Ethereum Request for Comments standards describe interfaces that smart contracts can follow. ERC-20 defines common functions and events for fungible tokens, helping applications integrate assets without learning a different interface for every contract.
A standard describes behavior, not value
Functions such as transfers, balances, allowances, and total supply make tokens easier to support. Following the interface does not prove that a token is safe, valuable, redeemable, or administered fairly.
Allowances create delegated spending power
An ERC-20 approval lets another address spend up to a permitted amount, so unnecessary allowances should be reviewed and revoked.
Contract code still needs review
Implementations can add minting, pausing, fees, upgrade controls, or access roles. Users and developers should inspect the deployed address, permissions, and verified source rather than relying only on the token symbol.
Decimals affect display, not supply rules
Wallets use the decimals field to format balances; it does not by itself limit issuance or guarantee price precision.
Sources
Educational information, not investment advice.