The Tech Quiz - Season 23
Hello everyone,
It's your favorite Steemian @rakiya from Nigeria and I'm delighted to join in this contest organized by @malikusman1 in this noble community today. It's a wonderful contest and I love to share my participation in it.
What are ERC-20 tokens?
ERC-20 tokens are tokens that are created on the Ethereum blockchain to be used for transactions within the blockchain. ERC-20 is a technical standard set by the Ethereum blockchain which is used to create every crypto used on the Ethereum blockchain.
This means that for any token to be created and distributed or put into use in the Ethereum blockchain, it must have the ERC-20 standard. This standard is a set of rules that the blockchain follows to protect their interest.
So any token that is created that doesn't meet this standard can not be used in the Ethereum blockchain. So ERC-20 tokens are all the tokens that meet the Ethereum blockchain technical standard.
How do ERC-20 tokens benefit Ethereum?
As I have said above, the ERC-20 tokens are tokens that meet the Ethereum standard. This means that the tokens will be used in the blockchain and if used in the blockchain, there are certain charges that the blockchain will make which will become profitable to the blockchain it is called gas fee.
The blockchain gets a gas fee from the various ERC-20 tokens whereas the token has a cover like an umbrella in the blockchain. Many people creating tokens don't have the money or capacity to create a blockchain so the Ethereum blockchain serves as a medium for them and it simplifies their work.
They follow the standard of the blockchain and then create their token and have the blockchain house it. In this way, their token will be alive and they will make money and the blockchain will make its money.
Why are ERC-20 tokens significant in Ethereum?
ERC-20 tokens are significant in the Ethereum blockchain because it is the technical standard set by the blockchain for any token to be created. Every blockchain has a standard to uphold and for that reason, every token created with that standard is valid for the blockchain.
So ERC-20 tokens are like the native tokens of the Ethereum blockchain because they use all the standards set by the blockchain to build the different ERC-20 tokens and that is why ERC-20 tokens are very important for the Ethereum blockchain.
I want to invite @jasminemary, @vickyson and @dave-hanny to join the contest also.
Thank you, friend!
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TEAM 5
Congratulations! Your post has been upvoted through steemcurator08.you provided a comprehensive explanation of ERC-20 tokens and their significance in the Ethereum blockchain. However, one aspect that could be improved is your engagement with the burnsteem25 initiative, which was marked as not supported in the review feedback. Overall, your participation in the contest and your detailed explanation are commendable. Keep up the good work!
ERC-20 tokens are significant in the Ethereum blockchain because it is the technical standard set by the blockchain. Best of luck