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Ethereum’s ERC-20 tokens are soon going to be a big deal and here’s why

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Ethereum
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The main agenda for Ethereum has always been to set up an ecosystem of decentralized applications where everything seamlessly functions together to form the ‘world computer’. Basically, Ethereum is looking to achieve “different things for different people”. For this to happen, Ethereum has established a reputation as the standard open source Blockchain platform for DAPs across the board.

Cue ERC-20 token standards. These were developed as a set of rules that establishes a basis for DAP developers to create their own tokens. To put it simply, ERC-20 standards enable developers and programmers of DAPs avoid re-inventing of the wheel. As a result, a variety (if not all) of the tokens on Ethereum’s eco-system are ERC-20 compliant.

What’s inside the ERC-20 token standards?

The main purpose of ERC-20 is to define the functions of tokens in the Ethereum eco-system. Since Ethereum runs on smart contracts, each token built on top of Ethereum’s Blockchain basically operates like a smart contract.

This means that ERC-20 token standards are designed to give instruction to how tokens can be transferred from one party to the other and how data concerning the token can be accessed by either party. The ERC-20 standards also describe the signals that particular smart contracts can fire and the reception of those signals by the consecutive smart contracts.

Therefore, by describing the functions and events of each token, ERC-20 token standards, therefore, provide a basis for which every token on the ecosystem can comply and function. These results in ERC-20 tokens getting support from most wallets that also support Ether (ETH). Plus, ERC-20 token standards makes the tokens on Ethereum’s ecosystem important to the success of Ethereum as a world computer as they allow each of the tokens to achieve interoperability at different levels.

In fact, Fabian Vogelsteller ( a developer of Ethereum’s Mist wallet) believes that “we are just at the beginning of tokenizing everything” and that “in the future, you will be able to buy a share of the chair you are sitting on, the paint inside your house or a fraction of the equity in a huge building complex”

Coinbase, ETC and the ERC-20 token uprising

As much as the statements form Vogelsteller might sound a little bit grandiose, it might actually soon come true and here is why. An Ethereum based decentralized application browser by the name of Toshi is now supporting Ethereum’s custom ERC-20 tokens and testnets. Toshi is operated by Coinbase which is one of the largest crypto exchange wallet and brokerage firm worldwide.

Furthermore, after Coinbase’s integration of Ethereum Classic to its platform, the company has announced plans to eventually integrate all ERC-20 tokens and ICO tokens to its platform. a statement issued by the company on June 12 said that they had “previously announced” their “ intentions to support the ERC-20 technical standards and Bitcoin forks.” They further said that  they “will announce the intention to add specific assets within those categories prior to final engineering integration” so as to remain consistent with their “public process of adding new assets.”

Mass adoption of ERC-20 tokens

Already, Ethereum is on the clear with the SEC declaring that it’s not a security. In a way, this move by the SEC has enabled Coinbase the confidence to go ahead and support ERC-20 tokens. Apart from operating and adding new features to Toshi, Coinbase has also acquired Paradex which is a decentralized crypto exchange that supports ERC-20 tokens.

Given that Coinbase is a well-funded conglomerate the support it provides to ERC-20 tokens will result in a possible mass adoption of ERC-20 tokens ahead of every other cryptocurrency in the market (as was the case with Ethereum Classic and Ripple XRP). Already the Toshi team enables users to store their ERC-2- tokens or even add custom ERC-20 tokens that are unavailable to the Toshi database. Going forward, this could massively increase the usage of ERC-2- tokens in the long run.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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