What is an ERC-20?

ERC-20 is a widely-adopted token standard on the Ethereum blockchain that defines a set of rules and functions for creating fungible tokens. These tokens are interchangeable, meaning each unit is identical in value and can be used for transactions or other applications. ERC-20 tokens are essential for decentralized finance (DeFi) applications, allowing for seamless token transfers, staking, and integration with various dApps. The standard includes functions like transfer, approve, and balanceOf, ensuring compatibility with wallets, exchanges, and other platforms on the Ethereum network.