Overview
An Ethereum token is a token issued on Ethereum, typically following standards like ERC-20 or ERC-721. It represents value or ownership within the ecosystem. Ethereum tokens power most of DeFi.
How It Works
Tokens are deployed as smart contracts implementing standard interfaces. They can be transferred, traded, and used in applications. Their standards ensure interoperability across wallets and platforms.
Why It Matters
Ethereum tokens are the backbone of DeFi and NFTs. Their standards created a rich, composable ecosystem. Understanding them is essential to evaluating most Web3 projects.
Related Concepts
Ethereum tokens relate to ERC-20, ERC-721, and Smart Contracts. They power DeFi and NFT applications.