What are ERC20 tokens?
ERC20 tokens are subtokens on the Ethereum network, typically used in projects built upon the network. ERC20 is specifically a standard that ensures that tokens are compatible across token interfaces on the network.
This creates an easier way for smart contract multi-sig wallets to be able to accommodate multiple subtokens, which also relates to having a common set of APIs. This removes the need for special updates to accommodate different tokens, and makes it simpler to built greater functionalities into these tokens within their networks.
Not all subtokens on the Ethereum network are ERC20 compliant, although the standard is popular and a lot of projects do implement it for their tokens. Tokens can also partially comply with the standard, but none of them have to. ERC20 simply sets a standard for projects and tokens to be more functional within the network and across different interfaces, and projects building on Ethereum can chose to use it, or not.
Read out Ask an Expert page on ERC20 tokens or watch the video below, where we give an explanation of what they are, how they came about, and ERC20 tokens functionality.
If you are still not even sure what blockchains or cryptocurrency are, check out those first! If you need to differentiate blockchains from cryptocurrencies, we have a resource for that too! The same goes for Ethereum, since these tokens use the Ethereum blockchain, and are therefore subjected to an understanding of the protocols and systems being used on that platform.
ERC20 Tokens & Projects That Implement Them
Below we will show some projects that have implemented the ERC20 token standard into their token systems. By clicking on the picture for each, you can find an information page with resources that link externally to other sites, so you can dig as deep as your interest desires! Keep in mind that these are just some of the projects that have ERC20 tokens, and more are likely to come too.