Understand the ERC20 token smart contract

One of the most significant smart contract standard on Ethereum is known as ERC-20, which has emerged as the technical standard used for all smart contracts on the Ethereum blockchain for fungible token implementations.

The ERC-20 defines a common list of rules that all Ethereum tokens must adhere to. Consequently, this token standard empowers developers of all types to accurately predict how new tokens will function within the larger Ethereum system. This simplifies and eases developers’ tasks, because they can proceed with their work, knowing that each and every new project won’t need to be redone every time a new token is released, as long as the token follows the rules.