list our own token with the desired name.
Every token on ERC-20 will follow the same rule of the ERC-20 network.
Indirectly we can say, all the coins which are based on the ERC-20 network, will have the same technology and same qualities except the name of the coin/token.
Features Of ERC-20 Based Tokens
- We can buy, sell and exchange tokens based on the ERC-20 network.
- The ERC-20 contract system restricts the numbers of all the tokens available on the ERC-20 network.
- ERC-20 allows ease to make cryptocurrency without any development skill.
- ERC-20 based tokens are faster in transactions like Ethereum transactions.
Future Of ERC-20 Network
No doubt after Bitcoin it is Ethereum and ERC-20 network which allows people to use cryptocurrency transactions at low fees.
But in the present time ERC-20 network is not a much better option because transactions at ERC-20 are fast but cost high fees in comparison with other networks like TRC-20, BEP2 and BSC network.
In the very beginning, the ERC-20 network was better because fees were nominal.
But now the price of Ethereum is increasing and at another side load on the ERC-20 network is increasing because everyone in this field of cryptocurrency is looking to use an easy and fast method to create cryptocurrency tokens.
So in our opinion ERC-20 is not a good option to choose in making new cryptocurrency.
And also in the present time TRC-20 is playing better than ERC-20 or other networks based coins.
So the ERC-20 network will not get a decent level of attention in future.
Frequently Asked Questions Regarding ERC-20
Q. What Is an ERC-20 wallet?
Ans. Wallets which generate ERC-20 addresses to accept ERC-20 network based new tokens are known as ERC-20 wallets. The perfect mobile wallet for ERC-20 is TRUST WALLET
Q. Is ERC-20 the same as ETH ?
Ans. No, ERC20 is a ERC-20 network based token coin and ETH is a cryptocurrency which is offering people to create tokens at ERC-20 through its blockchain technology.
Both of these coins can be traded, bought and sold easily.
Q. Which coins are ERC-20 coins?
Ans. BAT coin , OMG coins are more popular ERC-20 based coins. The list of ERC-20 based coins is very big. You can check here
Q. What are alternatives of ERC-20?
Ans. Best alternative of ERC-20 is TRC-20 and after that Binance smart chain ( BSC) and Bep20 are on the way.
Q. What is ERC-20 Contract?
Ans. Contract means a rule under which the newly added token is restricted. For example we create ABC named coin token with total supply of 100 token, then we can’t alter this number in future.