A custom ERC-20 token is like a digital coin that is created and stored on the internet. They can be used to represent something of value, like a stock in a company or a reward for doing something good. They are created using a special set of rules that make them work with other digital things on the internet. Just like how you can buy, sell and trade physical coins, you can also buy, sell and trade these digital coins on websites called exchanges. They are like digital versions of real-world assets, and can be stored in digital wallets, much like how you store your physical money in a purse or wallet.
Custom ERC-20 tokens are a type of digital assets that are built on the Ethereum blockchain using the ERC-20 standard. The ERC-20 standard defines a set of rules and guidelines that must be followed for a token to be considered ERC-20 compliant, allowing it to be easily integrated with other Ethereum-based systems and applications.
Custom ERC-20 tokens can be created by anyone with the technical knowledge to do so and can be used for a variety of purposes, such as representing a company’s stock, a reward or loyalty program, or a new cryptocurrency. Once created, these tokens can be bought, sold, and traded on various digital asset exchanges and can be stored in Ethereum-compatible wallets.
In summary, custom ERC-20 tokens are digital assets that are built on the Ethereum blockchain, they follow a set of rules and guidelines called ERC-20, they can be used for a variety of purposes, they can be bought, sold, and traded on various digital asset exchanges and can be stored in Ethereum-compatible wallets.
What can they be used for?
Custom ERC-20 tokens can be used for a variety of purposes, some examples include:
- Representing a company’s stock: A company can create its own ERC-20 token to represent shares of the company and allow investors to purchase and trade them on blockchain-based platforms.
- Creating a new cryptocurrency: Developers can create a new ERC-20 token and launch it as a new cryptocurrency, which can be bought and sold on digital asset exchanges.
- Incentives and rewards: ERC-20 tokens can be used as a form of reward or incentive for customers or employees, which can be exchanged for goods or services or traded on digital asset exchanges.
- Decentralized applications: ERC-20 tokens can be used as a form of currency within decentralized applications (dApps) built on the Ethereum blockchain.
- NFTs (non-fungible tokens): ERC-20 tokens can be used to create unique digital assets called NFTs, that can represent ownership of digital art, collectibles, and other digital assets.
These are just a few examples, custom ERC-20 tokens can be used for many other purposes as well, depending on the developer’s creativity and the needs of the users.