Ethereum, also known as ETH, is a complete ecosystem where people can create almost anything from complex decentralized applications (Dapps). So what is ERC20 and what is the difference between ETH and ERC20? If you do not know yet, let's read the article below.
What is ERC20?
The ERC-20 token standard allows developers to create their own tokens on the Ethereum network. It provides an easier path for companies to develop blockchain products rather than building their own cryptocurrencies.
Some tokens, like Uniswap's UNI token, are set to remain ERC-20 tokens; other cryptocurrencies, like Binance Coin, have jumped onto their own blockchains.
ERC-20 tokens are the most commonly used tokens on the Ethereum network. They are intended to be used for payment functions and are called utility tokens. They can also be used to pay for goods and services.
What's the Difference Between ETH and ERC-20?
Ether (ETH) is the native token of the Ethereum blockchain and network used as a payment system for validating transactions. ERC-20 is a standard for creating smart contract-enabled fungible tokens for the Ethereum ecosystem.
I hope you would now know what is ERC20 and what is the difference between ETH and ERC20. If any smart contract wants to use ERC20 tokens then it needs to follow some rules or ERC standards accordingly. In other cases, calling it an ERC 20 token is inappropriate if you don't follow the rules.
