ERC-20
Quick Answer
ERC-20 is the standard for creating fungible tokens on Ethereum. Most stablecoins (USDT, USDC, DAI) are ERC-20 tokens, ensuring compatibility with any ERC-20-compatible wallet or payment gateway.
Full Definition
ERC-20 is the technical standard for creating fungible tokens on the Ethereum blockchain. It defines a common set of rules including transfer, approval, and balance-checking functions that all compliant tokens must implement. Most stablecoins (USDT, USDC, DAI) and utility tokens are ERC-20 tokens. The standard ensures interoperability — any ERC-20 token works with any ERC-20-compatible wallet, exchange, or payment gateway without custom integration.
Related Terms
Ethereum
Ethereum is the most widely used blockchain for DeFi, NFTs, and crypto payments, supporting smart contracts and decentralised applications with its native token Ether (ETH).
Exchange Rate
In crypto payments, the exchange rate is the conversion price between cryptocurrency and fiat at the moment of transaction, typically locked for 60-120 seconds to protect both parties.