CAP-20

What is CAP-20?

In the blockchain world, xxx-20 refers to token standards inspired by Ethereum's ERC-20 standard. For instance, BEP-20 is the standard token for Binance Smart Chain (BSC), and likewise, CAP-20 is the equivalent of ERC-20 for Chiliz Chain.

"CAP" is short for "Chiliz Advancement Proposal".

First, what is ERC-20?

ERC-20 is the most common token standard on the Ethereum blockchain.

A token standard is a set of rules that tokens must follow to work properly on a blockchain. 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.

Following ERC-20 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.

Now, what is CAP-20?

CAP20 is the standard for Fan Tokens on Chiliz Chain.

While it follows the ERC-20 basic features, it also extends it to support a wider range of tokens.

Fan Tokens (or "CAP-20 tokens") are essentially ERC-20 token, but:

• They run on Chiliz Chain, not Ethereum,

• Therefore they use $CHZ, not $ETH,

• The default of a Fan Token has 0 decimals, while the standard of ERC-20 has 18 decimals.

Tokens created on different blockchain platforms can be adjusted or linked to Chiliz Chain through a process called bridging. Learn more about Chiliz Bridge.