The encyclopedia · Software & IT · Product decision · 2015–2017
ERC-20's six functions made every Ethereum token work in every wallet
A minimal token interface let any Ethereum project reuse wallets, exchanges and contracts instantly.
Ethereum Foundation
the move
Ethereum launched in July 2015 as a platform where anyone could issue a token, but every project wrote its own interface, so wallets and exchanges had to integrate each one separately. Fabian Vogelsteller proposed a standard interface in November 2015 to fix that.
ERC-20 is deliberately minimal: six functions and two events cover checking a balance, moving tokens and approving spending. The proposal states that a standard interface allows any tokens on Ethereum to be reused by other applications, from wallets to decentralized exchanges.
Because the bar was so low, projects adopted it immediately. When the 2017 token boom arrived, virtually every new token and initial coin offering implemented ERC-20, and wallets, exchanges and trading contracts were built around the single interface.
why it works
- A fixed interface means wallets handle any token with the same code
- Minimalism made the standard trivial to implement correctly
- Exchanges could list tokens without custom integration
- The ICO boom turned the standard into the industry default
what transfers
Interoperability is a feature: standardize the minimal interface, and the ecosystem builds itself around it.
what came after
ERC-20 became the foundation of stablecoins, DeFi and most token markets, and the interface pattern spread to later standards such as ERC-721 for NFTs and ERC-1155. Ethereum's position as the token platform rests on that early standardization decision.
references
spotted an error? The archive wants to know.