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7 Core Benefits of ERC20 Tokens in the Business World

By Mahmuda Akter Isha Last Updated -- Tuesday, 2022-03-01
Benefits of ERC20 Tokens

Curious to know about the benefits of ERC20 tokens? ERC20 tokens are one of the trendy tokens in the Ethereum Blockchain network. But most traders and entrepreneurs are not aware of the concept of what ERC20 tokens are, what does ERC20 stands for, the benefits of ERC20 tokens, a list of all ERC20 tokens, and so on. Moreover, these factors are essential to know before dealing with ERC20 tokens.

Definitely, you are looking for all of the queries to learn about the details of ERC20 tokens, isn’t it??? Don’t worry!!! This article will act as a magic lamp to explore the basic concept of ERC20 tokens. Here, you will get all of these aspects of ERC20 tokens, it will be very helpful and effective for you. So, why are you wasting your time??? 

Let’s jump into the core part of this article. 

What is ERC20 Token?

ERC20 stands for Ethereum Request for Comment (ERC) and 20 represents a list of rules and actions on the Blockchain network. ERC20 tokens are mainly a set of fungible digital assets that can allow the users to build a payment gateway on a decentralized Ethereum Blockchain network. The main functionalities of ERC20 tokens are similar to other cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and so on.  

The main difference between ERC20 tokens and other cryptocurrencies is that ERC20 tokens are created and hosted on the Ethereum Blockchain network. But other native cryptocurrencies like Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, and so on can conduct their activities on the Blockchain network.

What Are the Benefits of ERC20 Tokens?

ERC20 tokens are one of the significant tokens on the Ethereum network because it provides some protocols to improve the Ethereum Blockchain network. Moreover, ERC20 tokens provide a common standard to create tokens on the Ethereum Blockchain. 

Also, it has some remarkable benefits which can ensure safety and security on the Blockchain network. In this section, I would like to discuss 7 significant benefits of ERC20 tokens.   

1. ERC20 Tokens Are Easy for Creation & Coding

The most significant benefit of ERC20 tokens is that it is easy to create for the developers. Moreover, the developers can easily create the ERC20 tokens by following some simple steps. Also, it is easy to write the entire script to create a new ERC20 token. 

So, if you are a developer, you can create your own ERC20 tokens, then you can give a unique token name, symbol, specify the decimal, and mention how it will be dividable, of your created token. Otherwise, you can hire an expert developer to create your desired ERC20 tokens.     

2. Ensured Quick Fundraising through ERC20 Tokens

Fundraising is one of the popular concepts of all Crypto investors. Most crypto entrepreneurs raise the funds by offering their newly launched coins. In this regard, if you create Ethereum-based coins which are included in the ERC20 tokens, it will be very easy to raise funds from the investors. 

Most significantly, the investors are more interested to invest their assets in ERC20 tokens because of the popularity and security of ERC20 tokens.          

3. Consumed Less Time to Create ERC20 Tokens

If you want to develop other tokens, it will consume more time and be difficult to create. But ERC20 tokens will consume less time than other tokens. Thus, you can easily gain your desired profit by creating and launching ERC20 tokens. Otherwise, you need to stay in an infinite loop if you create and launch other tokens.      

4. Ensured Safety & Security through Built-in Wallet

The ERC20 tokens allow the developers to integrate a cryptocurrency wallet. This wallet will assist the users to store their purchased coins, and that will assure the safety and security of your purchased cryptocurrencies. 

In Particular, the traders and crypto investors will get a built-in crypto wallet with ERC20 tokens because it is deployed with a crypto wallet.      

5. Conducted Automatic Transaction by ERC20 Tokens

ERC20 tokens are able to conduct an automatic transaction. According to the terms of the contract, after completing any transaction, it will be automatically transferred to the crypto wallet. Thus, you can relentlessly transfer your purchased cryptocurrencies through ERC20 tokens. 

Therefore, the ERC20 token offers several payment gateways to complete the overall transaction successfully. So, it will ensure the effectiveness and reduce the uncertainty to deal with crypto in the crypto world. 

6. Allowed to Build Smart Contract through ERC20 Tokens

You have already been informed that the ERC20 token is a set of rules and regulations which will need to be maintained for ensuring security. Also, you can minimize the risk of manipulation by third parties. As a result, the ERC20 token can save your cost by eliminating the intervention of third parties.

Moreover, the smart contract can be able to save your cost fees during the execution process. So, you can ensure accuracy and security through the smart contract in ERC20 tokens.

7. Required Low Cost to Create a New ERC20 Token

ERC20 token offers the most user-friendly interface so that the users can easily conduct their trading activities through this payment gateway. As a result, it can enhance usability by providing simple and user-friendly UI and UX.

Moreover, it is required at a low cost to create a new ERC20 token but you will get an uncountable advantage from your created ERC20 tokens. To create a new ERC20 token, it would require around $5000-$50000. But the cost will depend on your requirements.

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Cryptocurrency Trading Software with ERC20 Module

What Are the Advantages of ERC20 Tokens in the Business Field?

In the previous section, you have learned about the overall benefits of ERC20 tokens. But as a business owner or entrepreneur, you might be curious to know the business benefits of the ERC20 token. 

In this section, I will highlight some peak points which will bring out the success of your business. To understand the business advantages, you can take a look at the following section. 

  • ERC20 token ensures speedy, effective, and globalized transactions. 
  • It can reduce the complexity of token interaction. 
  • ERC20 tokens can minimize the risk by providing transparency and liquidity.
  • Easy to gain high index profit from the investment.   
  • It ensures the high revenue of your business through wide usage and familiarity.
  • Easy to grab the end-users attention by offering exclusive features. 
  • Allows easy exchange and universal transaction. 
  • Provides a built-in wallet to protect a user’s private key and personal assets. 
  • Allows the users to launch their own ERC20 token through an ICO platform.
  • ERC20 token provides the opportunity to interact with other currencies.
  • Allows to interchange any asset or coins on the Ethereum Blockchain network. 
  • ERC20 tokens ensure a safe and secured transaction. 

So, you can grab these remarkable advantages if you integrate an ERC20 token with your business.     

Learn about Ethereum to Explore Details of ERC20 Tokens

What is Ethereum?

Ethereum provides a decentralized Blockchain technology that creates a peer-to-peer network to send or receive any cryptocurrencies within this network. Ether (ETH)  is the base currency in this Ethereum platform. So, Ethereum is mainly a financial platform that has been built with Blockchain technology to deal with various cryptocurrencies with smart contract functionality.

Moreover, Ethereum is the warehouse of digital money, global payments, and various applications. Most significantly, it provides an open-source platform so that everyone can conduct their trading activities smartly and securely.

However, there are numerous Ethereum token standards are available, but the most popular token standards are: 

  • ERC20 
  • ERC-721
  • ERC-777
  • ERC-1155
  • ERC1400
  • ERC827
  • ERC1203
  • ERC777
  • ERC721
  • ERC223, and so on. 

But ERC20 token standards are stand out among all of them.   

Features of Ethereum Blockchain Platform

  • Decentralized finance (DeFi) system
  • Allows send, receive, borrow, earn interest, and stream from anywhere 
  • Provides secured banking system
  • Supports non-fungible tokens (NFTs)
  • Provides censorship-resistant, commerce guarantee, and so on.     

How Many ERC20 Tokens Are There?

Do you know how many ERC20 tokens exist? Some newbie traders or crypto entrepreneurs might be confused about which tokens are enlisted under ERC20. To resolve such kinds of difficulties, I would like to point out all ERC20 tokens. 

According to the data of Etherscan

Till now 937 ERC20 project-based coins and 490,219 token contracts have been found in the Ethereum crypto market. Source

Exclusive List of All ERC20 Tokens

  • Tether USD (USDT)
  • BNB (BNB)
  • USD Coin (USDC)
  • HEX (HEX)
  • Uniswap (UNI)
  • Binance USD (BUSD)
  • Matic Token (MATIC)
  • Wrapped UST Token (UST)
  • Coin (CRO)
  • Wrapped BTC (WBTC)
  • Dai Stablecoin (DAI)
  • ChainLink Token (LINK)
  • TRON (TRX)
  • OKB (OKB)
  • Fantom Token (FTM)
  • Theta Token (THETA)
  • stETH (stETH)
  • Bitfinex LEO Token (LEO)
  • Magic Internet Money (MIM)
  • Gala (GALA)
  • Huobi BTC (HBTC)
  • TrueUSD (TUSD)
  • KuCoin Token (KCS)

Here, I have enlisted the top 25 ERC20 tokens which will help you to know about that. 

What Are the Fundamental Features of ERC20 Tokens?

ERC20 tokens provide a decentralized payment gateway system within the Ethereum Blockchain network. From the above discussion, you have already understood the concept of the ERC20 token, a list of the top ERC20 tokens, and its benefits. 

Thus, it is obvious that it has certain characteristics which can ensure all of the aspects of ERC20 tokens. Here, I will explore some significant features of ERC20 tokens. 

  • Authenticity & Uniqueness: Each ERC20 tokens have a unique name, symbol, and identifier to differentiate among each other. 
  • Organized Data Structure: Provides a standard data structure to maintain various economic aspects.  
  • Total Supply: Allows to maintain all information about the total token supply
  • Token Transfer: Ensures a secured transfer of a specified number of tokens to a specified address. 
  • Transparent Balance Sheet: Generates a transparent balance and provides the balance of the owner’s account. 
  • Authority & Flexibility: Every user or spender is allowed to withdraw a certain amount of token from a specified account.
  • Allowance: ERC20 token standards allow the users to get return a certain number of tokens from a spender.  

These are the basic features of ERC20 tokens. So, you can conduct your business operation through these notable features and functionalities. 

Curious to Buy ERC20 Tokens or Want to Build a Direct Connection With Ethereum Network???

After knowing the details about ERC20 tokens, you can deal with such kinds of exclusive tokens. Feeling curious to buy ERC20 tokens??? 

Here, you will get a complete guide on how to buy ERC20 tokens.

Moreover, you can easily become a crypto entrepreneur to build your own cryptocurrency trading marketplace. If you integrate an ERC20 module with your business, you can launch your own token. Also, you can deposit or withdraw all ERC20 based coins through the ERC20 module. 

Thinking about how can you make such kind of trading platform??? You can get a complete and readymade solution to build a cryptocurrency trading marketplace namely Tradebox.

Also, you will get the ERC20 module (Add-ons) with this cryptocurrency trading software (Tradebox). So, you can easily build a vast trading network and create a direct connection with the Ethereum Blockchain network.

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Closing Speech

Have you cleared about the concept of ERC20 tokens? Do you learn about the benefits of ERC20 tokens? Definitely, the answer will be YES!!! I am sure that you can alleviate all of your confusion by reading this article.

After knowing about the ERC20 tokens, you can easily deal with this token in the right direction. Otherwise, it might be complex for you. So, you need to understand the primary concept of the ERC20 token first. Then, you can easily and effectively conduct your business activities through ERC20 tokens.

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