ERC-20 is a standard used for creating and issuing tokens on the Ethereum platform. It outlines a set of rules that Ethereum-based tokens must follow to ensure interoperability between different tokens and decentralized applications.
ERC-20 tokens are smart contracts that represent digital assets or cryptocurrencies. They can be sent and received similar to Ethereum (ETH) and are compatible with any wallet that supports ERC-20 tokens. This standard has become widely adopted in the blockchain community, making it easier for developers to launch new tokens and for users to manage their diverse token holdings.
The ERC-20 standard includes important functions like transferring tokens, checking account balances, and providing a way to access metadata about the token. By following these guidelines, developers can ensure that their tokens will be compatible with various decentralized exchanges and wallets, ultimately increasing the usability and liquidity of their tokens in the Ethereum ecosystem.
