How to create token on Ethereum
Ethereum is a blockchain platform that allows developers to create decentralized applications (dApps). Both Bitcoin and Ethereum are blockchains. However, both of these blockchains are very different in terms of technical characteristics. Bitcoin offers a peer-to-peer electronic payment system. Ethereum is focused on the execution of the program codes of any decentralized application. Even without professional training, a user can create a token on Ethereum himself.
Ethereum has different types of standards, but investors, enthusiasts, and startups often choose ERC-20. The abbreviation stands for Ethereum Request for Comments or Ethereum Request for Comments. The ERC-20 standard is a protocol that defines the properties and functionality of a cryptocurrency.
When it comes to creating tokens, most entrepreneurs choose to issue ERC-20 cryptocurrency units. The Ethereum blockchain provides high flexibility and security. Therefore, it is convenient to develop cryptographic tokens on Ethereum. They are widely used because they can be replaced by other similar tokens.
Step by step instructions for creating token
Ethereum protocols are written in Solidity. This is a special programming language for implementing smart contracts. Solidity allows you to create protocols for purposes such as voting, ICO (Initial Coin Offering), multi-signature wallets, and other activities.
There are many libraries (codes used to develop programs) and tools available on the Internet that provide implementation of the Ethereum standards, including ERC-20. Solidity components allow you to deploy basic or advanced smart contracts.
Step 1. To issue a cryptocurrency on the Ethereum blockchain, you will need:
Remix - Solidity IDE (Integrated Development Environment). This is an online compiler (a protocol that translates text written in a programming language into a set of machine codes) that allows you to deploy a smart contract directly on the Ethereum blockchain.
MetaMask is a browser extension, Ethereum wallet. With the help of the application, clients manage accounts on different sites and sign transactions on the blockchain.
ERC-20 smart contract is a program code that can be adapted to create your own digital asset.
Step 2. Deployment. The program code can be copied and pasted into the Remix main window. Also, individual settings must be made to the smart contract:
NUMBER_OF_TOKENS is the total amount of issued units (for example, 100).
DECIMALS - definition of the maximum divisibility of the token. Allowed number of decimal places after the decimal point (up to 18).
NAME_OF_TOKEN - the name of the digital asset (for example, Crypto.ru Token).
SYM is the symbol (ticker) of the token, such as CRY.
It is important to choose an IDE version that is compatible with the smart contract you are using.
Through the Run compiler tab, you can expand the protocol and create your own token on Ethereum. The total number of digital units defined in the code should be displayed in the MetaMask wallet and stored there. In the future, these cryptocurrencies are sold. Before deployment, you must specify the following values in the appropriate fields:
Environment: Injected Web3.
Account: MetaMask wallet address owned by the owner.
The screen should look like the screenshot shown.
The Deploy button will launch the smart contract function. After the transaction is confirmed by the Ethereum network (this may take several minutes), the amount of cryptocurrency units determined by the creator should appear in the MetaMask wallet. The deployment of a smart contract on the Ethereum blockchain (as well as the sale of digital assets) will require payment of gas (network fees). Therefore, the wallet specified in the code must contain enough ETH coins to cover the fees.
Issued digital assets will be reflected in the MetaMask wallet interface. This means that they can already be sent to any ETH address. To check transactions in Ethereum, there is an etherscan.io browser. Operations made in the context of this guide are available there for viewing: deploying a smart contract and transferring tokens.
You can create a cryptocurrency through the generator in 3 steps:
Install MetaMask. The wallet needs to be replenished with enough ETH coins to pay for the deployment of the contract.
Enter the details: the name of the cryptocurrency unit and its symbol. Set the number and type of token.
Deploy smart contract. Confirm the transaction in MetaMask. Once deployed, the digital asset will be ready.
Full compliance of the new cryptocurrency with the ERC-20 standard will ensure compatibility with any Ethereum wallet. It will have a name, a symbol, and a number of decimal places.
Users can deploy a basic ERC-20 token for free (excluding gas fees) or choose from the following advanced features:
Capped ERC-20. You cannot generate more cryptocurrency units than specified in the smart contract. This ensures that the number of releases will always be limited.
Mintable ERC-20. Tokens that are created or minted when needed. If the project does not need to generate crypto units, minting is disabled.
Burnable ERC-20. A digital asset that can be burned. This means that the projects reduce the number of crypto-currency units in circulation, destroying some of them.
Pausable ERC-20. Crypto units, the transfer of which is sometimes suspended. Used to stop trading for a certain period or freeze transfers.
Own access. The token will have an owner. The owner can mint new units or complete the issue.
Role based access. The cryptocurrency unit will have ADMIN or MINTER functions for specific addresses.
Payable Token. It is an ERC-20 compliant protocol that can execute a callback on the recipient's contract to notify the transfer or assertion of cryptocurrencies.
Recovery of tokens. Many cryptocurrencies are forever lost in smart contracts. The feature allows the owner of the protocol to recover any ERC-20 digital asset erroneously submitted to the protocol.
Promoting your token
The principles of the cryptocurrency market are of paramount importance for the development of a new digital asset. Before creating a token on Ethereum, it is important to prepare:
Examine the regulatory framework of the jurisdiction where the digital units were issued. If a cryptocurrency performs the function of a security (or is similar to this type of asset), it is recommended to register it in a country with friendly cryptocurrency laws.
Gather a group of like-minded people. It is important to understand what problem a digital asset solves and for whom it is intended. We need to gather people who will be interested in the project. When new crypto units are launched, it is worth giving at least 1% of the distribution to this group. This small association of new asset advocates is essential to the future growth of the community. Like-minded people can also provide feedback on the concept and initial critiques that will be of value to the project at an early stage.
Launch site. Before reaching out to people outside the select group, it is important to develop a simple, informative and up-to-date online marketplace. The site should have a logo and a clear explanation of what the smart contract is for, what problem it solves. It is important to mention team members, founders, and ideally provide links to their social networks.
Work out the tokenomics of the project. Determine hard cap and soft cap, inflation rates, and how many units of cryptocurrency will ever exist. You also need to set the size of the share of the total issue that the creator (team) keeps and decide on what conditions he owns the assets.
Social media. The project will also need corporate accounts on Facebook, Twitter and other sites. Advanced companies have profiles on LinkedIn, GitHub and on platforms specific to the market for which the smart contract was issued.
Internet forums. The discussion board for the community of the new cryptocurrency is necessary so that users can participate in the project. Discord and Riot accounts are popular communication platforms for crypto enthusiasts.
Smart contract verification. Once a protocol has been created, it must be validated. Then Etherscan will see the source code associated with the contract address. If the protocol is not confirmed, no one will buy the cryptocurrency. Once approved by Etherscan, the project is allowed to host a website and logo. This will add legitimacy to the crypto unit.
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