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In this article, we break down the concept of ERC20 tokens and how they align with the Magic Eden Wallet.
What is an ERC20 token?
At its core, the ERC20 is a smart contract standard on the Ethereum network, acting as a blueprint for creating fungible tokens. This means that every token created following this standard is interchangeable and uniform. Developers find it invaluable as it offers a consistent set of functions, allowing tokens to interact seamlessly with other applications, be it dApps or decentralized platforms.
But there's a catch - interacting with or sending ERC20 tokens isn't free. These operations require 'gas', a small fee paid in Ethereum (ETH), ensuring the smooth processing of transactions on the Ethereum network.
Why do all my ERC20 tokens share a single address in Magic Eden Wallet?
The answer lies in the architecture of the Ethereum blockchain. In the Magic Eden Wallet, your Ethereum and its affiliated ERC20 tokens are all housed under a single address. This is because they all coexist on the Ethereum network. Always remember, these addresses kick off with "0x".
The role of Ethereum in ERC20 transactions
For any ERC20 token operation, Ethereum (ETH) is required. This is because, as highlighted earlier, every transaction involving ERC20 tokens requires gas, which is paid using ETH. So, when you're looking to send any ERC20 token from your Magic Eden Wallet, ensure you have some Ethereum to cover the associated gas fees.
Checking ERC20 token balances
To confirm your ERC20 token holdings, utilize an Ethereum blockchain explorer, such as Etherscan. Simply input your ETH address, and a detailed breakdown of your ERC20 tokens will be presented.
If you need further clarity, Magic Eden's dedicated team stands ready to assist, just open a support chat.