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ERC-20

A standard for tokens on the Ethereum network that lets every wallet and service receive and send them in the same way.

ERC-20 is a standard, a shared set of rules, for tokensTokenA digital asset created with a smart contract on another cryptocurrency's blockchain, rather than on a blockchain of its own. on the Ethereum network. When a token follows ERC-20, every Ethereum wallet, crypto exchange and app can handle it in the same way.

How does ERC-20 work?

An ERC-20 token is really a smart contractSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met. that keeps track of who owns how much. The standard sets out which functions the contract must offer, such as showing a wallet's balance, transferring tokens and allowing someone else to spend a set amount.

Think of plug sockets. Because every socket in Iceland is the same, you can plug in any appliance. ERC-20 does the same for tokens.

The standard was proposed in 2015 by Fabian Vogelsteller and Vitalik Buterin, one of Ethereum's founders. Chainlink (LINK)Chainlink (LINK)A network of oracles that bring outside information, such as prices, into smart contracts. LINK is an ERC-20 token on Ethereum, with 1 billion in total., Shiba Inu (SHIB)Shiba Inu (SHIB)A memecoin token on the Ethereum network from 2020, named after the same dog breed that features in Dogecoin's logo. and the stablecoin USDC on Ethereum are all examples of ERC-20 tokens.

What to know

  • ERC-20 is not a separate network. ERC-20 tokens travel on the Ethereum network, the same blockchain networkBlockchain networkThe blockchain a cryptocurrency or token is recorded and sent on, such as the Bitcoin network or the Ethereum network. as ether, and use the same kind of wallet addresses.
  • The fee is paid in ether. To send an ERC-20 token from your own wallet, you need a little ETH to pay for GasGasThe unit that measures the computing work a transaction or smart contract needs on Ethereum, which sets how high the network fee is..
  • The name proves nothing. Anyone can create an ERC-20 token with any name, including the name of a well-known coin. Genuine projects publish their token's contract address, and the contract address is what counts.

On Myntkaup, Shiba Inu and Chainlink are deposited and withdrawn on the Ethereum network as ERC-20 tokens.

Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.