Homework: ERC20

Ethereum 101
#1468
  1. What are the benefits of setting a token standard like ERC20?
    The benefits of setting a token standard like ERC20 are that the same standard of code can be used for all the various tokens or ICO’s.
    Most of these tokens are actually tokens on top of Etherium or other smart contract platforms.
    The ERC20 standard is how we program the tokens - a token can be programmed however you want in solidity, but by having the ERC20 standard means that all developers can create the tokens in exactly the same way.
    ERC20 tokens are known as fungible, which means that all tokens are the same.
    Because these tokens are laid out in the same way, it means that all exchanges and all wallets will be able to support these wallets from day one - when a new token comes out it is supported by all the exchanges and all the wallets.
    Having this token standard - a standard way to program a token, a standard way to deploy tokens on the etherium smart contract platform, has been extremely beneficial for the entire space.
    Apparently all ERC20 tokens are all the same and they all have the same value(?)
    Another benefit of having this standard is that since it came out in 2017 - 18, many people have been able to launch their own cryptocurrencies.
    This means that we can create new currencies, new tokens, new economies. We can create new models and structures.
  2. What functions are in the ERC20 Token Standard Interface and what do they do?

ERC-20 defines two events that must be triggered when the contract takes the relevant action.
The first event is a Transfer() which emits details of approvals of tokens from one address to another.
The second event is Approval() which emits details of approvals from one address to another.
These can be used to keep track of balance and allowance changes for addresses without needing to poll the blockchain.

Minting tokens emits a Transfer() event with the 0 address as the source.
There is no event emitted when tokens are burned.

Due to this ERC-20 token, contracts that burn tokens, commonly transfer() to the 0 address before real burning.

1 Like
#1469

[quote=“filip, post:1, topic:8440, full:true”]
Homework on ERC20 token standard.

  1. What are the benefits of setting a token standard like ERC20?

  2. What functions are in the ERC20 Token Standard Interface and what do they do?

  3. Right now most of token are based on ERC20 standart, so that means your token can be easily integrated in markets and wallets. Easyer to use and to program.

  4. Allow users to find out the balances of accounts as well as to transfer them from one account to another under varying conditions.

1 Like
#1470
  1. What are the benefits of setting a token standard like ERC20?

This is to ensure that all new tokens created can be supported on widely adopted wallets and exchanges.

It also streamline a standard and consistent way for communications in the cryptocurrencies space as well as for instructions to be executed across various tokens.

  1. What functions are in the ERC20 Token Standard Interface and what do they do?

Mentioned in the video

totalsupply – add up the sum of the balances of all ERC20 tokens available

balanceOf ( ) – you want information of the balance of an address

Some functions in the article

transfer( ) - function transfers a number of tokens directly from the message sender to another address

allowance() function - provides the number of tokens allowed to be transferred from a given address by another given address

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#1471
  1. Easier to incorporate the token for wallets and exchanges so that every token is not built completely different and the exchanges and wallets don’t have to have a unique solution for every token and that makes the industry better.
  2. totalSupply() tells how many tokens are in circulation of that particular token, balanceOf(address account) gives you the balance of that particular address.
1 Like
#1472

Excellent answers, It’s easy to understand. Please keep them like that :muscle:

Carlos Z.

#1473
  1. What are the benefits of setting a token standard like ERC20? Less friction if the token contracts are all fungible. Easier to enter the space and easier to create interoperability.
  2. What functions are in the ERC20 Token Standard Interface and what do they do? totalSupply : Returns the total circulating amount of tokens.
    balanceOf : Returns how many tokens exist in an account.
    transfer : Transfer an amount of tokens from owner’s account to another account
1 Like
#1474

  1. Having standards allow wallet and exchange to add ERC 20 from day one

  2. ERC20 Token Standard Interface are balanceOf(), transfer(), approve(), transferFrom(), and allowance()

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#1475

  1. What are the benefits of setting a token standard like ERC20?
    Integration and interoperability with each other and consistency of the network.

  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    totalSupply(): Maximum number of tokens.
    balanceOf(): Address’ balance.
    transferFrom(): Tokens from an address.
    doSomthing(): Operation instructions.

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#1476
  1. Everybody uses the same standard which means a new token will be compatible with all exchanges and all wallets from day 1.
  2. The balanceOf() function provides the number of tokens held by a given address, transfer() is to send tokens, allowance() function provides the number of tokens allowed to be transferred from a given address by another given address and many more
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#1477

  1. The benefits of an ERC20 standard for tokens is interoperability between wallets and exchanges as all code is written in the same way. This is much simpler because it creates a frictionless economy.

  2. The function balanceof(): Provides the number of tokens held by a given address.
    Transfer() directly sends a number of tokens from the address to another person’s address.
    allowance() the number of tokens allowed to be trasnferred from a given address to another address.
    approve provides the information that states the allowance an address has from another address this is useful for smart contracts that may work on unconfirmed tx.

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#1478
  1. What are the benefits of setting a token standard like ERC20?
    all programs are written with united commands and tokens are usable for every one and every node or wallet.
  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    total supply : number of tokens that are in function
    balance Of(address): checking balance of mentioned address
    transfer
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#1479
  1. Any ERC20 token can use the exchanges and wallets within the ethereum system it is built off of.
  2. totalSupply - gives how many tokens are in circulation
    balanceOf - shows the balance in an account
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#1480
  1. What are the benefits of setting a token standard like ERC20? Allow applications to communicate with one another and allows a standard to be established.
  2. What functions are in the ERC20 Token Standard Interface and what do they do? A few:
    -transfer() = send token from one address to another.
    -balanceOf()= will give the number of present tokens
    TotalSum()= sum of an accounts balance.
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#1481

  1. Setting a standard like ERC20 makes new tokens more fungible. Allows wallets/exchanges to readily offer support for new ERC20 tokens because all ERC20 tokens share the same design language.

  2. ERC20 defines the functions: balanceof(), totalSupply(), transfer(), transferFrom(), approve(), and allowance()

1 Like
#1482

  1. What are the benefits of setting a token standard like ERC20?
    The standard makes the different tokens exchange easily and allows wallets to provide token balances for different tokens.

  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    totalSupply (provide information about the total token supply)
    balanceOf (provide account balance of the owner’s account)
    transfer (execute transfer of a specified number of tokens to a specified address)
    transferFrom (execute transfer of a specified number of tokens from a specified address)
    approve (allow a spender to withdraw a set number of tokens from a specified account)
    allowance (return a set number of tokens from a spender to the owner)

2 Likes
#1483

  1. Everyone uses the same functions and language so that all tokens can communicate and execute the code instructions effectively.

  2. BalanceOf(address account) Gives balance of a specific address, transfer() executes a transaction request, doSomething () gives an instruction to execute

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#1484

  1. What are the benefits of setting a token standard like ERC20?
    All ERC20 tokens are set with standard lines of code to make it easier for exchanges and wallets to add them to their systems. Since most of Coin Market Cap is ERC20 tokens this ensures an easy add for exchanges. If every ERC20 had different code it would be a bit more difficult as the exchanges/wallets would have to use new code every time just to get the ERC20 on their platform.

  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    balanceOf() will tell how many tokens are held in a certain address.
    transfer() will send tokens from one sender to one receiver. Sender MUST make sure the correct address for the recipient is 100% correct as no checks are done.

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#1485
  1. It increases efficiency because the exchanges and wallets all read the same commands.
  2. balanceOf() - shows the balance of any given address
    transfer() - moves tokens from 1 address to another
2 Likes
#1486

Question 1

The benefits of token standard are

  1. Efficiency
  2. Helps the space to understand and speak one language
  3. Simplicity

Question 2

BalanceOf
Totalsupply

#1487

2. What functions are in the ERC20 Token Standard Interface and what do they do?

Yes sir, but could you please describe what those functions do?

If you have any more questions, please let us know so we can help you! :slight_smile:

Carlos Z.