ERC-20

ERC-20 is a technical standard used for creating tokens on the Ethereum blockchain. It specifies a set of rules and interfaces that must be followed in order for a token to be considered an ERC-20 token.

One of the key advantages of ERC-20 tokens is their interoperability - they can be traded on any decentralized exchange that supports the standard, which makes it easier for new tokens to gain traction and liquidity. Some popular examples of ERC-20 tokens include USDT (Tether), LINK (Chainlink), and UNI (Uniswap).

ERC-20 tokens can be used for a wide range of purposes, including utility tokens that provide access to a specific service or product, security tokens that represent ownership in an asset or company, and even stablecoins that are pegged to a particular fiat currency or commodity.

One important aspect of ERC-20 tokens is that they can be transferred between Ethereum addresses in the same way as ether (ETH), the native cryptocurrency of the Ethereum network. This means that ERC-20 tokens can be used to pay for goods and services, or held as an investment in the same way as ETH.

However, it's important to note that not all tokens on the Ethereum blockchain are ERC-20 compliant. There are other token standards, such as ERC-721 (used for non-fungible tokens or NFTs), and ERC-1155 (used for multi-token contracts), among others.

Overall, ERC-20 tokens have played a significant role in the growth of the Ethereum ecosystem, and their standardized format has helped to make it easier for developers to create and deploy new tokens on the network.

Also study