# CAP-20

## **What is CAP-20?**

In the blockchain world, xxx-20 refers to token standards inspired by Ethereum's ERC-20 standard. \
For instance, [BEP-20](https://academy.binance.com/en/glossary/bep-20) is the standard token for Binance Smart Chain (BSC), and likewise, CAP-20 is the equivalent of ERC-20 for Chiliz Chain.

{% hint style="info" %}
"CAP" is short for "Chiliz Advancement Proposal".
{% endhint %}

## First, what is ERC-20?

[ERC-20](https://ethereum.org/en/developers/docs/standards/tokens/erc-20/) is the most common token standard on the Ethereum blockchain. 

A token standard is a set of rules that tokens must follow to work properly on a blockchain. \
These rules include how the tokens can be transferred/spent, how transactions are approved, how users can access data about a token, and the total supply of the token.

Following ERC-20 ensures that different tokens can interact with each other in a predictable way on Ethereum, making it easier for developers to create new tokens that will work well with wallets, exchanges, and other smart contracts.

In simple terms, ERC-20 is like a common language that all tokens on the Ethereum network use to understand each other and work together smoothly.

## Now, what is CAP-20?

CAP20 is the standard for Fan Tokens on Chiliz Chain.

While it follows the ERC-20 basic features, it also extends it to support a wider range of tokens. 

Fan Tokens (or "CAP-20 tokens") are essentially ERC-20 token, but:

* They run on Chiliz Chain, not Ethereum,
* Therefore they use $CHZ, not $ETH,
* The default of a Fan Token has 0 decimals, while the standard of ERC-20 has 18 decimals.

Tokens created on different blockchain platforms can be adjusted or linked to Chiliz Chain through a process called bridging. Learn more about [Chiliz Bridge](https://docs.chiliz.com/learn/about-bridging).