ERC20 is entering PrivacySwap: Here’s what you need to know about this token standard
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ERC20 is entering PrivacySwap: Here’s what you need to know about this token standard
ERC20 and BEP20 are two of the token standards that we encounter everyday whenever we transact with cryptocurrencies. token standards are the set of guidelines that paves the way for the creation of cryptocurrency tokens on various blockchain technologies.
It is useful to understand the mechanisms of a smart contract standard before digging into token standards. Smart contract standards are fundamental rules that a smart contract must follow in order to perform properly on the underlying blockchain network.
Token standards, name registries, and library-package formats are examples of application-level specifications. Anyone with adequate knowledge can develop their own ERC token using this set of smart contract standards and explicitly defined specifications. In a nutshell, they allow smart contracts to carry out their essential functions.
This leads us to token standards, which are a subset of smart contract standards. Token standards serve as a framework for the invention, issue, and deployment of new tokens on blockchains that allow smart contracts.
In the blockchain technology,the most frequent token standards we are encountering are Ethereum’s ERC20 and Binance BEP20. What are these token standards and how do they differ?
BEP-20
BEP-20 is a Binance Smart Chain token standard that extends the most widely used Ethereum token standard, ERC-20. BEP 20 can be thought of as a framework for tokens, outlining how they can be used, who can spend them, and other usage requirements. Due to their similarities, it is also compatible with Binance Chain’s BEP-2 and Ethereum’s ERC-20.
Furthermore, BEP-20 was created as a technical standard for Binance Smart Chain in order to enable a flexible structure for developers to produce a wide range of tokens. These can range from firm stock to money in a bank vault.
Validators earn BNB as a fee for verifying transactions, creating an incentive to include the transactions on the blockchain, as BNB powers the BEP-20 tokens. Furthermore, thanks to the Binance Smart Chain’s invention, transacting BEP-20 is nearly instantaneous without congesting the chain.
Because of BSC’s dual-chain architecture, cross-chain interoperability was prioritized when developing the software. This means that BEP-2 tokens can be swapped for BEP-20 tokens in the same way. The most basic method is probably to use the Binance Chain Wallet plugin. However, as time passes, additional possibilities will become available.
ERC-20
The ERC-20 Token Standard defines an API for tokens used in Smart Contracts. This token standard proposes a standard for Fungible Tokens, which have the property of being exactly the same as another Token (in type and value). An ERC-20 Token, for example, works similarly to ETH in that one Token is and will always be equal to all other Tokens.
It enables you to transfer tokens from one account to another, as well as obtain an account’s current token balance and the total supply of the token available on the network. Aside from that, it has a variety of other functions, such as approving the expenditure of a certain amount of token from an account by a third-party account.
Assume a Smart Contract implements the methods and events listed below. In that case, it is known as an ERC-20 Token Contract, and it will be in charge of keeping track of the tokens produced on Ethereum once deployed.
If you had been with PrivacySwap for a very long time you know that most of the tokens that we support in our platform and the tokens we aim to support on our debit card are most BEP20 token. This is due to the fact that the platform operates under the canopy of Binance Smart Chain.
However as we continue to analyze the market, we realized that there are also a lot of crypto users that engaged with ERC token standards. Our goal to provide a service that is usable in both crypto and realworld transactions with unlimited token supports. With that, we are working on integrating ERC20 to our platform. This is one of the big features we are working on. For more information regarding this integration, ensure to stick with us.
Lastly, we understand the amount of delays we had in regards with the release of our features. We are still continuously working to ensure that the platform and its features will run as smooth as possible.
We will never leave you behind as we get close to the release of our new features alongside our crypto debit card.
Know more about PrivacySwap now!
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