Automated Token Generation Events
It was the Ethereum Blockchain that brought us fairly easy but still custom made initial token offerings available. The market was so hyped-up that 2-3 billion USD have been raised by crypto-projects only in 2017.
What was the innovation behind the Ethereum Blockchain in context to ICOs?
Simply put, the Ethereum Blockchain brought smart contracts to the crypto ecosystem.
What is an ICO?
These are, essentially, automated, self-executing contracts.
You can check our more detailed rundown of what smart contracts are right here.
Thanks to smart contracts, ICO’s got rid of all their trust issues.
If you transfer Ether to the contract, it WILL send you Tokens back.
Escrowing also became 100% reliable. That’s not only cool tech-wise, but also allows some legal standards to be skipped.
On top of those Smart Contrats, the Ethereum Foundation implemented and introduced the so called tokens that live on the Ethereum blockchain next to the main currency called Ether.
They defined a bunch of rules and functions which each token should posses. This is called the ERC-20 token standard.
ERC stands for Ethereum Request for Comments. Read more about ERC-20 in this quick article.