ERC20 Token Standards

About ERC20

The ERC20 standard defines a common set of rules for fungible tokens. These rules include how tokens are transferred, how balances are tracked, and how users can access data. ERC-20 tokens are the standard for creating and managing fungible tokens on Ethereum and other EVM-compatible blockchains like Binance Smart Chain, Polygon, and Avalanche. These tokens follow a common set of rules, allowing seamless interaction across wallets, dApps, and exchanges.

Key Functions

ERC-20 tokens are controlled by smart contracts — pieces of code deployed to the blockchain. These contracts define key behaviors and keep track of balances and transfers. Each token follows a standard interface that includes:

• totalSupply() — Returns the total supply.
• balanceOf(address) — Gets the balance of a specific account.
• transfer(address, uint256) — Transfers tokens to another address.
• approve(address, uint256) — Allows a spender to transfer tokens.
• transferFrom(address, address, uint256) — Transfers tokens on behalf of an owner.
• allowance(address, address) — Shows how much a spender is approved to use.

These functions enable easy integration with wallets like MetaMask, exchanges, and DeFi platforms.

Compatibility

ERC20 tokens are supported across all major EVM-compatible blockchains including Ethereum, BSC, and Polygon.

Why ERC-20 Matters

• Interoperable: Works across dApps, wallets, and chains using EVM.
• Fungible: Every token unit has the same value — like dollars or BTC.
• Programmable: Use in lending, staking, governance, and NFTs.
• Scalable: Launch tokens easily on Polygon, BSC, etc., with low fees.

Benefits

• Interoperability with wallets and exchanges.
• Standardized interface for contracts.
• Wide adoption across the DeFi ecosystem.