ERC-20 Token

Definition ∞ An ERC-20 token is a standard for creating fungible tokens on the Ethereum blockchain. This technical standard defines a common set of rules that all tokens must follow, ensuring interoperability with other Ethereum-based applications, wallets, and exchanges. These rules govern aspects such as token transfer, supply management, and data retrieval, allowing for consistent interaction across the ecosystem. ERC-20 tokens represent a wide array of digital assets, from utility tokens used within decentralized applications to stablecoins pegged to fiat currencies.
Context ∞ ERC-20 tokens remain a dominant topic in crypto news, given their widespread adoption and influence on the decentralized finance (DeFi) sector. Their utility as a base layer for new projects and their role in initial coin offerings (ICOs) are frequently discussed. Current market trends and regulatory scrutiny often center on the legal classification and operational risks associated with various ERC-20 implementations. Developers continue to extend the standard’s capabilities, exploring improvements for security, efficiency, and advanced token functionalities.