What are ERC-20 tokens

What are ERC-20 tokens

ERC-20 tokens are a class of standardized digital tokens on the Ethereum platform. ERC-20 stands for "Ethereum Request for Comment 20", which is the technical standard used to create and deploy tokens on the Ethereum blockchain

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ERC-20 tokens are fungible tokens, which means that each unit of the token is equal and interchangeable. They can represent any asset or utility, such as cryptocurrencies, loyalty points, digital assets, token shares and more.

The ERC-20 standard defines a set of rules and functions that smart contracts must follow for a token to be considered compliant with the standard. These rules include functions to transfer tokens, obtain token balance from an account, approve third-party spending of tokens, and other common functionality.


By following the ERC-20 standard, tokens can be easily integrated into portfolios and trading platforms that support that standard, which makes listing and trading them easier and more efficient.


Since the introduction of the ERC-20 standard, it has become widely adopted and is used by many projects and ICOs (Initial Coin Offerings) to create and distribute their tokens on the Ethereum network. This has enabled the emergence of a rich and diverse ecosystem of ERC-20 tokens.

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