What are ERC20 Tokens?
ERC20 tokens are a special type of sub token on the Ethereum network. ERC20 tokens are a compatibility standard that allows tokens to inter-operate with each other.
Why do Tokens Need a Special API?
Having a common set of application programming interfaces makes it possible that tokens name can inter-operate with each other or that wallet software can operate with many tokens without having to create a custom set of coding for each one.
What else is ERC20 Good for?
Some of the interesting possibilities for ERC20 tokens include the possibility for a multi signature contract wallet to own some of these different sub tokens. it also makes it possible for something like a decentralized exchange to allow exchange between ERC20 tokens without having to rely on any trusted third party.
What does ERC20 Stands for, and where did it come from?
ERC20 stands for Ethereum Request for Common – issue number 20 and that comes from github where the issue was posted about how do we create an interoperability standard. Developers and users alike commented on the issue and we created a standard for everyone to share.
Read More: What is Blockchain Technology?
Who is it LED by?
The issue was largely led by Fabian Vogelsteller.
Are all Ethereum Tokens compatible with ERC20?
No, not all Ethereum sub tokens are ERC20 compatible some may only partially implement the standard or not implemented at all, but when it took in is ERC20 compatible it’s able to be used in any software that’s designed for ERC20 sub tokens.