New dApp launch on Etherlite!

We are happy to announce the launch of a new dApp on Etherlite, ERC20 Interface.
Find details of the dApp, its features and how-to use the dApp below:

ERC20 Interface

  1. Introduction

Blockchains platforms have undergone revolutionary changes since their beginnings in 2008, their open financial networks enabling anyone to own and transfer blockchain based assets. Today, as there are thousands of blockchain-based assets (with more added each month), there is a need to exchange these assets without the need for a trusted third-party application or network.

With the advent of smart contracts, it is now possible for two or more parties to exchange/transfer their blockchain assets without the need for a trusted third party. Such smart contracts are referred to as decentralized applications (or DApps), and they run on blockchain networks like Ethereum. Dapps in the form of exchanges or interfaces are an important progression from centralized exchanges, which store their all user data centrally with them and are at risk to hacks, to fluctuating government regulations or even promoters of such centralized exchanges swindling user funds.

  1. About ERC20 Interface

ERC20 Interface is such a decentralized application that runs on the EtherLite blockchain network and enables peer to peer transfer of tokens (deployed on the EtherLite blockchain network). The EtherLite blockchain network is a highly scalable platform that provides an immediate solution for issues presently plaguing Ethereum 1.0. It is currently supported by OpenEthereum and POS Contracts and runs on a fully compatible EVM-based chain. This allows for mainnet interoperability while providing for greater efficiency, lower fees, configurability, and it is faster and more secure relative to current EVM consensus implementations. It is fully compatible with Ethereum’s tooling and Web3 technology stack.

Through the ERC20 interface, any token/coin deployed on the EtherLite blockchain network can be transferred by a user holding those tokens/coins in a Metamask wallet to another user holding a wallet on Metamask without the need to go through any centralized exchanges. The entire transfer transaction through this interface is end-to-end encrypted with no data stored by the dapp, and only the users with the private keys to their respective wallets in control of the tokens being transferred/received.

ERC20 Interface is a dashboard where users holding tokens in their wallet can transfer them to another user’s wallet, pre-approve the transfer of a fixed number of tokens to another user’s wallet and similarly receive tokens from another user’s wallet with the wallet holder’s pre-approval. This is facilitated by the dApps UI through the use of smart contracts.

Currently, you can send any ERC20 token through Metamask directly to another user’s wallet, but you cannot send requests for tokens or as explained above, a user can pre-approve the transfer of tokens to another user’s wallet in case the user transferring is unable to do so at the time of the second user’s requirement.

  1. Connect Wallet

As previously mentioned, a user can transfer any number of tokens from his wallet directly to another user’s wallet through the ERC20 Interface as long as both wallets are connected to Metamask. To connect to the ERC20 Interface dapp download the Metamask extension on your Windows PC or Mac by installing the extension on supported browsers - Chrome, Firefox, Brave or Edge. You can also install Metamask on your mobile Android or iOS mobile or tablet devices by installing the Metamask app available in Play Store and Apple Store. You can create a new wallet on Metamask in a few minutes, or import your existing wallet by using your private key string. A wallet on Metamask is essential and non-optional to transfer any tokens through ERC20 Interface.

  1. Peer-to-Peer Token Transfer

To better understand how all of this works, we have presented a step-by-step guide to using the ERC20 Interface.

  1. Step-1: On the home page, connect your Metamask wallet to the ERC20 Interface dapp by clicking on ‘Connect Your Wallet’. Approve the same on the Metamask extension. Once the wallet is connected, you will see all the details of the token you hold in your wallet, such as Token Name, Token Decimal, Token Symbol, Token Total Supply and the User’s balance.

  2. Step-2: Under ‘Transfer Tokens to address’ paste the wallet address you want to transfer your tokens to and below it enter the number of tokens you want to transfer to that wallet. Click the transfer button and wait for the Metamask extension to open (which is almost immediately). Here you can view the gas fee you have to pay to successfully complete the transaction. The gas fees are auto-generated by the system, but you can edit them to pay gas fees that you feel are appropriate to the transaction. Confirm the transaction and wait for the transaction to complete. Upon successful completion, you will see a pop-up saying ‘Token transferred successfully’ signifying the transfer of tokens.

  3. A big advantage of the ERC20 Interface is that it charges no transaction fee for any peer-to-peer token transfer, while the gas fee is also quite miniscule.

  4. If you have the private key to the wallet address you have transferred the tokens to, you can check for yourself if the tokens have been successfully transferred and if you do not, then ask the owner of the other wallet to confirm.

  5. Token Approval-Allowance

The other useful feature of ERC20 Interface is that a user can pre-approve the transfer of tokens in his wallet to another user’s wallet by giving an allowance. With this allowance the second user can get the pre-approved number of tokens from the first user’s wallet at his of choosing without requiring the first user’s fresh input. In this process the first user gives approval for ‘x’ amount of tokens to ‘user2wallet’. This approval is sent to the smart contract of the ERC20 Interface. When the second user wishes to use this allowance provided by first user, he sends his request to the ERC20 Interface smart contract, which in turn confirms this with the approval sent to it from the wallet address of first user. If all the details match, then the transfer is successfully completed.

We have provided an illustrative example below in the form of a step-by-step guide to provide even better understanding.

  1. Step-1: As previously mentioned in the article, the first step is to connect your Metamask wallet to the ERC20 Interface dapp on the homepage by clicking on the ‘Connect your wallet’ button. Upon connecting your wallet, you will see all the details of the token in your wallet viz a viz Token Name, Token Symbol, Token Decimal, Token Total Supply and User balance.

  2. Step-2: Under ‘Approve token for delegate address’ enter/paste the address of the wallet to which you want to give approval to in the empty field of ‘Address of delegate’. Below it, enter the amount of tokens you want to give approval for in the empty field of ‘Amount to approve’.

  3. Step-3: Now click the ‘Transfer’ button, immediately after which the Metamask extension will open asking you to pay the transaction fee to confirm the transaction. You can view the details of the transaction fee charged by clicking on the small link below ‘Transaction Fees’. Once you click ‘Confirm’, the transaction is almost immediately confirmed with a pop-up confirming ‘Approval done’

  4. Step-4: The second user can transfer the tokens he has been given allowance for by the first user at any time of their convenience. They will need to connect their Metamask wallet to the ERC20 Interface (details of how to connect provided previously in the document, see Point 3.). Once connected, enter/paste their wallet address in the empty address field on the home page and click on ‘Submit’.

  5. The user can then view the details of the token/s held in his wallet viz a viz Token Name, Token Symbol, Token Decimal, Total Token Supply and User Balance.

  6. Step-5: Next, the user has to enter/paste the address of the token owner (first user for the purposes of this illustration) under ‘Transfer from allowance’ in the empty field of ‘Address of Owner’. They have to enter their own address (second user for the purposes of this illustration.) in the empty field of ‘Address of Buyer’.

  7. Step-6: Click on the ‘Transfer From’ button next and then the Metamask extension will open asking for confirmation of the transaction. The user will have to pay a small gas fee, which is auto-generated by the system. The user can edit this gas free to pay a fee that the user feels appropriate to complete the transaction successfully. Once the transaction is confirmed, there will be a pop-up shortly after, confirming the ‘Token transfer successfully’.

  8. The second user can use the allowance given by the user to transfer the total amount of tokens approved by the first user or do the transfers in multiple transactions until the total amount of token approval given by the first user is utilized. The ERC20 Interface smart contract will not permit transfer of more tokens than has been given approval for by the first user.