Reasons why ERC-20 became the mainstream standard for blockchain assets

digital_archaeologist · 2026-01-09T15:46:35+00:00

ERC-20 is a standardized protocol for issuing and managing tokens on the Ethereum blockchain, ensuring interoperability among various projects. It significantly accelerated fundraising during the ICO boom and remains crucial for the growth of the token economy today.

digital_archaeologist

2026-01-09 15:46:35

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With the rapid expansion of the token economy, the need for unified technical standards has increased. Many digital assets issued on the Ethereum network conform to the ERC-20 protocol, which has become the current industry standard.

What is ERC-20

ERC-20 is a unified protocol standard for issuing and managing tokens on the Ethereum blockchain. This standard specification ensures interoperability between tokens issued by different projects, allowing seamless interaction across wallets and decentralized applications (DApps).

By adhering to this protocol, developers can avoid complex compatibility issues, enabling users to transfer and manage tokens smoothly across various services.

Role in the Initial Coin Offering (ICO) Boom

During the ICO boom from 2017 to 2018, the ERC-20 standard accelerated project fundraising. The unified specification allowed many projects to issue tokens quickly, creating an environment where investors could easily participate.

During this period, the number of ERC-20 tokens increased dramatically, forming the foundation of the entire token economy.

Importance in the Current Market

Today, the majority of tokens issued on the Ethereum network adopt the ERC-20 standard. This is due to its proven security, community trust, and the availability of extensive tools and infrastructure.

ERC-20 brings technical uniformity and will continue to play a vital role as infrastructure supporting the growth of the blockchain asset market.

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