What are cryptocurrency tokens? What is ERC20?

in #erc207 years ago (edited)

German Video: coming soon
English Video: coming soon

Token are similar to chips at the casino.
Use case is important!

Create your own Blockchain? Well, it is distributed and lots of work.

What is the solution?
• Have Colored Coins = these are special coins on Bitcoin (Gold, etc.)
• Have Smart Contracts on ETH = these are typical ICO tokens, also our own, TenX

What does ETH need to run / execute
So, when a user transfers a token to another party, what they’re actually doing, on a technical level, is calling a function on the token’s contract to move the tokens for them, as opposed to them directly issuing tokens from their own wallet.

What is ERC20?
• EIP = BIP - Ethereum improvement protocols (this makes changes to the actual code)
• Ethereum Request for Comments = ERC (more of a suggestion)
• ERC20 token standard proposal = ERC20 smart contract standard

How do Smart Contracts work on a technical level?
There are 6 standardized functions in ERC20 written in Solidity:

  1. Total Supply
  2. Balance Of (owner)
  3. Transfer (to, value)
  4. Transfer (from, to, value)
  5. Approve (spender, value)
  6. Allowance (owner, spender)

Conclusion: Events get broadcasted => transfer Event => approval Event

What are the advantages:
• standardized interactions
• exchanges & wallets have an easy way to list token
• etherscan and other services can integrate easily

What are the downsides:
• There can still be major bugs (DAO)
• One unresolved issue with the ERC20 standard is, that sending tokens directly to a token contract loses your money. It has to do with how token contracts function.

ERC223 – is a newer standard - wants to improve exactly that. An option blocks accidental transactions to random contracts altogether to revert such transactions - not much in use yet - let’s see for future. It is all about standards.

Dr. Julian Hosp is the co-founder of TenX www.tenx.tech.
His personal website can be found here: www.julianhosp.com


Hallo Julian !

Willkommen auf Steemit!

Ich freue mich für neue Videos !

LG @kam.ila

will the ERC-20 get an upgrade to ERC-23 tokens?

PS: Und wann kommt meine Karte :P

freu mich schon auf die Videos!
Danke dir @Julian für deine klasse Arbeit!

Very good explanation! Looking forward to see the videos! Upvoted & Resteemed :)

Ja bin auch auf das Video gespannt.

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