ERC-20

ERC consists of the first letters of the phrase "Ethereum Request For Comments." The "20" comes from the EIP number (Ethereum Improvement Proposal) where the ERC-20 standard was accepted by the network. The reason why the ERC-20 standard was proposed and accepted is to link the token creation process to a certain standard and thus to be able to produce tokens that are easy, fast and highly compatible with each other. The ERC-20 standard minimizes the complexity of the Ethereum network.