[{"data":1,"prerenderedAt":347},["ShallowReactive",2],{"api/learn-center-post-en-what-is-erc20":3,"footer-en":57,"learn/crypto-101/what-is-erc20-en-seo":255,"navigation-en-learn-center":260,"api/learn-categories-en":308},{"seo":4,"locale":28,"breadcrumbs":29,"excerpt":37,"featuredImage":38,"components":39,"title":5,"formattedPublishedAt":50,"geofencings":51,"category":52,"pagination":54,"campaignExternalId":8},{"title":5,"metaTitle":6,"metaDescription":7,"keywords":8,"metaRobots":8,"structuredData":9,"metaImage":10,"metaSocial":18,"canonicalURL":8,"localizations":19},"What is ERC-20?","What is ERC-20? - Bitstamp Learn Center","What is ERC-20? How do tokens on the Ethereum network work? - Learn more on the Bitstamp Learn Center",null,{},{"url":11,"mime":12,"ext":13,"width":14,"height":15,"name":16,"alt":17},"bitstampImageUrl/1920x1080px_illustrations_learningcenter_86svg_0c0cc35def_73badfaeb1.svg","image/svg+xml",".svg",192,108,"1920x1080px_illustrations_learningcenter_86svg_0c0cc35def.svg","",[],[20,23,26],{"pathname":21,"locale":22},"/en-gb/learn/crypto-101/what-is-erc20/","en-GB",{"pathname":24,"locale":25},"/es/learn/crypto-101/what-is-erc20/","es",{"pathname":27,"locale":28},"/learn/crypto-101/what-is-erc20/","en",[30,34],{"id":31,"text":32,"url":31,"asUrl":33},"/learn/crypto-101/","Crypto 101",true,{"id":35,"text":5,"url":27,"asUrl":36},"what-is-erc20",false,"\u003Cp>\u003Ca href=\"/learn/cryptocurrency-guide/what-is-ethereum-eth/\">Ethereum\u003C/a> is a \u003Ca href=\"/learn/blockchain/what-is-a-blockchain/\">blockchain\u003C/a> system that enables the creation and transfers of various kinds of \u003Cstrong>tokens\u003C/strong>. These tokens have many uses and include those which are fungible, non-fungible tokens, or have other characteristics - and there are a variety of different token standards for each. Today we will present the most popular token standard for Ethereum, the ERC-20.\u003C/p>\n",{"url":11,"mime":12,"ext":13,"width":14,"height":15,"name":16,"alt":17},[40],{"component":41,"props":42,"content":43,"secondaryContent":47,"ctas":48,"secondaryCtas":49,"ctasNoMarginTop":36},"section.full-text",{"centered":36,"withoutSectionContainer":36},{"text":44,"width":45,"align":46},"\u003Ch3>ERC-20 Essentials\u003C/h3>\n\u003Cul>\n\u003Cli>ERC-20 stands for Ethereum Request for Comments (unique proposal ID number) 20.\u003C/li>\n\u003Cli>It creates a framework defining what ERC-20 tokens can do by prescribing a list of functions and event interfaces that can be used by them.\u003C/li>\n\u003Cli>It sets a standard for tokens and makes them compatible with each other.\u003C/li>\n\u003C/ul>\n\u003Ch2>What is ERC?\u003C/h2>\n\u003Cp>To make these tokens compatible with each other, the Ethereum community follows procedures specified by a technical document called \u003Cstrong>ERC\u003C/strong>.\u003C/p>\n\u003Cp>ERC stands for \u003Cstrong>Ethereum Request for Comments\u003C/strong> and it is usually equipped with a unique proposal ID number. This prescribes how tokens can be shared, exchanged or transferred to a crypto wallet.\u003C/p>\n\u003Cp>Ethereum Request for Comments is an official protocol for implementing improvements to the Ethereum network. ERC standards are created by the Ethereum community developers.\u003C/p>\n\u003Cp>The developers make a document describing methods and rules that they think would improve the Ethereum ecosystem. If the core developers and community agree with the proposal, it becomes a standard.\u003C/p>\n\u003Cp>All tokens following the ERC-20 standard can be held in most ERC-20 compatible wallets without any additional technical work.\u003C/p>\n\u003Ch2>What does ERC-20 do?\u003C/h2>\n\u003Cp>ERC-20 defines the preliminary rules of Ethereum tokens by defining what kinds of functions and event interfaces they can use. This means that it does not prescribe the exact logic of the tokens, but sets an approximate framework in which the code of the tokens can be written, allowing developers to predict how new tokens will function within the Ethereum system.\u003C/p>\n\u003Cp>ERC-20 tokens are designed for use on the Ethereum platform. They follow a list of standards so that they can be shared, exchanged for other tokens of the same standard, or transferred to a crypto wallet.\u003C/p>\n\u003Cp>ERC-20 ensures that projects do not need to be redone each time a new token is released. The ERC-20 standard ensures that old tokens are compatible with new ones (if the new tokens follow the ERC-20 rules). Most of the tokens released on Ethereum as initial coin offerings are ERC-20 tokens.\u003C/p>\n\u003Ch2>Why is ERC-20 important?\u003C/h2>\n\u003Cp>ERC-20 makes the management and creation of tokens simpler. Before the ERC-20 standard was created, developers had problems deciding what terminology to use in the code. This meant that exchanges and wallets needed to build their own platforms to be able to accept each new individual token.\u003C/p>\n\u003Cp>ERC-20 sets rules for tokens to follow so that all tokens within the Ethereum system can be compatible. These rules ensure that different types of Ethereum tokens work the same way anywhere within the Ethereum network.\u003C/p>\n\u003Cp>When ERC-20 became the standard, new tokens could be listed on an exchange or transferred to a personal wallet automatically. This means that almost all wallets that support Ethereum’s currency (ETH), also support tokens that follow ERC-20 standards.\u003C/p>\n\u003Ch2>How are ERC-20 tokens made?\u003C/h2>\n\u003Cp>ERC-20 tokens are created through smart contracts. Tokens need to meet a set of rules in order to be accepted and called an ERC-20 token.\u003C/p>\n\u003Cp>These standard rules apply to all tokens on the Ethereum network, making them interchangeable with other tokens (or \u003Cstrong>fungible\u003C/strong>) based on this protocol. Tokens that follow the same standards are equal to, and can be exchanged for one another.\u003C/p>\n\u003Cp>To buy, sell and trade tokens on Ethereum, you need to pay a fee for the transaction. The fee is determined by the amount of \u003Cstrong>\u003Ca href=\"/learn/blockchain/what-is-ethereum-gas/\">gas\u003C/a>\u003C/strong> it takes for the transaction to be written into the blockchain and paid in a subunit of ETH.\u003C/p>\n\u003Cp>As you would expect from the longest-standing cryptocurrency exchange in the world, you can buy ETH quickly and easily at Bitstamp by Robinhood, plus several ERC-20 tokens too.\u003C/p>\n\u003Chr>\n","full","left",{"text":17},[],[],"August 17th, 2022",{},{"title":32,"url":31,"geofencings":53},{},{"previous":55,"next":56},"/learn/crypto-101/what-is-cryptocurrency/","/learn/crypto-101/fundamentals-of-game-theory/",{"ready":33,"sections":58,"disclaimer":253,"copyright":254},[59,102,130,153,190,209],{"title":60,"content":17,"items":61},"About",[62,67,72,77,82,87,92,97],{"noFollow":33,"isExternal":36,"name":63,"value":64,"isEmail":36,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":65,"geofencings":66},"Who We 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Kingdom",{},{},{"title":210,"content":17,"items":211},"Contact",[212,217,221,225,229,233,238,243,248],{"noFollow":36,"isExternal":36,"name":213,"value":214,"isEmail":36,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":215,"geofencings":216},"Customer support","/customer-support/",{},{},{"noFollow":36,"isExternal":36,"name":218,"value":218,"isEmail":33,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":219,"geofencings":220},"info@bitstamp.net",{},{},{"noFollow":36,"isExternal":36,"name":222,"value":222,"isEmail":33,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":223,"geofencings":224},"press@bitstamp.net",{},{},{"noFollow":36,"isExternal":36,"name":226,"value":226,"isEmail":33,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":227,"geofencings":228},"support@bitstamp.net",{},{},{"noFollow":36,"isExternal":36,"name":230,"value":230,"isEmail":33,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":231,"geofencings":232},"complaints@bitstamp.net",{},{},{"noFollow":36,"isExternal":36,"name":234,"value":235,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":236,"geofencings":237},"+44 20 3868 9628","+442038689628",{},{},{"noFollow":36,"isExternal":36,"name":239,"value":240,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":241,"geofencings":242},"+1 800 712 5702","+18007125702",{},{},{"noFollow":36,"isExternal":36,"name":244,"value":245,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":246,"geofencings":247},"+352 20 88 10 96","+35220881096",{},{},{"noFollow":36,"isExternal":36,"name":249,"value":250,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":251,"geofencings":252},"+65 3105 1676","+6531051676",{},{},"\u003Cp>Please read the general \u003Ca href=\"/legal/risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Warning\u003C/a>, and \u003Ca href=\"/legal/uk-investment-risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Summary\u003C/a> for UK residents before investing in crypto-assets. \u003C/p>\n\u003Cp>Crypto-assets services are provided by the following Bitstamp legal entities depending on client residency: (1) Bitstamp Europe S.A., which is authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg as a payment institution (licence number Z00000012) and crypto-asset service provider (licence number N00000003); Registered address: 40, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg; Registration number: B196856; (2) Bitstamp UK Ltd., which is registered with the Financial Conduct Authority (FCA) in the UK for the provision of certain cryptoassets activities under the Money Laundering Regulations (Firm Reference Number 978690); Registered address: 5 New Street Square, EC4A 3TW London, United Kingdom; Registration number: 14174243; (3) Bitstamp Ltd.with its registered address at 5 New Street Square, EC4A 3TW London, United Kingdom and registration number: 8157033; (4) Bitstamp Global Ltd., which is registered as a Virtual Asset Service Provider in the British Virgin Islands and is supervised by the British Virgin Islands Financial Services Commission (FSC); Registered address: Floor 4, Banco Popular Building, Road Town, Tortola VG1110, British Virgin Islands; Registered number: 2086429; and (5) Bitstamp Asia Pte Ltd, which is authorized by the Monetary Authority of Singapore (MAS) as a major payment institution (licence number PS20200667); Registered address: 63 Chulia Street, OCBC Centre East, #15-01, Singapore 049514; Registered number: 202016687K;\u003C/p>\n\u003Cp>Virtual currency services to US residents are provided by Bitstamp USA, Inc., which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services. Review a \u003Ca href=\"/legal/usa-inc/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">list of its licenses and other registrations\u003C/a> (NMLS number \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">1905429\u003C/a>) for more information; Registered address: 85 Willow Road, Menlo Park, CA 94025, United States of America; Registered number: 5481543.\u003C/p>\n\u003Cp>Investment services with regards to trading in crypto derivatives are provided by Bitstamp Financial Services Ltd., which is authorized and supervised by the Slovenian Securities Market Agency (ATVP) as a MiFiD investment firm. Trading crypto derivatives carries significant risks and may result in substantial losses. Please trade responsibly and ensure you understand the associated risks. You can find more about the risks \u003Ca href=\"/legal/financial-services/general-terms-and-conditions/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>. To help you understand the risks involved we have put together a series of \u003Ca href=\"/derivatives/key-information-documents/\" target=\"_blank\" rel=\"noopener noreferrer\">Key Information Documents (KIDs)\u003C/a> highlighting the risks and rewards related to each derivatives contract. Crypto derivatives trading is not available to customers in the US, Canada, Japan and some other countries. Bitstamp Financial Services Ltd. does not provide crypto-asset services.\u003C/p>\n\u003Cp>To find out more about which Bitstamp entity you receive services from, please check the Profile/My information in your Bitstamp account. You can read more about our legal terms, policies and disclosures \u003Ca href=\"/legal/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>.\u003C/p>\n","\u003Cp>All rights reserved © 2026 Bitstamp by Robinhood. \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NMLS #1905429\u003C/a>\u003C/p>\n",{"description":7,"ogDescription":7,"ogImage":256,"twitterImage":256,"twitterSite":257,"twitterCreator":257,"twitterCard":258,"twitterTitle":6,"twitterDescription":7,"titleTemplate":259},"https://assets.bitstamp.net/msc/_ipx/enlarge_true&f_png&fit_cover&q_85&s_1200x630/bitstampImageUrl/1920x1080px_illustrations_learningcenter_86svg_0c0cc35def_73badfaeb1.png","@Bitstamp","summary_large_image","%s",{"items":261,"ready":33,"platformButtonText":304,"backButtonText":305,"logInButtonText":306,"signUpButtonText":307},[262,266,270,273,276,279,282,287,290,295,300],{"headerName":263,"sidemenuName":134,"url":135,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":264,"submenu":265,"tag":17},"Institutions",{},[],{"headerName":126,"sidemenuName":126,"url":127,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":267,"submenu":268,"tag":269},{},[],"NEW",{"headerName":149,"sidemenuName":149,"url":150,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":271,"submenu":272,"tag":17},{},[],{"headerName":106,"sidemenuName":106,"url":107,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":274,"submenu":275,"tag":17},{},[],{"headerName":116,"sidemenuName":116,"url":117,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":277,"submenu":278,"tag":17},{},[],{"headerName":121,"sidemenuName":121,"url":122,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":280,"submenu":281,"tag":17},{"geofencing-uk":33},[],{"headerName":283,"sidemenuName":283,"url":284,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":285,"submenu":286,"tag":17},"Markets","/markets/",{},[],{"headerName":111,"sidemenuName":111,"url":112,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":288,"submenu":289,"tag":17},{},[],{"headerName":291,"sidemenuName":291,"url":292,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":293,"submenu":294,"tag":17},"Blog","https://blog.bitstamp.net/",{},[],{"headerName":296,"sidemenuName":296,"url":297,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":298,"submenu":299,"tag":17},"Learn","/learn/",{},[],{"headerName":301,"sidemenuName":301,"url":107,"noFollow":36,"showInHeader":36,"showInSidemenu":33,"geofencings":302,"submenu":303,"tag":17},"Get Bitstamp by Robinhood app",{},[],"Go to platform","Back","Log in","Get started",[309,313,317,319,323,327,331,335,339,343],{"title":310,"url":311,"geofencings":312},"Blockchain technology","/learn/blockchain/",{},{"title":314,"url":315,"geofencings":316},"Company profiles","/learn/company-profiles/",{},{"title":32,"url":31,"geofencings":318},{},{"title":320,"url":321,"geofencings":322},"Crypto definitions","/learn/crypto-definitions/",{},{"title":324,"url":325,"geofencings":326},"Crypto trading","/learn/crypto-trading/",{},{"title":328,"url":329,"geofencings":330},"Cryptocurrency guide","/learn/cryptocurrency-guide/",{"geofencing-uk":33},{"title":332,"url":333,"geofencings":334},"People profiles","/learn/people-profiles/",{},{"title":336,"url":337,"geofencings":338},"Security","/learn/security/",{},{"title":340,"url":341,"geofencings":342},"Tutorials","/learn/bitstamp-tutorials/",{},{"title":344,"url":345,"geofencings":346},"Web3","/learn/web3/",{},1775055420204]