*Introduction:

Dear users and future users, it’s come to our attention that multiple people have found themselves confused over why their DNC (DinarCoin) tokens and ETH (Ether) tokens are going to the same address in their BCMY wallet. So we would like to clear that up for you now. Essentially, we are talking about the public address in which these two tokens are stored.

*Why Do DNC & ETH Tokens Go To The Same Public Address?

In the cases we have heard, the problem is simply not understanding how an Ethereum-based wallet works. In short, all Ethereum-based tokens which use Smart Contracts will be stored in the same public key address of the owner. In our case, both DNC and ETH are based on Ethereum Smart Contracts, thus, out of the other cryptocurrencies compatible with our wallet app, these two are stored in the same public address. It’s simply a matter of where the tokens are being sent and saved.

Here’s an example from ethplorer.io, where this single public address (0x5E575279bf9f4acf0A130c186861454247394C06 –> the investor’s ETH address), holds/stores multiple different tokens, including: Tronix, EOS, Kyber Network Crystal, MobileGo Token, 0x Protocol Token, Ether, and many others – the total number of each is all visible to the public. DNC could hypothetically be included on the list of tokens found there, if the owner had invested in DinarCoins. The owner of all these tokens on this single public address is the owner of the private key that is paired to this address. This is only the case for Smart Contract platforms like Ethereum, and other platforms that may work like it, that can issue tokens. Different platforms however may have different rules, system of storing tokens, etc. Both ethplorer.io and etherscan.io are token explorers and data viewers for Ethereum.

There, that was simple. However, for your convenience, we’re going to explain a little more on how the technology behind Ethereum-based Smart Contract tokens work…

The Technology

*What Are Ethereum Smart Contracts & How Do They Work?

Ethereum Smart Contracts are coded software programs that automatically carry out the programmed agreements inputted into them when triggered by certain actions (they are self-executing contracts), which were originally designed to work on the Ethereum blockchain. Smart Contracts make decentralized applications (dapps) possible, and have aided in the ease of creating new cryptocurrencies, including tokenized assets (where a digital token is pegged to a physical commodity by price or quantity), like the DinarCoin. They are an extension of the Bitcoin blockchain concept, but instead of only accomodating a digital currency, programmers can create pretty much any type of program they want.

*How Do Ethereum Addresses Work?

Cryptocurrency addresses in general (including Ethereum’s) consist of a public key and a private key. Each key (or address) is a long and unique strand of letters and numbers generated for each new wallet. Public keys can be seen by anyone, and as discussed above, for Ethereum, this is where all of your Ethereum Smart Contract based tokens are stored. Your public key is also what allows people to send tokens to your wallet. Private keys on the other hand are how you access and spend your tokens, they verify that you are the owner. Private keys must remain private and hidden at all times in a secure place where they will not be lost or forgotten about. If someone sees or records your private key somehow, they will have access to your tokens. Public and private keys can be stored online, on a digital device, or even printed on paper.

*What Are ERC20 And ERC223 Tokens?

ERC20 and ERC223 are both standards for tokens on the Ethereum blockchain. ERC20 is an older standard version for tokens, which makes sure that the created token has simple transferability among wallets and contracts. It has three basic functions: ‘transfer’, ‘allow’, and ‘transferFrom’ – which allows a person to ‘transfer’ their tokens, and spend tokens which are inside of a contract, in which case the contract must ‘allow’ the transaction before the spender can ‘transferFrom’.

As things have been updated, more functions have been made available. Thus, the creation of the ERC223 standard token. ERC223 is supported by every software that supports ERC20 (it’s ‘backwards compatible’), and it takes all of the above functions among contracts and wallets and puts them into one function: ‘transfer’. This merging of functions is not only simpler, but it can also save on transaction fees concerning ‘gas’ within Ethereum. A big bonus on behalf of the ERC223 token standard, is that it doesn’t allow tokens to be transferred into a contract which doesn’t allow tokens to be withdrawn. This is a plus, because prior to ERC223, if someone sent ERC20 tokens into a contract which hadn’t allowed people to use it, those tokens would be locked in the contract and inaccessible, which has caused hundreds of thousands of dollars to simply be locked up.

*Network Status and Ethereum Gas:

You can check the Ethereum Network Status by visiting ethstats.net. There, you’ll be able to see almost anything you’d want to see concerning the Ethereum network, such as new nodes (only voluntary submissions are visible), transactions, last blocks mined, hash rates, and more.

Ethereum gas “is the internal pricing for running a transaction or contract in Ethereum” as put in an article by Crypto Compare. It can be a bit complex, but you can see how the pricing can be affected by different factors by going to ethgasstation.info, otherwise known as the ETH Gas Station. There you can see “user oriented, real-time metrics on gas price, wait times, and minor policies on the Ethereum network” according to the website.

*Conclusion:

Just to reiterate the original concern that this article was addressing: the fact that all tokens using Ethereum Smart Contracts (either ERC20 or ERC223 token standards) will be stored and visible in the same Ethereum public address per owner. Thus, in the BCMY wallet, both DNC and ETH tokens will appear in the same public address 🙂

We hope you found this article informative and helpful both in answering your question, and with a general knowledge of how Ethereum works.

Have a fantastic day!
The Blockchains.my team.


*References:
https://dnc.dinardirham.com/
https://www.ethereum.org/
https://ethplorer.io/address/0x5e575279bf9f4acf0a130c186861454247394c06#pageSize=50
https://etherscan.io/
https://www.coindesk.com/information/ethereum-smart-contracts-work/
https://www.investopedia.com/terms/s/smart-contracts.asp
https://medium.com/cryptomover/what-are-erc20-and-erc223-tokens-307badcca5a
https://ethstats.net/
https://www.cryptocompare.com/coins/guides/what-is-the-gas-in-ethereum/
https://ethgasstation.info/