ERC-20 Token Overview – Standards, Uses & Latest Insights

When working with ERC-20 token, a standard for creating fungible tokens on the Ethereum blockchain. Also known as Ethereum token standard, it defines how tokens are issued, transferred and approved.

The backbone of any ERC-20 token is a smart contract, self‑executing code that lives on Ethereum and enforces the token rules. Without a smart contract, the token wouldn’t be able to track balances or process transfers. Another key piece is tokenomics, the economic design that determines supply, distribution and incentive mechanisms. Good tokenomics shape price stability and community growth, while poor design can lead to rapid sell‑off.

ERC-20 tokens are the lifeblood of DeFi platforms. Protocols like lending, swapping and yield farms rely on these tokens to represent assets, collateral, or governance rights. This creates a direct link: ERC-20 token enables DeFi applications. At the same time, many projects launch airdrops, free token distributions that reward early adopters or community members. An airdrop’s success often hinges on clear tokenomics and a well‑written smart contract, so the three concepts are tightly intertwined.

Why the ERC-20 Standard Still Matters

Even after years of development, ERC-20 remains the go‑to format because it offers simplicity and broad wallet support. It requires a set of six functions—totalSupply, balanceOf, transfer, transferFrom, approve, and allowance—making integration straightforward for exchanges, wallets, and dApps. This standardization also reduces friction when launching new projects: developers can copy existing contract templates, adjust tokenomics, and get listed on most platforms within days. Beyond basics, the ecosystem now adds extensions like ERC-223 and ERC-777 to fix known issues such as accidental token loss. Understanding these extensions helps you evaluate whether a token is truly compliant or just a copy‑paste job. If you’re tracking market moves, the token’s contract address, total supply, and holder distribution are the first data points to check. Tools like TokenFollow aggregate this info and alert you when a token hits a new listing or experiences a sudden volume spike. Overall, mastering the relationship between the ERC-20 standard, its smart contract implementation, tokenomics design, DeFi utility, and airdrop strategies gives you a solid lens to assess any new token project. Below you’ll find a curated set of articles that dive deeper into each of these areas—ranging from AMM basics and exchange reviews to regulatory guides and airdrop walkthroughs. Explore the collection to see real‑world examples of ERC-20 tokens in action and learn how to apply the concepts to your own portfolio.