Canon 20D has a
8.0MP APS-C (22.5 x 15 mm ) sized CMOS sensor . On the other hand, Nikon D3500 has a
24.0MP APS-C (23.5 x 15.6 mm ) sized CMOS sensor and features Expeed 4 processor.
Nikon D3500's sensor provides 16MP more than Canon 20D's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
One other difference between these two cameras that is worth mentioning is that Nikon D3500's sensor doesn't have an anti-alias (Low-Pass) filter. Removing anti-alias filter increases the sharpness and level of detail but at the same time, it increases the chance of moiré occurring in certain scenes.
Below you can see the 20D and D3500 sensor size comparison.
Canon 20D and Nikon D3500 have almost the same sensor size, so neither of them has any significant advantage over the other in terms of providing control over depth of field when used with the same focal length and aperture.