ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. It defines a common list of rules that an Ethereum token must stick to.
ERC-20 tokens facilitate the creation of a standardized token interface, ensuring compatibility with the broader Ethereum ecosystem, including wallets and decentralized exchanges. Many of the initial coin offerings (ICOs) and tokens launched on Ethereum follow the ERC-20 standard.
