Simply put, ERC-20 is a standard created to issue and implement new tokens on the Ethereum blockchain.
For a token to function properly, the standard describes a set of rules that has to be followed closely.
You can consider it as a tour guide.
With the ERC-20 standard, developers are able to predict with high accuracy interactions between different tokens and applications on the blockchain.
What are the functions of ERC-20?
1: It also defines how ERC-20 tokens are transferred within the Ethereum blockchain
2: It determines how ERC-20 tokens are being consistently recorded in terms of supply and address balances.
3: It enables seemless functioning by providing rules to developers on the Ethereum blockchain.
Today, there are thousands of ERC-20 tokens, and more come up each day.
Nice Post
This is quite educational