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In the blockchain world, xxx-20 refers to token standards inspired by ERC-20. For instance, BEP-20 is the standard token for Binance Smart Chain (BSC), and CAP-20 is the equivalent of ERC-20 for Chiliz Chain.
A token standard is a set of rules that tokens must follow to work properly on Ethereum. These rules include how the tokens can be transferred/spent, how transactions are approved, how users can access data about a token, and the total supply of the token.
This ensures that different tokens can interact with each other in a predictable way on Ethereum, making it easier for developers to create new tokens that will work well with wallets, exchanges, and other smart contracts.
In simple terms, ERC-20 is like a common language that all tokens on the Ethereum network use to understand each other and work together smoothly.
Chiliz Advancement Proposal (CAP-20) is a token standard for Chiliz Chain, taking inspiration from ERC-20.
CAP-20 describes tokens that are specifically built for Chiliz Chain. While it follows the ERC-20 basic features, it can support a wider range of tokens. CAP-20 is therefore an extension of ERC-20.
Likewise, ERC-20 tokens require the use of the Ether (ETH) cryptocurrency as gas, while CAP-20 is build instead on the Chiliz (CHZ) cryptocurrency. This is in order to incentivize validators on the Chiliz network.