ERC20 is a standard for creating tokens on the Ethereum blockchain. It defines a set of rules and guidelines that must be followed by developers when creating new tokens. An ERC20 token is a type of digital asset that can represent a wide range of values, such as a store of value, a representation of a physical asset, or a unit of utility. ERC20 tokens are stored on the Ethereum blockchain and can be transferred from one Ethereum address to another, much like traditional cryptocurrencies. The advantage of using ERC20 tokens is that they are compatible with many decentralized applications built on the Ethereum network, allowing for greater ease of use and interoperability. Overall, ERC20 tokens have become a popular choice for creating new cryptocurrencies and digital assets.

An ERC20 token is a standard for creating and issuing smart contracts on the Ethereum blockchain. It defines a set of rules that Ethereum-based tokens must follow, ensuring compatibility across the ecosystem. These rules include functions like transferring tokens, checking balances, and approving spending limits. ERC20 tokens have become the foundation for many cryptocurrencies and decentralized applications (dApps), enabling seamless interaction between wallets, exchanges, and platforms. Popular examples include stablecoins like USDT and utility tokens like Chainlink (LINK). The standardization simplifies development and fosters innovation, making ERC20 tokens a cornerstone of the blockchain industry. Their widespread adoption has significantly contributed to the growth of decentralized finance (DeFi) and tokenized assets, revolutionizing how value is exchanged and managed in the digital economy.