The overwhelming majority of ICOs are based on the ERC20 standard of the Ethereum. We take a look at the contract and explain how it differs from other blockchain tokens like Colored Coins – and why ERC20 marked the breakthrough for blockchain tokens and opened the gates for ICOs.
The smart contracts will basically act as a type of an accountant, which will define and track the primary data which is connected to a specific token, the addresses of those who own it, or the total amount of tokens that are available. Another key benefit of ERC token creation is that the tokens can be built by anyone. This is because the standard is open source, which means that it’s open to everyone for usage. Of course, it will be necessary to have the technical knowledge which is required to program the tokens, which involves understanding Ethereum and the smart contracts which are connected to it, not to mention Solidity, which is the programming language associated with them.
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