ERC20 is considered a dominant cryptocurrency platform in the global cryptocurrency market. If you are a cryptocurrency trader interested in ICO projects, it is impossible not to be familiar with the term ERC20. Appearing from the early days of Ethereum’s launch, the ERC20 wallet has received much attention and support from the community. In this article, Kienthuccoin will answer the content of “What is an ERC20 wallet? Learn information about Ethereum’s ERC-20 token”.
What is ERC20 Token?
ERC-20 is a technical standard used in smart contracts (Smart Contracts) on the Ethereum Blockchain when issuing Tokens. ERC20 stands for “Ethereum Request For Comment,” this technology is an improvement proposed by experts in the field of expertise that has just been officially accepted in the Ethereum Network system. This system has a unique ID of 20.
Currently, there are quite a few standards such as ERC20, ERC777, ERC721, ERC948, etc., but currently, ERC20 is the most commonly known. ERC20 is a technology that has been upgraded and perfected by experts.
What is ERC20 wallet?
ERC20 is known as the unique technology for smart contracts of the Ethereum platform. ERC stands for Ethereum Request for Comments, with 20 being the number of symbols assigned to this request.
ERC20 is created through Smart Contracts. ERC20 token is the Token that ERC 20 issues. The format of the ERC20 is also exceptional; they are distinguished by the ERC-20 wallet address, where there is always 0x at the start.
ERC-20 Development History
ERC20 was proposed on 11/19/2015 by Fabian Vogelsteller. It defines a general list of rules that an Ethereum Token must follow, giving developers the ability to program new Tokens to work within the Ethereum ecosystem. ERC-20 Token becomes more prevalent as Startup companies raise capital through ICO (initial coin offering).
Distinguish ERC20 Token and Ordinary Token:
You can quickly identify what is a regular Token and which is a Token using ERC20 technology by the image two below:
- The wallet address of the regular token
- ERC wallet address- 20 Tokens
If you notice, the wallet address of the token using ERC20 technology will have an additional character assigned 0x, and these Tokens are all purchased with Ethereum (ETH) cryptocurrency. You can store these types of Tokens in MyEtherWallet (and some other wallets) easily and share the same ETH wallet address.
When you access an Ethereum wallet application, you can fully see the tokens you are holding, and these ERC20 assets are all shared with the same receiving address as your Ethereum address. All ERC20 tokens are traded on the Ethereum network. Therefore an ETH address is also the address of those tokens.
Tokens using ERC20 technology when you want to send someone a small gas fee for each transaction. However, the processing speed for each transaction is a breakneck that other Token types cannot compare. Another advantage in technology other than ERC20 is the combination with Smart Contract. This will help you transact more securely; if you send Tokens to others but the wrong wallet address, this technology will report an error of the wallet address, so you cannot send Tokens to others. This is great as it will help you protect your assets as best as possible.
In which wallets is it safe to store ERC20 Token?
As I mentioned above, all ERC20 tokens are usually stored at the same Ethereum wallet address, and must support ERC20. Because many of you are often confused that You can store ERC20 Tokens on Blockchain or Coinbase because they also support ETH. However, this is not the case; this wallet must support both ERC20 Tokens, then you can use it to store ERC20 Tokens. Here are some essential wallets you can use to store ERC20 Tokens:
- MyEtherWallet (MEW): This is the most popular type of web wallet (online wallet) available today. But the security of this wallet is not guaranteed, and hackers have attacked many people to take all tokens. To overcome this situation, you should integrate more Metamaskl.
- Metamask: This is an addon that is installed on the Chrome browser. The Metamask wallet can be easily downloaded and installed on Chrome, so you can also create your own or integrate it through MEW.
- Token: This is a Mobile wallet. Currently, ImToken has developed both versions for iOS and Android. According to current user reviews, this is considered the safest wallet that you should use to store ETH and ERC20 tokens because mobile applications are often very secure, especially iOS.
- Mist and Parity: These are two types of wallets installed directly on the computer.
- Trust and Cipher: These are two types of wallets on Mobile.
- In addition, when these ERC-20 Tokens are listed on exchanges, you can transfer them to the exchange’s wallet for easy trading and store them on it; however, if you are not a Trader who only stores long-term, you should keep them in the above wallets.
Conclusion about ERC20 Wallet
Above is the article “What is ERC20 Wallet? Learn information about Ethereum ERC-20 token” hopes to bring readers a lot of helpful information; these are the essential knowledge you need to know when participating in the cryptocurrency market, primarily when investing in ICO projects. Please register, follow Kienthuccoin to update the latest news about electronic gadgets, blockchain.