Most of us here know for example how the ERC-20 was a big step forward for the Ethereum network, driving the Ether ([which is the main asset of the Blockchain network, the second largest in world history in terms of market capitalization only behind Bitcoin Core]) stabilizing itself as the fuel that manages all the issues and mechanisms of the platform.
Ethereum is a 'large super computer' that performs intelligent contracts in an autonomous and decentralized way, its applications run without suffering interference from third parties as the original contracts in the blockchain network are immutable, all thanks to the scripts that are linked to public nodes around the world run by a decentralized Virtual Machine, called the Ethereum Virtual Machine (EVM).
Thanks to these contracts generated in a decentralized way, today Ethereum is a large decentralized finance market in which everything is done without human intervention, only through processes managed in blockchain where the 'contracts have their means of execution' for each programmed product facilitating, for example, that people can take out loans without having to go through painful constraints such as those that happen physically just obeying commands established in each contractual package issued in blockchain.
What are the ERC-20
First it is necessary to note that this denomination had its appearance in 2015, but only in 2017 it had its official debut, as a rule they are a command of technical standards that developers use to improve the Ethereum network. These commands follow established guidelines that help build the Ethereum network, and the term ERC-20 comes from 'Ethereum request for comments'.
ERC-20s are not created at randomly, they must first be submitted a set of proposals that, if approved, gives rise to a new ERC-20 with a unique identity number in the blockchain.
Why talk about Ethereum, ERC-20 and its importance in SmartBCH
It was necessary to talk a little bit about Ethereum and the ERC-20 technology to understand a little bit of why SmartBCH is a big step forward in the Bitcoin Cash network. But unlike the Ethereum network Bitcoin Cash encompasses two properties that are irrefutable in the crypto world, the ability to be a blockchain that can scale, after all, it's a fork of Bitcoin Core (BTC) an upgrade from the world's popular core network and now also a network which can host smart contracts in its blockchain.
Therefore, it has very peculiar particular characteristics, and carries with it the power of scalability and intelligent products in its 'DNA' making it a rare network. SmartBCH will be a milestone in the Bitcoin Cash ecosystem and possibly an unprecedented big Boost never seen before.
SmartBCH will encompass the SEP-20 that its protocol is very similar to the ERC-20 and has the possibility to create tokens as well as smart contracts that will serve to involve forks of established products on the Ethereum network to migrate to the Bitcoin Cash network, and thus take advantage of all the benefits it offers, such as enjoying favorable trading fees, speed, security and transparency.
Decentralized applications (Dapps) may find in the SmartBCH side-chain a place to develop their business enabling people to benefit from its services effectively. Platforms like Uniswap for example can present their product directly on the Bitcoin Cash blockchain network.
The opportunity offered by SmartBCH technology is unique and exclusive and will certainly increase the demand for its services, it is certain that it is still in the embryonic stage but the potential is in sight. Not forgetting that all Bitcoin Cash involved in the side-chain will undergo a 'supply burning' process in which fees will be relatively reduced to ashes if I can say so, reducing supply and increasing market demand for the Bitcoin Cash.
As in Ethereum, Bitcoin Cash will also be the fuel currency of SmartBCH, it will be used to pay fees when executing transactions in Smart Bitcoin Cash network.
Summary
SmartBCH will definitely be a big Boost for Bitcoin Cash and will encompass a large number of decentralized projects that will later be presented to the market. It will still take some time 'to tune the machine', after all it is still in its initial phase and there is still a lot to fix, innovate, test security and much more.
Projects will arise and develop their business on the SmartBCH network, known projects as well as new ones that will want to venture into the market. It is also necessary to pay attention to these projects, as a lot of things will be done in a decentralized way, many 'bad authors' will also try their luck on the side-chain, being necessary a certain caution when choosing to use products on the network, especially those that are new in the business.
'The opportunity has been launched, the net is literally in the sea, whoever is a good fisherman will know how to take advantage of and take the greatest number of fish from the ocean, those who do not have a net to fish will see boats literally passing by'...
Bitcoin Cash starts a new story with SmartBCH and that will be awesome.
Useful links:
How to setup your Metamask to interact with SmartBCH
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Find me on noise.cash
Hey Alberd,
Another great post touching a nerve I hope will revitalize the BCH ecosystem and hopefully make BCH climb harder in the next bull market.
Cheers!