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** “Blocks constitutive of the digital world: understanding of the ERC-20, ICP and liquidity swimming pools in cryptocurrency”
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Cryptocurrencies have gone a long way since their creation in the early 2000s. The rise in decentralized finance (DEFI) led to the development of new projects based on blockchain that change the game. Among these projects Figure Internet Computer (ICP), a blockchain platform that is gaining ground as a center for decentralized applications and services.
ERC-20: A DEFI standard
One of the most used token standards in DEFI is ERC-20, which means the Configuration of Business Resources 2.0. This standard was created by OpenZePPELIN to provide a secure and interoperable way for different blockchain networks to interact with each other. ERC-20 tokens are designed to be fungible, which means that they can be exchanged for another identical token.
In the context of the ICP, ERC-20 is used as a governance token for the Internet IT platform. These tokens are used to vote on proposals, participate in governance and provide liquidity to the network through a chain liquidity pool. The ICP ecosystem has experienced significant growth since its creation, new projects and applications being built in addition.
Computer Internet (ICP): an evolving blockchain platform
Internet Computer is a blockchain platform launched in 2018. It is designed to be evolving, secure and efficient, making it an attractive option for decentralized applications and services. ICP uses a consensus algorithm of proof of bet, which is more energy efficient than the algorithm of proof of traditional work.
One of the main characteristics of the ICP is its chain liquidity pool. This allows users to create pools of different tokens and exchange them directly on the blockchain without counting on centralized exchanges. The liquidity pool offers a decentralized means for users to exchange their tokens, reduce the need for intermediaries and increase the speed of trades.
Liquidity pools in ICP
Liquidity pools are a crucial element of any DEFI project. They provide a decentralized means for users to exchange their tokens without relying on centralized exchanges. In ICP, liquidity swimming pools can be created by connecting several pairs of token and grouping them together. This allows users to exchange different tokens directly on the blockchain, increasing the speed and efficiency of the trades.
The ICP liquidity pool system is designed to be evolving and efficient, making it an attractive option for decentralized applications and services. The platform has experienced significant growth since its launch, new projects and applications being built in addition.
Conclusion
The ERC-20, ICP and liquidity pools are all crucial components of the digital world. By understanding these concepts, we can better appreciate technology behind cryptocurrencies and DEFI projects. Whether you create decentralized applications or participate in the Internet computer ecosystem, it is essential to know how to work with ERC-20 tokens and chain liquidity pools.
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