The ERC20 is a standard for creating ERC20 tokens on the Ethereum blockchain. It includes a set of rules that must be followed for token creation. These rules must define how the ERC20 token acts and how it will be transferred, how users can access it, and how it can be used within the Ethereum ecosystem.
One advantage of using ERC20 tokens for fundraising is that they are built on top of the Ethereum blockchain, which is a decentralized, secure, and transparent platform. This makes it relatively easy for organizations to create and distribute ERC20 tokens to a large number of investors. Additionally, ERC20 tokens are highly liquid, meaning that they can be easily bought and sold on cryptocurrency exchanges, which can help to increase their value over time.
Some of the features of ERC20 tokens include:
- Transferability - ERC20 tokens can be easily transferred from one address to another on the Ethereum blockchain in a secure manner
- Fungibility in nature - ERC20 tokens is interchangeable, meaning that one token is equal to another token of the same type.
- Popularity - In the crypto industry, ERC20 tokens are the popular crypto token type for instant fundraising
- Standardization - ERC20 tokens follow a standardized set of rules, making it easy for developers to create ERC20 tokens easily.
As for the cost of creating an ERC20 token, it depends on the complexity of the token and the fees charged by the Ethereum network. Generally, the cost to create an ERC20 token is relatively low, as it can be created with the help of an ERC20 token development company. However, it's important to note that creating and managing an ERC20 token does come with ongoing costs, such as the fees associated with executing transactions on the Ethereum network.