International Conference On EMERGING DEVELOPMENTS IN ENGINEERING & TECHNOLOGY (ICEDET-2023)

ERC20 TOKEN
Presented By:
Anmol Singh Negi
Arihant Jain

Affiliation
 INTRODUCTION

ERC20 is a technical standard used for smart contracts on the Ethereum blockchain. It defines
a set of rules for creating tokens that can be traded on decentralized exchanges, making it
easier to manage and exchange digital assets.

Smart Contracts: ERC-20 is implemented through Ethereum smart contracts, self

executing contracts with the terms of the agreement directly written into code.

Token Functions:ERC-20 defines standard functions like enabling seamless interaction

between different projects and platforms
 Methodology/Experimentation
1.Smart Contract Development: - Code the ERC-20 smart contract using Ethereum
development tools, defining token functionalities like transfers, balances, and approvals.
2. Testing on Ethereum Testnets: - Test the smart contract on Ethereum test networks
(Ropsten, Rinkeby) to identify and address any issues before deploying on the mainnet.
3. Mainnet Deployment: - Deploy the tested and secure smart contract on the Ethereum
mainnet, making the ERC-20 token accessible to the wider public.
4. Documentation and Community Engagement: - Create clear documentation for
users and developers, and actively engage with the community to build awareness and
address inquiries.
5. Listing and Maintenance: - List the ERC-20 token on cryptocurrency exchanges to
enhance liquidity, and continually maintain and upgrade the token's smart contract as
needed.
 Results and Discussion
• 1. Decimal Precision:- Decimal fragmentation in ERC-20 tokens, often set at 18
decimal places, allows for precise and detailed representation of token values.

• 2. Microtransactions:- Enables microtransactions by breaking down tokens into

smaller units, enhancing flexibility in value exchange.

• 3. User-Friendly Units:- Provides a user-friendly experience by aligning token

values with standard currency denominations, making transactions more intuitive.

• 4. Exchange Compatibility:- Crucial for compatibility with exchanges, ensuring

accurate handling and display of token values in trading environments.
 Conclusions
In conclusion, the ERC-20 token standard has significantly shaped the landscape of
decentralized finance on the Ethereum blockchain. Let's underscore a key aspect that
adds precision and flexibility:
Decimal Fragmentation:
Enhancing Precision: ERC-20 allows tokens to be divided into smaller units, providing a level of
precision crucial for financial transactions.
Adaptability in Value: Decimal fragmentation accommodates a wide range of value scales, making
tokens adaptable to various contexts and user needs.
Decimal fragmentation has a direct impact on fundraising through Initial Coin
Offerings (ICOs):
• ICO Utilization: Decimal fragmentation facilitates ICOs by allowing contributors to
invest in fractions of tokens, making it accessible to a broad range of investors.
• Wider Participation: The granularity of token values encourages wider participation,
democratizing access to investment opportunities within the cryptocurrency ecosystem.