ERC-20
ERC-20 is a technical standard for fungible tokens on the Ethereum blockchain, defining a common set of rules that Ethereum-based tokens must follow to ensure interoperability across wallets, exchanges, and decentralized applications (dApps). It specifies functions like transferring tokens, checking balances, and approving spending, enabling developers to create tokens that behave consistently within the Ethereum ecosystem. This standardization has made ERC-20 the most widely adopted token standard, powering thousands of cryptocurrencies and utility tokens.
Developers should learn ERC-20 when building or interacting with Ethereum-based tokens, such as for creating cryptocurrencies, utility tokens in dApps, or participating in initial coin offerings (ICOs). It's essential for ensuring compatibility with wallets like MetaMask, exchanges like Uniswap, and smart contracts that handle token transactions, as it provides a predictable interface that reduces integration errors and simplifies development. Use cases include decentralized finance (DeFi) protocols, gaming assets, and tokenized real-world assets.