ERC-20

erc-20

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ERC-20 serves as a technical standard which enables developers to create fungible tokens on the Ethereum blockchain. The term fungible indicates that all tokens of a particular type possess identical characteristics which enable their complete interchangeability. One ERC-20 token has the same value and properties as another of the same issuance.

The ERC-20 standard launched in 2015 which created the foundation for various Ethereum-based tokens that emerged during that period. It gives developers a standard framework which they need to follow when creating their new tokens. The rules define methods for distributing tokens and tracking balances and allowing users to approve their token spending. The standard lets wallets and exchanges and decentralized applications work with ERC-20 tokens because they do not need to build separate systems for each project.

ERC-20 tokens serve as the foundation for many popular cryptocurrencies. The standard is commonly used for stablecoins and governance tokens and utility tokens. The ERC-20 standard gained widespread acceptance during the 2017 and 2018 initial coin offering boom because it enabled startups to create new tokens without needing to develop an entire new blockchain system.

ERC-20 tokens operate through smart contracts. The contracts execute their functions by controlling supply and managing transactions and authorization rights through established operational procedures. Developers can create tokens which either maintain their total supply or undergo inflationary growth according to their specific developmental objectives. 

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