If you're following crypto world actively then probably you've heard 'ERC-20' term hundreds of times and if you're really not a developer kind a person then after digging more you had encountered with more difficult terms like mainnet, smart contracts and many more like this. If you're interested to know more about these things in a simply way, then keep reading !!
In this article I'll explain what are ERC-20 tokens and how they're booming the global crypto adoption.
What Are ERC-20 Tokens ?
Well if someone asked me to describe what are ERC-20 tokens then my response will be, "The ERC-20 tokens are the tokens built on Ethereum network". It's that simple !! And if you thought what is it with 'ERC-20', then it's a set of standards in Ethereum network.
The main advantage of ERC-20 standards is that it allows developers to create their own tokens inside Ethereum network. This is why Ethereum & ERC-20 standards are very famous in developers community.
Why ERC-20 Standards Were Created ?
At the beginning of the Ethereum there were no ERC-20 standards but as the popularity of Ethereum grows the more and more developers get attracted towards Ethereum network and created their own tokens. But as the number of tokens gets increasing, so the number of rules increased as every developer set his/her own rules in their smart contracts. Because of these different rules you've to be genius to make interactions between two totally different rules.
What Solution Does ERC-20 Brings ?
To resolve this interaction issue between two or more independent tokens into the network, Ethereum created a set of standards, which we call ERC-20. Now after bringing these set of rules every token or it's smart contracts has to follow them which helps to two or more contracts interact with each other.
How It Helped Global Crypto Adoption ?
As Ethereum is already popular in developers community and after implementing ERC-20 rules into network it gives opportunity to multiple companies and businesses to create their own tokens and it also booms the interactions between those companies helped to bring the whole 'supply-chain' to the Ethereum network.
As Ethereum provided easy crypto solution to hundreds of industries and they their services & products available for their own personalised tokens, it increased the adoption of tokens (cryptos) in consumers of that companies & businesses.
What Will Be The Future ?
Today I can say many ERC-20 tokens are very famous & it encouraged thousands of developers to develop their projects on Ethereum.
But still it's a programming thing, there are hundreds of bugs & issues has been raised and I think there'll be more in future but I personally think that this will help the network to grow and develop more awesome projects.
Hope you liked this article & if you're blockchain enthusiastic person & want to discuss about it then I'm always there to discuss on blockchain.
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