ERC-20
Token Standard, Asset Protocol
ERC-20 is the most widely used token standard on the Ethereum blockchain. It defines a common set of rules and functions that all compliant tokens must followÔÇöenabling seamless creation, transfer, and interoperability between wallets, DeFi apps, and exchanges. ERC-20 tokens are programmable assets used for stablecoins, utility tokens, governance, and more.
Use Case: Projects can launch their own tokens (like $USDC, $UNI, or $XCN) on Ethereum without building a new blockchain, and users can store, trade, or interact with them across DeFi apps using the same infrastructure.
Key Concepts:
- Smart Contract Token ÔÇö ERC-20 defines how these programmable tokens are created and managed on Ethereum.
- Token Standard ÔÇö The blueprint that ensures all ERC-20 tokens follow the same rules and are interoperable.
- Fungibility ÔÇö All ERC-20 tokens of the same contract are interchangeable and identical.
- Custom Minting ÔÇö Some ERC-20 tokens allow new supply to be created or destroyed programmatically.
Summary: ERC-20 transformed Ethereum into a universal asset layer, powering the growth of DeFi, stablecoins, DAOs, and tokenized economies with secure, standardized digital assets.
| Aspect | ERC-20 | Native Asset (ETH) |
|---|---|---|
| Origin | Created by smart contract | Built into protocol |
| Fungibility | Yes (all units are identical) | Yes (all units are identical) |
| Transferability | Between any Ethereum address | Between any Ethereum address |
| Custom Rules | Programmable via contract | Protocol-defined only |
| Examples | USDC, UNI, DAI, XCN | ETH |