ERC-20 Token

The ERC-20 token standard is a specification for fungible tokens on Ethereum. A token is said to be fungible if one unit of the token can be replaced with any other unit.

For example, a 10 rupee note is fungible in the sense it can be exchanged for any other 10 rupee note. Ether is itself a fungible token. Each unit of a non-fungible token (NFTs) has a unique identifier and cannot be exchanged for another unit.

Note: The ERC in ERC-20 stands for Ethereum Request for Comments. They are Ethereum's analog of Request for Comments (RFCs), that are used to specify Internet standards. When the Github issue to discuss the fungible token standard was created in the Ethereum Improvement Proposals repository, it was assigned issue number 20. Hence the name ERC-20.

The full ERC-20 token specification can be found in Ethereum Improvement Proposal 20 (EIP-20).

In this chapter, you will be deploying your own ERC-20 token on Goerli testnet.

Acknowledgment: The contents on this chapter are based on the How to Create an ERC-20 Token tutorial by Alchemy.