ERC-20 Crypto: What It Is, How It Works, and Why It Matters

When you buy a token like ERC-20 crypto, a technical standard for creating tokens on the Ethereum blockchain. Also known as Ethereum token standard, it’s the reason you can send USDT, LINK, or UNI just like you send ETH. Without ERC-20, most crypto projects wouldn’t work at all. It’s not a coin—it’s a rulebook. And just like how all USB cables follow the same design so your phone charges no matter the brand, ERC-20 lets wallets, exchanges, and apps talk to any Ethereum token without needing custom code for each one.

This standard makes everything easier. Want to swap tokens on a decentralized exchange? ERC-20 lets Quickswap v2, TomoDEX, or FEG Exchange handle the trade because they all speak the same language. Got an airdrop? Bird Finance’s BIRD or Kommunitas’ KOM tokens are ERC-20 because they’re built on Ethereum. Even scams use it—fake HGT tokens or MMF tokens? They’re still ERC-20, just useless ones. The standard doesn’t guarantee safety. It just makes things work.

Behind every ERC-20 token is a smart contract, a self-executing program on the Ethereum blockchain that enforces token rules. This contract defines how many tokens exist, who can send them, and how they’re transferred. It’s why you can check your token balance in MetaMask or Trust Wallet without needing a special app for each coin. And because it’s open, anyone can build on it. That’s why over 90% of new tokens on Ethereum follow ERC-20—it’s the default, not the exception.

But it’s not perfect. ERC-20 tokens can get stuck if sent to the wrong address. Some wallets don’t support them properly. And because they’re all built the same way, a bug in one contract can leak into others. Still, it’s the most reliable system we’ve got. If you’re using crypto in Southeast Asia—whether trading on Bzetmex, claiming a ZOO airdrop, or holding CARLO on Base—you’re likely interacting with ERC-20 tokens, even if you don’t realize it.

Below, you’ll find real-world examples of how ERC-20 powers everything from DeFi platforms to scam alerts. Some posts show you how to spot fake tokens. Others explain why a token like PEFI or AVC works the way it does. You’ll see how this standard connects to wallets, exchanges, and even tax rules in the UAE or Iran. No theory. No fluff. Just what you need to know to use crypto safely and smartly.