Definition
A technical standard for creating fungible tokens on the Ethereum blockchain. ERC-20 defines a common set of rules that all Ethereum tokens must follow.
Why It Matters
ERC-20 standardization allows tokens to be easily integrated with wallets, exchanges, and DeFi protocols, creating interoperability across the Ethereum ecosystem.
Example
USDC, LINK, and UNI are all ERC-20 tokens that can be stored in any Ethereum-compatible wallet.
Related Terms
Ethereum
Token
Smart Contract