ERC20
Crypto Overview
Important Note
ERC20 is not actually a cryptocurrency - it is a technical standard on the Ethereum blockchain that defines rules and standards for creating and managing tokens. The ERC20 standard specifies a common set of rules that all Ethereum tokens must implement, making them interoperable with other tokens following the same standard.
Technical Standard Details
The ERC20 standard was proposed in 2015 by Fabian Vogelsteller and Vitalik Buterin. It defines specific functions and events that enable token transfers, approve token spending by other addresses, and check token balances. These standardized interfaces allow wallets, exchanges and smart contracts to handle different tokens in a consistent way.
Actual Implementation
While ERC20 itself is not a token, thousands of tokens have been created using this standard, including major ones like USDT, USDC, BNB (originally), and many others. The standard has become the foundation for most token implementations on Ethereum and other EVM-compatible blockchains.
Current Usage
The ERC20 standard is widely used as the basis for creating tokens for various purposes including: Stablecoins, Governance tokens, Utility tokens, Security tokens, and DeFi protocol tokens.
Crypto Impact
To assign a comfort level investing in ERC20 from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to ERC20.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.