What is the difference between USDC and ERC20 tokens?

1 answers

• Mar 18, 2022 · 3 years ago
  The difference between USDC and ERC20 tokens lies in their underlying technology and purpose. USDC is an ERC20 token itself, but it is specifically designed to maintain a 1:1 peg with the US dollar. This means that for every USDC token in circulation, there should be an equivalent amount of US dollars held in reserve. This stability makes USDC a reliable digital currency for trading and storing value. On the other hand, ERC20 tokens are a broader category of tokens that can represent various assets and have different functionalities. They are built on the Ethereum blockchain and follow a set of standards that ensure compatibility and interoperability between different ERC20 tokens. While USDC focuses on stability and value preservation, ERC20 tokens offer more flexibility and innovation in the world of cryptocurrencies.
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