ERC-20

Marcel Antl — Wed, 18 Jun 2025 07:20:59 +0000

ERC-20 is a token standard used to create and manage cryptocurrencies on the Ethereum blockchain. Introduced in 2015, it stands for Ethereum Request for Comment #20 and outlines a set of rules that any new token must follow to function properly within the Ethereum ecosystem. These rules make it possible for different tokens, wallets, dApps, and exchanges to work together seamlessly — which is why ERC-20 is the most widely adopted token standard in the crypto world.

Why Was ERC-20 Created?

Before ERC-20, developers had no unified way to create tokens on Ethereum. Every new project had its own logic, making it difficult to integrate with wallets and platforms. ERC-20 fixed this by providing a common language and behavior for tokens, such as:

How to transfer tokens between accounts
How to get a token’s balance or Total Supply refers to the total number of coins or tokens that currently exist, including those in circulation and those locked or reserved. It shows how many coins have been created so far, minus any that have been permanently burned. Unlike Max Supply, it doesn't
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How can interact with tokens

How to approve someone else to spend tokens on your behalf

Thanks to ERC-20, creating a new cryptocurrency on Ethereum became as easy as deploying a smart contract.

What Are ERC-20 Tokens?

An ERC-20 token is any cryptocurrency built on Ethereum that follows the ERC-20 rules. These tokens don’t have their own blockchain — they use Ethereum’s infrastructure.

Popular ERC-20 tokens include:

USDT (Tether)
UNI (Uniswap)
LINK (Chainlink)
MKR (Maker)
DAI (stablecoin)
SHIB (Shiba Inu)

There are thousands of ERC-20 tokens, used for everything from In the context of blockchain and cryptocurrency, governance refers to the systems, rules, and processes used to make decisions about a project’s development, upgrades, funding, and overall direction. It's how protocols evolve over time—who decides what changes are made, how they are made, and who

How Do You Use ERC-20 Tokens?

ERC-20 tokens can be:

Stored in Ethereum-compatible wallets like MetaMask, Ledger, or Trust Wallet
Traded on DEXs like Uniswap and centralized exchanges like Coinbase
Sent just like ETH, but with a small gas fee paid in ETH
Used in DeFi apps for lending, staking, and liquidity

Their compatibility makes them incredibly flexible and useful across the Web3 is the next generation of the internet, where users have more control over their data, identity, and money. It’s built on blockchain and uses cryptocurrencies, smart contracts, and decentralized apps (dApps). Unlike Web2 platforms like Facebook or Google, Web3 runs without central authorities —

Limitations of ERC-20

Despite its success, ERC-20 has some limitations:

Slow and expensive transactions during high network congestion
No built-in support for NFT stands for Non-Fungible Token. It’s a type of digital asset that represents ownership of something unique — such as artwork, music, videos, collectibles, or virtual land. Unlike cryptocurrencies like Bitcoin or Ethereum, NFTs are not interchangeable, because each one has its own distinct value
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Possible approval

Final Thoughts

ERC-20 transformed Ethereum into more than just a blockchain — it became a platform for launching and managing digital assets. Whether you’re using DeFi, trading coins, or building a new project, ERC-20 is likely involved. It’s the backbone of many tokens and will continue to play a huge role in the crypto space.