The ERC20 token specification has been the de facto standard for Ethereum tokens in recent years. To put it another way, most Ethereum contracts today are ERC20 compliant. We'll walk you through the process of creating your own Ethereum token, but first, let's look at the ERC20 standard. An ERC20 token is a blockchain-based asset that can retain value and be sent and received, similar to bitcoin, ether, and bitcoin cash. ERC20 tokens differ from other cryptocurrencies in that they are created and housed on the Ethereum blockchain, whereas bitcoin and bitcoin cash are native currencies of their respective blockchains. Ethereum addresses and transactions are used to store and send ERC20 tokens, while gas is used to cover transaction fees.