What Is ERC-20 Token?

Definition

ERC-20 is the most widely used token standard on Ethereum and EVM-compatible chains, defining how fungible tokens are created and transferred.

ERC-20 stands for Ethereum Request for Comment 20. It is a technical standard for smart contracts on the Ethereum blockchain that defines a common set of rules for fungible tokens — tokens where every unit is interchangeable.

The ERC-20 standard specifies six mandatory functions (totalSupply, balanceOf, transfer, transferFrom, approve, allowance) and two events (Transfer, Approval). Any smart contract implementing these functions is an ERC-20 token.

ERC-20 tokens are used for everything from stablecoins (USDT, USDC) to governance tokens (UNI, AAVE) to memecoins (PEPE, SHIB). The standard also works on EVM-compatible L2 chains like Base, Polygon, Arbitrum, and Optimism.

CoinDevTools lets you deploy ERC-20 tokens on both Ethereum mainnet and Base without writing Solidity. The platform compiles and deploys a verified contract for you in one transaction.

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Create an ERC-20 Token

Related Terms

Smart Contract

A smart contract is a self-executing program stored on a blockchain that automatically enforces the rules of an agreement when predefined conditions are met.

Liquidity Pool

A liquidity pool is a pair of tokens locked in a smart contract that enables decentralized trading on automated market makers (AMMs) like Raydium and Uniswap.

Renounce Ownership

Renouncing ownership permanently removes the admin (owner) role from an ERC-20 smart contract, making it fully decentralized and immutable.