What is the difference between ERC20 and other types of cryptocurrencies?

3 answers

• Dec 17, 2021 · 3 years ago
  ERC20 is a technical standard used for smart contracts on the Ethereum blockchain. It defines a set of rules that a token must follow to be considered ERC20 compliant. This standard allows for seamless interoperability between different tokens and platforms built on Ethereum. Other types of cryptocurrencies, such as Bitcoin or Litecoin, have their own unique protocols and rules. While ERC20 tokens are mainly used for utility purposes within decentralized applications, other cryptocurrencies may serve different functions like being a store of value or a medium of exchange.
  578289
• Dec 17, 2021 · 3 years ago
  ERC20 is like the popular kid in the cryptocurrency world. It's the standard that most tokens on the Ethereum blockchain follow. Think of it as the rulebook that everyone has to play by. Other cryptocurrencies, on the other hand, have their own rulebooks. Bitcoin has its own set of rules, Litecoin has its own set of rules, and so on. Each cryptocurrency has its own unique features and use cases. ERC20 tokens are great for building decentralized applications and enabling seamless transactions within the Ethereum ecosystem.
  527176
• Dec 17, 2021 · 3 years ago
  When it comes to ERC20, it's all about the Ethereum blockchain. ERC20 tokens are built on top of Ethereum, which is a decentralized platform that enables the creation of smart contracts. These tokens are fungible, meaning they can be exchanged on a one-to-one basis. Other cryptocurrencies, like Bitcoin or Litecoin, have their own blockchains and protocols. They may have different features and use cases. For example, Bitcoin is often seen as digital gold, while Litecoin is known for its faster transaction speeds. So, the key difference between ERC20 and other cryptocurrencies lies in the underlying technology and the specific use cases they serve.
  654164