Homework: ERC20

Ethereum 101
#1889
  1. What are the benefits of setting a token standard like ERC20?
    The benefits are that everyone can communicate with each other in the same languages. So any wallet, exchanges, app, etc. understand each other.
  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    The functions allows users to find out the balances of accounts as well as to transfer them from one account to another under varying conditions.
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#1890

  1. Having the same standards allows all tokens to be able work to work seamlessly on the blockchain because all coding means the same thing for each token. This allows all wallets access to every single token and helps maintain simplicity.

  2. The functions allow you to see the total supply of the coin, the transfer of coins between wallets and the balance of coins in a wallet.

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#1891

  1. you have one language where every rule is programmed in. Therefore every wallet, exchange etc. Can talk easily to each other because they are not programmed in different languages.

  2. The total suply of the fungible tokens being put out, balance of the adresses etc.

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#1892
  1. All tokens based on the same standards will communicate with each as expected. This makes all tokens interoperable and reduces friction.
  2. Basically ERC20 Token Standard has 5 functions, knowing:
    a) (TotalSupply) gives maximum number of tokens that exist
    b) (BalanceOf) gives a public addresses’ balance of ERC20 tokens
    c) (Transfer) allows someone to transfer ERC20 tokens to a public address
    d) (Allowance) shows how much you are allowed to spend
    e) (Approve) Approves the allowance spend
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#1893

  1. ERC 20 supports all the tokens and are the standard is fungible to all other coins under this standard

  2. The functions are total supply that make the entire space communicate with each other. Balance of function so you can get public addresses balance of ERC20 tokens and transfer which allows someone to transfer their ERC20 tokens to another public address.

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#1894

totalSupply() creates max supply that will exist.
balanceOf(address account) for a given address you will get the balance.
approve() approves transfer
Transferfrom() check permission then transfer if permission is allowed
transfer() sends amt to an address

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#1895
  1. standards provide uniformity in instructions and expected results
  2. functions include totalSupply, balanceOf, and transfer, which return the total supply of tokens, balance of an account, and movement of funds.
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#1896
  1. Benefit of the standard of ERC 20 allows to communicate wallets and exchanges to be programed to support any token.
    2)TOTAL SUPPLY gives maximum number of token exist.
    BALANCE of address account gives a public address balance
    TRANSFER allows to transfer their tokens to another public address
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#1897
  1. All the exchanges and wallets will be able to support the tokens from day one. Efficiency.
  2. balanceOf () provides the number of tokens held by a given adress; transfer () transfers a number of tokens directly from the message sender to another adress; aprove () and transferFrom () to pay for a funtion in a smart contract; allowance () provides the number of tokens allowed to be transfered from a given adress by another given adress.
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#1898

1.The ERC-20 is a fungible token standard, meaning for all intensive purposes they are interchangable.
The benefits fo setting a standard like the ERC-20 is that it helps with efficiency, interoperability and communication. For example there is a function written in the smart contract for the ERC-20 that reads total supply, every smart contract for an ERC-20 token will have the function written as total supply, not “the total supply” or “supply” but total supply. This standardization of the format has helped the industry grow significantly because all smart contracts become more efficient as they are all interoperable with wallets, exchanges, and eachother without having to make adjustments for different language or instruction.
2.
balanceOf() function provides number of tokens held by a given address.
transfer() transfers a number of tokens directly from a sender address to another address.
approve() and transferFrom()allows for transfer and for tokens to be used for that function of the smart contract. In the first step the token holder gives another address( usually in a smart contract) approval to transfer up to a certain number of tokens known as an allowance. The token holder uses approve() to provide that information
allowance() function provides for the number of tokens allowed to be transferred from a given address to another given address.

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#1899
  1. It makes it more efficient and easier for everybody to read when everybody writes their code in a similar fashion, using a standard.
  2. TotalSupply function sets the total supply of the token. BalanceOf checks the balance of an address.
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#1900
  1. Tokens set on the ERC20 standard are accepted by all the exchanges and wallets on day one because they trade the same way as previous tokens built on ETH.
  2. totalSupply function : shows how many tokens are in circulation
    balanceOf function : shows the balance in ETH wallets
    transfer function : transfering ETH
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#1901

Having a standard for tokens reduces friction because everything can be read and executed the same way.

Some of the functions in ERC 20 include:

Totalsupply() which shows all tokens are in circulation
balanceOf() shows the balance of account listen between “()”

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#1902

  1. It allows interoperability , increases efficiency by allowing walets and exchanges be able to support ERC20s from day 1 because all the code its layed out the same way .

  2. Totalsupply() how many tokens in circulation ; BalanceOf() how many tokens in a given address; Transfer() transfers tokens directly from sender to a given address; approve() to provide certain information; transferfrom() move the allowed tokens to a given address; allowance() provides number of tokens allowed to be transfered from one given address by another given address;

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#1903

  1. What are the benefits of setting a token standard like ERC20?
    It allows better interoperability of tokens including how they are exchanged, how they are held in wallets how they can be used in smart contracts etc.

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

  • Total supply() - this controls how many tokens are in existence on the network
  • Balance of (address account) - This is a standard way of querying the balance of an address, it’s possible to use this to query any ERC20 address on chain
  • Transfer() - This is the standard function to transfer tokens from one address to another
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#1904
  1. What are the benefits of setting a token standard like ERC20?

The facilitation of the interaction between smart contracts, between exchanges and smart contracts, between wallets and smart contracts etc

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

-function totalSupply () - the total supply of issued tokens
-function balanceOf () - the balance of a particular account

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#1905
  1. What are the benefits of setting a token standard like ERC20?
    Ans: It creates a common standard to programming tokens so that the wallets and exchanges can know how to support and use the tokens that are created effectively.
  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    Ans: It has functions like totalSupply, balanceOf, and transfer, which return the total supply of tokens, balance of an account, and enables movement of funds respectively.
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#1906
Answer

Standards are necessary for cooperation, scaling, and mass adoption. If everyone was using different protocols people and their projects would not be able to communicate between each other nor work together to solve problems. I believe markets are cyclical between competitive and cooperative periods of time. Right now the crypto space is still young enough to where there is still plenty of fierce competition between people and their projects trying to become the future standard of FinTech but it has been around long enough to where there are clear leaders in different spaces. Ethereum appears to be the leader in and is setting standards for the smart contract space. This has happened time and again as technology is introduced to and changes humanity. It happened in web 1.0 and 2.0. HTTPS wasn’t always a standard protocol but through competition and the need for cooperation it slowly became the standard. Google wasn’t always the standard for search engines but again through competition and the need for cooperation it became the standard. This does not only happen in internet technologies but in all technologies. Air bags in cars weren’t always a standard but through competition and cooperation it became a standard for safety. Technologies develop standards through the natural creative/destructive cycles of markets to progress humanity.

Answer

  • balanceOf() function: provides the number of tokens held by a given address

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

  • approve() function: authorizes a third party (in this case the service contract) to transfer tokens from the sender’s account

  • transferFrom() function: carries out the transfer by the third party

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#1907
  1. It simplifies the use accross difference tokens
  2. Totalsupply= how many tokens are in circulation.
    Balanceof() = how many tokens at am address
    Transfer = transfer tokens from one address to another
    Approve = check if a tx has been approved
    Allowance = number of approved tokens by an owner
    Transferfrom = allows an owner approved for withdrawal to transfer to a different account.
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#1908

  1. What are the benefits of setting a token standard like ERC20?
    – Allow seamless communication between different contracts, tokens, and wallets within the ecosystem.
    – Allow interoperability of contracts/tokens with other contracts/tokens within the ecosystem, thus allowing more complex functionalities like DeFi, Yield Farming, NFTs, Synthetics, Insurances etc.
    – (my personal take) anyone else reviewing your token/contract/code base will understand much more easily & allows much more contributions from a much wider range of developers.

  2. What functions are in the ERC20 Token Standard Interface and what do they do?
    – totalSupply() - Returns the total token supply.
    – balanceOf(account _owner) - Returns the account balance of another account with address “_owner”.
    All of these can be obtained in Ethereum’s official documentation here:
    https://eips.ethereum.org/EIPS/eip-20
    https://ethereum.org/en/developers/docs/standards/tokens/erc-20/

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