Crypto Guides

What Should You Know About ERC-20 Tokens?


ERC-20 tokens are dedicatedly used on the Ethereum platform. These tokens represent a wide range of digital assets and feature value and can be used as a mode of transaction. Presently, there are over 200,000 ERC-20 tokens available on the Ethereum blockchain. It is an official protocol, which extends advancements in the Ethereum network. ERC is an abbreviation for Ethereum Request for Comment, and the 20 is referred to as the proposal identifier. 

The Core ERC-20 Standard

Creating a smart contract on the Ethereum blockchain is quite simple. This allows users to create different forms of tokens. The standard basically offers core functionality to transfer and allow tokens to be authenticated so that other on-chain third parties can use them. The standard interface enables tokens on this platform to be used again by other applications.

The ERC-20 standard is basically a list of events and functions that each contract needs to integrate to adhere to the standard. The name, behaviour, supply, and ticker of the contract can differ from one another, but they need to execute the core functions of ERC-20.

Smart Contract and Ethereum

Smart contracts are leveraged to generate ERC-20 tokens. They are also used to execute transactions of these tokens and record token balance information. These contracts are written in the programming language centring on the “If-This-Then-That” approach. Once the tokens have been created, they can be traded, spent, or offered to other parties. These tokens are basically universal languages that are used by all the tokens present in the Ethereum network. The unified approach allows trading of one token with another.

How to Send and Receive ERC-20 Tokens?

When sending an ERC-20 token, you are indicating the token contract to initiate a transfer operation. To execute a contract on Ethereum blockchain will need a fraction of Gas (Ether). Considering that Ether is used during the process, it is vital to ensure that the users have sufficient Ethereum Balance. 

Moreover, people can receive ERC-20 tokens by sending their wallet address. Considering that these tokens only exist in Ethereum blockchain, users can only use Ethereum addresses. 

Benefits of ERC-20 Tokens 

There are tons of benefits that ERC-20 offer that we would not find in any other tokens. It envisions to optimise the usage of the accounts by making transactions more efficient and convenient. By amalgamating different sources, these tokens create an ideal zone for constant token creation. And when it comes to efficiency and speed, ERC-20 stands at the forefront. And this is the reason why tokens hold such a massive adoption.

Efficiency and speed are two important facets of cryptocurrency trading, and ERC20 tokens do not disappoint in this regard. Its core structure offers unparalleled speed and efficiency. This easy to use token makes it easier for traders to leverage most of the blockchain technology.

It is not challenging to acquire ERC20 tokens these days; we can even develop it ourselves. It is considered one of the best payment methods for businesses, and its streamlined process makes the transactions easier for both sender and receiver. Cheers! 

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Understanding Merkle Tree & Its Importance In Blockchain


Merkle tree is the essential component of a blockchain. Data entered into the blockchain is immutable, and this is a critical future of blockchain. Even though there are many futures, many deploy blockchain for this one significant future. This future is primarily achieved using the concept of a Merkle tree. Before dwelling into further about the idea, it is essential to understand cryptographic hash functions.

What are cryptographic hash functions?

Cryptographic hash functions are another integral part of blockchain technology. Cryptography is often used for military purposes. In war zones, the data is shared between two parties of a country at different places using cryptography.

Cryptographic hash functions are algorithms that transform any input given to the algorithm in the output of fixed length. The outputs change drastically, even if a single letter of the input is changed. At the same time, the same input gives the same output all the time. It is highly unlikely to determine the output based on the input unless one has a set of public/private keys. Any length of the input gives a fixed-length output; this feature is handy when a large amount of data sets is used. To check any set of data is modified or not, we can check the fixed-length hash.

Let us see the usage of cryptographic hash functions in the bitcoin blockchain network. Blockchain is essentially a series of blocks of transactions joined together using cryptographic hash functions. Each block has header data and transactions associated with it. Header data contains the previous hash, nonce, Merkle root, block hash.

Data of the complete block, including the header data, is hashed, and this hash is stored in the present block and also in the next block as the previous block hash. This previous block hash represents the entire state of the blockchain at any given point of time. Hence if we make any changes to the transactions in the last block, the hash of all the blocks up to the present block will be disturbed, which is why it is highly impossible to change the transactions and hence the concept of immutability.

Now how do we verify the hashes to check the data integrity? It is highly inefficient and time consuming to check the hash of every block. Hence the concept of Merkle tree is used as it is efficient to check the data integrity.

What is a Merkle tree, and how is it used?

Merkle tree developed by Ralph Merkle is also called a Binary hash tree. It is a data structure used to store hashes of individual data in an extensive data set in a way to make the verification of the date set efficient.

An example of the Merkle tree is as below.

It would be easy to understand the Merkle tree with the example above. It is essentially a tree of hashes with branches of individual hashes. These hashes come from the transactions of the blockchain platform when it comes to a cryptocurrency platform.

In the above figure, we have transactions from TA  represents a transaction, while HA represents a hash of that transaction. All the transactions are hashed to produce a hash value of its own transaction. Then adjacent transactions are hashed together to form a hash of both transactions. Like HAB is the hash of transactions A and B. If there are an odd number of transactions, then the transaction is combined by its own, and a hash value is created. The same process is repeated until the last hash value is generated, which is called the Merkle root. In this case, HABCDEFGH is the Merkle root of transactions from TA to TH. This is how a Merkle tree is formed.

Hence because of the tree, it would easy to find if any transactions are tampered with, uses very few resources to check any fraudulent behavior, and easy to add new transactions to the block.

This allows for simple payment verification, and the new nodes need not download the entire blockchain but only the block headers of the longest chain. Thus Merkle trees help to maintain the immutability and integrity of the blockchain.

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Cryptocurrency Inheritance – What Happens To Your Cryptos When You Die?


Ever imagined what would happen to your cryptocurrency when you die? In the case of land or property, it typically goes to the person’s children or to the ones mentioned by them. And all this happens legally with proper documentation. But it does not work the same way with a person’s cryptocurrency.

In cryptocurrencies, inheritance does exist but is pretty different from the regulated ones. Now, let’s understand the inheritance in cryptos keeping in the sense of the decentralization and anonymous nature of cryptocurrencies.

Though cryptocurrencies are not regulated officially, it does not mean you can let go off the unused coins. They do have value in themselves, and also if converted to fiat currencies. According to estimates, Bitcoins worth $20 billion is already lost and not in use. This could be due to negligence or the death of the owner without anyone’s knowledge that the person had coins in their portfolio.

Furthermore, a Reddit user created a spreadsheet accounting the wallet addresses, which were inactive since the time each Bitcoin was worth below $10. And in 2015, there were more than 3 million Bitcoins that were left untouched.

Ways to Not Let Cryptocurrency Unused

Dead Man’s Switch

In the case of cryptos, there exists a computer program that emails you at specific intervals and waits for your reply. If the program does not receive any reply from the sent email, it then automatically checks for death certificates of the account holder. If it finds such a record and does not receive any email, the program will transfer the coins in the wallet to the specified wallet mentioned by the account holder during the time of set up.

However, there is a downside to it. Even though it is helpful in cryptocurrency inheritance, there can be a scenario when an alive user does not reply to an email, and the computer protocol transfers away from the cryptocurrency to the specified address.

Doing the Traditional Way

This is a technique that does not require any kind of computer technology. This is the simplest inheritance issue where the user writes down all the wallet credentials and hands it over to their beneficiary. The credentials may contain the private key, exchange login detail, and the fiat currency accounts associated with it.

However, storing all the information in one place may not be the ideal option. It could turn out to be a very high price paid just for the convenience. Finally, it all drops down to trust. There must be trust between the account holder and the beneficiary. This is because the beneficiary could tamper with the credentials even before the death of the user. Hence, users must be choosy before handing over the details.


There are several ways to ensure that your coins are not buried with you and are handed over to your loved ones. But, with all of them, there exists a downside to it, which makes you think again on handing away the coins to someone. This has made cryptocurrency inheritance still tricky to deal with.

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Beginners Guide To Atomic Swaps


One of the features of cryptocurrencies is that they are decentralized. However, in reality, it is not completely decentralized. For the buying and selling of cryptocurrencies, the most popular option is to use a centralized exchange. Hence, adding an element of centralization in them.

Though this seems to be the best way to exchange cryptocurrencies, there are other better ways as well. This is because centralized exchanges sometimes possess big problems. There have cases where new exchanges have been hacked, which has caused losses for exchange and their clients. Moreover, the common issue with all exchanges is high withdrawal and trade fees. So, trading cryptos turns out to be expensive for clients with small capital.

Thus, the irony here is that cryptos that are known to be a peer-to-peer payment system requires users to go to a third party to exchange the coins. However, crypto analysts have taken this concern as a priority and have been able to come with something called “Atomic Swap.”

What is an Atomic Swap?

Atomic swaps are a solution to the above-discussed problem. Atomic Swap is a peer-to-peer exchange of cryptocurrency without the involvement of a middleman. If you are wondering what “atomic” means, it is a terminology used in computer science, meaning something would either completely happen or completely not.

Understanding Atomic Swaps

The main goal is to send someone cryptocurrency without the involvement of a third party. Let’s understand how the atomic swap makes this possible, with an example.

Assume Ron wants to send 1 Ether in exchange for 0.02 Bitcoins from Lisa. In atomic swap terms, we say that Ron has 1 ETH and wants to swap with Lisa for 0.02 BTC.

The key ingredient here is to create a smart contract called a hashlock. You may relate this to a container where the money is placed and is locked with a secret password.

How is the Hashlock made?

The hashlock, which is a smart contract that remains locked until the key is revealed, is made by Ron.

The hashlock is made using the following steps:

  1. A big random number is picked. It is called the primate. This is nothing but a secret password.
  2. This number is used to create another number called the A smart contract is created to send Lisa 1 ETH, locked with a hashlock created by him. This coin is accessible only when Lisa is able to figure out the preimage to the hash.

Note that calculating the hash from the preimage is easy, but determining the preimage from the hash is extremely challenging. In other words, Lisa cannot unlock the coins until she gets the preimage from Ron himself.

Role of Lisa

Now Lisa checks if she has received coins from Ron. This can be easily verified by checking on the public blockchain. After verification, Lisa creates a smart contract for 0.02 BTC with the same hash used by Ron.

Unlocking the coins

Now when Ron goes on to unlock the coins sent by Lisa, he uses the preimage he had created. But, in doing so, the preimage is recorded on the blockchain and becomes public information. Hence, Lisa can now use that preimage to unlock the coins sent by Ron.

Therefore, this completes the transaction without the involvement of a middleman.

This is a solution to the problem that exists in crypto exchanges. Since most users are still into exchanges, the idea of atomic swaps must be inculcated into exchanges and make them truly decentralized.

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‘Whales’ & Their Impact On The Cryptocurrency Market!


Whales are a metaphor for individuals with high-worth in the capital and have the capability to persuade the market in their preferred direction. In this article, we shall understand how the whale’s actions impact the cryptocurrency market.

Whales’ typical move is to create a wave in the market. They cause the market to artificially appreciate or depreciate so that they can get the best price to make their purchase and ride in profit. Now let’s see how they create this illusion in the market.

How do the Whales work?

We know that the job of Whales is to create a wave in the market. And the amount needed to create it depends on the market cap of the instrument. So, a bigger ocean would require bigger whales to produce a considerate wave.

To produce a wave, the whales place a large number of sell orders at a low price such that there are not as many buy orders as their sell orders. With these sell orders, the exchange has no other option but to execute the order. In doing so, a wave will be brought into the market, which will drive the prices lower and lower in a very short period of time. Once prices drop, the whales begin to buy at these lower prices.

If the number of orders of the whales is not as large as the number of buyers, and they still place sell orders at low prices, there would be enough buyers to fill those sell orders. Hence, only a young market with a small market cap is prone to these whale waves.

For instance, BearWhale was able to bring and hold the prices of Bitcoin to as low as $300 only for a few hours. Because there were a large number of buyers to consume the entire sell orders of the whales. However, it did bring a sudden drop to the Bitcoin prices, but the impact is relatively lesser than smaller markets.

Price Suppression

As mentioned in the previous example, the Whales use their powers to create waves to make strategic lows so that they can buy the cryptocurrency at great discounts. They use this strategy repeatedly, placing orders at low prices, wait for the price to drop, remove their sell order, and buy for the reduced price. For example, the NEO coin with a very small market cap fell from $37 to $4 in just one day. And the responsible ones were none other than the waves.

On the contrary, there price pumping, where the whales, instead of placing sell orders, place enormous buy orders to inflate the market higher. When the prices appreciate all of a sudden, they get off with their buy orders and prepare to take short positions.


A sudden appreciation or depreciation in the prices can not only cause by Whales but other factors as well. This becomes difficult for traders to predict if the sudden rise and fall are real or not. Unfortunately, such activities cannot be put to a stop until the market-cap of cryptocurrency grows to the extent that such manipulations cannot be played.

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What Are Bitcoin Faucets, & What Do They Offer?


Bitcoin, launched in 2009, did not really break the news. As people started to understand the blockchain technology and the unique features in it, Bitcoin gained some recognition. But, when the Bitcoin prices began to skyrocket, everyone, including small kids, knew about it. Many started to find ways to enter the Bitcoin space. And this when they also came across Bitcoin Faucets.

As a beginner in the field of Bitcoin, several would not know what Bitcoin Facets are. This article will walk you through the complete understanding of Bitcoin Faucets.

Introduction to Bitcoin Faucets

Bitcoin Faucets are online websites and applications, which is basically a reward platform system for the users who get paid for completing some tasks given by the platform. In exchange for completing these tasks, users are rewarded with Satoshi. And the Satoshi earned are directly deposited in the user’s Bitcoin wallet or micro wallet.

Satoshi – It is the smallest unit of Bitcoin, which is worth one-hundredth million of a Bitcoin.

Why Bitcoin Faucets?

Bitcoin is still a relatively new term for people to understand completely. Many are in the process of learning about investing in Bitcoin. In the learning population, there are people who are conservative when it comes to investing. This is the reason Bitcoin Faucets was created. It acts as a medium to introduce people to the concept of Bitcoin investment by actually risking their own money. With this platform, Bitcoin enthusiasts can get insights about Bitcoin and also an earning opportunity.

Where does the earned Satoshi go?

When you register with a Bitcoin Faucet platform, you will have to provide your Bitcoin wallet address. All the Satoshi that is earned will directly be transferred to that wallet address. This wallet is a secure digital account, having a unique bitcoin key. For those who are new to bitcoin wallets, you may relate to the Bitcoin wallet as a traditional wallet, and the Bitcoin key can be associated with your bank account.

How do Bitcoin Faucets generate revenue?

Bitcoin is a cryptocurrency that saw exponential growth a few years ago and has made some people a lot of money. So, the very next question that pops up is, why would Bitcoin Faucets give away coins for free? As a matter of fact, these platforms generate revenue by rewarding users with coins. The simple answer is, they earn money through advertisements.

Bitcoin Faucets are very popular among the beginners in Bitcoin. So, most of the websites host ads on their portal. Be it a pay-per-click or pay-per-impression, Bitcoin Faucets have a steady source of income through affiliate marketing. So more the users they get on board, more is going to be their revenue.

You can visit this link to find the best Bitcoin faucets of 2020.


If you have an interest in investing in Bitcoin but have no clue how to go about it, then Bitcoin Faucets can surely be a great option. This does not risk your money in the market but instead rewards you for learning something of your interest. Having said that, there are platforms that kill a clear user interface with a countless number of ads on the screen. So, you might have to switch from platform to platform to find the right one. Cheers!