ERC-20
A technical standard for creating fungible tokens on the Ethereum blockchain. Most tokens in the DeFi and ICO ecosystems are ERC-20 tokens, including USDT, LINK, and UNI. The standard ensures all tokens work the same way on Ethereum.
Why It Matters
ERC-20 is a technical standard used for creating tokens on the Ethereum blockchain. This standardization allows interoperability between tokens, making it easier for developers and users to interact with various decentralized applications.
Example
For example, tokens like Chainlink and Uniswap are built on the ERC-20 standard. Because they follow the same rules, they can easily be traded on decentralized exchanges that support ERC-20 tokens.
Beginner Context
For newcomers to crypto, understanding ERC-20 tokens is key to grasping the Ethereum ecosystem. Knowing about one of the most common token standards can help you explore different projects built on Ethereum.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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