ERC20 Token Contracts Reaches 21,204 in December 2017
Indeed maybe one of the first questions to ask is what is the Total Market Capitalization? However first it is important to understand what a smart contract is. Smart contracts are coded, self-executing digital contracts which help you exchange money, property, shares, or anything of value in a transparent, conflict-free way, while avoiding the services of a middleman. Smart contracts can exist without the blockchain but most smart contracts naturally sit on the blockchain layer to enhance traceability and trust.
Token Contract on Ethereum
A token contract is a smart contract that contains information about the total number of tokens on the Ethereum blockchain and how many tokens are owed to a particular address on the Ethereum network. The smart token contract describes methods for sending the required number of tokens from one owner to another, and a method for obtaining a balance in the tokens at the specified Ethereum address.
The Ethereum token standard (ERC20) is used for Ethereum smart contracts. Developed in 2015 ERC-20 defines a common list of rules that an Ethereum token has to implement. Giving developers the ability to program how new tokens will function within the Ethereum ecosystem.
This standard is widely used by all well-known exchanges and this is a very important advantage of the tokens released on Ethereum in comparison with the tokens of other blockchain systems. So in effect, the ERC-20 standard establishes a common set of rules for tokens issued via ethereum smart contracts, and currently serves as the basis for the many tokens that have been released through initial coin offerings (ICOs).
The ERC20 Token Standard Interface
All this information is available on Github, however we wanted to provide you with a flavour for what’s involved. With the rise of the ICO in 2017 if you are planning on creating your own token or utilising a token generator the following is an interface contract declaring the required functions and events to meet the ERC20 standard:
1 // https://github.com/ethereum/EIPs/issues/20
2 contract ERC20 {
3 function totalSupply() constant returns (uint totalSupply);
4 function balanceOf(address _owner) constant returns (uint balance);
5 function transfer(address _to, uint _value) returns (bool success);
6 function transferFrom(address _from, address _to, uint _value) returns (bool success);
7 function approve(address _spender, uint _value) returns (bool success);
8 function allowance(address _owner, address _spender) constant returns (uint remaining);
9 event Transfer(address indexed _from, address indexed _to, uint _value);
10 event Approval(address indexed _owner, address indexed _spender, uint _value);
11 }
Most of the major tokens on the Ethereum blockchain are ERC20-compliant. The GNT Golem Network Token is only partially-ERC20-compliant as it does not implement the approve(…), allowance(..) and transferFrom(…) functions, and the Approval(…) event.
Some of the tokens include further information describing the token contract:
1 string public constant name = “Token Name”;
2 string public constant symbol = “SYM”;
3 uint8 public constant decimals = 18; // 18 is the most common number of decimal places
Creating your own Coin
Tokens in the ethereum ecosystem can represent any fungible tradable good: coins, loyalty points, gold certificates, IOUs, in game items, etc. Since all tokens implement some basic features in a standard way, this also means that your token will be instantly compatible with the ethereum wallet and any other client or contract that uses the same standards. The standard has now been formalized on the ethereum GitHub page, meaning that going forward, all tokens built on ethereum should conform to the standard. In order to create an ERC20 token, you need to have at the very least researched and decided on the following:
The Token’s Name
The Token’s Symbol
The Token’s Decimal Places
The Number of Tokens in Circulation
Creating ERC20 Tokens On Ethereum
Ethereum’s website generously lists the code you need to use. You’ll download and open up the wallet app, available for free download on Ethereum’s website. You’ll click “Deploy New Contract.” From there, you’ll go through the basic steps of creating a token, such as setting the number of tokens in circulation. Particular attention would be advisable when considering “construction parameters.” Effectively creating instructions as to how fast a block will be mined. Ethereum will display the cost of Ether required to create it, as well as the gas necessary. Gas essentially measures how much work is required for someone to verify a transaction.
The supply that you set for the token is correlated to the amount of decimal places that you set. For example, if you want a token that has 0 decimal places to have 100 tokens, then the supply would be 100. But if you have a token with 14 decimal places and you want 100 of them, then the supply would be 10000000000000000 (14 zeros added to the amount).
Presently there are a total of 21,204 ERC-20 Token Contracts and if you want to delve into the total market capitalization check out Etherscan Token Tracker page . So to recall briefly, the ERC-20 defines a common list of rules for all Ethereum tokens to follow. The impact that ERC-20 therefore has on developers is massive, as projects do not need to be redone each time a new token is released.
