What is the ERC used for?

Could you please elaborate on the purpose of ERC? I'm quite curious about its applications within the realm of cryptocurrencies and finance. I understand it stands for Ethereum Request for Comment, but I'm interested in knowing more about its specific functions and how it contributes to the Ethereum ecosystem. Is it primarily used for proposing improvements to the Ethereum network? Or does it serve other purposes as well? I'm eager to gain a deeper understanding of this topic, so your explanation would be greatly appreciated.