ERC-20 Tokens

Definition ∞ ERC-20 tokens are fungible digital assets built on the Ethereum blockchain that adhere to a specific technical standard. This standard defines a common set of rules for token functions, allowing them to interact seamlessly with other applications and wallets within the Ethereum ecosystem. ERC-20 tokens represent a wide array of digital assets, including utility tokens, stablecoins, and governance tokens. Their interoperability has been a significant driver of decentralized finance.
Context ∞ ERC-20 tokens remain a dominant asset class in the digital asset space, with new projects frequently launching tokens based on this standard. News often reports on the latest ERC-20 token launches, security vulnerabilities discovered in their smart contracts, or advancements in their utility. The ongoing evolution of Ethereum and its scaling solutions directly impacts the future utility and performance of ERC-20 assets.