ERC20 is a fungible token that is interchangeable. These tokens are stored and sent through the Ethereum address. The ERC20 token standard has a purpose in creating and issuing smart contracts on the Ethereum Blockchain. There are over 200,000 tokens that are compatible with ERC20 are present in Ethereum's mainnet. As the ERC20 tokens are developed in the Ethereum blockchain it eventually provides the power-packed features present in the Ethereum blockchain that will become an integral part of the ERC20 token.