ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for token implementation. It defines a set of rules that all Ethereum tokens must follow, allowing developers to accurately predict how new tokens will function within the larger Ethereum ecosystem.
ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. ERC stands for Ethereum Request for Comment, and 20 is the number that was assigned to this request. The ERC-20 standard defines a set of rules that all Ethereum tokens must follow, allowing developers to accurately predict how new tokens will function within the larger Ethereum ecosystem.
The ERC-20 standard was created to provide a common set of rules for developers to follow when creating tokens on the Ethereum blockchain. This standard ensures that all tokens created on the Ethereum blockchain are compatible with each other and with other Ethereum-based applications. The ERC-20 standard also makes it easier for developers to create new tokens, as they can use existing code and only need to make minor changes to create a new token.
The ERC-20 standard defines six different functions that must be implemented by all tokens created on the Ethereum blockchain. These functions include how tokens are transferred, how users can access data about a token, and how to approve and transfer tokens from one address to another. The ERC-20 standard also defines two events that must be triggered when certain actions are taken with a token.
The ERC-20 standard has been widely adopted by developers and is now the most popular token standard on the Ethereum blockchain. This has allowed developers to create a wide variety of tokens, from utility tokens to security tokens, and has enabled the development of decentralized applications (dApps) that use tokens as a form of payment.
The ERC-20 standard has been instrumental in the growth of the Ethereum blockchain and the development of the decentralized finance (DeFi) ecosystem. By providing a common set of rules for developers to follow, the ERC-20 standard has enabled the creation of a wide variety of tokens and applications that are compatible with each other and with other Ethereum-based applications. This has allowed developers to create innovative applications and services that are powered by the Ethereum blockchain.