as this very standard is associated with the development and appearance of the most popular today Blockchain tokens. ICO (Initial Coin Offering) involves selling tokens to investors, and not their mining. For successful implementation of this idea tokens should be somehow identical to the native currency in Blockchain technologies, such as Bitcoin or Ethereum, for example.
ICO is one of the most efficient ways of implementation for such tokens. It is no secret that almost all most profitable Blockchain assets are based on ERC20 standard.
Bitcoin-stored tokens are stored there not natively, but as an additional ‘inscription’ to the transaction, which is impossible to be processed with software. Accordingly, such tokens’ transferals and identity cannot be as carefully controlled as operations with Bitcoin itself.
Ethereum developers launched the ERC20 standard, so-called ‘token standard interface’ with functions of their transaction and approval for use in Blockchain. Some of the ERC20 standard based tokens lately appear to be more successful than already existing cryptocurrencies. Thus, at the moment of transaction, there is no need to fulfill its inscription (as for Bitcoin tokens), but to send the contract concerning token owner’s address change to ERC20, what’s way easier. Integration of tokens in ERC20 is transparent and obvious.