What is an ERC20 Token?
An ERC-20 token is nothing more than a smart contract that has a predefined data structure. This structure is designed to facilitate the implementation of various features on the Ethereum blockchain, making it easier for developers to create.
Ethereum blockchain, unlike Bitcoin, was created to be a complete integrated ecosystem. For this reason, its developers have created new mechanisms to facilitate certain tasks. One example of this was the improved ability to create new coins "on top" of an existing blockchain. Something possible with Bitcoin and what we observe in the colored coin calls. To achieve this, the developers of Ethereum have created tokens ERC-20.
Its creation was proposed by Fabian Storyteller y Vitalik Buterin, and approved on 19 November 2015. It is part of the EIP of Ethereum, under the designation EIP-20 (EIP is the acronym for Ethereum Improvement Proposal).
The initials ERC significant Ethereum Comment Requests o Comment Request for Ethereum, while the number 20 comes from the EIP where it is described. ERC-20 describes a standard on the functions and events that an Ethereum smart contract can implement.
ERC-20 tokens are currently one of the most extensively utilized tokens in the cryptocurrency market. The amount of ERC-20 tokens created is huge, you can register Etherscan how many exist today.
How do ERC-20 tokens work?
In theory, ERC-20 tokens are smart contracts that run on the Ethereum network. They work within a programmatic framework established by the Ethereum team. This framework is broad enough to allow multiple uses without disrupting the Ethereum blockchain. For example, they can perform a parallel sub-accounting to the main Ethereum ledger, having their own unit of account. All of this is done without mingling the addresses' Ether balances. But guaranteeing the transparency, traceability and security that the Ethereum network offers.
The ERC-20 tokens have become a standard because of their incredible flexibility. However, their high transactional fees is a different story. The main purpose of these tokens is to standardize the interface for creating and issuing new tokens on the network. This is achieved by applying certain rules and parameters for its acceptance. For example, to modify or move an ERC-20 token, you must have Ether. This supports both the economic and utility part of the token.
Clanity is a Cardano Native Token, not an Ethereum ERC20 token
Clanity will have a Cardano native utility token, $CLAN, with a worldwide use case and a high potential for world adoption. This token will be used to reward customers for performing transactions with our business partners and the ecosystem.
$CLAN tokens have been minted under the Cardano blockchain with a fixed supply of 1 Billion. Don't miss out getting free tokens and the KYC for token pre-sale purchase available at clanity.com to get the best price before the market rebound.
Clanity aims to utilize the Cardano blockchain to help local businesses increase traffic, customer loyalty, and collaboration with other businesses with our B2C rewards and community engagement platform. Our program is based on a better philosophy to build customer loyalty by offering innovative value additions beyond any specific business scope. Cardano is a 3rd generation blockchain focusing on security, scalability, and interoperability making it an efficient choice for global-scale mass use.
With the upcoming Ouroboros Hydra solution, it will be able to process more than 1 million transactions per second. Not only that, it also reduces energy cost, provides provable security guarantees with transactions and seamless execution of smart contracts with Hydra’s Extended-UTxO model.
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