Ethereum tokens are digital assets created via smart contracts on the Ethereum platform, not part of the core blockchain protocol. They use token standards like ERC-20 (fungible tokens), ERC-721, or ERC-1155 (NFTs).
Table of contents
Ethereum’s Role
Ethereum leads in smart contract networks. Vitalik Buterin launched it in 2015, pioneering smart contract technology when Bitcoin dominated. Ether (ETH) is Ethereum’s native cryptocurrency. It facilitates global transactions with minimal fees and is essential for network operation.
ETH’s Functionality
ETH powers all Ethereum blockchain activities. Users pay gas fees in ETH to transact or interact with decentralized applications (DApps). Crypto coins like Bitcoin (BTC) and Ethereum (ETH) operate on their own blockchains and can be used for transactions and as a store of value, while crypto tokens are built on existing blockchains and can represent assets or facilitate smart contracts and DApps.
Token Representation
Tokens represent digital or physical assets on the Ethereum blockchain. Managed by smart contracts, they follow standards like ERC-20, defining rules for tokens issued on Ethereum.
Binance-Peg Ethereum Token
Binance-Peg Ethereum Token facilitates usage in Binance Chain decentralized applications.
ETH, created on Ethereum in 2015 by Vitalik Buterin, is a decentralized platform.
сегодня
ERC-20: The Standard for Fungible Tokens
ERC-20 tokens are fungible, meaning each token is identical and interchangeable with another. Think of it like a dollar bill; one dollar bill is worth the same as any other dollar bill. This standard allows for easy integration with exchanges, wallets, and other decentralized applications.
ERC-721 & ERC-1155: The Realm of NFTs
ERC-721 and ERC-1155 standards cater to non-fungible tokens (NFTs). Unlike ERC-20 tokens, each NFT is unique and represents a specific asset, such as digital art, collectibles, or in-game items. ERC-721 tokens are entirely unique, while ERC-1155 allows for the creation of both fungible and non-fungible tokens within a single contract, offering greater flexibility.
The Power of Smart Contracts
Smart contracts are self-executing contracts written in code and stored on the Ethereum blockchain. They automatically enforce the terms of an agreement when predefined conditions are met. This eliminates the need for intermediaries and increases transparency and security.
Use Cases for Ethereum Tokens
Ethereum tokens have a wide range of applications, including:
- Decentralized Finance (DeFi): Creating and managing decentralized lending platforms, exchanges, and stablecoins.
- Gaming: Representing in-game assets, virtual land, and player identities.
- Supply Chain Management: Tracking goods and verifying authenticity.
- Identity Management: Creating secure and verifiable digital identities.
- Governance: Allowing token holders to participate in the decision-making process of a project.
Ethereum tokens have revolutionized the blockchain landscape by enabling the creation of a vast array of decentralized applications and digital assets. Their flexibility and versatility, combined with the power of smart contracts, have paved the way for innovation and continue to shape the future of the internet.
сегодня
