ERC-20 is a token standard on the Ethereum blockchain. It defines a common set of rules for creating and managing fungible tokens, meaning each unit of a token is interchangeable with another unit of the same token. The standard allows wallets, exchanges and decentralized applications to interact with ERC-20 tokens consistently.
Some well-known ERC-20 tokens include Tether (USDT), USD Coin (USDC), Chainlink (LINK) and Uniswap (UNI).
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ERC-20 is a token standard on the Ethereum blockchain. The name comes from Ethereum Request for Comments (ERC), the process used to propose and document standards for Ethereum. The “20” identifies the specific proposal that established the ERC-20 standard.
ERC-20 defines a common set of rules for how these tokens work. This allows different wallets, exchanges and applications to interact with ERC-20 tokens in a consistent way.
ERC-20 tokens are fungible, meaning each unit of the same token is interchangeable with another unit of that token. For example, one USDC is equivalent to another USDC.
Unlike a non-fungible token (NFT), an individual ERC-20 token doesn’t have a unique identity or value that distinguishes it from another unit of the same token.
ERC-20 tokens rely on smart contracts to manage how the tokens work on Ethereum.
The basic process looks like this:
Some applications need permission to move your tokens on your behalf. An ERC-20 approval gives a wallet address or smart contract permission to spend a specified amount of your tokens.
This is commonly used when interacting with decentralized applications, such as decentralized exchanges.
Yes. Transactions involving ERC-20 tokens use the Ethereum network and require gas, which is paid in ether (ETH). Gas costs vary depending on network activity and the transaction.
Because ERC-20 tokens follow a common set of rules, wallets, exchanges and applications can support different tokens using the same basic framework.
This interoperability makes it easier for ERC-20 tokens to work across the Ethereum ecosystem.
ERC-20 tokens can serve different purposes depending on how they are designed. Common uses include:
There are thousands of ERC-20 tokens, ranging from stablecoins to DeFi and governance tokens. Some of the more widely recognized examples include:
| Token | Symbol | Use |
|---|---|---|
| Tether | USDT | Stablecoin designed to track the US dollar |
| USD Coin | USDC | Stablecoin designed to track the US dollar |
| Dai | DAI | Decentralized stablecoin |
| Chainlink | LINK | Token used within the Chainlink oracle network |
| Uniswap | UNI | Governance token for Uniswap |
| Aave | AAVE | Governance and utility token for the Aave lending protocol |
| Shiba Inu | SHIB | Community-driven cryptocurrency and ecosystem token |
| Maker | MKR | Governance token for the Maker protocol |
| Lido DAO | LDO | Governance token for the Lido staking protocol |
| The Graph | GRT | Token used to coordinate The Graph’s decentralized indexing network |
Some of these tokens are also available on other blockchains. A token’s name and ticker symbol alone don’t tell you which network it is using.
When sending an ERC-20 token, make sure the sending and receiving platforms support the same network. Using an unsupported network can result in funds that are difficult or impossible to recover.
You can send and receive ERC-20 tokens through a compatible crypto wallet or exchange. The process is similar to sending other cryptocurrencies, but there are a few things to check first.
Give the sender your compatible wallet address, and confirm they are sending the token on the correct network. You generally don’t need to hold ETH to receive tokens, although you’ll need ETH to pay gas if you later want to move them from your wallet.
Enter the recipient’s wallet address, select the correct network and specify the amount you want to send. Review the transaction details and gas fee before confirming.
Sending tokens over an unsupported network can result in lost or inaccessible funds. If you’re unsure which network to use, check the receiving wallet or exchange’s deposit instructions before sending.
Many crypto wallets support ERC-20 tokens because they use the Ethereum network. However, support varies by wallet and token.
When choosing a wallet, check that it supports the specific token and network you plan to use. For larger holdings, a hardware wallet can provide an additional layer of security by keeping your private keys offline.
Ethereum and ERC-20 are related, but they are not the same thing. Ethereum is a blockchain and network, while ERC-20 is a standard for creating fungible tokens that operate on it.
| Ethereum/ETH | ERC-20 | |
|---|---|---|
| What is it? | Blockchain and its native cryptocurrency | Token standard |
| Blockchain | Ethereum | Usually Ethereum |
| Main role | ETH is used for transactions and network fees | Provides rules for creating and managing fungible tokens |
| Examples | ETH | USDC, USDT, LINK |
In short, ETH is the native cryptocurrency of Ethereum, while ERC-20 describes a type of token standard used on the Ethereum network.
ERC-20 is just one of several token standards used on Ethereum. The standards differ based on the types of assets they represent.
| Standard | What it’s used for | Example |
|---|---|---|
| ERC-20 | Fungible tokens | USDC, USDT, LINK |
| ERC-721 | Non-fungible tokens (NFTs) | Digital art, collectibles |
| ERC-1155 | Fungible and non-fungible tokens | Gaming items, digital assets |
| ERC-4626 | Tokenized vaults | DeFi yield-bearing vaults |
The right standard depends on what the token represents and how it will be used.
ERC-20 is a standard that lets you create and use fungible tokens on Ethereum. ERC-20 tokens are used for everything from stablecoins and DeFi to governance and other digital assets.
If you want to buy ERC-20 tokens, a centralized crypto exchange can be one of the simplest options for beginners. Before buying or transferring a token, check that the exchange or wallet supports the specific token and network you’re using.
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