ETH and ERC20
- Ether (ETH) is an internal currency of the Ethereum Blockchain.
- ERC20 is the most common standard of Ethereum that has been used to generate Tokens.
- ERC20 was offered after ETH. Therefore, ETH does not follow the ERC20 standard.
ETH and WETH
- WETH stands for Wrapped Ether. WETH is an ERC20 Token.
- In short, WETH gives the image of wrapping ETH (via smart contract) adding the function of ERC20.
- Since ETH is tokenized via WETH, the values of ETH and WETH are equivalent.
Why do we need to use WETH?
- In order to swap (trade) from one token to another via Smart Contract on Ethereum Blockchain, the swapped tokens need to be generated by using the similar standards.
- ETH does not conform to the standard of ERC20, called the “International Standard”.
- In order to exchange tokens with ETH, users first need to convert the ETH to WETH, that tokenizes ETH.More: https://weth.io/
WETH on Decentralized Exchange (DEX)
In the Ox system, users can trade ETH for other Tokens after converted to WETH.