ERC-20

ERC-20 is a widely used technical standard for creating fungible tokens on the Ethereum blockchain and compatible networks. It defines a common set of functions and behaviours, such as transferring tokens and checking balances, so that wallets, exchanges, and applications can support many tokens consistently. Countless project and stablecoin tokens follow this standard.

A common misconception is that an ERC-20 token is itself a separate blockchain; instead, such tokens exist on top of an existing chain and rely on it for security and processing. Following the standard does not imply any endorsement or guarantee of a token’s value. This entry is educational.