Description: An ERC-20 token is a technical standard that defines a set of rules and functions that a token must follow to be compatible with the Ethereum blockchain. This standard allows for the creation of fungible tokens, meaning that each unit of a token is interchangeable with another unit of the same type, similar to how currencies work. ERC-20 tokens can be used to represent digital assets, such as cryptocurrencies, stocks, or even physical goods. The main features of ERC-20 tokens include the ability to transfer tokens between addresses, the ability to check the balance of an address, and the ability to allow other smart contracts to interact with them. The relevance of ERC-20 tokens lies in their widespread adoption within the Ethereum ecosystem, facilitating the creation of decentralized applications (dApps) and the implementation of initial coin offerings (ICOs). This standard has enabled developers and companies to launch their own tokens efficiently and securely, contributing to the growth of the cryptocurrency market and innovation in the blockchain technology space.
History: The ERC-20 standard was proposed in November 2015 by Fabian Vogelsteller and Vitalik Buterin, co-founder of Ethereum. Since its introduction, it has evolved and become the most widely used standard for creating tokens on the Ethereum blockchain. Its massive adoption was driven by the ICO boom in 2017, where many projects used this standard to launch their tokens, leading to significant growth in the Ethereum ecosystem.
Uses: ERC-20 tokens are primarily used in the cryptocurrency and decentralized finance (DeFi) space. They allow developers to create new digital assets that can be traded, used in decentralized applications, or even as part of reward systems. They are also fundamental in creating crowdfunding platforms through ICOs, where investors can acquire tokens in exchange for cryptocurrencies like Ether.
Examples: Examples of ERC-20 tokens include Tether (USDT), which is a stablecoin pegged to the US dollar, and ChainLink (LINK), which provides oracles for smart contracts. Another example is Uniswap (UNI), the governance token of the popular decentralized exchange platform Uniswap.
