What is ERC-20 Token? How to Get ERC-20 Token, How to Create?

An ERC-20 token is nothing but a smart contract with a predetermined data structure. This structure is designed to facilitate the implementation of various functions on the Ethereum blockchain, facilitating the creation work for developers.

Ethereum to blockchain was created to be a whole integrated ecosystem, unlike Bitcoin. Therefore, its developers have created new mechanisms to facilitate certain tasks. An example of this was developing the ability to create “new coins” on an existing blockchain. Something that is possible with Bitcoin and that we have observed in colored coins. To achieve this, Ethereum developers created ERC-20 tokens.

What is ERC-20 Token?

The creation of the Fabian birdcage y was proposed by Vitalik Buterin and approved on 19 November 2015. Under the name EIP-20, EIP is also part of Ethereum (EIP stands for Ethereum Improvement Proposal).

Abbreviations ERC, Comment Requests for Ethereum o It stands for Comment Request for Ethereum, while the number 20 comes from the EIP where it is defined. ERC-20 defines a standard about functions and events that Ethereum’s smart contract can implement.

Currently, ERC-20 tokens are one of the most widely used tokens in the crypto world. The amount of ERC-20 tokens created is huge. You can check how many there are today on Etherscan.

How Do ERC-20 Tokens Work?

ERC-20 tokens are, in principle, smart contracts executed on the blockchain from Ethereum. They work within a programmatic framework created by the Ethereum team. This framework is broad enough to allow different uses without disrupting the functioning of the Ethereum blockchain. For example, they can maintain a sub-ledger parallel to the Ethereum main ledger, which has its own units of account.

It is precisely this enormous flexibility that has led ERC-20 tokens to become the standard. The main benefit of these tokens is to standardize the interface for creating and issuing new tokens on the network. This is accomplished by applying certain rules and parameters for admission. For example, to exchange or move an ERC-20 token, you must own Ether. This supports both the economic and utilitarian aspects of the token.

The purpose and need of ERC-20 tokens is to design a standard, create interoperability and compatibility between tokens, and promote improvements in the Ethereum ecosystem. This is because ERC-20 tokens greatly facilitate the creation of new tokens. Because the infrastructure was designed for that. It was also accompanied by tools for this purpose such as programming language robustness or virtual machine EVM.

Why were ERC-20 Tokens Created?

• The developers’ motivation was mainly to create multiple capacities when creating something this large.
• API is Standard and stable, which makes it easy to program using it. This makes it easy for developers to creatively create new software based on Ethereum’s capabilities.
• Reduces the complexity of programming. Because the API is simple, it reduces the complexity of the software built to use it. This means better readability, security, and auditability of the written code.
• Support for multiple programming languages ​​and portability improvements. Since the API of the tokens is free, it is possible to program in it in different programming languages. This greatly simplifies the capacity to create a particular software. Some of the supported languages ​​for this task are Solidity, JavaScript, C, C++, Python, Java, and Go.
• Less complexity in understanding each applied token type.
• Increased levels of security, especially thanks to features like token allowance
• Less risk of breaking contracts as there are no barriers or incompatibilities. This is because the API is stable, changes made to them improve it, but never break compatibility.

Main Features of ERC-20 Tokens

As we mentioned earlier, ERC-20 tokens are mainly characterized by their extensive adaptation capabilities. But to achieve this, an ERC-20 token uses a certain underlying structure that allows it to use its full potential. In this sense, these properties are:

• They have a name or identifier and an associated symbol. Thanks to these two values, it is possible to identify and distinguish between tokens within the Ethereum blockchain.
• Capable of addressing the fundamental economic aspects of the problem. Data such as the decimal precision system and total emissions are a core part of the token in the data structure.
• Operates an interface for checking and reviewing balances of owners’ addresses. In this way, the token can report the total funds balance available at a given address.
• You can manage the transfer system locally. This is because the token has functions to process fund transfers.
• Additionally, the token can autonomously manage partial withdrawals from one direction. For example, if Ali is allowed to withdraw 1000 ETH from Eles’ account, Ali can withdraw 250 ETH on the first withdrawal. For subsequent withdrawals, Ali may finish withdrawing the rest of the funds, but only up to 1000 ETH. It’s a feature called “Confirmed” and it’s tied to another “Procurement” call.

How to Generate ERC-20 Token?

1. Download MetaMask and create an account for yourself.
2. Go to the Remix app, which is the app you’ll use to develop and deploy smart contracts.
3. Copy an Erc20 contract code available on Github and paste it into the editor.
4. You need to change certain parts of the contract code. These are the name of your token, its short name, how many of our reserved tokens will be. Do not forget to add your wallet code starting with 0x to the relevant place in the contract. To find out your MetaMask wallet code, go to the MetaMask application, click the three lines in the upper left to go to the menu. You will see your wallet code starting with 0x on the screen that appears.
   Go to http://remix.ethereum.com and delete all the codes here and paste the agreement you have edited.
5. From the tab on the right, go to the “Run” section. Select your token from the section above the “Deploy” section and click the “Deploy” button.
6. After clicking, a MetaMask screen will appear. Confirm the screen that appears.
7. Go to MetaMask and enter contract setup from the list of transactions.
8. Click on the “Contract” address in the “to” line on the page that appears.
9. Three tabs will appear. Click the Code tab.
10. Click the “Verify and Publish” link.
11. Write the name of your token in the “Contract Name” field.
12. Enter the build version in Remix.
13. Set the Optimization field to “No”.
14. Paste the code you ran in Remix into the section below.
15. Click the “Verify and Publish” button.