Libra Coin is an ERC20 token, which means it’s based on the Ethereum blockchain. For serious investors and holders of the Libra Coin, we strongly recommend to get the basic idea of the ERC20 standard in order to get the most out of their Libra Coin investments.
Even though investors can still get success in the crypto market even without any technical knowledge of blockchain and other related things, a basic understanding of crucial crypto market terms such as ERC20 can certainly help investors make safe investing decisions.
ERC20 is a very common and popular concept that is often heard in the crypto market. It’s an Ethereum token standard that mentions the rules an ERC20 is governed by. If you are looking to learn more about the ERC20 standard, you’re at the right place.
What is ERC-20?
ERC20 is a cryptocurrency scripting standard that stands for “Ethereum request for comment.” It was created and used to dictate the rules and actions that a particular type of Ethereum token or smart contract must follow. In simple terms, ERC20 can be understood as a set of rules and functions that any and all ERC20 tokens on the Ethereum network must follow.
The ERC20 standard also governs the creation and issuing of smart contracts on the Ethereum network.
All top crypto tokens based on the Ethereum blockchain use the ERC20 standard. Thanks to the ERC20 standard, creating new tokens based on Ethereum are now easier than ever. In fact, this has been a major force behind the immense rise and popularity of ICOs in recent years. In the past few years, there have been thousands of ERC20 tokens successfully created and launched by companies, ranging from startups to small companies and corporations.
An ICO or Initial Coin Offering is a token sale event, which is organised by a company looking to raise funds to create a new ERC20 token or decentralized app (DApp). The company accepts funds from investors in exchange for its tokens. Many cryptocurrencies and their linked companies found immense success in the ICO market and eventually launched their respective ERC20 tokens in the market.
ERC20 is one of the multiple Ethereum token standards that define how different Ethereum-based tokens operate.
What does the ERC20 Standard include?
As said before, the ERC20 Ethereum token standard covers the rules and functions that an ERC20 compliant token must follow. These include:
TotalSupply: Information about the total supply of that token
BalanceOf: Provides details of the token balance of a person’s account
Transfer: Used when a person wants to transfer a particular number of tokens to a specific address
TransferForm: Used when a person wants to transfer a particular number of tokens from a specific address
Approve: Provides approval for withdraw a fixed number of tokens from a particular account
Allowance: Returns a fixed number of tokens from a spender to the owner in a particular period
Best Example of ERC20 Token
The ERC20 Standard has been used for creating tokens in a variety of industries for purposes ranging from finance to e-voting, security, digital identity, e-commerce, and more. Libra Coin, for instance, is the best example of the use of an ERC20 token for the betterment of the e-commerce industry.
Through its next-gen, comprehensive, blockchain ecosystem, Libra aims to help resolve the most prevailing issues of the e-commerce industry, including high cost and low security in payments. Using the Libra Coin, e-commerce vendors and dealers can not only accept secure and low-cost payments from their customers globally but can also manage everything in their business, from day-to-day management to funding, marketing, payments, and more. Visit https://libraecosystem.com/ for details.
Source: https://medium.com/