Nowadays digital currencies are considered the most growing investment industry. If you plan to purchase Dash, Litecoin, Bitcoin, or Bitcoin Cash, you have to be aware of different nuances. A lot of modern enterprises already use innovative strategies to improve their business processes. If you need to learn phases of Ethereum blockchain development, you may download different tutorials to understand its mechanisms personally. Moreover, there are professional companies (OnGrid Systems, for example) where it is possible to get qualified consulting.
Specifics of standardization
Most Initial Coin Offerings (or ICOs) use Ethereum smart contracts as the basic platform. Usually, these ICOs take ETH or BTC as standard means of payment. In exchange, investors get tokens of special ERC-20 form.
The ERC-20 standard determines the set of strict rules to be accomplished for the acceptance of tokens.
Before the advent of this convenient standard, there were a lot of compatibility issues between various types of ETH tokens. To accept them it was necessary to create new code every time. That’s why Ethereum token development of single standards could solve the problem.
ERC-20 tokens based on Ethereum differ from other known cryptocurrencies as they operate with the address format that is used within one network.
They could act as shares of a business project, as certificates of ownership, loyalty programs, or cryptocurrency. Also, they often perform several of these roles simultaneously.
Advantages of ERC-20 tokens:
- The economy of time and resources. These standardized tokens are benefiting from the existing infrastructure. There is no need to create a new scheme anymore.
- Safety of use. ERC-20 has increased the demand for Ether currency, and it provides the most security to the entire network.
- Compatibility. All standardized tokens are fungible, so it is easy to use them in different applications within the same ecosystem.
- Huge liquidity. This format is used as the basis of most projects. So, there are no problems with their implementation.
Moreover, it is possible to automatically purchase and sell them, recharge the balance of the connected account, and freeze assets.
If you want to get success in this field, do not hesitate to contact professional experts. Experienced specialists will assist your business project to implement effective technologies in order to achieve the high goals.