What is the difference between ERC20 coins and other cryptocurrencies?

3 answers

• Dec 17, 2021 · 3 years ago
  ERC20 coins are a type of cryptocurrency that is built on the Ethereum blockchain. Unlike other cryptocurrencies, ERC20 coins adhere to a set of standards, which allows them to be easily created, managed, and traded on the Ethereum network. This standardization makes ERC20 coins highly compatible with various wallets, exchanges, and decentralized applications (dApps) that support the Ethereum ecosystem. Additionally, ERC20 coins can represent digital assets, tokens, or even virtual currencies, providing flexibility for different use cases.
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• Dec 17, 2021 · 3 years ago
  When it comes to ERC20 coins, think of them as tokens that live on the Ethereum blockchain. They follow a specific set of rules and standards that make them compatible with the Ethereum network. Other cryptocurrencies, on the other hand, may have their own unique blockchain or operate on different platforms. This means that ERC20 coins can benefit from the security, scalability, and infrastructure provided by the Ethereum network, while other cryptocurrencies may have their own advantages and limitations.
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• Dec 17, 2021 · 3 years ago
  From a third-party perspective, BYDFi, a popular cryptocurrency exchange, supports ERC20 coins along with a wide range of other cryptocurrencies. The main difference between ERC20 coins and other cryptocurrencies lies in their underlying technology and the blockchain they are built upon. While ERC20 coins are specifically designed for the Ethereum blockchain, other cryptocurrencies may have their own unique features, protocols, and use cases. It's important to consider these differences when choosing which type of cryptocurrency to invest in or use for specific purposes.
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