Let’s jump into the highest peeked question among crypto investors “How to Create your own ERC20 Token?”
There are nearly 49 million unique addresses on the Ethereum Blockchain it seems. With such a drastic emendation, Ethereum has gained increasing popularity. Hence, when it comes to creating a cryptocurrency token or Smart Contracts, Ethereum remains to be the winner.
These tokens are usually purchased using an Ether which is the native cryptocurrency of the Etherum Blockchain. All the tokens created on this network should be compliant with ERC 20 token standard. The reason is this makes sure that the transactions are performed without any issues.
Initially, by creating your own Ethereum Token, one can instantly launch an ICO to get the desired set of funds for the project. Thus, this article is intended to explain to you the complete steps involved to create your own ERC20 Tokens.
ERC20 Tokens & Smart Contracts Explained:
Right off the bat, let us discuss and know what is an ERC20 Token & Ethereum Smart Contract is. Smart Contracts are automatically executable programs that run on specific conditions according to the code. In this platform, you can create ERC20 Token in compliance with the standard.
Smart Contracts are the ones that govern all the parameters of the newly created tokens. It has to specify a lot of information such as:
- Number of tokens that can be purchased during ICO
Similar to cryptocurrencies, these ERC20 Tokens can also be transferred from one trader to another with an exchange platform. These tokens can be created and distributed during ICO or Crowdsale.
Once the company launches the ICO, they get funds either in the form of Ether tokens or cryptocurrencies/fiat currencies. The investor can connect the Ethereum Blockchain with their account and fund their wallet with Ether tokens.
Smart contracts handle the rule of how crowdsale works. When an investor purchases these tokens, they can send tokens or coins from their wallets to the Smart Contracts. This immediately dispenses the tokens.
So, How do ERC20 token works:
1. The Smart Contract stores the admin account for crowdsale addresses.
2. It stores the number of tokens and the token price.
3. The Smart contract implements the functions required to purchase the token and end the token sale.
How to create your own ERC20 Token?
Before you make Tokens, you need to decide whether your project is in need of ERC20 Token. Since there are already other standards such as ERC23, ERC621, ERC721, ERC 827, etc. Make sure you need to go with an ERC20 token. For ERC20 Token Creation, here are the 4 major languages used:
- Mutan: Similar to Go Language
- LLL: Lisp Like Language
- Serpent: A Python Language
You can select the language and get started with coding the smart contracts. Test the Smart Contracts with the Etherscan verification. Validate the tokens and check they are working well or not. Finally, you need to deploy the code in the Etherum Blockchain.
If you are good at programming, you can choose any of these desired languages. Anyhow, this can be a daunting task and would require an ample amount of time for development. You can get in touch with a solution provider like us to get a customizable ERC20 Token of your choice.
While developing an ERC20 Token, it is important that it is in compliance with the ERC Token Standards. To remain compliant with this standard, you need to have the following:
- Token Name
- Available number of tokens for sale
- Ability to get wallet balance
- The functionality of transferring between the wallets
Once the token is created, your Smart Contract will store all the information on it which can be beneficial for the future. The token can be utilized in different ways where one can be traded, spent and given away.
Cost to create your own ERC20 token:
When coming to the ERC20 token cost, it would depend upon the requirements and the duration you are in need of. The cost can start anywhere from $5000 and would vary on the basis of ideas.
However, this cost would go up or down as per the requirements and time you require for deployment.
Benefits of ERC20 Token Standard:
Prior to ERC20 Standards, most of the DApps and startups have set their own standards and implementation to launch token on the Ethereum platform. There are already more than 20,000 Smart Contracts existing for Ethereum Blockchain.
The process is indispensable to Blockchain which is in need of funds. Since it allows one to develop tokens which can be applied to crowdfunding with investors. Once the tokens are released, investors will have the chance to acquire gains, the project gets started.
Yet another benefit of ERC20 Token Standard is anyone can create this token. Since the standard is open-source, which means that everyone can make use of it.
Here are the major benefits of creating a new ERC20 Token:
- Uniformity of Tech and protocol standard.
- Reduced Complexity of understanding the terms of Token implementation.
- Top-notch liquidity of ERC20 tokens.
- Reduced risks of breaking contracts.
- ERC20 Tokens are accepted by most of the cryptocurrency exchanges and hence there are greater chances of your tokens getting sold by the traders.
Zab Technologies ERC20 Token Creation Service:
We people at Zab Technologies, the Ethereum Token Development Company can assist you to create new ERC20 tokens for your projects. Our expertise set of developers are readily available in developing one in accordance with your requirements. Be it an ERC20 Token Standard Development or other Etherum Token standards, we can help you with one!