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Glossary

ERC-20

November 21, 2023 - Around 1 mins mins to read

What is ERC-20?

ERC-20 tokens are tokens that are created on the Ethereum blockchain. Just like mainstream cryptocurrencies such as Bitcoin, ERC-20 tokens can be utilized for purchases or exchanged for fiat currencies and other cryptocurrencies.

These assets, which usually have a fixed supply, can be stored in a dedicated Ethereum wallet. Numerous ERC-20 tokens were established during the surge of initial coin offerings in 2017 and 2018. These tokens frequently serve as the basis for decentralized applications, also known as DApps.

Typically, ERC-20 tokens are interchangeable, meaning that each token is identical and can be easily swapped. Conversely, nonfungible tokens, which adhere to the ERC-721 standard, possess unique characteristics that differentiate them from one another.

The ERC-20 standard has specific requirements that must be followed, similar to how websites need to comply with HTTP to function correctly.

ERC-20 tokens have a wide range of applications, including as in-game assets and loyalty points. These tokens offer a high level of flexibility, which contributes to their popularity. To achieve liquidity and widespread recognition, ERC-20 tokens often need to be listed on an exchange where they can be readily traded.

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Coincu

Glossary

ERC-20

What is ERC-20?

ERC-20 tokens are tokens that are created on the Ethereum blockchain. Just like mainstream cryptocurrencies such as Bitcoin, ERC-20 tokens can be utilized for purchases or exchanged for fiat currencies and other cryptocurrencies.

These assets, which usually have a fixed supply, can be stored in a dedicated Ethereum wallet. Numerous ERC-20 tokens were established during the surge of initial coin offerings in 2017 and 2018. These tokens frequently serve as the basis for decentralized applications, also known as DApps.

Typically, ERC-20 tokens are interchangeable, meaning that each token is identical and can be easily swapped. Conversely, nonfungible tokens, which adhere to the ERC-721 standard, possess unique characteristics that differentiate them from one another.

The ERC-20 standard has specific requirements that must be followed, similar to how websites need to comply with HTTP to function correctly.

ERC-20 tokens have a wide range of applications, including as in-game assets and loyalty points. These tokens offer a high level of flexibility, which contributes to their popularity. To achieve liquidity and widespread recognition, ERC-20 tokens often need to be listed on an exchange where they can be readily traded.

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