ERC-20 Tokens: The Core Standard Behind Ethereum Assets

When working with ERC-20, a token standard on the Ethereum blockchain that defines how to create, transfer, and track fungible assets. Also known as Ethereum Request for Comments 20, it requires a set of smart contract functions to ensure compatibility across wallets and exchanges. The Ethereum network hosts these contracts, while each smart contract enforces the token’s rules. In plain terms, ERC-20 tokens are the building blocks that let developers launch new cryptocurrencies with a predictable, interoperable framework.

This standard isn’t just a technical footnote—it shapes how DeFi platforms, airdrop campaigns, and tokenomics models operate. By defining functions like balanceOf and transfer, ERC-20 makes it easy for wallets, DEXs, and lending protocols to read balances and move assets without custom code. That interoperability fuels the rapid growth of DeFi, where protocols rely on common token behavior to lock collateral, issue rewards, or execute swaps. At the same time, airdrop organizers pick ERC-20 because participants can claim tokens with a single transaction, lowering friction and boosting distribution reach.

Why ERC-20 Matters for Traders and Builders

Understanding ERC-20 helps you assess risk and opportunity. Tokens that follow the standard typically enjoy broader exchange listings, better liquidity, and more robust security audits—thanks to the shared codebase that auditors can review across projects. When evaluating a new token, check if it adheres to ERC-20; that’s often a sign it will work smoothly with major wallets like MetaMask or hardware devices. For developers, leveraging ERC-20 means you can focus on your project’s unique value proposition instead of reinventing basic transfer logic.

Beyond the basics, the standard has inspired extensions such as ERC-20 permits for approvals, ERC-223 for safe transfers, and ERC-777 for richer functionality. Each extension aims to solve a specific pain point—like preventing lost tokens when sending to contracts that don’t handle ERC-20. While these are optional, they illustrate how the ecosystem continuously evolves, keeping the core ERC-20 relevant.

Below you’ll find a curated set of articles that dive deeper into real‑world ERC-20 use cases: airdrop guides, tokenomics breakdowns, exchange reviews, and security analyses. Whether you’re a beginner looking to grasp the fundamentals or a seasoned trader seeking the latest insights, the collection offers practical knowledge to help you navigate the ERC-20 landscape confidently.