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
Related Terms
FOMO
Fear Of Missing Out. The anxiety that an exciting opportunity is being missed, often leading to impulsive investment decisions based on hype rather than analysis.
ZK-SNARK
Zero-Knowledge Succinct Non-Interactive Argument of Knowledge — a cryptographic proof that lets one party prove they know a piece of information without revealing the information itself. ZK-SNARKs power privacy and scaling solutions like zk-rollups.
Token
A digital asset created on an existing blockchain platform using smart contracts. Tokens can represent various things including utility, governance rights, or real-world assets.
Airdrop
A distribution of free tokens or coins to wallet holders, often used as a marketing strategy or to reward early adopters of a protocol.
Halving
An event in proof-of-work cryptocurrencies like Bitcoin where the block reward is cut in half. Bitcoin halvings occur approximately every four years and reduce the rate of new supply creation.