Definition

ERC-20

The Ethereum standard for fungible tokens — interchangeable units like USDC, UNI, AAVE, where every token of a given type is identical.

Approved in 2015, ERC-20 defines six required functions (totalSupply, balanceOf, transfer, transferFrom, approve, allowance) and two events (Transfer, Approval). Any contract implementing this interface works with any wallet, exchange, or DEX that supports ERC-20s — which is essentially all of them.

ERC-20 simplicity is its strength: launching a token requires <50 lines of Solidity. It's also its weakness — the standard has known footguns (the approve/transferFrom pattern enables phishing-style "approve maximum and drain wallet" attacks). Newer standards like ERC-777 and ERC-2612 (permit) address some issues.

Why it matters

ERC-20 is the foundational token standard on Ethereum and most EVM chains. Every DeFi action you take involves ERC-20 transfers under the hood.

How CryptoRadar24 tracks it

CryptoRadar24 tracks the major ERC-20 tokens (USDT, USDC, governance tokens) as part of standard market data.

Related terms

Smart contract
Self-executing code deployed on a blockchain that runs deterministically when called, without requiring an intermediary.
Governance Token
A token granting holders voting rights over protocol decisions and treasury management.
Stablecoin
A cryptocurrency designed to maintain a stable value, typically pegged 1:1 to a fiat currency like the US dollar.

FAQ

Is ETH an ERC-20?

No — ETH is the native asset of Ethereum, not a smart-contract token. WETH (Wrapped ETH) is the ERC-20 version, used for DEX trading because protocols expect token-standard interface.

How is ERC-20 different from BEP-20?

BEP-20 is BNB Chain's equivalent — same interface, different chain. Tokens issued on BSC use BEP-20 ABI but the function signatures are identical to ERC-20.

Can I create an ERC-20 token easily?

Yes, technically — paste a template, deploy. The hard part is everything after: liquidity, audit, distribution, demand. Most token launches fail not for technical reasons but for economic ones.

Why is ERC-20 approval risky?

When you approve a contract to spend your tokens, the default is unlimited approval. Malicious or compromised contracts can drain your full balance. Always check approval limits and revoke unused ones via revoke.cash.