What are ERC-20 Tokens?
ERC-20 tokens are a type of digital asset created on the Ethereum blockchain that comply with a specific set of rules defined in the ERC-20 standard. This standard outlines how these tokens can be transferred, how users can access data about them, and how smart contracts can interact with them.
Key Features of ERC-20 Tokens:
- Interoperability: ERC-20 tokens can be exchanged seamlessly on various platforms, facilitating liquidity.
- Standardization: The ERC-20 standard ensures consistency, making it easier for developers and projects to build and integrate these tokens.
- Smart Contracts: These tokens operate via smart contracts, enabling automation and decentralization in transactions.
Uses of ERC-20 Tokens:
ERC-20 tokens are widely used in Initial Coin Offerings (ICOs), decentralized applications (dApps), and as utility tokens to access services within specific ecosystems. They have played a pivotal role in the growth of the Ethereum ecosystem, serving both developers and investors.
Conclusion:
ERC-20 tokens represent a significant innovation in the finance and cryptocurrency realms, contributing to the decentralized finance (DeFi) movement and the overall expansion of blockchain technology.