What Is the Role of a “Token Standard” like ERC-20 in the Creation Process?

A token standard, such as Ethereum's ERC-20 for fungible tokens, defines a common set of rules and functions (like transfer, balance inquiry, and approval) that all tokens on that network must adhere to. This standardization ensures interoperability, allowing tokens to seamlessly interact with wallets, exchanges, and smart contracts across the ecosystem.

It simplifies development and fosters widespread adoption.