ERC-20 is the most widely used token standard on Ethereum. It provides a simple, consistent set of rules for creating and managing fungible tokens—digital assets with identical value and utility. This standardization has fueled the growth of decentralized finance (DeFi) and blockchain innovations by ensuring compatibility across wallets, exchanges, and decentralized applications (dApps).
👉 Discover the power of ERC-20 tokens
What Does ERC-20 Mean?
ERC-20 is a technical standard defining how fungible tokens operate on Ethereum. It specifies rules for:
– Token transfers
– Balance checks
– Spending approvals
Developers use ERC-20 as a “rulebook” to ensure seamless integration with Ethereum’s ecosystem.
Key Features of ERC-20 Tokens
- Fungibility: Each token is interchangeable (e.g., 1 USDT = 1 USDT).
- Smart Contract-Based: Tokens are governed by self-executing code on Ethereum.
- Interoperability: Compatible with all ERC-20-supported platforms.
The History of ERC-20
Proposed in 2015 by developer Fabian Vogelsteller, ERC-20 became a formal standard in 2017 (EIP-20). It gained prominence during the ICO boom, simplifying token creation and adoption.
How ERC-20 Tokens Work
ERC-20 tokens rely on smart contracts to automate functions like:
– balanceOf(): Check token balances.
– transfer(): Move tokens between wallets.
– approve(): Authorize third-party transactions.
👉 Learn how to create your own ERC-20 token
Top 10 ERC-20 Tokens
| Token | Use Case | Market Impact |
|---|---|---|
| USDT | Dollar-pegged stablecoin | Largest by market cap |
| USDC | Regulated stablecoin | Backed by Coinbase |
| stETH | Liquid staking derivative | Enables DeFi staking |
| LINK | Oracle network token | Powers smart contracts |
| UNI | Governance for Uniswap DEX | Pioneer in DeFi |
(Table: Key ERC-20 tokens and their roles in the ecosystem.)
How to Create an ERC-20 Token (No Coding)
- Choose a Platform: Use tools like Moon Deploy or Coin Factory.
- Connect Wallet: MetaMask or other Ethereum wallets.
- Define Token: Name, symbol, supply.
- Pay Gas Fees: ~0.03 ETH (network cost).
- Deploy: Confirm and add to your wallet.
Other Ethereum Token Standards
- ERC-721: For NFTs (e.g., Bored Ape Yacht Club).
- ERC-1155: Hybrid standard (fungible + non-fungible).
- ERC-777: Enhanced transfer features.
The Future of ERC-20
Ethereum’s 2025 upgrades (Pectra and Fusaka) aim to improve scalability and usability. Despite competition from Solana, ERC-20 remains foundational for:
– DeFi platforms
– Tokenized assets
– Cross-chain interoperability
FAQs
What does ERC-20 stand for?
Ethereum Request for Comment 20—a blueprint for fungible tokens.
Is USDT an ERC-20 token?
Yes, but it’s also available on other blockchains.
Are ERC-20 tokens safe?
Security depends on the smart contract and storage method.
Where can I buy ERC-20 tokens?
Centralized exchanges (Coinbase) or DEXs (Uniswap).