CoinGate, a gateway for bitcoin and blockchain payments has announced that ERC-20 and other Ethereum tokens are now implemented into their platform, for both merchant payments and trading. Earlier this fall, the company successfully launched Lightning Network payments for Bitcoin. Now the Ethereum network, and its ERC20 protocol, in particular, will be the next major development the CoinGate team will focus on. Ethereum (ETH), was integrated into the platform in July. The ERC20 technical standard is just one Ethereum protocol. Nonetheless, it has already enabled thousands of projects with their own tokens to be released on Ethereum.
Two integrations of new tokens with very specific use cases have already been confirmed by CoinGate:
- Sirin Labs (SRN) – Sirin Labs is a technology company building a secure blockchain smartphone Finney. The team is planning to release the device towards the end of November. It will feature an embedded cold storage wallet, built-in cybersecurity suite, safe screen and more, alongside a native operating system SirinOS. The mutual partnership between Sirin Labs and CoinGate will enable users to purchase the smartphone with SRN tokens as well as other cryptocurrencies both online and in retail locations.
- Telcoin (TEL) – Telcoin is a telecommunications-focused project that is aiming to utilize mobile carrier networks for money transfers, remittances, and online payments. Identifying with the vision of Telcoin to enable global, blockchain-enabled payments, CoinGate sees the integration of the TEL token as a step towards achieving the goals of both our mutual companies.
CoinGate will give shoppers the option to pay any of these merchants with SRN and TEL, just like they can do with Bitcoin or Ether. This way, the integration opens up a possibility for any ERC20 asset to increase its utility by accessing the e-commerce industry. In addition, all newly implemented currencies will be accessible by CoinGate’s user base of 70,000 for buying and selling. The range of supported payment methods includes bank transfers, mobile payments and integrated wallet solutions such as Skrill, which does not require users to sign up.
The CoinGate team is welcoming any Ethereum-based token team to connect and discuss the possibility of integration, and they are currently considering any project, if the vision of which aligns with CoinGate. The two basic requirements for the token are: at least $10 million in market cap and $100 thousand daily trading volume.
ERC20 was first proposed on November 19, 2015, by Ethereum developer Fabian Vogelsteller. The term itself stands for “Ethereum Request for Comments”, while the number 20 represents a unique proposal ID number.
Essentially, ERC20 is a set of rules for Ethereum-based tokens. When these rules are met, tokens released on Ethereum network become compatible with each other based on some common principles. Note that the developers of ERC20 assets still retain the ability to freely program various functions of their smart contracts within the Ethereum network. Other than that, pretty much everyone can create such assets. It is surprisingly easy to deploy as it requires just a few steps to do.
Since ERC20 was proposed for the first time, many were discussing its potential use cases. There was much to talk about as the standard could be used for nearly unlimited scenarios related to tokenization of assets and beyond. For instance, tokens represent stakes, vouchers, IOU’s, ownership, and pretty much anything that has any kind of value. As it is widely known, the technical standard has served a major purpose in crowdfunding projects on Ethereum network through ICOs.
If you are curious to find out more about these projects, take a look at a PwC ICO report.