ERC20 Token Standard ● A token is designed to represent something of value but also things like voting rights or discount vouchers. It can represent any fungible trading good;
● ERC stands for Ethereum Request for Comments. An ERC is a form of proposal and its purpose is to define standards and practices;
● EIP stands for Ethereum Improvement Proposal and makes changes to the actual code of Ethereum. ERC is just guidance on how to use different features of Ethereum.
● ERC20 is a proposal that intends to standardize how a token contract should be defined, how we interact with such a token contract and how these contracts interact with each other.
● ERC20 is a standard interface used by applications such as wallets, decentralized exchanges, and so on to interact with tokens;
● We need a token standard for interoperability.
● We use the same wallet in which we store Ether to buy, sell or transfer a token, but we are actually interacting with a contract.
● A token holder has full control and complete ownership of their tokens. The token’s contract keeps track of token ownership in the same way the Ethereum network keeps track of who owns ETH;
● There are tokens that are fully-ERC20-compliant and tokens that are only partially-ERC20-compliant;
● A full compatible ERC20 Token must implement 6 functions and 2 events.
● There are thousands of ERC20 token contracts defined: https://etherscan.io/tokens
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