What Is an ERC-20 Token?

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What Is an ERC-20 Token?

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ERC-20 tokens are digital assets created on the Ethereum blockchain

A predefined set of rules called the ERC-20 standard dictates their behavior and compatibility with various platforms and wallets.

Before the ERC-20, exchanging one token for another was a challenge

Each token adhered to its own rules, requiring additional efforts and custom solutions.

The ERC-20 standard introduction changed that for the better.

As it defined token creation, transfer, or use, the standard made token exchange significantly easier and more streamlined.

Imagine the standard as a common language that tokens speak, allowing them to seamlessly communicate and interact with different platforms, wallets, and applications.

What is more — tokenization took a leap forward with the introduction of the ERC-20 standard, allowing for digital representations of real-world assets.

Thousands of unique tokens now represent shares, real estate, and more.

Since anyone can create an ERC-20 token in minutes, many projects have turned out to be scams over the years. That’s why performing careful due diligence on their founders, token protocol, and roadmap is crucial.

What is ERC-20?

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