# Token (ERC-20 Contract)

## What is ERC-20 ?

ERC-20 is a popular standard for smart contracts on the Ethereum blockchain. It is a set of rules that must be followed when developing a contract responsible for the parameters and issue of a new user token.

* This standard has greatly simplified the process of creating new cryptocurrencies.
* Different ERC-20 tokens can be transferred and stored at the same address on the Ethereum network.

## Basic usage scenarios :

1. Launching your token (cryptocurrency) as a means of payment or the internal currency of the company. To pay for the goods and services of the project.
2. Use in the company's loyalty program, as cashback, bonus points, activity rewards, etc.
3. Using the company's shares as a digital analogue to attract financing. You can launch a project token, distribute it among investors and list it on a decentralized exchange for trading your tokens.
4. Use as a digital certificate. The transparency of the blockchain allows all users to see the balances of tokens at any addresses. This allows tokens to be used as an identifier for the user's ability to access certain products on the basis of token ownership.
5. Use in decentralized organizations (DAO). Tokens can be used as a mechanism for determining the strength of the voice and the user's share in a particular organization.

{% content-ref url="/pages/Hn5xnvJG886pOgETkGme" %}
[How to create a smart contract (ERC-20)](/how-to-use-cryptodo/how-to-create-a-smart-contract-erc-20.md)
{% endcontent-ref %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.cryptodo.app/smart-contracts/token-erc-20-contract.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.