ERC-20 Token Standard Explained

When talking about ERC-20, a token standard on the Ethereum blockchain that defines how fungible assets behave. Also known as ERC20, it provides a common set of functions that let different wallets, exchanges and apps understand a token automatically.

This definition ties directly to Ethereum, the decentralized platform that runs smart contracts. On Ethereum, smart contracts, self‑executing code that enforces token rules implement the ERC-20 interface, which includes methods like transfer, approve and balanceOf. The trio – ERC-20, Ethereum and smart contracts – creates a seamless ecosystem where new tokens can launch without rewriting core logic. ERC-20 also sets the stage for interoperability: any DeFi protocol that follows the standard can swap, lend or stake a token without custom bridges.

Why ERC-20 matters for DeFi, airdrops and tokenomics

DeFi platforms lean on ERC-20 because the standard guarantees that a token’s balance and allowance can be queried at any time. This reliability makes it easy to build liquidity pools, yield farms and lending markets – all things you’ll see in our posts about airdrops, tokenomics and market analysis. For example, airdrop projects often distribute ERC-20 tokens because participants can claim them with a single wallet address, and the token’s on‑chain history is transparent. Tokenomics discussions in our articles reference ERC-20’s fixed supply fields, vesting schedules and burn mechanisms, showing how projects shape value while staying compatible with existing tools.

Below you’ll find a curated selection of guides, reviews and deep dives that all revolve around the ERC-20 ecosystem. Whether you’re tracking the latest airdrop, comparing exchange listings, or learning how a zk‑rollup like Immutable X leverages ERC-20 for gaming, the collection gives you concrete steps and real‑world examples. Dive in to see how the standard powers everything from consumer protection rules in Australia to EU Travel Rule compliance, and get the practical know‑how to navigate the fast‑moving crypto world.