Token ERC20 (EURT) is a special variety of the well-known and highly circulated stablecoin, which is Tether. The latter is usually associated with USDT, which is the USD-pegged stablecoin. It’s one of the top traded cryptocurrencies in the world and for a good reason.
USDT, in particular, is made for utility and is designed to have a few limitations. It’s not tied to any particular blockchain, instead dispersed among several high-profile blockchains, where it’s accepted as legal tender on the same level as the native crypto, be that Bitcoin, Ethereum, or Tron.
EURT is a bit different. It’s also a stablecoin with the same level of precision and stability as USDT. It’s essentially pegged 1:1 to the value of the euro, which was its price since its inception. EURT is, however, a much less acclaimed product, and has only been around for a brief while. There is, nonetheless, a lot of potential in it.
EURT is not available to the same degree as its cousin, the USDT. The latter can be found on virtually any platform, and in several variations, as well. EURT hasn’t quite attracted the same limelight, and it can only be reliably found on the specialized stablecoin wallets and Tether-encouraged wallets.
It can still be found in plentiful amounts and used for various purposes, including:
- development of dApps;
- use as payments;
The big benefit of this currency is that it suffers a lot less from the usual volatility that plagues other cryptocurrencies. At the same time, it can benefit from the usual advantages that cryptocoins enjoy, such as transparency, anonymity, free movement of funds, etc.
The same opportunities, which are available to USDT, are also available to EURT, except maybe with a bit more limitation. It’s possible because EURT can be used on largely the same blockchains as USDT in exactly the same capacity. It has two varieties compatible with Bitcoin and Ethereum.
ERC20 is the standard that most Ethereum-based currencies follow, including Ether itself. A standard is a set of principles and rules by which a certain currency is supposed to operate to be compatible with a certain ecosystem. In this case, the ecosystem is the Ethereum blockchain, and the standard is called ERC20.
ERC20 is basically the structure of the token. If it fits the requirements set by the network, the token will be accepted in the same role as other currencies on the blockchain, including even the native currency, ETH (for the most part). EURT is available in the ERC20 form.
The good thing about these tokens is that they can be easily changed to fit a certain standard. It takes time, and the resulting variety is essentially a distinct asset, which you should store in a separate heap from other types of EURT. They can, however, be converted easily, meaning they are often represented as one.
Regular cryptocurrencies, like BTC or ETH, aren’t as convenient for such changes because many of them carry a certain purpose and a number of unique features. Tokens, like Tether, have no special purpose or a special blockchain to call their own. They are dispersed without any agenda.
There are several advantages that this standard can provide:
- Interoperability. ERC-20 tokens are highly interoperable, meaning they can seamlessly interact with other smart contracts, decentralized applications (dApps), and wallets that are compatible with the ERC-20 standard. This interoperability allows for easy integration and widespread use of ERC-20 tokens within the Ethereum ecosystem.
- Widely Supported. The ERC-20 standard is widely supported by a vast number of wallets, exchanges, and other blockchain infrastructure providers. This broad support makes it easier for users to store, trade, and interact with ERC-20 tokens, enhancing accessibility and liquidity.
- Smart Contract Compatibility. ERC-20 tokens are based on Ethereum's smart contract functionality, enabling developers to create programmable tokens with customizable features. Smart contracts allow for the implementation of various token functionalities, such as token transfers, token burning, and more advanced features like staking or governance mechanisms.
- Established Security. Ethereum has a robust and well-tested security infrastructure, and the ERC-20 standard inherits this security. By utilizing the Ethereum network, ERC-20 tokens benefit from Ethereum's network security and consensus mechanisms, reducing the risk of attacks or vulnerabilities.
- Ecosystem Synergy. The ERC-20 standard has fostered a vibrant ecosystem of projects, dApps, and token issuances within the Ethereum community. This ecosystem synergy provides a strong network effect, making it easier for ERC-20 tokens to gain exposure, liquidity, and user adoption.
These benefits of the ERC-20 standard have played a crucial role in the growth of the Ethereum ecosystem and the widespread adoption of tokens built on this standard. That’s precisely why EURT was also ported to Ethereum.
EURT ERC20 is a type of EURT converted to the standard of Ethereum. It means that it can be used to pay for transaction fees, create decentralized apps, and for any other purpose that ETH is typically used on this blockchain. It has a certain utility, but it also means that it can be moved freely through the ETH network.
As such, you can participate in the many Ethereum-based events and activities with your digital euro. It offers a lot of potential because you wouldn’t be able to do it otherwise, and the Ethereum blockchain is too huge and too beneficial to ignore. It’s still the chief network for smart contracts on the web.
Smart contracts can be created with the use of these tokens. What it entails is that you can also create advanced projects with EURT. DApps, DeFi, and DEX solutions are some of the more common examples. There are thousands of them, and some DeFi platforms benefit hugely from utilizing euro-bound tokens.