Cryptocurrency Q&A
Is ERC20 a token or coin?
Is ERC20 a token or coin?
Skywalker
Sun May 12 2024
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6 answers
1307
Is ERC20 a token or coin?" This question often baffles newcomers to the cryptocurrency world. ERC20, in essence, is a technical standard that defines a set of rules and guidelines for tokens issued on the Ethereum blockchain. It's not a coin in the traditional sense, like Bitcoin or Ethereum itself, which are native to their respective blockchains. Instead, ERC20 tokens represent transferable assets that adhere to the ERC20 standard, allowing them to be easily integrated into various decentralized applications and wallets. So, to answer the question, ERC20 is a type of token that follows a specific set of rules, rather than a coin that exists independently on its own blockchain. This distinction is crucial for understanding the intricacies of the cryptocurrency ecosystem.
6 answers
benjamin_cole_nurse
Tue May 14 2024
ERC-20 tokens have become popular due to their versatility and compatibility with various Ethereum-based applications.
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Bianca
Tue May 14 2024
ERC-20 tokens are a type of digital asset that operate on the Ethereum network.
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benjamin_brown_entrepreneur
Tue May 14 2024
They are widely used in decentralized finance (DeFi) projects, allowing for seamless transactions and interactions between different protocols.
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BonsaiGrace
Tue May 14 2024
Fungible tokens refer to the fact that each ERC-20 token within a set is identical and interchangeable.
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TimeRippleOcean
Tue May 14 2024
BTCC is a leading UK-based cryptocurrency exchange that offers a comprehensive range of services.
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