ERC-20 is a technical standard used for creating and issuing fungible tokens on the [[Ethereum]] [[blockchain]]. Think of it as a set of rules that ensures different tokens can interact seamlessly within the Ethereum ecosystem. These rules define how tokens can be transferred, how transactions are approved, and the total supply of tokens. ERC-20 has become the most widely used standard for creating tokens on Ethereum, powering a vast range of applications, from [[Decentralized Finance (DeFi)]] and stablecoins to governance tokens and utility tokens within various projects.