Cryptocurrency Q&A
Do ERC20 tokens have their own blockchain?
Do ERC20 tokens have their own blockchain?
Elena
Tue Jul 16 2024
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8 answers
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When delving into the intricacies of ERC20 tokens, one question that often arises is whether they possess their own dedicated blockchain. ERC20, as a standard, is primarily designed to ensure compatibility across various Ethereum-based projects. This begs the question: Do ERC20 tokens operate on their own independent blockchain, or do they rely on the Ethereum network as their foundational layer? Understanding this distinction is crucial for investors and developers alike, as it sheds light on the security, scalability, and interoperability of these tokens. So, does an ERC20 token have its own blockchain, or does it piggyback on Ethereum's robust infrastructure?
8 answers
SolitudePulse
Thu Jul 18 2024
ERC-20 tokens operate uniquely within the cryptocurrency ecosystem.
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Marco
Thu Jul 18 2024
The Smart Contract serves as the underlying infrastructure that governs the existence and transfer of ERC-20 tokens.
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Caterina
Thu Jul 18 2024
Contrary to popular belief, ERC-20 tokens do not possess their own dedicated Blockchain.
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Ilaria
Thu Jul 18 2024
This distinctive characteristic implies that transaction fees for ERC-20 tokens are not settled in the token itself.
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charlotte_clark_doctor
Thu Jul 18 2024
Instead, ERC-20 tokens reside within Smart Contracts that are deployed on the Ethereum Blockchain.
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