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Advantages of ERC-20 tokens
Fungible : ERC-20 tokens are interchangeable: each unit is interchangeable with another. If you had a BinanceAcademyToken, it wouldn't matter what specific token you had. You could exchange it for someone else's and they would still be functionally identical, like cash or gold. This is ideal if your token is intended to be a currency of some kind. Individual units that have distinguishing characteristics would not be desirable as they would not be fungible. This could undermine the aim of some tokens by making some more or less valued than others.
Flexible : As we explored in the previous section, ERC-20 tokens are highly customizable and can be adapted to many different applications. For example, they can be used as in-game currency, in loyalty points programs, as digital collectibles, or even to represent artwork and property rights.
Popular : The popularity of ERC-20 in the cryptocurrency industry is a very compelling reason to use it as a model. There are a large number of exchanges, wallets , and smart contracts that already support the newly launched tokens. Additionally, documentation and developer support are abundant.
Disadvantage of ERC-20 tokens
Scalability : As with many cryptocurrency networks, Ethereum is not immune to growing pains. In its current form, it does not scale well: trying to send a transaction at peak times results in high fees and delays. If you launch an ERC-20 token and the network becomes congested, its usability could be affected. This issue is not specific to Ethereum. Rather, it is a necessary trade-off in distributed and secure systems. The community plans to address these issues in the migration to Ethereum 2.0, which will implement upgrades such as Ethereum Plasma and Ethereum Casper.
Scams : While not a problem with the technology itself, the ease with which a token can be launched could be considered a disadvantage in some respects. It takes minimal effort to create a simple ERC-20 token, meaning anyone can do it, for better or worse.
As such, you need to be careful about what you are investing in. Many Ponzi and pyramid schemes operate under the cover of blockchain projects. Do your own research before investing to come to your own conclusions about whether an opportunity is legitimate.
visit : Create ERC20 Token To Ease Your Business Finances In Web3.
Fungible : ERC-20 tokens are interchangeable: each unit is interchangeable with another. If you had a BinanceAcademyToken, it wouldn't matter what specific token you had. You could exchange it for someone else's and they would still be functionally identical, like cash or gold. This is ideal if your token is intended to be a currency of some kind. Individual units that have distinguishing characteristics would not be desirable as they would not be fungible. This could undermine the aim of some tokens by making some more or less valued than others.
Flexible : As we explored in the previous section, ERC-20 tokens are highly customizable and can be adapted to many different applications. For example, they can be used as in-game currency, in loyalty points programs, as digital collectibles, or even to represent artwork and property rights.
Popular : The popularity of ERC-20 in the cryptocurrency industry is a very compelling reason to use it as a model. There are a large number of exchanges, wallets , and smart contracts that already support the newly launched tokens. Additionally, documentation and developer support are abundant.
Disadvantage of ERC-20 tokens
Scalability : As with many cryptocurrency networks, Ethereum is not immune to growing pains. In its current form, it does not scale well: trying to send a transaction at peak times results in high fees and delays. If you launch an ERC-20 token and the network becomes congested, its usability could be affected. This issue is not specific to Ethereum. Rather, it is a necessary trade-off in distributed and secure systems. The community plans to address these issues in the migration to Ethereum 2.0, which will implement upgrades such as Ethereum Plasma and Ethereum Casper.
Scams : While not a problem with the technology itself, the ease with which a token can be launched could be considered a disadvantage in some respects. It takes minimal effort to create a simple ERC-20 token, meaning anyone can do it, for better or worse.
As such, you need to be careful about what you are investing in. Many Ponzi and pyramid schemes operate under the cover of blockchain projects. Do your own research before investing to come to your own conclusions about whether an opportunity is legitimate.
visit : Create ERC20 Token To Ease Your Business Finances In Web3.
