What is Token standard?
A shared contract interface, such as ERC-20, so wallets and exchanges can support a token.
A standard defines functions like transfer and balanceOf. Any contract implementing them is compatible with every wallet and exchange that speaks the standard.
Standards make a token cheap to issue, which is also why thousands exist. Compatibility says nothing about whether the token is worth anything.
Related terms
- Smart contractDeFi
Code deployed to a blockchain that runs automatically when its conditions are met.
- ERC-20Tokens
The most common fungible-token standard on Ethereum and its compatible chains.
- Utility tokenTokens
A token meant to be used inside a product, for fees, access or collateral.