LeoGlossary: ERC-20
ERC-20 stands for "Ethereum Request for Comment 20". It is a technical standard for fungible tokens on the Ethereum blockchain. Fungible tokens are interchangeable with one another, meaning that they can be traded or exchanged on a like-for-like basis.
The ERC-20 standard defines a set of rules and guidelines that must be followed by all ERC-20 tokens. This ensures that all ERC-20 tokens are compatible with each other and can be used with any Ethereum wallet or application that supports the ERC-20 standard.
Some of the key features of the ERC-20 standard include:
- A total supply function: This function returns the total number of tokens that have been created.
- A balance function: This function returns the balance of a particular account.
- A transfer function: This function allows tokens to be transferred from one account to another.
- An allowance function: This function allows an account to approve another account to spend a certain amount of their tokens on their behalf.
The ERC-20 standard is the most widely used token standard on the Ethereum blockchain. As a result, there are thousands of ERC-20 tokens in existence. Some of the most well-known ERC-20 tokens include Tether (USDT), USD Coin (USDC), and Dai (DAI).
ERC-20 tokens can be used for a variety of purposes, such as:
- Representing fiat currencies
- Representing assets such as gold or stocks
- Representing utility tokens that can be used to access goods or services
- Representing security tokens that represent ownership in a company
The ERC-20 standard is a vital part of the Ethereum ecosystem. It has made it easy for developers to create and deploy tokens, and it has helped to drive the adoption of Ethereum.
In short, ERC-20 is a set of rules that allows developers to create tokens that are compatible with the Ethereum blockchain. This makes it easy for users to store, transfer, and trade these tokens.
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