What Is the Primary Function of the ERC-20 Token Standard?
The ERC-20 standard defines a common set of rules for fungible tokens on the Ethereum blockchain. Its primary function is to ensure tokens are interchangeable and easily interact with smart contracts, wallets, and decentralized exchanges.
Key functions include transfer , balanceOf , and approve , which enable basic token operations and interaction with other protocols. This standardization is crucial for interoperability.
Glossar
ERC-20 Standard
Foundation ⎊ The ERC-20 Standard defines a uniform interface for fungible tokens on the Ethereum blockchain, establishing a common set of rules for token creation and interaction.
Token Operations
Function ⎊ Token Operations encompass the entire suite of programmatic functions and activities related to the lifecycle management of a digital asset, including issuance, transfer, burning, and freezing.
Fungible Tokens
Interchange ⎊ : The defining characteristic of these digital assets is their perfect interchangeability, which is fundamental for efficient market microstructure operations.
Decentralized Exchanges
Access ⎊ These platforms offer permissionless entry to cryptocurrency and tokenized asset markets, democratizing capital deployment into novel financial structures.
Erc-20 Tokens
Standard ⎊ ERC-20 tokens represent a technical standard implemented via smart contracts on the Ethereum blockchain, defining a common set of rules for fungible digital assets.
Approve Function
Function ⎊ The Approve function is a standardized method within the ERC-20 token contract specification, serving to delegate a specific spending limit of an owner's tokens to a designated third-party address, known as the spender.