The standard that governs how new cryptographic tokens can be launched on top of the ethereum blockchain has been been finalized.
The standard has now been formalized on the ethereum GitHub page, meaning that going forward, all tokens built on ethereum should conform to the standard.
ERC-20 was previously unenforced, but it had been readily adopted by token developers since its introduction in late 2015. The standard ensures that ethereum-based tokens perform in a predictable way throughout the ecosystem, such that decentralized applications and smart contracts are interoperable across the platform, and that all tokens follow a fixed standard of security.
A token is a script running on top of the ethereum blockchain, with an associated database keeping track of ether payments. The term has gained widespread use in ICOs, most of which already use ERC-20 tokens.
The development comes as the roadmap for ethereum's next major upgrade, Metropolis, becomes clearer. Developers revealed last week that a new testnet will be launched a week from now.
Pending the success of that process, ethereum's actual upgrade could come as early as October.
Glass marbles image via Shutterstock
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.