ERC-20 Token Standard – Your Quick Reference

When working with ERC-20, a widely used token standard on the Ethereum blockchain that defines how tokens behave and interact. Also known as Ethereum Request for Comment 20, it enables developers to create fungible tokens that can be transferred, approved, and queried using a common set of functions. Ethereum, the public, open‑source platform that runs smart contracts provides the network where ERC-20 tokens live, while Smart Contract, self‑executing code that enforces token rules without a middleman is the engine that powers every ERC-20 transaction.

Why should you care about ERC-20? First, it standardizes token behavior, meaning any wallet or exchange that understands the standard can handle any ERC-20 token without custom integration. Second, the standard Airdrop, a distribution method that sends tokens to multiple addresses at once relies on ERC-20 functions to broadcast tokens en masse, making community incentives and marketing campaigns easier to execute. Finally, because most DeFi protocols, NFT marketplaces, and gaming platforms are built on Ethereum, knowing ERC-20 helps you navigate a huge portion of the crypto ecosystem.

Key Elements and How They Fit Together

The ERC-20 spec defines six essential functions: totalSupply, balanceOf, transfer, transferFrom, approve, and allowance. These functions form a simple API that wallets call to move tokens, check balances, and grant spending rights. Token, any unit of value that follows the ERC-20 interface inherits these methods automatically, so developers can focus on branding, economics, and utility instead of reinventing the wheel.

Behind the scenes, each function triggers a state change on the Ethereum blockchain, recorded in a block after a confirmation period. The confirmation time, which varies by network load, ensures that once a transaction is finalized, it cannot be double‑spent—a concept explored in several of our articles, like the one on transaction speed and security. Because ERC-20 tokens share the same transaction format, gas fees are predictable and tools like gas trackers can estimate costs before you send anything.

Another practical angle: many airdrops, such as the RingDAO or PandoLand drops covered in our posts, choose ERC-20 because the standard lets them snapshot addresses and distribute tokens with a single contract call. This efficiency reduces the chance of errors and minimizes the gas spent on mass distributions. If you’re planning an airdrop, you’ll need to understand how transfer and approve work together to move tokens from the issuer’s reserve to thousands of recipients.

Security is a big deal, too. Smart contracts can have bugs, and a flawed ERC-20 implementation could let attackers mint unlimited tokens or drain balances. That’s why smart contract auditing, another recurring theme in our collection, is essential before launching any ERC-20 token. Audits check for common pitfalls like integer overflow, missing return values, and improper access controls.

In short, ERC-20 sits at the intersection of token economics, blockchain infrastructure, and user experience. Whether you’re a developer building a new DeFi product, an investor assessing a token’s legitimacy, or a community manager planning an airdrop, grasping the core attributes—standard functions, reliance on Ethereum, and smart contract execution—will save you time and headaches.

Below, you’ll find a hand‑picked set of articles that dive deeper into these topics. From confirming transaction speeds to navigating airdrop claims, each piece adds a layer of practical knowledge that complements the ERC-20 fundamentals explained here. Explore the list and boost your crypto confidence.