ERC-20 tokens play a crucial role in transactions on EVM-compatible blockchains and Layer 2 networks. This guide explains how to create an ERC-20 token on Polygon, a Layer 2 EVM blockchain that offers lower costs compared to deploying directly on the Ethereum mainnet. ERC-20 tokens are fungible, unlike NFTs, and can be easily transferred without concern for individual token identity. Developers are increasingly using Polygon PoS due to Ethereum's higher gas prices and longer transaction times, as it offers faster transactions, lower fees, and compatibility with Ethereum contracts. Polygon PoS acts as a sidechain with its own security and trust assurances, connected to Ethereum via a bridge for asset transfers. The tutorial provides step-by-step instructions for developing on Polygon, utilizing tools like Remix, Brave Wallet, and OpenZeppelin for creating reliable contracts. After setting up on the Polygon Mumbai testnet, developers can deploy contracts and interact with them, eventually expanding to other EVM-compatible blockchains. This capability opens up opportunities for governance, DeFi applications, and more, with options to enhance tokens using additional features from OpenZeppelin or Chainlink Price Feeds for integration into DeFi protocols.