Cryptocurrency Q&A
Do ERC-20 tokens use gas?
Do ERC-20 tokens use gas?
KatanaSwordsmanshipSkill
Mon May 13 2024
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6 answers
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ERC-20 tokens are a standard for fungible tokens that operate on the Ethereum blockchain. Given their integration within this network, I'm curious about whether they utilize gas as a transaction fee. Ethereum's network requires gas to be paid for every computational step or transaction executed on its platform. This ensures that users are compensated for the resources their transactions consume. Since ERC-20 tokens exist and function within this ecosystem, it stands to reason that their transactions would also be subject to gas fees. Am I correct in assuming that ERC-20 tokens do indeed use gas? If so, how does this work in practice, and what are the implications for token holders and traders?
6 answers
charlotte_wilson_coder
Tue May 14 2024
ERC-20 tokens share similarities with Bitcoin and Litecoin.
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SamsungSpark
Tue May 14 2024
This means they inherit the security and scalability of the Ethereum ecosystem.
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Elena
Tue May 14 2024
But there's a crucial difference in their operation.
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Leonardo
Tue May 14 2024
Another key aspect is the use of gas as the transaction fee for ERC-20 tokens.
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SolitudeEcho
Tue May 14 2024
Unlike Bitcoin and Litecoin, ERC-20 coins don't operate on their individual blockchain networks.
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