ERC20 Token standard has pioneered the Crypto industry for years now by enhancing new token creation. Many utility tokens for specific purposes have been created from the ERC20 token’s base, thus helping companies that require crowdfunding. In fact, the year 2017 proved to be the ultimate pushover for ERC20 tokens as they massively contributed funds through the ICO (Initial Coin Offering) model.
More and more Cryptocurrency projects are likely to enter the market soon with an eye on the future. Funding is a significant aspect that most entrepreneurs tend to worry about while starting a project. Thanks to the concept of tokenization, business heads can explore more and raise funds. It’s important to understand that the root comes from creating an ERC20 token which could be a profit-earning solution.
Notably, a lot of startups have wondered about the question of how to create an ERC20 Token. Although the process looks comparatively straightforward, there are certain aspects that startups should be aware of before looking to create one. We at Coinsclone are here to take you through a detailed map of how to create an ERC20 Token and the efficient token development method.
What is an ERC20 Token?
ERC20 refers to “Ethereum request for comment” and is the technical standard for creating fungible tokens on the Ethereum blockchain. It carries a template of functions and specifications through which developers can easily construct the smart contract while creating an Ethereum-based token. A smart contract is an automated program that doesn’t require an intermediary to execute the set of codes and regulations provided.
ERC20 also ensures the exchange of tokens between two different smart contracts on the Ethereum network. Most fungible tokens that prevail in the current Crypto industry have been developed through the ERC20 standards, including the highly popular Tether and Shiba Inu. Their market value at the moment shows why startups look out for ERC20 Token Development ways.
A Brief on ERC20 Token Development
ERC20 Token Development is the complete process of creating an ERC20 Token with the best features in the market. A lot of Token Development companies have started providing solutions for creating an ERC20 Token to make the work of the startups easier. Approaching top companies like Coinsclone will reap a lot of benefits and can include the currently popular features for entrepreneurs.
Features of ERC20 Token Development
ERC20 Token still has a huge demand in the Crypto Industry still, especially due to the strong features it possesses. Here are the staggering features of the ERC20 Token developed on the Ethereum blockchain.
ERC20 Tokens developed can be stored in the wallet from which it is easily accessible. They can also be accessed from the account history.
Compatibility with Wallet
The ERC20 Token is compatible with non-custodial wallets like Metamask which remains a specialty of the fungible token developed on the Ethereum blockchain.
Fungible tokens are usually interchangeable and ERC20 Token is no way different from them.
Brand Value Boost
ERC20 standard has maintained a brand value and it has been an evergreen solution while creating new tokens.
Decentralized System Support
Various Decentralized applications (DApps) support ERC20 Tokens and hence more business heads are likely to follow the ERC20 standard.
Through the ERC20 Token listing, any exchange can improve its liquidity and hence, the transactions get quicker as a result.
Apart from the features, there are various benefits of creating a specific ERC20 token which we will discuss further.
Benefits of ERC20 Token Development
Developing an ERC Token has numerous advantages in the longer run. Usually, the fungible tokens are created for a specific purpose which the project head is likely to decide. Besides, it’s a well-known fact that tokens serve well in the crowdfunding aspect. In addition to that, here are the benefits associated with creating an ERC20 Token.
- ERC20 Token is highly popular in the market, and hence, raising funds in ICO becomes quite comfortable.
- The Ethereum-based fungible token is comparatively easy to create and cost-effective.
- It is secured with a smart contract which is not easy to breakdown
- The standardized Token increases liquidity due to the trust factor and more investors.
- ERC20 Token can be an excellent source of revenue generation for entrepreneurs and investors due to its extensive utility.
- The most used Ethereum fungible Token can be backed as a Crypto-asset.
Given the number of benefits involved, developing an ERC20 Token can add great value to a startup. Having discussed the ERC20 Token features, the next step would be to look at the ERC20 Token development process and the different methods involved.
ERC20 Token Development Process
Basically, ERC20 Token can be developed through two methods. The first method applies either if the entrepreneurs themselves have extensive programming skills. The entrepreneur must be well-versed in Solidity, which is the base language for working on blockchain. Once both the above criteria are satisfied, the process of developing an ERC20 token can start, which involves five major steps.
1. Checking Token Requirements
The first step is to check on the requirements of creating a desired ERC20 token and finalize the features needed.
2. Develop the Smart Contract Code
The next step is to develop the Smart contract code for the ERC20 Token. The Smart contract should include the various components which add to the framework of the smart contract. Each of the components has specific functionality and is mandatory to include while creating an ERC20 Token to ensure that the end product is interchangeable, i.e., fungible.
Here are the functions involved in ERC20 Token development
The TotalSupply function denotes the total number of tokens that can be in circulation. The limit on the number of tokens can be set in the Smart contract.
The Balance of function is to reveal the token owner’s account balance which means the number of tokens that an address holds.
The Transfer function is to transfer tokens automatically to the specified address. The protocol checks whether the sender has enough tokens that are about to be sent.
The TransferFrom function is to receive tokens from a specified address and to allow transfer from an account that isn’t involved in the transaction.
The Approve function is to allow users to withdraw tokens or spend the tokens from an account.
The allowance function provides accessibility to return tokens from investors to startups.
3. Testing the Smart Contract Code
Once the Smart contract code is ready, it’s crucial to test the code by running and verifying it.
4. Beta Test for ERC20 Token
The next step is to validate the newly created ERC20 token through the beta test. Any changes required to the token can be made after analyzing its performance.
5. Deploying the Smart contract
Finally, the Smart contract can be deployed in the Ethereum network by connecting the Wallet. The startup has to specify the token supply, token contact address, and token symbol while generating the new token.
Although this Ethereum token development method looks quite easy to the naked eye, it involves considerable risk. Any slight error from the startup or a budding entrepreneur while preparing the Smart contract could lead to a complex situation. To avoid such complicated situations, another method is available which doesn’t involve much risk and has proved to be a blessing for startups.
A token development Company can take over the process of ERC20 token development from entrepreneurs and guide them through the line.
Why Should you Approach an ERC20 Token Development Company?
If you are an aspiring startup with ERC20 token development ideas, you can prefer to approach a renowned Token development company like us, Coinsclone, to create an ERC20 Token without much hindrance. We have enough hands-on experience in the industry to complete your token development process with ease.
Secondly, approaching a Token development company helps you with different services apart from just the token development. Here are the add-on works that are available for entrepreneurs who approach an ERC20 Token Development Company.
- Setting Initial Supply
- Setting No of Issues
- Setting Fractions
- Deploy Contracts
- Generate Tokens
- Validate Contract
- High-end security features
Thus, startups or entrepreneurs with token development ideas no longer have to worry about any risk involved when they meet the ideal token development company.
Why Choose Coinsclone for ERC20 Token Development
We, Coinsclone, are among the best Token development companies in the blockchain industry and have an expert group of developers who never compromise on quality. Besides, collaborating with us for ERC20 Token development has significant advantages, which include customization. Additionally, We deliver your project relatively quickly and have the perfect support group to assist you.
Also, Coinsclone has mastered the art of ERC20 Token development with a number of projects in the past few years. Any technical problem can be easily sorted out by the expertise in the company in no time. Token development is believed to be the perfect foil for startups who would like to generate funds through crowdfunding models. And hurry up to connect with Coinsclone, where all the latest blockchain-related services are available.