Ethereum ERC-20 is a technical standard for Ethereum smart contracts used for the creation and management of fungible tokens. Fungible tokens are interchangeable units that all have the same value, such as stablecoins, governance tokens, and utility tokens.
An ERC-20 contract defines how tokens can be transferred, how balances are tracked, and how other contracts or applications can interact with the token. By following the ERC-20 interface, different wallets, exchanges, and dApps can work with any compliant token in a consistent way across the Ethereum ecosystem.
