The Analysis of the Risks and Improvements of ERC20 Tokens

Blockchain is a decentralized, shared ledger that aggregates blocks of data in a factual data structure in chronological order using a chain structure. Two hundred sixty thousand tokens, or 98% of the around 2.5 million smart contracts in Ethereum network, are ERC-20 tokens. The ERC20 standard specifies constructors for token contracts that establish and initialize the contract state. The Ethereum wallet and Ethereum decentralized, centralized applications can access tokens through these standard interfaces. Security vulnerabilities in ERC-20 have drawn a lot of attention lately in recent years. This paper summarizes some basic security vulnerabilities and suggests avoiding multiple withdrawal attacks. Tokens can be used to support dApps, access blockchain services, trade, and obtain voting rights. Various tokens exist depending on their properties and use cases, including governance, utility, security, transaction, and platform tokens. Tokens can be sorted as fungible tokens and non-fungible tokens. Tokens that can be fungible are identical, divisible, and can be instead of money. Non-fungible tokens have a single owner and are unique.