Community Forex Questions
What are the key functions defined in the ERC-20 smart contract standard?
The ERC-20 smart contract standard defines a set of key functions that ensure interoperability and consistency for tokens on the Ethereum blockchain. These functions allow ERC-20 tokens to be easily transferred, approved, and interacted with by wallets, exchanges, and smart contracts.

Key Functions in ERC-20

1. totalSupply: Returns the total number of tokens in circulation.
2. balanceOf(address account): Returns the token balance of a given wallet address.
3. transfer(address recipient, uint256 amount) Sends tokens from the sender's wallet to another address.
4. approve(address spender, uint256 amount)` Allows a third party (spender) to spend a specified amount of tokens on behalf of the owner.
5. transferFrom(address sender, address recipient, uint256 amount)` Moves tokens from one address to another, typically used by smart contracts.
6. allowance(address owner, address spender)` Checks the remaining number of tokens a spender is allowed to use from the owner’s balance.

Importance of These Functions
These functions standardize token behaviour, making ERC-20 tokens compatible with decentralized applications (dApps), exchanges, and DeFi platforms. They enable seamless transactions, automated payments, and staking mechanisms, making ERC-20 the most widely used token standard on Ethereum.

Add Comment

Add your comment