ERC-20
Web3 / cryptocurrency types
ERC-20 is the technical standard that defines how fungible tokens operate on the Ethereum blockchain. Established as Ethereum Request for Comments 20, this standard specifies a set of functions and events that token contracts must implement, including transfer, approve, and balanceOf functions. ERC-20 creates a common interface that allows wallets, exchanges, and decentralized applications to interact with any token following the standard in a predictable way. The standard's simplicity and flexibility made it the de facto token creation method, enabling thousands of projects to launch tokens without building custom smart contract logic from scratch. Example: USDC (USD Coin), a stablecoin issued by Circle and Coinbase, is an ERC-20 token that maintains a 1:1 peg with the US dollar while leveraging the standard's interoperability across Ethereum's entire ecosystem. Why it matters for cryptocurrency: ERC-20 standardization created a foundation for token-based economies on Ethereum, enabling seamless integration across exchanges, wallets, and DeFi protocols. Without this standard, the explosive growth of tokenized assets and decentralized finance would have been severely hampered by incompatibility issues.
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