If you have an idea or initiated yourself to get into the crypto world, without a doubt, at least once you would have heard about the ERC 20 Tokens.
I hope that I can share with you a bonus spike, “You can create your own Tokens, and launch an ICO to drive liquidity of dollars and master this crypto world in a short span of time by comprehending ERC 20 Tokens.
Coming to the point. To primarily understand the ERC 20 token you need to be acquainted with Ethereum, ICO concepts and Smartcontract.
What is ERC 20 Token ?
A Separate Ethereum Blockchain is there in the crypto world where you can create your Tokens or cryptocurrency. The native digital cryptocurrency is Ether in Ethereum. Like Bitcoin, every transactions and information are stored in a decentralized manner.
ERC 20 is nothing but the token that is developed in the Ethereum blockchain with some API Specifications or a standard that depicts how the token should perform. It has the ability to issue your own token in less than 20 minutes.
To distribute or dispense the ERC 20 Token, you can opt for the prominent method called ICO launch. That is “Initial Coin offering” To raise the capital of the business ICO crowdfunding may works.
How It Works ?
The investors should have an account in the Ethereum network, furtherly when decided to buy the token one can visit the crowd sale site and can purchase the token with the Ether. To do this process you need a digital wallet where you can store the tokens as well as Ether.
Also need to fit out the smart contracts.
- From the wallet the investor send the Ether,
- The data gets monitored by the smart contract.
- Finally the tokens gets dispensed to the user wallet by smart contract.