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ERC20 tokens advantage and its disadvantage overview

Understanding how Bitcoin works is not easy for most people, and Ethereum is much more difficult.

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ERC20 tokens advantage and its disadvantage overview

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  1. ERC20 tokens advantage and its disadvantage overview contact@blockchainx.tech https://www.blockchainx.tech/erc20-token-development/

  2. What are ERC-20 tokens? Most people find it difficult to understand how Bitcoin operates, and Ethereum is much more challenging. Gaining an understanding of this system's operation will take a great deal of time, even for those who are technologically savvy. Thus, Ethereum serves as a decentralized platform for the execution of Solidity programming language smart contracts. Hundreds of decentralized apps can also be operated by it.

  3. Advantages and characteristics of the standard The main advantages of ERC20 standard tokens include the following Free entry to the market Technical simplicity Multifunctionality

  4. The disadvantages and risks of the pattern The main problem with ERC20 token is the lack of transaction processing tools. They start automatically, even if they shouldn't start in principle. Consider a clear example. Let's say that a funder sends money to the designated address in order to be considered for an ICO asset. But the developers only accept BTC, and the investor wants to send them ETH. In this case, he will not be able to initiate a transaction - it will be rejected by the system.

  5. It will be accepted, though, if he sends the ERC20 standard tokens to the same ICO. Funds from your balance will be debited and sent to the recipient's address. But in our case, the address only accepts BTC. He does not know what to do with to create ERC20 token and cannot accept the transaction. As a result, coins are simply “lost” somewhere on the blockchain. Furthermore, it will be impossible to return them.

  6. Summary ERC20 is a universal standard that most modern ICOs use. Its advantages are the simplicity and convenience of working with smart contracts. To verify the execution of a smart contract and move funds, nodes do not need to contact the database and follow protocols. It is enough to check whether the conditions of the contract are correctly fulfilled. Nevertheless, the transaction will be approved if he sends the ERC20 standard tokens to the same ICO.

  7. BlockchainX SOCIAL MEDIA

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