ERC-20 is a technical standard for fungible tokens on the Ethereum blockchain. It defines a common set of rules that all Ethereum tokens must follow, enabling seamless interaction with wallets, exchanges, and smart contracts.
Example
“Before investing in a new altcoin, the trader verified it was an ERC-20 token so she could store it in her Ledger hardware wallet and trade it on decentralized exchanges like SushiSwap.”