If you’re reading this page, you’ve probably heard the term ERC20 Token thrown around in the crypto currency world. ERC stands for Ethereum Request for Comments. This is an official protocol for proposing improvements to the Ethereum(ETH) network. ’20’ is the unique proposal ID number.
ERC20 defines a set of rules which need to be met in order for a token to be accepted and called an ‘ERC20 Token’. The standard rules apply to all ERC20 Tokens since these rules are required to interact with each other on the Ethereum network. These tokens are blockchain assets that can have value and can be sent and received, like Bitcoin, Litecoin, Ethereum, or any other crypto currency.
The difference between these tokens and a standalone currency like Litecoin is that ERC20 tokens piggyback on the Ethereum network, hosted by Ethereum addresses and sent using Ethereum transactions.
Examples of Top ten most successful Ethereum-based tokens, ranked by their current market cap – EOS (EOS), Tron (TRX), VeChain (VEN), ICON (ICX), Binance Coin (BNB), OmiseGo (OMG), Zilliqa (ZIL), Aeternity (AE), 0x (ZRX) and Bytom (BTM).