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What Are ERC20 Tokens?
Updated over a week ago

ERC20 tokens are cryptocurrencies that are built on the Ethereum blockchain and adhere to a specific set of rules known as the ERC20 standard. These tokens are created by developers using the Ethereum platform and can serve various purposes within decentralized applications (DApps) and smart contracts.

ERC20 tokens are widely used and traded in the cryptocurrency market. They represent different assets, such as utility tokens, governance tokens, or even tokens that represent ownership in a specific project or platform. Some popular ERC20 tokens include UNI (Uniswap), MKR (MakerDAO), and SNX (Synthetix).

The ERC20 standard defines a set of functions and behaviors that allow these tokens to be easily integrated and interact with other Ethereum-based applications. It establishes standards for token transfers, token ownership, and token balance tracking.

By adhering to the ERC20 standard, these tokens can be stored in compatible Ethereum wallets, traded on decentralized exchanges, and participate in various decentralized finance (DeFi) protocols and services.

Overall, ERC20 tokens play a significant role in the Ethereum ecosystem, providing a way for developers and projects to create and utilize their own digital assets within the Ethereum network.

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