# ERC-20

> The Ethereum standard for fungible tokens. Most stablecoins and project tokens follow it.

Canonical URL: https://business.fudfomo.co/glossary/erc-20
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

ERC-20 is the most widely used token standard on Ethereum. It defines a small set of functions that every fungible token contract should implement, like transfer, balanceOf, and approve.

Following the standard means wallets, exchanges, and DEXes can support a new token without writing custom code. Most stablecoins, governance tokens, and project tokens on Ethereum and EVM-compatible chains are ERC-20s.

## Related terms

- [Token](https://business.fudfomo.co/glossary/token): A unit of value created on top of an existing blockchain like Ethereum.
- [Ethereum](https://business.fudfomo.co/glossary/ethereum): A blockchain that lets developers build apps and issue tokens. Often called a programmable money platform.
- [Smart Contract](https://business.fudfomo.co/glossary/smart-contract): A program that runs on a blockchain and does what it says, automatically.
- [Stablecoin](https://business.fudfomo.co/glossary/stablecoin): A token designed to hold the same value as a regular currency, usually the US dollar.

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