What is an ERC-20 token?
Short answer: ERC-20 is the Ethereum standard for fungible tokens. An ERC-20 token is a smart contract that follows a common interface, so any wallet, exchange, or DeFi app can hold and trade it. It is the most established token standard in crypto and the model that BNB Chain's BEP-20 copies.
How an ERC-20 token works
Unlike Solana, where tokens share one program, every ERC-20 token is its own smart contract deployed to the Ethereum blockchain. The contract keeps a ledger of balances and exposes a fixed set of functions that the rest of the ecosystem relies on.
Because the interface is standardised, a wallet like MetaMask or a DEX like Uniswap can support a brand new token without any custom code. It simply calls the standard functions every compliant token is guaranteed to have.
The core ERC-20 functions
totalSupply()reports how many tokens exist.balanceOf(address)returns the balance held by a wallet.transfer(to, amount)moves tokens from the caller to another address.approve(spender, amount)lets another contract spend a set amount on your behalf.transferFrom(from, to, amount)is how DeFi apps move approved tokens, for example when adding liquidity.
Most tokens also expose name, symbol, and decimals so wallets can display them correctly.
ERC-20 vs SPL vs BEP-20
- ERC-20 (Ethereum): the most credible and DeFi-rich standard, but gas fees are the highest of the three.
- SPL (Solana): shares one Token Program, finalises in under a second, and costs a fraction of a cent. Best for fast, low-cost launches. See what is an SPL token.
- BEP-20 (BNB Chain): nearly identical to ERC-20 because BNB Chain is EVM-compatible, but with lower fees. See what is a BEP-20 token.
For a deeper breakdown of the two largest ecosystems, read Solana vs Ethereum tokens.
Ownership and trust
An ERC-20 contract often has an owner address that can mint more tokens or change settings. Public launches frequently renounce ownership after deployment to prove the supply is fixed and the rules cannot change. This is the Ethereum equivalent of revoking mint authority on Solana.
How to create an ERC-20 token
The no-code path is the ERC-20 creator: you set the name, symbol, supply, and decimals, connect MetaMask, and deploy a real ERC-20 contract to Ethereum mainnet without writing Solidity. See the step-by-step guide for the full walkthrough.
Create your ERC-20 token
Open the Ethereum creator and deploy a real ERC-20 contract from MetaMask, no Solidity required.
Create ERC-20 tokenFrequently asked questions
What does ERC-20 stand for?
ERC-20 means Ethereum Request for Comments number 20. It is the proposal that defined a common interface for fungible tokens on Ethereum, so wallets, exchanges, and DeFi apps can support any compliant token.
Is an ERC-20 token a smart contract?
Yes. Each ERC-20 token is its own smart contract deployed to the Ethereum blockchain. The contract stores balances and implements the standard functions like transfer, approve, and balanceOf.
How is ERC-20 different from an SPL token?
ERC-20 tokens are individual contracts on Ethereum. SPL tokens on Solana share one on-chain Token Program parametrised by a mint account. ERC-20 carries more credibility and DeFi depth, while SPL is faster and cheaper to launch.
What is the difference between ERC-20 and BEP-20?
BEP-20 is BNB Smart Chain's token standard and is almost identical to ERC-20 because BNB Chain is EVM-compatible. The main differences are the network, the gas token, and typical fees.
Do I need ETH to create an ERC-20 token?
Yes. You pay the platform fee plus Ethereum network gas from your connected wallet. Keep enough ETH for both before deploying.
How much does it cost to create an ERC-20 token?
On TheTokenLauncher, from 0.005 ETH as a platform fee plus Ethereum network gas at the current rate.