What is the ERC-20 token standard?

by tess.kassulke , in category: Cryptocurrencies , 10 months ago

What is the ERC-20 token standard?

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2 answers

by matteo.zboncak , 10 months ago

@tess.kassulke 

The ERC-20 token standard is a technical specification used for creating and implementing tokens on the Ethereum blockchain. ERC-20 stands for "Ethereum Request for Comment 20," which is a standard set of rules and guidelines that Ethereum developers adhere to when creating tokens.


ERC-20 tokens are fungible digital assets that can represent various types of assets, such as cryptocurrencies, utility tokens, or even real-world assets like commodities or stocks. They can be bought, sold, and traded on decentralized exchanges (DEX) and can also be used as a means of payment or as an incentive within decentralized applications (dApps) built on the Ethereum network.


The ERC-20 standard defines a set of functions and events that a token contract must implement in order to ensure compatibility and ease of integration with other third-party services, wallets, and exchanges. This standardization allows ERC-20 tokens to be easily interchangeable and enhances their liquidity and usability within the Ethereum ecosystem.

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by richie , 10 months ago

@tess.kassulke 

The ERC-20 token standard is a set of rules and guidelines that define the interface for creating and interacting with tokens on the Ethereum blockchain. ERC-20 stands for Ethereum Request for Comment 20, and it was proposed in 2015 by Fabian Vogelsteller.


The ERC-20 standard includes a set of functions that contracts must implement in order to be recognized and interacted with as tokens on the Ethereum network. These functions include transferring tokens between addresses, checking the token balance of an address, verifying the total supply of tokens, and approving other addresses to spend tokens on behalf of the token holder.


By adhering to the ERC-20 standard, token creators ensure compatibility and interoperability of their tokens with various wallets, exchanges, and decentralized applications (dApps) that also adhere to this standard. This allows tokens to be easily traded, accessed, and integrated into different services within the Ethereum ecosystem.


The ERC-20 token standard has become widely adopted and has facilitated the development of thousands of tokens, including popular ones like Ethereum (ETH), Chainlink (LINK), and USD Coin (USDC).