ERC-20 is a token standard that allows developers to create and issue smart contracts on the Ethereum network. Tokens made to the ERC-20 standard can have many functions such as paying for goods and services or used to represent things like loyalty rewards.

Blockchain Ethereum
Type Fungible
Popular token Tether
Required Functions totalSupply, balanceOf, transfer, approve, allowance, transferFrom
Released 2015
Use cases Utility and Security Tokens
Explore ERC-20 APIs

The fungible token standard

Ethereum didn't just implement the use of tokens, it’s based on them and ERC-20 is one of the most important Ethereum token standards. The ERC-20 introduces a standard for fungible tokens meaning that 1 token is and will always be equal to all the other tokens of the same kind.