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What is ERC-20 Tokenization Standard?

Crypto Terms Glossary: What is ERC-20 Tokenization Standard?

The ERC-20 standard outlines the common set of criteria and technical specifications an Ethereum token must follow to function optimally and interoperably on the Ethereum blockchain. It enables the creation of tokenized assets that can be bought, sold, and exchanged alongside cryptocurrencies like bitcoin (BTC) and ether (ETH). The ERC-20 standard utilizes smart contracts to issue tokens that can be exchanged on the Ethereum network as well as used interoperably between Ethereum-based decentralized applications (dApps). It is the most commonly used Ethereum token standard, and has been used to create many notable digital assets.

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