ERC-20 Token Standard: Everything You Need to Know

When working with ERC-20, the most widely adopted token standard on the Ethereum blockchain, enabling fungible digital assets to be created, transferred, and interacted with via smart contracts. Also known as Ethereum Request for Comment 20, it forms the backbone of countless DeFi projects and tokenized economies.

Understanding the ERC-20 token standard is essential because it encompasses a set of rules that guarantee interoperability between wallets, exchanges, and dApps. Ethereum, the open‑source blockchain that hosts ERC-20 tokens, provides the underlying infrastructure and consensus mechanism that keeps these assets secure and searchable offers the environment where ERC‑20 lives. The standard requires a simple smart contract interface—functions like transfer, balanceOf, and approve—so developers can build on top of it without reinventing basic token logic.

Why ERC-20 Matters for DeFi and Tokenomics

DeFi platforms rely heavily on ERC‑20 because Decentralized Finance (DeFi), a suite of financial services that run on smart contracts without intermediaries, uses ERC‑20 tokens as the primary medium for lending, borrowing, and yield farming. This relationship creates a feedback loop: more ERC‑20 tokens fuel richer DeFi ecosystems, and thriving DeFi applications boost the demand for ERC‑20 compliant assets. Tokenomics—the economic design behind each token—also hinges on ERC‑20's flexibility, allowing creators to set supply caps, burn mechanisms, and governance features directly in the contract code.

Beyond DeFi, ERC‑20 drives real‑world use cases like stablecoins, NFTs (which often start as ERC‑20 before moving to ERC‑721), and even gaming currencies. The standard's simplicity makes it easy for auditors to review code, for wallets to display balances, and for exchanges to list new coins quickly. As a result, you’ll see a wide variety of tokens— from high‑profile projects like USDC to niche experimental coins— all sharing the same foundational blueprint.

Below you’ll find a hand‑picked collection of articles that break down individual ERC‑20 projects, review exchanges that list these tokens, and explain how to interact with them safely. Whether you’re a beginner looking for a step‑by‑step guide or an experienced trader hunting the next DeFi opportunity, the posts ahead give you practical insights and actionable tips grounded in the ERC‑20 ecosystem.