ERC-20 Token Standard

When working with ERC-20, the most common token standard on Ethereum that defines how tokens can be transferred and interacted with. Also known as Ethereum token standard, it powers countless apps, from DeFi protocols to simple airdrop campaigns, you quickly see why it matters. Smart contracts, self‑executing code that runs on the blockchain rely on ERC-20 to know the balance of each address, approve transfers, and enforce rules without a middleman. That link creates a clear semantic triple: ERC-20 defines token behavior; smart contracts require that definition; the result is automated token movement. In practice, this means anyone can launch a new coin with a few lines of code, and the token instantly interoperates with wallets, exchanges, and other contracts. The standard also includes functions like transfer, approve, and allowance, which together form the backbone of token economics across the Ethereum ecosystem.

Because ERC-20 tokens are universally recognized, DeFi platforms, decentralized finance services that replace traditional banks have adopted them for lending, borrowing, and yield farming. This creates another semantic triple: DeFi platforms rely on ERC-20 tokens; ERC-20 enables tokenized assets; tokenized assets fuel financial services. When you deposit an ERC-20 token into a lending pool, the protocol can automatically calculate interest, collateral ratios, and liquidation thresholds—all thanks to the standard’s predictable interface. The same logic applies to token swaps on DEXes, where liquidity providers receive ERC-20 LP tokens that represent their share of the pool. Even token airdrops, a popular way for projects to distribute value, use ERC-20 to snapshot balances and send rewards in a single transaction. That connection is captured in the triple: Token airdrops distribute ERC-20 tokens; ERC-20 ensures fair distribution; fair distribution attracts community participation.

All of this background helps you understand why the articles below are grouped under the ERC-20 tag. You’ll find step‑by‑step guides on claiming airdrops like CoinWind (COW) and Vodra, deep dives into how smart contracts power content monetization, and reviews of DeFi tools such as OpenSwap and Kine Protocol that rely heavily on ERC-20 tokenomics. Whether you’re a developer looking to launch a new token, a trader scouting the next big airdrop, or a DeFi enthusiast comparing DEX fees, the collection gives you practical insight grounded in the ERC-20 standard. Keep reading to see real‑world examples, safety tips, and actionable strategies that build directly on the concepts introduced here.