The Ethereum price was up 2% at last check, just as the ERC-20 Standard became official. The ERC-20 is a set of rules managing the way in which new tokens are launched on the Ethereum platform, setting in motion a standard by which all Ethereum-based smart contracts will respond. ERC-20 may sound familiar as it’s been circling the wagons for a couple of years now before becoming official on Tuesday.

Now that ERC-20 is officially available on the Ethereum GitHub page, new tokens that are developed on Ethereum should follow this standard. In fact, many ICOs have already adhered to the standard throughout the issuance of digital tokens on Ethereum even before ERC-20 was official.

ERC-20 has identified half a dozen functions that other smart contracts operating on the Ethereum platform will know. These functions surround the various characteristics of a token, such as transfer activity and data access including token balances.

As a result, app developers know early on just how the token will respond and can tailor their projects accordingly, saving time and effort in the process. And digital wallets that support ether now by design similarly support tokens in the Ethereum ecosystem.

Most of the leading tokens on the Ethereum blockchain are already ERC-20 compliant.

ERC-20 is an offshoot of the initial standards token created by Ethereum founder Vitalik Buterin. ERC-20 was born by a developer of an Ethereum wallet, and the standard was later transferred to GitHub.

Fabian Vogelsteller, the developer who advanced the ERC-20 standard, told CoinDesk:

“I believe we are just at the beginning of tokenizing everything. Maybe in the future, you will be able to buy a share of the chair you are sitting on, the paint inside your house or a fraction of the equity in a huge building complex.”   

Users cheered the new standard in response to an announcement of the development on Twitter.  

Vogelsteller tweeted: “It took a while but now it’s finally standardized. On to the next version.”