Token Standard
A token standard is a shared technical rulebook that defines which functions a token's smart contract must offer, so that wallets, exchanges and apps can work with any token that follows it.
Why standards are needed
Without a standard, every token contract could name its functions differently. A wallet would need custom code for each one, and a decentralized exchange could not list new tokens automatically. A standard fixes the interface: the function to check a balance, the function to transfer, and the events the contract must emit, so any software that understands the standard understands every compliant token.
On Ethereum, standards are proposed as Ethereum Requests for Comment, which is where the ERC prefix comes from.
The best-known standards
ERC-20 covers fungible tokens, where every unit is interchangeable, such as stablecoins and governance tokens. ERC-721 covers non-fungible tokens, where each token has a unique ID, as with most NFT collections. ERC-1155 lets a single contract manage both fungible and non-fungible items, which is popular in games.
Other chains have their own equivalents. Solana uses its SPL token program, and BNB Chain uses BEP-20, which mirrors ERC-20.
What a standard does not guarantee
A standard defines the interface, not the honesty or quality of the code behind it. Two ERC-20 tokens can behave very differently: one might have a fixed supply, another might let its owner mint unlimited units or block transfers. Some tokens even deviate subtly from the standard, which has caused bugs in apps that assumed perfect compliance.
So seeing ERC-20 on a token page tells you it will show up in your wallet correctly. It does not tell you the token is safe or valuable. Before interacting with an unfamiliar token, it is worth checking whether the contract is verified, who holds admin rights, and whether it has been audited by a reputable firm.
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Frequently asked questions
What does ERC stand for?
Ethereum Request for Comment, the naming scheme for application-level standards proposed through Ethereum's improvement process.
Can I send an ERC-20 token to a Solana address?
Not directly. Tokens on different chains use different standards and networks; moving between them requires a bridge, and sending to the wrong network can lose funds.
Are all NFTs ERC-721?
No. Many use ERC-1155, and other blockchains have their own NFT standards.
Related terms
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