BlockchainBeginner#Standard#Tech
ERC-20
E
Definition
An Ethereum token-interface standard for fungible token contracts. It specifies common methods and events, but it does not certify a token, its issuer, its economics, or its safety.
Source reviewed
- EIP-20: Token Standard opens in a new tab
Supports: Defines the standard token interface, optional metadata methods, transfer and approval behavior, and events.
- Ethereum.org: ERC-20 Token Standard opens in a new tab
Supports: Explains fungibility, interoperable token applications, and the common ERC-20 methods and events.
Concept Diagram
Key Takeaways
1
ERC-20 defines a common interface for fungible token contracts; it is not a universal Ethereum smart-contract rule
2
The standard specifies transfer, balance, supply, approval, and allowance behavior, with some metadata fields optional
3
An allowance can let another address spend up to an approved amount
4
ERC-20 compatibility does not verify a contract, issuer, token economics, or transaction safety
Practical Example
Before approving a DEX contract to spend a token, a user compares the exact chain and contract address with the application's official documentation, reads the requested allowance, and approves only the amount they intend to use. The ERC-20 interface makes the request legible to the wallet; it does not validate the application or the token.
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Related Terms
Blockchain
ERC-721An Ethereum interface standard for non-fungible token contracts. A token is uniquely identified within its contract, but the standard does not establish authenticity, legal title, metadata permanence, or value.
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EVM (Ethereum Virtual Machine)Ethereum's execution environment: a deterministic virtual machine that executes smart-contract bytecode as part of Ethereum state transitions. EVM compatibility does not make contracts, addresses, assets, or deployments interchangeable across networks.
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Governance TokenA token that a particular protocol may use to measure, delegate, or assign voting power. Its holder rights, proposal process, quorum, execution, and legal effect are defined by that protocol's contracts and documents, not by the label alone.
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Smart ContractA program and its state deployed at a blockchain address, which runs its defined functions when transactions call it.
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