CAP20

What is CAP20?

In the blockchain world, xxx20 refers to token standards inspired by Ethereum's ERC20 standard. For instance, BEP20 is the standard token for Binance Smart Chain (BSC), and likewise, CAP20 is the equivalent of ERC20 for Chiliz Chain.

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

First, what is ERC20?

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 ERC20 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, ERC20 is like a common language that all tokens on the Ethereum network use to understand each other and work together smoothly.

Now, what is CAP20?

CAP20 is the standard for Fan Tokens on Chiliz Chain.

While it follows the ERC20 basic features, it also extends it to support a wider range of tokens.

Fan Tokens (or "CAP20 tokens") are essentially ERC20 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 ERC20 has 18 decimals.

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