Understanding ERC Standards: A Quick Guide to ERC20 Tokens

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The Origins of Ethereum’s ERC Standards

ERC stands for Ethereum Request for Comment, a set of technical standards used for smart contracts on the Ethereum blockchain. Initially, it was a collaborative approach where developers proposed ideas, gathered feedback, and refined protocols to advance Ethereum’s ecosystem.

Anyone with a GitHub account can propose a new ERC standard. If accepted by Ethereum’s developers, it becomes an Ethereum Improvement Proposal (EIP)—a significant milestone in blockchain development.

This open-source methodology traces back to the early internet era, with groups like IETF and IAB shaping web standards. Similarly, ERC standards drive innovation in decentralized technologies.


Key ERC Standards Recognized as EIPs

Notable ERC standards include:

Explore the full list at Ethereum’s EIP repository.


Blockchain Token Standards Beyond Ethereum

Other blockchains have their own token protocols:

👉 Discover more about multi-chain token standards


Deep Dive into ERC20

Core Features of ERC20 Tokens

  1. Fungibility: Each token is identical in value and function (e.g., 1 ETH = 1 ETH).
  2. Versatility: Includes subtypes like burnable tokens, capped supplies, and pausable contracts.

Functional Capabilities


Non-ERC20 Tokens: Exceptions

  1. Native Cryptocurrencies:

    • Bitcoin (BTC) and Ethereum (ETH) exist independently of smart contracts.
    • Used for transactions, gas fees, and network security.
  2. NFTs (ERC721/ERC1155):

    • Unique digital assets like CryptoKitties or Bored Apes.
    • Enabled by Dieter Shirley’s ERC721 proposal.

Key Takeaways

  1. Adoption: Over 500,000 ERC20 contracts exist on Ethereum (as of 2022), though many are low-quality or scams.
  2. Innovation: Open standards accelerate blockchain development, but due diligence is critical.
💡 Pro Tip: Always research token projects before investing to avoid scams.

FAQs

What’s the difference between ERC20 and ERC721?

How do I check my ERC20 token balance?

Use block explorers like Etherscan by entering your wallet address.

Can ERC20 tokens be converted to other standards?

No, but bridges/wrappers (e.g., Wrapped BTC) enable cross-chain compatibility.


👉 Explore ERC20 token projects securely

This guide simplifies ERC standards for beginners. For deeper insights, refer to Ethereum’s official docs or trusted crypto resources.