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What is a Token?

Tokens can represent virtually anything on Parallax:
  • reputation points in an online platform
  • skills of a character in a game
  • lottery tickets
  • financial assets like a share in a company
  • a fiat currency like USD
  • an ounce of gold
  • and more…
Such a powerful feature of Parallax must be handled by a robust standard, right? That’s exactly where the ERC-20 plays its role! This standard allows developers to build token applications that are interoperable with other products and services.

What is ERC-20?

The ERC-20 introduces a standard for Fungible Tokens, in other words, they have a property that makes each Token be exactly the same (in type and value) as another Token. For example, an ERC-20 Token acts just like LAX, meaning that 1 Token is and will always be equal to all the other Tokens.

Prerequisites

Body

The ERC-20 (Ethereum Request for Comments 20), proposed by Fabian Vogelsteller in November 2015, is a Token Standard that implements an API for tokens within Smart Contracts. Example functionalities ERC-20 provides:
  • transfer tokens from one account to another
  • get the current token balance of an account
  • get the total supply of the token available on the network
  • approve whether an amount of token from an account can be spent by a third-party account
If a Smart Contract implements the following methods and events it can be called an ERC-20 Token Contract and, once deployed, it will be responsible to keep track of the created tokens on Ethereum. From EIP-20↗:

Methods

Events

Examples

Let’s see how a Standard is so important to make things simple for us to inspect any ERC-20 Token Contract on Parallax. We just need the Contract Application Binary Interface (ABI) to create an interface to any ERC-20 Token. As you can see below we will use a simplified ABI, to make it a low friction example.

Web3.py Example

First, make sure you have installed Web3.py↗ Python library:

Further Reading