Blockchain-based projects are raising the funds with Initial Coin Offering strategy. This crowdfunding scheme has been much help for most of the startups by acquiring the funds from the investors.
More particularly, Ethereum is the popular Blockchain platform for most of the projects. Thus, ERC20 Tokens has become the defacto standard for tokens. In other words, Ethereum smart contracts are built today are ERC20 compliant.
This blog will give you a clear perception of how to create ERC20 token, and its importance.
What are ERC20 tokens?
Ethereum creates an open software platform that enables developers to build and deploy decentralized applications ( dApps) where the place generates own coins or tokens.
Ethereum tokens are crypto assets that are being built on top of the Ethereum network to crowdfund or run ICO. They are just a specific type of smart contract that lives on the Ethereum blockchain.
Here are the three main reasons which make ERC20 Tokens unique & successful from others:
- ERC20 Tokens are simple and have a worry-free way of deployment.
- ERC20 Token Standard is intended to solve significant problems with the wide range of tokens they manage.
- It was the first popular specification to offer Ethereum token standardization. This is due to its popularity and how it became increasingly known to investors.
How to create ERC20 token on Ethereum Blockchain?
The token follows the ERC20 standard. ERC20 is referred to as a standard protocol for writing Ethereum smart contracts. Basically, The ERC20 standard defines a common list of rules and functions that an Ethereum token has to implement before performing an Initial Coin Offering (ICO) or a crowdfunding platform.
If you are good with technical skills, you can build your Ethereum based ERC20 tokens with these 5 steps:
- Decide what you want your token to be
The initial step in creating an ERC20 token is to decide the motto of how your token should be. And also know, how this Ethereum based token is going to be helpful for your business as well. List the features it should have and create a plan accordingly.
2. Writing a smart contract to crosscheck with ERC20 standard
As Smart Contracts are the crucial part of the Blockchain Technology, one should give importance while writing smart contracts. There would be 8 functions in the ERC20 Smart Contracts.
- Total Supply
- Contract Owner
- Add Holder
- Remove Holder
- Remove Appointee
3. Test contract code for etherscan verification
Once you have finished writing the Smart Contract code, compile the code to check whether the functionalities are completely okay.
4. Validate the tokens
Once the compilation is done, you can test the ERC20 Token transactions. Validate whether your tokens are well-performing. If it encounters any issues, make the changes accordingly.
5. Deployment for sales to crowdfund without fail
Finally, deploy the code in the Ethereum Blockchain.
These 5 steps to the successful deployment of Ethereum based ERC20 tokens on a crowdfunding website or to run dApps.
Advantages of ERC20 Token Development:
- Here are a few advantages of ERC20 Tokens:
- It allows cryptocurrencies or digital assets to be traded instantly on the Ethereum platform.
- ERC tokens consistently handle incoming token transactions efficiently & quickly in Smart Contract.
- ERC20 Tokens are accepted by most of the popular crypto trading platforms. Hence, any user can perform transactions with the use of tokens.
These ERC20 tokens are free from risks and vulnerabilities.
While the overall advantage of ERC20 Tokens is the liquidity over the Ethereum Network. Hence traders can buy and sell them instantly.
If you lack technical & programming skills but have an idea to create ERC20 Token, we people at Icoclone are ready to help you! As it is logical to seek the best for ERC20 token development, don’t forget that the final decision is still yours to make.
We are a renowned Ethereum based ERC20 token development company providing a smart and efficient way to create tokens. We always believe blockchain technology has moved forward and now there are several options to develop ERC20 tokens you can drive to fetch the best for your blockchain projects.
We love to answer your queries!!