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ERC-20 token is a blockchain-based asset with similar functionality to bitcoin, ether, and bitcoin cash: it can hold value and be sent and received.
The major difference between ERC-20 tokens and other cryptocurrencies is that ERC-20 tokens are created and hosted on the Ethereum blockchain, whereas bitcoin and bitcoin cash are the native currencies of their respective blockchains. ERC-20 tokens are stored and sent using ethereum addresses and transactions, and use gas to cover transaction fees.
ERC-20 is an official protocol for proposing improvements to the Ethereum (ETH) network. ERC stands for Ethereum Request for Comment, and 20 is the proposal identifier. This is a common standard for creating tokens on the Ethereum blockchain.
This token standard defines a set of rules that apply to all ERC-20 tokens that allow them to interact seamlessly with one another. Wallets and exchanges use the standard to integrate various ERC-20 tokens onto their platforms and facilitate exchanges between ERC-20 tokens and other cryptocurrencies.
