What is Ethereum ERC20 smart contract and why Rilcoin preferred ERC20 tokens for its ICO?
Ethereum, the well-known cryptocurrency, and blockchain network, is dependent on the use of tokens that can be purchased, sold, or traded. There are many different tokens which can be used in association with Ethereum, and these vary from the ether, that is precisely the currency native to the Ethereum blockchain. In this scenario, tokens indicate digital assets which can have several values associated. They can point assets as in vouchers, IOUs, or even objects in the real world. In this way, tokens are inherently smart contracts that use the Ethereum blockchain. One of the most critical token standards of all used for Ethereum is called ERC-20, that was generated about a year and a half ago.
No one requires an introduction as to the definition of tokens, but a little revision won’t harm anything. A token is designed to indicate something else, in the majority of cases, something of some value. These tokens are issued on the blockchain in the Ethereum ecosystem, where they show a financial profit or remain present as a digital asset. Though, these tokens do not necessarily adhere to a particular standard.
Though, the ERC20 standard makes the assets more comfortably interchangeable and makes sure that they can function with DAPPs using the same standards.
The ERC20 standard makes it convenient for all supported tokens to be wholly backed by new projects as well as services. Moreover, the introduction of this process allows for the tokenization of various features, added with voting rights.
ERC-20 determines six different functions for the advantage of other tokens following the Ethereum system. These are fundamental working issues that include the process by which tokens are transferred and through which users can access data regarding a token. ERC-20 also denotes two different signals that each token accepts and that other tokens follow too.
Naturally, it can be said that this set of functions, as well as signals, make sure that Ethereum tokens of various types will definitely work the same in any place within the Ethereum system.
Why Rilcoin preferred ERC20 tokens for its ICO?
The concept of Rilcoin is being introduced to build an advanced decentralized asset management system. Asset management basically connects with any system that maintains value to an entity. It can be used for both tangible as well as intangible assets. Rilcoin intends to provide a unique perspective to financial tools and also to investment tactics. It will offer users investing in cryptocurrencies supported by Blockchain protection as well as real-world assets that are going to introduce a whole new investing methods. Any assets can be tokenized and traded on the platform. The users will have an option to list their real-world assets and tokenize them to generate crowdfunding. This may bring a fantastic opportunity for consumer, small and medium businesses segment to raise funds for their projects. The users will be powered to invest and to get investment from any part of the world. The decentralized asset management system will also comply with the KYC, arbitrary and other compliances needed for the platform.
In Rilcoin’s token sale, ERC20 tokens are to be issued; which is the latest trend in the crypto investment. It indicates that almost all of the wallets which are designed for the ether currency will support ERC-20 compliant tokens. This makes investments safe as the investor not only gets a proof of the investment; instead, gets a smart contract token, which can be stored in any Ether Wallet; can be bought, sold, or traded. The trading of Riltokens will not be allowed until specifically announced on the official platforms of Rilcoin.
Originally published at rilcoinblog.com on October 26, 2017.