Ethereum has made it very easy for anyone to create and issue virtual tokens on its blockchain. This is done with the help of standardized Ethereum smart contracts, such as ERC20. In this way, people, businesses, or governments can issue their own virtual currencies, assets, or application tokens using the Ethereum blockchain, without the need to build their own blockchains.
The facility of issuing new digital tokens or coins based on Ethereum stimulated a massive wave of new start-up ventures that innovate and fund their projects on the Ethereum blockchain. The funding comes in the form of initial coin offerings (ICOs), also known as token-generation events. In this way, start-ups can issue digital tokens that can be exchanged for services on their future platforms. They can also issue tokens that represent financial instruments, such as equity...