Introduction
ERC-20 is a token standard describing the functions and events that an Ethereum token contract has to implement.
By standardizing the token, implementation of ERC-20 will allow Dapps and Ether wallets to handle tokens across multiple interfaces and Dapps.
It is actively being discussed as an Ethereum Improvement Proposal.
One minor unresolved issue with the ERC-20 standard is that sending tokens directly to a token contract loses value but this is likely to be fixed.
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