Is ERC-20 the same as ETH?

No, ERC 20 and ETH are different, despite ETH being the native token of Ethereum, where ERC-20 tokens exist. This is because, when ETH was created in 2015, the ERC-20 standard didn’t exist. It was only in 2017 that it was adopted.

The ERC-20 alternative of ETH is Wrapped ETH or wETH.

What is an ERC 20 Token?

ERC 20 is a token standard created in Ethereum to ensure all external tokens on Ethereum are interoperable. It was proposed by Fabian Vogelsteller on November 19, 2015, but it was only in 2017 that it was adopted as a standard.

ERC-20 set a standard in Ethereum, which helped several tokens create interoperable cryptocurrencies. A few examples are Shiba Inu, Chainlink, USDT, USDC, etc.

The token led to the surge in DeFi adoption as users could easily swap one for the other within the Ethereum ecosystem using DEXs like 1inch.

The success of ERC-20 led other chains to create a similar token standard, such as TRC 20 of Tron, BEP-20 of BNB Smart Chain, and finally BRC-20 of Bitcoin.

However, ERC-20 and ETH are fundamentally different, and they cannot be made similar without completely overhauling the Ethereum ecosystem.

What is ETH, the Native Token of Ethereum?

ETH is the native token of the Ethereum Blockchain, meaning it was minted on the chain itself. It is used to pay for transactions (gas fees) on the Ethereum blockchain.

It should be noted here that

Difference in Detail

Wrapped ETH or wETH

The closest ERC-20 coin to ETH is Wrapped ETH, which is a separate token from ETH, specifically created to be used in DeFi and become swappable with other ERC-20 tokens.

It is a decentralized cryptocurrency owned by a Smart Contract on the Ethereum network. Exchanges like Uniswap lock 1 ETH in the smart contract and receive 1 wETH in return.

Frequently Asked Questions