Summary
The ERC20 token standard is a set of rules for Ethereum-based tokens. The rules apply to all ERC20 tokens and allow them to interact seamlessly with other tokens, DApps, wallets, exchanges, and smart contracts on the Ethereum platform. There are thousands of ERC20 tokens on Ethereum.
Table of contents
What are ERC20 tokens?
ERC20 tokens are a specific type of cryptocurrency token that exists on the Ethereum blockchain. The ERC20 standard defines a set of rules that a token must adhere to in order to be compatible with other tokens and applications on the Ethereum network. By adhering to the ERC20 standard, developers can ensure that their tokens can be easily exchanged for other tokens or used within decentralized applications (dApps) on the Ethereum blockchain.
ERC20 tokens can represent a wide range of assets or utilities. Some common use cases include:
Digital Currencies: They can serve as digital currencies with their own unique features and use cases, distinct from Ether (ETH) which is Ethereum's native currency.
Utility Tokens: These tokens provide access to a product or service within a dApp. They are often sold during an ICO to raise funds for development.
Asset Tokens: They can represent ownership in an underlying asset such as real estate or stocks.
Reward Points or Loyalty Tokens: They can be used within a community or platform to reward users or provide incentives.
Fees to transact with ERC20 tokens
To send or use an ERC20 token, users must have ETH (Ethereum) in their Bitcoin.com Wallet to cover Ethereum network fees.
Please note that this fee, known as gas, is paid to Ethereum network validators to process the transactions on the blockchain. Gas fees are not paid to Bitcoin.com.
Read more about fees on Ethereum here.
What ERC20 tokens are supported in the Bitcoin.com Wallet app
The Bitcoin.com Wallet app enables you to manage any ERC20 token. However, the number of tokens you can see in the app is limited. For the full list, tap the Receive button in the toolbar at the top of the app's home screen.