ERC-20 token standard explained

ERC-20 is the original and most widely used token standard in crypto. It defines the common rules every token follows on Ethereum and its layer-2s like Base and Arbitrum.

What is ERC-20?

ERC-20 is a set of functions — transfer, balanceOf, approve and more — that every compliant token implements, so wallets and exchanges support it automatically. It was the first widely adopted token standard and inspired BEP-20 and others.

Where ERC-20 works

ERC-20 tokens run on Ethereum and every EVM-compatible chain, including the layer-2s Base and Arbitrum. The same standard means the same wallets (MetaMask) and tooling work across all of them.

ERC-20 vs BEP-20 vs SPL

• ERC-20 — Ethereum, Base, Arbitrum.
• BEP-20 — BNB Chain (almost identical to ERC-20).
• SPL — Solana (different architecture).

See the full ERC-20 vs BEP-20 breakdown.

What an ERC-20 token includes

Name, symbol, total supply and decimals (18 is standard), plus optional features like minting, burning, transaction tax, anti-whale and blacklist depending on the contract.

How to create an ERC-20 token

No Solidity required — a no-code ERC-20 creator generates and deploys a verified contract on Ethereum, Base or Arbitrum. See how to create an ERC-20 token.

Why ERC-20 became the universal standard

ERC-20 is not just a token standard — it is the standard that the whole industry rallied around, and understanding why explains a lot about crypto today. Before ERC-20, every token behaved differently, so wallets and exchanges had to support each one individually. ERC-20 defined a common set of rules every token follows — how balances work, how transfers happen, how approvals are granted — so that any wallet, exchange or app supports any ERC-20 token automatically. That shared template is what made tokens explode in number: build to the standard, and you instantly plug into the entire ecosystem. It is so successful that other chains adopted ERC-20-compatible standards too, which is why an Ethereum token and a token on most EVM chains work the same way.

ERC-20 and the wider token world

Most of the tokens you encounter — utility tokens, governance tokens, stablecoins, meme coins — are ERC-20 tokens (or its equivalents) under the hood. What changes between them is the design and purpose, not the underlying standard. To see where ERC-20 fits in the full landscape, read types of cryptocurrency and what is a crypto token. ERC-20 tokens are also the base currency of DeFi and the assets traded on every DEX — the standard is woven through the entire ecosystem.

Creating your own ERC-20 token

Because ERC-20 is a well-defined, battle-tested standard, you do not need to write it yourself. A no-code creator deploys a token built on the proven ERC-20 pattern for you — instantly compatible with every wallet, exchange and app — while you keep full ownership. You choose the name, ticker and supply, plan the economics with the tokenomics generator, and deploy. That accessibility, built on a universal standard, is why launching a token has become something anyone can do.

Frequently asked questions