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In this video tutorial, the presenter explains how to prepare a smart contract to collect ERC-20 tokens. Each smart contract has a public address, allowing it to receive ERC-20 tokens. However, if the smart contract isn't programmed to interact with ERC-20 contracts, it may receive tokens it can't use. The presenter will demonstrate how to enable the smart contract to recognize and interact with other ERC-20 smart contracts, allowing it to receive and withdraw tokens effectively. The video aims to ensure smart contracts can properly handle ERC-20 tokens, enhancing their functionality.