- What are the benefits of setting a token standard like ERC20?
Setting a token standard like ERC20 is beneficial because it ensures that all tokens created on Ethereum are compatible with different platforms, including wallets and exchanges. This interoperability makes it easier for tokens to be widely adopted. The standard also simplifies the development process by providing a set of predefined functions, reducing the complexity of integrating tokens into various applications. Additionally, using a consistent standard enhances security and minimizes the chances of errors in token contracts.
- What functions are in the ERC20 Token Standard Interface and what do they do?
- totalSupply: Returns the total number of tokens in circulation.
- balanceOf: Provides the token balance of a specific address.
- transfer: Transfers a specified number of tokens from the senderâs address to another address.
- approve: Allows a spender to withdraw a specified number of tokens from the ownerâs account, often used in conjunction with transferFrom.
- transferFrom: Facilitates the transfer of tokens from one address to another on behalf of the owner, using the allowance mechanism set by approve.
- allowance: Returns the remaining number of tokens that a spender is allowed to transfer from the ownerâs account, as set by approve.