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So, ERC20 tokens are bought depositing equivalent Price = amount to be bought*price of tokens) in eth to the smart contract eth address. So lets talk about BAT ERC20 token: If I am verified BAT blogger publisher. Someone sees it and decides to reward me BAT token. Would not it be simple if my eth address be put on end of article. And my audience rewards me in eth to that eth reward portal button. However, I know One advantage of bat token is: it is convenient to reward say 2 BAT token instead of say 0.002 eth. What is another advantage?

Lets consider another scenario. OXT token is for paying vpn privacy. Wouldnt it be simple if they just put eth payment button to sell VPN service?
Are tokens needed because if I pay in OXT token, then automatically all those VPN services would be triggered open to service my browser.

To better clarify my question, I would ask the question sense in real life scenario: So why would anyone build different token to grant access to ,say, magic fair or build different token to grant access to some video game machine. I completely know why tokens are needed but why the need for different tokens?

PS: the tokens mentioned above are about utility tokens, NOT governance tokens or other types.

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  • How would you differentiate a token that says "you own that video game" and a token that says "you own that house" if you use one token for both ? Commented Aug 14, 2020 at 14:37
  • Thanks @FlorianCastelain. question now seems novice to me now. must have recoiled my head navigating the ups and downs of landscape of crypto space.
    – sbibek086
    Commented Aug 15, 2020 at 1:11

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There is no advantage. Utility tokens sales are mostly used to raise capital to build the project in the first place. The only major difference is L2 (Loopring) or native blockchain (EOS) solutions.

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  • Thanks @Mikko Ohtamaa. hearing the first time about L2. will sure go through
    – sbibek086
    Commented Aug 15, 2020 at 1:13
  • L2 is basically "blockchain on a blockchain". You reduce security guarantees (less decentralised) to get more throughput, scale from 7tx/s to 2000tx/s. You still regularly sync L2 state to the main chain, Ethereum mainnet in this case, as a checkpoint. Commented Aug 15, 2020 at 9:47

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