Crypto glossary
Token standard
A token standard is a shared interface, such as ERC-20 or ERC-721, that defines how tokens behave so any wallet, exchange or app can handle them the same way.
A token standard specifies the functions and events a token contract must implement: how to check a balance, transfer units, approve another contract to spend them or describe an NFT's metadata. Because every compliant token exposes the same interface, a wallet that supports the standard can display and send thousands of tokens it has never seen before.
Ethereum's standards are proposed as ERCs: ERC-20 for fungible tokens, ERC-721 for unique NFTs, ERC-1155 for mixed collections and ERC-4626 for yield vaults. Other ecosystems have their own, such as BEP-20 on BNB Smart Chain, TRC-20 on Tron and Solana's SPL token program. Standards are a big part of why DeFi protocols can be combined like building blocks.
Following a standard does not make a token safe. A contract can comply with ERC-20 and still contain blacklist functions, hidden mint rights or transfer taxes. Tokens with the same standard on different chains are separate assets, which is why sending a token over the wrong network can lose it.
Example
A new project launches an ERC-20 token, and it immediately appears in users' wallets and can be traded on Uniswap without either team writing any integration code.
Related terms
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