Ethereum: Discovery of ERC20 Tokens is more than 18 decimals
As the world of decentralized financing (Defi) and non -blurred tokens (NFTS) continues to grow, many token fans are curious about the complexity of Ethereum’s native tool, ETHEREUM (ETH). Specifically, they are thinking of whether it is possible to have more than 18 decimal places for ERC20 tokens. In this article, we are immersed in the details and discover why the support of over 18 decimal tokens cannot be as easy as it seems.
ERC-20 tokens: What are these?
ERC -20 (Ethereum comment -20) is a standardized token standard for Ethereum, which allows developers to create and install their own tokens on the platform. ERC-20 tokens are digital devices that can be trading, storing, and can be transferred as usual cryptocurrencies.
Why 18 decimals Standard
The choice of 18 decimals for the standard of the token denomination is largely the result of historical and practical considerations. Prior to the 2015 edition of Ethereum, the first cryptocurrency, Bitcoin (BTC), used a 10 decimal for the native medal, BTC. This was considered more convenient and user -friendly.
In addition, 18 decimals were balance between accuracy and easy calculation. Most financial application and token management systems do not require such high levels of granulity, making 18 decimal tickets sufficient for most purposes.
tokens over 18 decimals: Looking for examples
While more than 18 decimal tokens are theoretically possible, it is essential to take into account practical and possible disadvantages. Here are some examples:
* EThereum (ETH) : As mentioned earlier, ETH’s standard denomination is 2^256 Wei, which is equivalent to 1 million units. This means that each unit can be divided into smaller denominations, up to 18 decimal places.
* Binance Coin (BNB) : BNB is the popular decentralized exchange (Dex), Binance native cryptocurrency. Its standard denomination is 2^256 Wei, allowing up to 18 decimal space.
* Sushiswap token (Sushi) : Sushi is the steering token of the popular Defi platform. Its native tool, Sushi, has a standard denomination of 2^16 wei, allowing up to 16 decimal space.
Supporting tokens are more than 18 decimals
Although it is theoretically possible to create more than 18 decimal tokens, there are many reasons why it cannot be as simple:
* Tokenomics : Designing and handling token often makes simplicity a priority compared to complexity. Adding too many decimals can cause confusion, increased costs for token holders and reduced usability.
* Scalability : Higher domestication tokens may require more computing resources that can affect performance, especially in a high -traffic environment.
* Regulatory compliance : Token design must meet the regulatory requirements that may limit the use of excessively large decimal places.
Conclusion
Although it is technically possible to support the ERC20 token is more than 18 decimals, due to practical considerations and potential disadvantages, this approach is less ideal. Developers must treat simplicity, scalability and regulatory compliance as a priority when designing tokens. As the deffi ecosystem further develops, we can expect more innovative approaches to token design and control.
In summary:
- The standard of the 18 decimal location of the token denominations is largely the result of historical and practical considerations.
- Tokens with more than 18 decimal places are theoretically possible but have potential disadvantages.
- Developers must treat simplicity, scalability and regulatory compliance as a priority when designing the tokens.
