What is ERC-20?
Let's find out ERC-20 meaning, definition in crypto, what is ERC-20, and all other detailed facts.
ERC-20 is a token standard based on the Ethereum blockchain. These tokens can be used in a similar manner as cryptocurrency coins – for online transactions or trades between fiat currencies and crypto. ERC stands for Ethereum Request for Comment.
ERC-20 tokens typically have a fixed supply and can be stored in crypto wallets that accept Ethereum. They rose to prominence around 2017 and 2018, during the large wave of initial coin offering (ICO) projects. They are often used in the development of decentralized apps (dApps).
ERC-20 tokens are fungible, therefore, they are interchangeable. Thus, ERC-20 tokens differ from ERC-721 tokens, which are non-fungible tokens (NFTs) that possess unique characteristics.
Besides, note that there are certain conditions that all ERC-20 standard tokens must adhere to. The lack of compliance can make these tokens unusable.
Overall, ERC-20 tokens offer a lot of versatility and liquidity. They can be purchased or traded on a huge variety of crypto exchange platforms.