ERC20
ERC-20 is a smart contract and technical standard name for creating tokens or coins on the Ethereum blockchain that has specific characteristics. It provides a set of rules that allow developers to create and interact with fungible tokens that are interoperable across different platforms and services.

What is an ERC-20?
ERC-20 is the most widely adopted standard that defines the functionality and rules for tokens, or crypto 'coins' created on the Ethereum blockchain. ERC stands for Ethereum Request for Comments, and 20 refers to the unique ID number assigned to this proposal. Introduced in 2015, ERC-20 provides developers with a common set of rules to build fungible tokens that can be used across a variety of applications within the Ethereum ecosystem. "Fungible" means that each token is identical in value and functionality—similar to traditional currency where one unit is always equal to another unit.
ERC-20 tokens are used for a wide range of purposes, such as facilitating payments, creating in-app rewards, or even representing shares in a project. The standard provides six mandatory functions and three optional ones, covering areas like total supply, token transfers, and the balance of a particular address. This ensures that any token adhering to the ERC-20 standard can be traded, transferred, and interacted with in a consistent manner, making it possible to support a broad array of wallets, exchanges, and decentralized applications (dApps).
One of the key benefits of the ERC-20 standard is interoperability. Any dApp or wallet supporting ERC-20 tokens can interact seamlessly with these tokens, providing liquidity and accessibility within the ecosystem. Popular tokens like USDC, Chainlink (LINK), and Uniswap (UNI) are all ERC-20 tokens, and their widespread use has contributed to Ethereum's dominance in the blockchain space.
Transactions involving ERC-20 tokens require ethereum gas fees priced in Ethereum's native $ETH token. Additionally, while ERC-20 is fungible, meaning each unit is identical, newer standards like ERC-721 have been introduced to support non-fungible tokens (NFTs), which are unique and have individual characteristics.
Keywords:
erc-20-token ethereum-token-standard ethereum-request-for-comments fungible-tokens ethereum-erc20 interoperability blockchain-tokens crypto-token ethereum-ecosystem































