Published on:

What is ERC-20?

The most popular type of token is referred to as an ERC-20 compliant token. They are based on the Ethereum blockchain, and like other well-known cryptocurrencies such as Bitcoin, they can be used to make purchases – or exchanged for fiat currencies and crypto.

Ethereum is an open-source, public blockchain network that allows you to store and trade cryptocurrency. Tokens built on the Ethereum blockchain are called ERC20 tokens because they adhere to the Ethereum Request for Comments 20 standard. Since 2017, a slew of new ERC20 coins have been introduced in order for projects to raise capital through initial coin offerings (ICOs). They tend to serve as the backbone of decentralized apps, also known as DApps for short.

ERC-20 tokens are basically all the same. They can be easily exchanged for each other. ERC-721 tokens are different from each other. They have unique features that make them special.

The ERC-20 standard is very important. This is because it helps make sure that all the websites on the internet work properly.

Some of the ways that people use ERC-20 tokens include in-game assets and loyalty points. ERC-20 tokens are popular because they offer a lot of versatility. In order to be successful and become well-known, these tokens need to be traded on an exchange.