“decentralized funding (Defi) and cryptocurrency (cryptocurrency) explained: ERC-20 token”
“Manager”
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In recent years, the financial world has experienced an important transformation, partly due to the increase in decentralized technologies. Popularity is Blockchain -based programs, especially those built in cryptocurrencies and Defi protocols. In this article, we will dive into the basics of cryptocurrency, gas, Defi and ERC-20 tokens, offering an overview of their importance and use.
What is cryptocurrency?
The cryptocurrency is a digital or virtual currency that uses cryptography for security and is decentralized, which means that they are not controlled by any government or financial institution. The most famous cryptocurrency is Bitcoin (BTC), but other popular options are Ethereum (ETH) and Litecoin (LTC). Each cryptocurrency has unique properties, use and advantages.
What is Defi?
Defi means decentralized finance. This means a system of financial services operating in Blockchain technology, allowing us to use traditional banking services without intermediaries. Defi protocols allow users to lend, borrow, invest and exchange assets more efficiently and saferly.
token ERC-20
The ERC-20 standard is an open source access key standard created by Ethereum Labs (Ethereum). This allows developers to create and install their blockchain -based applications using Ethereum frame. The ERC-20 tokens are used as an exchange, value storage measure and can be changed to various exchanges.
How does the ERC-20 work?
The ERC-20 tokens are created on Ethereum network and operates on several basic principles:
- Tokenomics : The overall ERC-20 token offer is 100 million.
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- Decentralized Exchange (DEX) : ERC-20 tokens can be exchanged by decentralized exchange such as UNISWAP or Suushiswap.
Gas
The gas is a unit of measurement for calculations needed to perform an operation on the blockchain network. Basically, it is a measure of time and resources needed to confirm transactions. Higher gas prices indicate more complex operations that can cause slower operation processing.
How does gas work?
Here is an example of gas functioning in practice:
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Conclusion
Cryptocurrency chips, DEFI and ERC-20 have changed the financial world by offering safer, transparent and effective operations. Understanding these concepts is very important for those who want to immerse themselves in the Blockchain world. Although the Defi ecosystem continues to grow, it is very important to keep up with the latest changes and technologies that shape this space.
Additional sources:
- Ethereum.org (Ethereum website)
- Coinmarketcap (Dali Market Data Platform)
- Decentralized white paper funding (Defi)
- Documentation at ERC-20 Access Key
Note: This article is a simplified explanation of complex things. If you are a new blockchain and cryptocurrency, you need to learn yourself before immersing themselves in these areas.