In Chapter 3, Deep Research on Ethereum, we learned about the ERC-20 and ERC-721 token standards. ERC-20 is the most popular Ethereum blockchain technical standard for tokens to be issued on Ethereum. The tokens are used as digital currency and are interchangeable.
Before the ERC token standard, the numerous Initial Coin Offerings (ICOs), startups, and decentralized applications (DApps) had created their tokens with many different standards. After the release of the ERC-20 standard, things have changed and become much more streamlined.
The benefits of ERC-20 tokens include the following:
- Reducing the risk of contract breaking
- Reducing the complexity of token interactions
- Allowing for lots of different use cases to emerge on top of these standards
- Uniform and quicker transactions
- Confirming transactions more efficiently
- Enhancing token liquidity ...