"ERC20 Token”- this must be a phrase you've heard a lot about when investing in ICO projects developed on the Ethereum Blockchain platform, right. So "What is ERC20 Token?", How to distinguish ERC-20 Token from other types of Token? And what types of wallets support ERC20 Token storage? This article Virtual money blog will work with you to find out!
What is ERC20 Token?
ERC-20 is a technical standard used for these smart contract on the Ethereum Blockchain when issuing Token. ERC20 stands for "Ethereum Requetst For Coment" this technology is an improvement proposed by experts that has been officially accepted in the Ethereum Network system and this system has a unique ID code that is 20.
Development history of ERC-20
ERC20 was proposed on 19/11/2015 by Fabian birdcage. It defines a general list of rules that an Ethereum Token must follow, giving developers the ability to program new tokens to work in the Ethereum ecosystem. ERC-20 token become more popular when Startup companies raise capital through ICO (first coin issuance).
Distinguish ERC20 Token and regular Token
You can easily tell what is Ordinary tokeng and where are Token uses ERC20 technology by image 2 below:
- Ordinary Token wallet address
- Wallet address of ERC-20 Token
If you notice, the address of the Token wallet using ERC20 technology will have an additional assignment 0x and these tokens are bought with Ethereum (ETH). These types of Token you can store at MyEtherWallet wallet (and some other wallets I'll talk below) easily and share the same ETH wallet address.
When you access an Ethereum wallet application, you can completely see the tokens you are holding, and these ERC20 assets are shared with the same address that is your Ethereum address. All ERC20 tokens are traded on the Ethereum network. Thus an ETH address is also the address of those tokens.
Token that uses ERC20 technology when you want to send it to someone will cost a small fee for each transaction. However, the processing speed for each transaction is extremely fast that other Token types cannot compare. One advantage of ERC20 technology is the combination with smart contracts. This will help you make transactions more secure, in case you send a token to someone but the wrong wallet address, this technology will report a wallet address error and you cannot send the token to others. This is great as it will help you to protect your assets as best as possible.
Which ERC20 tokens are stored in which wallets are safe?
As I mentioned above, all ERC20 Token are stored at the same wallet address of Ethereum, of course this wallet must support ERC20 already. Because quite a few of you are still confused that ERC20 Token can be stored on Blockchain or Coinbase because they also support ETH, but not so, this wallet must support ERC20 Token, you can use it to store ERC20 Token. Here are some types of wallets you can use to store ERC20 Token:
- MyEtherWallet (MEW): This is one of the most popular web wallets, but the security of this wallet is quite "banana" and many hackers have stolen their tokens. To overcome this situation, you should integrate more Metamask. See detailed instructions here.
- Metamask: This is an addon of Chrome browser, this wallet you can download and install easily on Chrome, you can also create your own wallet or integrate through MEW as above.
- ImToken: This is a Mobile wallet, ImToken currently has both versions for IOS and Android. I personally consider this type safest wallet which you should use to store ETH and ERC20 tokens, because Mobile applications are often highly secure, especially of iOS. I am writing how to install and use ImToken wallet, you can follow the forum "Wallet”On Virtual Money Blog to update soon.
- Mist and Parity: These are two types of wallets installed directly on your computer, this wallet is quite few users, so I do not follow the instructions. You can download below:
- Trust and Cipher: These are 2 types of mobile wallets, it is also not popular so I do not follow the instructions, you can download and experience below:
- Besides, when these ERC-20 Tokens are listed on the exchanges then you can transfer to the wallet of the exchange for easy trading and storage on it, however, if you are not a trader but only long-term storage, you should put in these wallets.
Ok above is the article "What is ERC20 Token? Distinguish Ethereum platform tokens and other tokens - Some types of wallets support ERC20 token storageHopefully, this will bring you a lot of useful information, these are the basic knowledge you need to know when leaving the crypto market, especially when investing in ICO projects. Do not forget Like, Share , and 5 star rating for Virtual money blog below. If you have any questions, you can leave below a comment I will answer.