DAI is a stable coin that is backed by the ether cryptocurrency. It also has a set of smart contracts that allow people to lock their ether and create stablecoins called Dai. The Dai token has a price target of $1 USD and allows people to trade between other cryptocurrencies without worrying about volatility.
ERCs (Ethereum Request for Comments) are technical documents used by smart contract developers at Ethereum (there are a group of open source developers that are funded by the Ethereum Foundation and other institutions to drive the growth of the Ethereum network and protocol). They define a set of rules required to implement tokens for the Ethereum ecosystem. These documents are usually created by developers, and they include information about protocol specifications and contract descriptions. Before becoming a standard, an ERC must be revised, commented and accepted by the community through an EIP (Ethereum Improvement Proposal) (Source).
The ERC-20 standard is the most widely known and common among Ethereum token standards. It defines a set of six functions that the smart contracts within the Ethereum ecosystem use, including how tokens are transferred and how users can access data about a token. The smart contracts that we will be writing will leverage this token standard (Source).
Examples of ERC-20 Tokens#
There are several ERC-20 token implementations that are successfully being used in the real world. Here are some examples: