Building Your Own Cryptocurrency: A Guide to ERC-20 Token Functions

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The journey into cryptocurrency creation continues. After setting up your digital wallet in the previous guide, the next step is to write the smart contract code that will form the backbone of your token. For many, the ERC-20 standard on the Ethereum blockchain is the ideal starting point. This guide will break down the essential functions you need to understand and implement.

An ERC-20 token contract is built using two primary Solidity files: EIP20.sol and EIP20Interface.sol. The interface file acts as a blueprint or a skeleton, defining the mandatory functions that your token must have to be compatible with the standard. It tells other applications—like wallets and exchanges—what APIs to expect. Let's explore each of these core functions in detail.

Core ERC-20 Token Functions Explained

The transfer Function

The transfer function is the most fundamental operation. It enables the token owner to send a specified amount of their cryptocurrency to another address.

function transfer(address _to, uint256 _value) public returns (bool success);

The transferFrom Function

This function enables delegated transfers. It allows a third-party application (like a decentralized exchange) to transfer tokens on behalf of a user, but only with their prior permission.

function transferFrom(address _from, address _to, uint256 _value) public returns (bool success);

The balanceOf Function

A simple view function that provides information about a wallet's holdings without modifying the blockchain state.

function balanceOf(address _owner) public view returns (uint256 balance);

The approve Function

This function is the prerequisite for transferFrom. It grants a specific address permission to spend a set amount of your tokens.

function approve(address _spender, uint256 _value) public returns (bool success);

The allowance Function

This view function checks the remaining amount of tokens that a _spender is still permitted to withdraw from a _owner's account.

function allowance(address _owner, address _spender) public view returns (uint256 remaining);

Understanding these five functions provides a solid foundation for how ERC-20 tokens operate. They govern the movement, authorization, and querying of tokens, forming the basis of most token-based interactions on Ethereum. For a deeper dive into the variables and events that complete an ERC-20 contract, you can explore more strategies for advanced smart contract development.

Frequently Asked Questions

What is the main purpose of the ERC-20 standard?
ERC-20 is a technical standard used for all smart contracts on the Ethereum blockchain that implement a token. It defines a common list of rules that all Ethereum tokens must adhere to, ensuring they can be easily exchanged and interacted with across different applications like wallets and exchanges.

What is the critical difference between transfer and transferFrom?
The transfer function is used to send tokens directly from your own address. In contrast, transferFrom is used by an approved third-party address to transfer tokens on your behalf, but only up to a limit you have预先 approved using the approve function.

Why is the approve function necessary?
The approve function is essential for enabling decentralized financial applications. It allows users to grant permission to smart contracts (e.g., for a decentralized exchange or lending platform) to access a specific amount of their tokens without giving the contract full control over their entire balance, enhancing security.

How can I check how much I've allowed a dApp to spend?
You can check your remaining allowance for any specific spender address by calling the allowance function. You will need to input your address as the _owner and the dApp's contract address as the _spender.

What happens if a transfer transaction fails?
If a condition like an insufficient balance causes a transfer to fail, the built-in require statement will trigger. This will revert the entire transaction, meaning no state changes (like token deductions) will occur, and the user will only lose the gas fee for the failed transaction.

Are these functions enough to create a full token?
While these functions form the core logic of a token, a complete ERC-20 contract also requires state variables (like balances and allowed mappings) and standard events (like Transfer and Approval) to log activity on the blockchain. The interface defines the required functions, but the implementation is built around them.