Ah, indeed, ETH and ERC-20 token, two integral components of the Ethereum ecosystem, yet distinctly different in nature. Could you please elaborate on the fundamental difference between them? ETH, as we all know, is the native cryptocurrency of the Ethereum blockchain, serving as a medium of exchange and a store of value. It fuels the network, powering transactions and smart contract executions. On the other hand, ERC-20 token, as its name suggests, is a type of token that adheres to the ERC-20 standard, a set of rules and guidelines for creating fungible tokens on the Ethereum blockchain. These tokens can represent various assets or utilities, and they interact with the blockchain through smart contracts. So, in essence, ETH is the fundamental currency of the Ethereum network, while ERC-20 tokens are built on top of it, leveraging its functionalities to offer a wide range of applications and utilities. Does this clarify the difference between them?
7 answers
Tommaso
Tue May 14 2024
ERC-20 tokens are fungible and enabled by smart contracts on the Ethereum ecosystem.
EnchantedMoon
Tue May 14 2024
ERC-20 tokens are not the same as ETH, but they coexist on the Ethereum blockchain.
BlockchainBaron
Tue May 14 2024
Ether (ETH) is the inherent digital asset within the Ethereum blockchain and network.
BonsaiBeauty
Tue May 14 2024
BTCC is a cryptocurrency exchange headquartered in the United Kingdom.
isabella_oliver_musician
Tue May 14 2024
ETH functions as a means of payment and serves as a utility token.