In recent times virtual currency is emerging trends and businesses are utilizing crowdfunding for their business developments. Ethreum token development is one of the Crowdfunding ways where the tokens are developed on the ethereum network.

What is Token?

A token is a code that has a specified value on it, it is token on stake, service, redeem that it meet its value. Tokens are entities that carry value defined on it by the parties involved in the transaction.

Tokens are not currency instead it is created and issued on the Blockchain platform for crowdfunding and it is issued by the company owners to their investors or shareholders.
Examples of cryptocurrencies are Bitcoin, Bitcoin Cash, and Ethereum. 

Ethereum has various token with different smart contract standards like ERC20, ERC721, ERC777, ERC827, ERC223, and much more. 
The ERC tokens are usually used for crowdfunding (ICO) to make funds for a business.

Types of Ethereum Token

ERC 20 Token

ERC 20 is the official token created on the ethereum blockchain which can be exchanged with another ERC 20 token. ERC 20 tokens are designed in a way that it can be combined into blockchain wallets and exchange platform. The aim of it is to link the gap between crypto and fiat currency.

ERC 721 Token

ERC 721 is a non-interchangeable token built on the ethereum platform and every token will be unique. It defines the few interfaces a smart contract must implement to manage, trade, and own unique token.

ERC827 Token

ERC 827 is one of the latest standards of the ethereum network and an extension of the standard interface ERC20. This tokens has approveAndCall(), transfer and call(), and transferFromAndCall() function.

ERC 777 Token

ERC 777 token is one of the standards of ERC 820. It describes in a unique way to "send" function to transmit the ETH itself. 
It allows us to approve smart contracts and transfer of tokens.
People able to create an additional function on the top of the tokens

Types of tokens 

Security Tokens

Security tokens are tokens that pass the Howey Test. For a token to pass this test, it has to be an investment of money, an investment in a common enterprise, and has to include the expectation of third parties and promoters to make a profit from it. Securities tokens are regulated by federal financial authorities since their value is derived from tradable, external assets.

Utility Tokens

Contrary to securities tokens, utility tokens do not need to pass the Howey Test and therefore do not meet the necessary criteria. Simply providing the users with specific products and services, these tokens are often thought of as gateway tokens. Utility tokens provide the holders with the right to use a certain network and take advantage of it by voting.
If you have an idea of creating your own Tokens, Go for Best Ethereum Token Development Company.

Author's Bio: 

Ethereum Token Development Company
Acquire robust ethereum token development services including creation of tokens on different standards like ERC 20, ERC 721, ERC 777 and ERC 223, token transfer, digital wallet and listing on the exchange