
What is ERC20?
If you’ve been involved in the world of cryptocurrencies, you’ve probably come across the term “ERC20” many times, a label commonly seen on most Ethereum-based tokens. But what exactly is ERC20, and why is it so important on the Ethereum blockchain? Simply put, ERC20 is a set of technical rules and standards that define how tokens should be created and transferred so they remain compatible with all wallets, exchanges, and decentralized applications. This standard acts like a universal language that brings order and interoperability to the token ecosystem, paving the way for major innovations in fields such as DeFi, stablecoins, and ICOs. In this article, we’ll explore in detail how ERC20 works, its key advantages and limitations, and how it’s used across blockchain projects and investments.























