ERC-20 Token
Standard for creating tokens on the Ethereum blockchain.
Beginner-friendly explanation
An ERC-20 token is a type of token that follows specific rules on Ethereum so that they can work together. This makes it easier to exchange or use different tokens. Example: USDC, DAI, and LINK are all ERC-20 tokens.
Intermediate-level insight
ERC-20 defines 6 main functions (like 'transfer', 'approve') to standardize interactions between tokens and smart contracts. This boosted the explosion of DeFi and ICO projects on Ethereum. Example: A wallet like MetaMask handles all ERC-20 tokens without special configuration.
Advanced perspective
ERC-20 compatibility unified the Ethereum ecosystem but also introduced flaws (like 'approve' errors, scalability limits). Alternative standards like ERC-777 aim to enhance interoperability and security. Example: Some apps use ERC-777 to offer safer transfer functions than ERC-20.
Cryptocurrencies & Tokens
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