How are ERC20 tokens different from other cryptocurrencies?

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Tokens, unlike cryptocurrency units, are generated by the creator of the ICO and can act as a discount or bonus for a product. They serve as a kind of status marker. Tokens show the presence of money in the account, reflect the user’s merits, allow him to use certain services and buy goods. Using tokens, you can monitor financial transactions. ERC20 development is tied to the Ethereum platform and operates within the framework of a format that operates within this network.

How do cryptocurrency units differ from ERC20:

• used to measure the price of various goods, have purchasing power;
• can be mined by miners;
• the issuer is not any specific organization, but everyone involved in mining;
• do not provide any bonuses or discount offers;
  are based on blockchain technology.
• ProstoCoin suggests looking at the essence of tokens using examples.

A citizen’s passport is considered a token because it provides the owner with the exercise of civil rights. The same applies to the metro token, which allows you to travel to the desired stop. Tokens can be exchanged for money if they are no longer in demand. Their cost will increase if, due to the high load on the metro, people are given no more than 2 tokens per month. In this case, they can be sold on exchanges. However, this does not mean that tokens sold on the exchange turn into cryptocurrency. Cryptocurrency units are based on blockchain technology, while tokens are based on cryptocurrency. In other words, a token is a derivative of a coin.

visit : Create ERC20 Token To Ease Your Business Finances In Web3.