What is the ERC-20 Ethereum token standard?

The ERC-20 Ethereum token standard is a blueprint for creating fungible tokens that are compatible with the broader Ethereum network. Ethereum, or ether, is a cryptocurrency that allows for the creation of a variety of applications, including tokens, that don’t require intermediary services to operate, unlike most traditional applications.

What is Ethereum used for?

One of the most common uses for Ethereum is for a group to create a tradable token, in a sense their own currency. These tokens typically follow a standard, ERC-20. This standard makes it possible to write tools, such as liquidity pools and wallets, that work with all ERC-20 tokens.

What is ERC20 and how does it work?

ERC20 refers to a token standard for ethereum. It is a technical standard that dictates a number of rules and actions that an ethereum token or smart contract must be able to implement. ERC stands for "ethereum request for comment," and the standard was developed in 2015.

What are the three elements of the Ethereum network?

The Ethereum network runs on three core elements: ETH, gas, and the ERC-20 token standard that allows tokens to be built on top of it. To understand how the Ethereum network functions, you need to understand these three elements: ETH (Ethereum or "ether"), gas, and ERC-20 tokens.