ERC20: description of the standard, features of ERC tokens, supported wallets. How much are tokens worth? Types of digital tokens

Tokens are widely used in various fields, but in the world of finance they are used to denote a "substitute for money". This definition is perfect for explaining what digital tokens are. The Bitcoin system and other cryptocurrencies use such electronic tokens to perform three types of tasks: lending, selling shares, and monetization. additional service for netizens.

Types of digital tokens

The original Bitcoin protocol does not support the ability to issue securities or provide any ancillary services. However, the owners of forks - new types of bitcoin-based cryptocurrencies - are free to use tokens. They function as an internal payment unit or shares. Such a marketing ploy fits into the concept of a decentralized business model and allows for flexibility in solving many financial issues. For some types of cryptocurrencies, the sale of tokens is one of the main types of monetization and the only way to receive income from the provision of services for the maintenance of a free blockchain Bitcoin networks... Electronic tokens can be purchased or received, depending on their function.

Application tokens

They are used to pay for internal network services project. Tokens can provide access to advanced functionality, additional capabilities for building and configuring applications in a distributed file storage network. Do not confuse application tokens (Appcoins) and the cryptocurrency itself. For example, on the Steemit network, digital tokens can be obtained by posting content, promoting a project, or creating other value. In this business model, free appcoins act as a referral reward. Bitcoin, Sia or Ethereum tokens can only be earned by mining. Electronic tokens in many virtual payment systems appear in the blockchain, which means they can be freely bought, sold or exchanged for a friend cryptocurrency on the exchange. Their turnover is regulated by the main protocol, but not as rigidly as in the case of coins.

Credit tokens

Another function of such a payment unit is investing fiat funds in a cryptocurrency project with high liquidity indicators. For example, users can buy Steem Dollar (SD) credit tokens and receive 10% per annum of the loan amount. The Steemit network accepts payments from users in its own cryptocurrency and in ordinary money, but pays interest in SD. In fact, the project owners do not spend their own money, providing income for investors, but receive funds for the development of the network. Users are also not at risk if liquid digital assets are easy to sell on the exchange. In the business model of cryptocurrencies like Steemit, tokens play a very important role. Therefore, they are issued at once in two types: at 10% per annum and at 100% (such tokens cannot be sold for 2 years).

Token value

Many people are interested in the question, how much do models earn in video chats, such as bongacams (bongos) and the like, and in fact, how much does 1 token cost? 1 token costs about 10 rubles. The exact figure cannot be named, because when replenishing the balance, there are bonuses, the larger the amount you replenish, the greater the discount.

How much do models get

Models also do not receive the entire amount, because the creators of this site made it for the purpose of earning money and they have their own percentage from each account replenishment, everything is very simple. So how much do they get? Suppose that 1 token for the model costs 7 rubles (the creators of the site took 3 rubles), you can safely earn a thousand per day, by simple arithmetic we get 7 * 1000 = 7000 rubles.

Seven thousand rubles a day, this is a very good income, but you need to earn in this way by showing your body - work is not for everyone.

First you need to give general concept"Standard" in relation to the development software, including cryptocurrencies. A standard is a set of functions and requirements that developers must follow and use in order for their product to be compatible with projects using this standard.

So ERC20 - what is and how does it work? The standard formalizes the requirements for the operation of tokens created on the Ethereum blockchain.

The goal of creating a formalized standard was to simplify transactions between ETH wallets and exchanges. So, a new coin on ERC20 is easy to go public, since the protocol for working with it is known, and there are no obstacles for the exchange listing.

Functional features of ERC20

ERC20 implements several functions as per the specification.

Table 1. Methods implemented by the standard

The standard provides for two types of events:

• transfer - event of transfer of tokens between accounts;
• approval - the event is triggered when the approve function described above is successful.

The standard is based on ether smart contracts, implemented for the first time in the blockchain of this cryptocurrency. Although some elements and rudiments of smart contracts are also present in Bitcoin, it is Ethereum that is considered the first cryptocurrency to fully implement the concept of smart contracts.

How it works

The principle of operation of smart contracts according to the ERC20 standard is quite simple. For example, a user needs to transfer a certain amount in standard-compliant tokens to another account. From a human point of view, a transfer is initiated, after which electronic money leaves one wallet and appears on another - like a bank transfer. Technically, everything looks completely different:

• the user starts the ERC20 token transfer process;
• a directive is sent to the smart contract to change the owner of the specified amount of tokens;
• the sender's balance is reduced, and the recipient's balance is replenished by the indicated amount.

That is, the parties to the transaction do not interact with each other directly, but with a smart contract.

This leads to the simplification of all network operations - there is no need for long-term reconciliation with databases, it is only necessary to check the compliance of the transaction with the terms of the contract. This simplification made Ethereum ERC20 technology very popular, and today many altcoins comply with this standard.

Other benefits include token standardization. Previously, projects with unique tokens were created on the basis of the Ether blockchain, and this created a big problem for exchanges and other platforms and applications that were going to interact with new coins. I had to create various mechanisms to ensure compatibility. This made the process very complicated and time-consuming, since it was necessary to create new software "layers" to interact with the newly created tokens. ERC20 tokens solved this problem.

Explanatory video about the standard:

Disadvantages of tokens

While this looks good in theory, the ERC20 has a drawback. It lies in the flip side of the ease of creating coins based on the standard. Ease attracts scammers who launch ICOs, collect money and disappear. The scheme works because many people see it as interesting and promising on the ERC20.

In addition, there is another problem - lost coins inside smart contracts. This happens when a contract is used that is not intended for transactions with sent tokens. Its developer proposes to solve it using the new ERC-223 standard.

Tokens on Ethereum

A lot has been said above about tokens. What is it in relation to ether and why are they needed?

Ethereum is not just a cryptocurrency, but an environment, an ecosystem. Each of its users has the right to use the blockchain provided by the ether to create their own applications and projects on smart contracts. Simplistically, this system can be described by comparing ether to the Internet, and distributed applications (dApps) in it - to websites. At the same time, the sites belong not to one owner, but to many - to those who purchased the tokens of the "site" during the ICO in exchange for ETH coins. That is, a token is the currency of a specific project circulating in the ether blockchain.

There are two types of tokens:

1. Interior. They act as currency in dApps, an example of such a cryptocurrency is.
2. Promotional. These are, for example, DAO tokens: they play the role of shares and give the owner the right to vote for funding a project in the DAO, by analogy with "offline" joint-stock companies, where the weight of a shareholder's vote depends on the number of shares in his hands.

The question arises - what are separate tokens for? Isn't it easier to use the usual ETH for transactions?

A comparison can be made with ordinary life, where tokens are also often used. Good example- metro, to enter which you need to purchase a token. A similar principle is applied, for example, to allow citizens to enter amusement parks, make in-game purchases, sell coupon services, etc. Is a token.

ERC20 compatible wallets

To store tokens compatible with this standard, you need a supporting wallet, which you will either have to create or use one of the existing ones. There are several main ERC20 compatible wallets.

MyEtherWallet

Website https://www.myetherwallet.com/. It is one of the most popular online services. Its notable feature is that MyEtherWallet does not store tokens on its balance sheet, the funds are in the blockchain, and the service only provides the user with an interface to interact with it. This gives additional security to the owner's funds, but there is also back side: If you forget the passphrase, the ERC20 tokens on the account will be lost.

Figure 1. MyEtherWallet logo

The wallet is safe, simple and versatile: it can be used for both ETH itself and ERC20-compliant tokens.

MetaMask

Website https://metamask.io/. Another "lightweight" wallet implemented as an online service. It serves as an intermediary between the main wallet and sites where the user pays with cryptocurrency.
A notable feature of MetaMask: it is created as a browser plugin and can be synchronized with a similar plugin on another electronic device.

Figure 2. Logo MetaMask

The principle of the service: the user transfers the required amount to the wallet and makes the payment.

Mist

Code on github. This is your own wallet from the creators of the ether, which has received official status.

Figure 3. Launching the Mist wallet

It can be used as a classic ERC20 and ETH-wallet, but the application has both additional features similar to working with smart contracts.

The disadvantages of Mist are the size and the need for synchronization with the blockchain, which sometimes causes problems.

Parity

Website https://www.parity.io/. Until a certain point, this wallet was very popular due to the convenience and ease of the interface. But the discovery in November 2017, which led to the blocking of owners' funds for almost 150 million USD, turned the audience away from him, and the wallet's reputation is mostly negative.

Figure 4. Parity wallet

ImToken

Website https://token.im/. It is easy mobile app for IOs and Android platforms created in China. The wallet is user-friendly and supports ERC20, making it a great tool to participate in ICOs. The list of supported tokens is constantly being updated.

In addition, using the wallet, you can monitor coin rates on exchanges, view ICO news and operate with dApps. The user has the ability to associate a specific application with the wallet, simplifying transactions.

Why choose an ICO with ERC20 support

The reason why it is worth supporting an ICO with ERC20 support stems from the specifics of this standard: such a project will be guaranteed to be compatible with others using similar specifications. This will allow you to freely operate the new token within the Ethereum blockchain, simplify the listing procedure on exchanges. A token without the support of the standard will be deprived of these advantages, which can create problems for its promotion and, as a result, support for the ICO will become unprofitable for the investor.

In addition, one ERC20 wallet can be used for any ICO using the standard in question.

Services that do not support ERC20

Not all wallets and online services work with this specification in cases with ICOs:

• virtual exchange wallets, Exmo, etc .;
• Cryptonator;
• JAXX (but its private keys can be loaded into MEW (MyEtherWallet), which will make the tokens available there);
• other wallets not listed above.

Nevertheless, a number of exchanges have ERC20 tokens in their listing. It is noteworthy that in early January 2018, Bittrex announced that it would no longer allow users to create new deposit addresses for Ether and ERC20.

Important: to operate with the tokens in question during the ICO, you need a special wallet or service that supports them. You should not use exchange addresses to receive ERC tokens, this can lead to loss of funds.

If you have participated in any ICO projects, then you have probably already come across such a concept as tokens and ERC20 wallets... And this is by no means surprising, because more than 90% of all ICO tokens operate on this standard. In reality, this is by no means the most difficult technical topic, even if you are hearing about it for the first time. And if you really want to take part in new crypto projects at the very start of their development, then you should definitely familiarize yourself with this question - what is erc20 as detailed as possible.

What is ERC20 standard?

If you start from the very basics, then you should first define what “ standard"- this is a certain set of installations or rules, subject to which a specific product or service is obtained for subsequent use in any area.

For example, if you want to create a program for mobile devices on Android base then in program code this application will need to implement a certain standard, as a result of which your program will be supported and function correctly on all Android devices. And if you need to create the same application for various devices on the basis of IOS, then this will require the implementation of another relevant standard.

About the same standard with the name ERC20 erts20 is the standard for all tokens based on the Ethereum cryptocurrency. That is, continuing our analogy, Ethereum is a base, like Android or IOS, and ERC 20 is considered a suitable standard for him.

This standard was specially developed and put into use to facilitate and simplify numerous operations on cryptocurrency exchanges and crypto wallets that work with smart contracts of the Ethereum system. As an illustrative example of such a need, it is possible to mention that it is not difficult for new tokens of various ICO projects to go out for trading on exchanges, since the exchanges preliminarily know the supported standard for new coins, that is, ERC20, and its code is located in freely available on Github. In other words, almost any user with programming skills can easily create new ERC20 tokens in a short time. Today, you can even find relevant YouTube videos with detailed explanations of how it's all done.

How does ERC20 work and why is it so popular?

Why is this particular standard so popular? This is easily explained by the work of smart contracts that are implemented on the Ethereum blockchain. It is worth mentioning here that the founder of all other cryptocurrencies, Bitcoin, still initially contains the basic foundations of smart contracts, but this idea was fully developed in the Ethereum platform.

So, what is the principle of this standard? You are sending tokens from your address to another user's account. That is, after that you have fewer coins, and the recipient already has more. However, you are not technically forwarding anything to anyone. You only send a specific instruction to the smart contract itself that the address of the owner of the sent tokens has changed. As a result, after such a transaction you have fewer coins, and the recipient has more. In other words, netizens only interact with a smart contact. Technically, it does not require following protocols and verifying data from nodes. All that is needed is to check whether the terms of the contract are being fulfilled correctly. It is such a significant simplification and facilitation of all basic operations that gave such a rapid growth rate of altcoins, most of which today comply with the ERC20 standard.

However, one cannot fail to mention the other side of such attractive advantages. Such simplicity and affordability in terms of creating new coins constantly attracts many unscrupulous individuals here, who, under the big name of a promising startup project, raise money and instead of a successful launch and painstaking implementation of their ideas, they simply disappear with funds. Fortunately, with a certain experience in this area, it is not so difficult to distinguish a really promising project from another "extortionist". You can learn more about what an ICO is and all the stages of its implementation.

Why does each project need its own token?

Indeed, why not just use the same Ethereum to pay for all transfers within projects? Why invent a new currency for each such project separately? In reality, the answers to these questions are quite simple. Even in Everyday life we quite often use similar forms of tokens instead of traditional money. For example, tickets to an amusement park, game tokens, breakfast coupons, or purchases of items in games. So, in this case, our regular money is something like Ethereum, and all other bonuses, tokens and coupons are the corresponding tokens.

That is, when you use just such tokens to perform specific functions in a smart contract, you automatically make this whole process simpler and more accessible. In addition to all this, tokens also affect the overall value of the Ethereum platform.

ERC 20 Token Support Wallets

Naturally, in order to receive and store tokens, you will need an appropriate supported wallet of this standard... Next, we will consider the most popular options for crypto wallets.

MyEtherWallet

Is the simplest and most convenient Ethereum online wallet. The most popular cryptocurrency wallet supporting ERC20 tokens. It has all the necessary functions and a clear design.

One of its main advantages is that the service itself does not store your funds - they are in the blockchain system, and the wallet is only a way of authorizing and interacting with the system. This is a fairly secure approach, in which all the necessary keys and access are only yours. It is important to remember that if you lose this data, you will not be able to restore access to Ether funds and other tokens.

MetaMask

This is another convenient online wallet that acts as a bridge between your main wallet and certain sites where you pay. Main feature MetaMask is its implementation - it is developed as a plugin for Google browsers Chrome and Mozilla Firefox... You can also sync it with another device when you import your password.

This browser extension works in approximately the following way - you make a transfer from your main wallet to your MetaMask account and without unnecessary problems perform all the necessary operations with coins without having to go into the main wallet all the time.

Most likely, you have already heard about Mist, since it is he who is the official Ethereum software wallet. Its main advantage is that the creators of Ethereum themselves worked on its development, as a result of which it received its official status.

The Mist wallet is specially designed to meet most of the requests of all users of both ETH coins and various ERC20 tokens. This wallet can be used in two ways.

1) Like the most common cryptocurrency wallet, receive, send coins and just store your funds. In this case, it is not at all necessary to use any of its unique functions. The program interface itself is as simple and straightforward as possible.

2) Advanced users can use Myst much more efficiently. For example, there is support for such additional options as work with the use of smart contracts. At the same time, Mist has a multi-signature function, which will really please those who like to maximally protect access to their digital coins.

But at the same time, there are certain disadvantages that are inherent in many desktop wallets - large size and problems when trying to synchronize with the blockchain, which for an inexperienced user may seem very problematic.

It is very interesting application for all mobile devices based on Android and IOS from Chinese programmers. Differs quite simple interface and a convenient menu, in additional functions applications can be figured out without unnecessary problems. Naturally, this application supports all ERC20 tokens - you can add them right in your wallet. At the same time, the list of all supported coins is constantly updated.

This wallet has the following built-in convenient function, as monitoring the rates of purchased coins on different exchanges, which is very useful for active investment, when you always need to be aware of all price changes. At the same time, there is a Discover function, where latest news the ICO world and the wallet itself. In addition, there is a Dapps function that shows all applications from other developers that are compatible with ImToken.

Conclusion

As a conclusion, it is worth adding that no matter what you purse ERC20 standard did not choose for yourself, first of all it is important to monitor the safety and confidentiality of your data. Work only on the website of the wallet itself, do not click on suspicious links, take care of the safety of all your keys, passwords and in no case send them to anyone. Good luck!

Full list of supported cryptocurrencies

• Bitcoin.
• Bitcoin Cash.
• Dash.
• Dogecoin.
• Ethereum.
• Ethereum Classic.
• Komodo.
• Litecoin.
• PoSW.
• Ripple.
• Stratis.
• Zcash.

Plus, you can store any Ethereum-based ERC-20 tokens in your wallet!

To get started

• Go to the Ledger website and find the “Ledger Manager” app. You may need to download two versions of Wallet and Manager, depending on the coin you want to store.
• Ledger provides three wallet apps. One is for Ripple, another is for Ethereum, and one is for Bitcoin and everything else.
• For newbies, it can be confusing that Ledger forces you to use the “Bitcoin Wallet” app to manage altcoins like ZCash or Litecoin. Download the program you want.

• Then you need to download the correct “Manager” application. If it is already on the device - great, if not, then download it.
• Like the Wallet app, Ledger Manager will be available as a Chrome extension. If you are logged into your account Google, the program will be saved in the same location as the “Bitcoin wallet” under “Your Apps” in the Chrome Web Store. Please note that “Manager” and “Wallet” cannot work at the same time.

• Open “ Ledger Manager”And click on the green button next to the coin you want to store on your device.

• note that ONLY 5 types of cryptocurrencies can be stored on the Nano S at the same time, so choose carefully. (The exceptions are all ERC-20 and Etherum tokens - you can store them as much as you want.)
• Now that you are ready, let's see how to use “Ledger Bitcoin” to access your Litecoin wallet.

Store Altcoins on the Ledger Nano S

• Although this example is for Litecoin, you can follow the same steps for other cryptocurrencies supported by the Ledger Nano S. The only difference is the “Wallet” version of the app.
• Remember that there are separate extensions for Ripple, Ethereum, and the Bitcoin program allows you to work with altcoins as well.
• To access Litecoin, make sure you have latest version Litecoin application downloaded from “Ledger Manager”. Then, on the main Nano screen, scroll through the icons until you find Litecoin - then select it.

• Then the message “ Use wallet to view accounts”. Open your bitcoin wallet.
• On the next screen, notice that Litecoin has already activated “Segwit” across the entire network, so there is nothing to do on this screen. If you don't know what to press, choose “ I don’t know”.

• After the wallet syncs with the network, it will take you to a page similar to the layout of a bitcoin wallet.
• In fact, it works exactly the same as a wallet, with the same settings in the Wallet's Settings tab, including Display, Coin, Hardware, Apps (in Beta), Tools, and “Blockchains”.

Congratulations, you have now set up your Litecoin wallet and are ready to use it. These instructions apply to other coins as well, just select the correct Wallet and Manager apps.

Storing ERC-20 tokens on a Ledger Nano S

The Ledger Nano S does not have wallet apps that support ERC-20 tokens. Even for Ethereum. Therefore, you need to use a third party wallet to manage your ERC-20.

The great thing is that MyEtherWallet has integration with Ledger Nano S. Most likely, if you are already participating in the ICO and owning ERC-20 tokens, then you are familiar with MyEtherWallet.

So let's get started

• First, go to https://www.myetherwallet.com/. Note the “s” at the end of “HTTPS:”, which means the site is secure.
• There are many phishing scam portals that look exactly the same, trying to trick you and steal your private keys. Since the Ledger Nano S is already connected, select the hardware wallet option at the top.
• Then plug in your Ledger Nano S and click on the option “ Ledger / TREZOR / Digital Bitbox" in the upper right corner.

• Select "Ledger Wallet".

• Before you go any further, go to the Ethereum settings on the Nano S and select it.

• Then go to the “Settings” tab, where there will be 2 themes: “Browser support” and “Contract data”.

• Select each of them and click everywhere “ Yes”, Allowing MyEtherWallet to access the Nano S.

Note: enabling Browser Support will prevent the Ledger Ethereum Wallet application from working. If you ever want to use it just switch “ Browser Support" on " #”.

• After enabling these features, return to MyEtherWallet and click the “ Connect to Ledger Wallet“.

• A pop-up screen will appear with many options for different cryptocurrencies that you may need to fill up your wallets.
• There are also several wallet addresses available on the Nano S. Select the option “ Ledger (ETH)”And the address.

• Clicking on one of the addresses will take you to this screen.

• The selected address is now used to store ERC-20 tokens. Indicate it if you are participating in the ICO and you need to provide an ERC-20 wallet address. To check your balance, click on the button “ Show Tokens“.
• Before you see the token, you need a contract address and decimal code from the ICO company. It is usually provided after the ICO.

That's it, now you know how to store Bitcoins, Altcoins, and ERC-20 tokens on the Ledger Nano S! If you don't have it yet, be sure to buy it to keep your savings safe.

It is expected that the use of ERC-20 tokens will be able to provide a smoother functioning of the Ethereum network.

ERC-20 tokens have been around since 2015, but only recently have they been officially adopted by Ethereum developers. Thus, we can now talk about this standard, and not just about one of the ways to create on the Ethereum network.

The reason why ERC-20 tokens have received official status right now lies in the increased interest in ICO. The standard was officially consolidated after the final agreement of a document called "Ethereum Improvement Proposal 20" (EIP20, lit. - proposals for improving Ethereum). EIP20 also provides for the creation of a specialized application programming interface (API) that should simplify the process of deploying tokens and smart contracts.

ERC stands for Ethereum Request for Comments. This document explains how developers should deploy smart contracts.

So without human intelligencecannot work. The ERC20 standard contains several main points:

• transfer of tokens by their owner;
• transfer of tokens on behalf of the owner;
• getting information about a token;
• events with tokens.

The listed tasks are solved using a set of six functions and two events that make up a smart contract. And that's all it takes to create the base token. This is how most ICO tokens are built.There are additional formatting requirements for developers.

Before becoming a standard, ERC-20 was just one approach taken by developers looking to create their own tokens that can be forwarded. But tokens that differed from this standard created certain problems in the Ethereum network. Mainly, they were related to the fact that simple user mistakes could lead to sending tokens to the wrong address, as a result of which funds were irretrievably lost.

What is changing the introduction of ERC-20? Earlier tokens may have been written in such a way that they would be incompatible with other projects. When all tokens conform to the same standard, it makes it easier to move them between different distributed application projects ().

Today, tokens are tied to their respective projects, and each project creates its own token. With the general transition to ERC-20, tokens, at least theoretically, will be able to move between projects.

What ERC-20 means for users

The most obvious benefit to users is that MyEtherWallet and Etherscan can be used to easily store and track Ethereum-based tokens. This is possible even now, but in the future, developers can make interactions even smoother.

Do not forget that cryptocurrencies are a relatively young technology that still harbors a sufficient number of hidden defects. Whoever promises anything, always check the addresses by transferring a small amount to see the result. And only then poison the rest of the funds. ERC-20 tokens are undoubtedly an important improvement. But users should be aware that they themselves are playing the role of bankers when it comes to cryptocurrencies. Therefore, they are responsible for the correct sending and receiving of funds.

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