Mastering Blockchain - Second Edition

ERC20 tokens

ERC20 token is an interface which defines various functions dictating the requirements of the token. It does not, however, provide implementation details and has been left to the implementer to decide. ERC is basically an abbreviation of Ethereum Request for Comments which is equivalent to Bitcoin's BIPs for suggesting improvements in Ethereum blockchain.

This is defined under EIP 20, which you can read more about here https://github.com/ethereum/EIPs/blob/master/EIPS/eip-20-token-standard.md.

Ethereum is becoming a platform for choice for ICOs due to its ability to create new tokens and with ERC20 standard, it has become even more accessible.

ECR20 token standard defines various functions which describe various properties, rules, ...