Convert ETH to USD
List of cryptocurrencies and tokens supported by PassimPay crypto wallet. Secure storage for a variety of digital assets.
btcBitcoin
tonToncoin
ftnFasttoken
ltcLitecoin
busdBinance USDethEthereum
bchBitcoin Cash
zecZcash
dogeDogecoin
bnbBinance Coin
pepePepe
usdtTether
trxTron
usdcUSD Coin
xrpRipple
usddUSDD
notNotcoin
eosEOS
adaCardano
shibShiba Inu
dashDash
hftHashflow
dydxdYdX
linkChainlink
aaveAave
crvCurve DAO Token
achAlchemy
flokiFloki
maticPolygon
daiDai
nearNEAR Protocol
atomCosmos
twtTrust Wallet
dotPolkadot
avaxAvalanche
flowFlow
ksmKusama
bonkBonk
solSolana
dogsDogsWhat is Ethereum?
Ethereum is a platform launched in 2015. Its goal was to enable the automation of transaction processing and other network processes through smart contracts.
Ethereum was created primarily for developers and users to allow them to develop applications, and technologies, store assets and share information without being controlled by a central authority. It indicates that in Ethereum, there is no need to share your personal or other data with third parties, which ensures complete control over information and assets from the owner.
Ethereum has its cryptocurrency (ETH). It has the option to pay for particular network activities. Traders often use it as a crypto asset to exchange for other cryptocurrencies and fiat currencies.
Currently, Ethereum holds second place by capitalization in the world after Bitcoin.
How Does Ethereum Differ From Bitcoin?
Ethereum's technology is in many ways similar to Bitcoin's. They both allow cryptocurrency to be stored, received, and transmitted without the involvement of third parties like banks or institutions. However, the Ethereum platform has several significant differences.
Anyone can create a decentralized program or application based on the Ethereum blockchain. It permits secure storage and transmission of data that moves within this network.
The network capabilities and lack of a supervisory authority make it possible to translate virtually any ideas, technological solutions, and innovations into reality.
In contrast, Bitcoin is only a payment network. The Ethereum platform offers a much more extensive range of services and features.
What Is a Smart Contract?
In a nutshell, a smart contract is any computer program put on the Ethereum blockchain. In the context of cryptocurrencies, the smart contract acts as an authority confirming the execution of a particular transaction. By sending a defined token amount to an address, the smart contract confirms receiving exactly that precise amount of tokens at the address you specified. The confirmation result is a record that is obtainable on the Ethereum blockchain and contains all transaction details.
The smart contract's purpose is to:
- give up on third parties to conduct and confirm any transactions;
- reduce commission costs;
- secure the fulfillment of prescribed conditions, as the human factor is excluded;
- speed up transactions due to process automation.
The well-liked areas are games, investment, insurance projects, trading platforms, crowdfunding applications, etc.
What Is an ERC-20 Token?
ERC-20 is a token by which all programs in the Ethereum network function according to a single standard. It exists based on Ethereum and depends entirely on it. The smart contract is used to create the token, and ERC-20 generates it consequently of computing operations. It serves as:
- token creation;
- transaction execution;
- token holder balance tracking.
To convert ETH into ERC-20 tokens, you need to send the coins to a smart contract, which will give out a certain number of ERC-20 tokens.
The Ethereum platform was a groundbreaking solution at one point and attracted many developers because of its flexibility and reliability. To connect their product to the Ethereum network, each developer had to create a smart contract through which all transactions would pass.
It is exceedingly challenging to write a unique code for each application, given that the platform already has tens of thousands of different programs, tokens, and applications.
Notably, a smart contract cannot be changed if placed in the blockchain. The developer can put at risk not only the work on the product but also all client account funds by making even the slightest mistake in the code.
Therefore, in 2015, the community decided to create the ERC-20 (Ethereum Request for Comments 20) token, which implies the creation of smart contracts according to a single standard. Thus, network participants could freely interact and exchange funds and data.