ERC-20 is an Ethereum standard set that must be followed by every token being built on the Ethereum network. Every smart contract on the Ethereum blockchain must follow this set of rules and standards. ERC-20 is the set of basic guidelines that any new token created on the Ethereum network has to follow, and it’s also the responsibility of the developer to ensure that the token complies with these rules.
This set of rules decides how the crypto asset will behave when deployed on the Ethereum network. It has six functions that are used to manage the functioning of the new crypto token. ERC-20 is also the regulatory technology that is utilized to issue smart contracts on the Ethereum blockchain. Some of the cryptocurrencies that follow the ERC-20 standard are Basic Attention Token (BAT), Maker (MKR), and Augur (REP).