The massive growth of crypto has garnered the attention of many entrepreneurs and is evolving to be a part of the crypto ecosystem. Tokens/coins are the fundamental aspect of a crypto project. One can develop their own blockchain and create tokens on it. Another way is using the existing blockchain technology to create tokens. Blockchains like Ethereum and Binance Smart Chain have their own set of rules and regulations collectively called standards for creating tokens on their blockchain. Let us take a closer look at Ethereum token development, its benefits, various types of Ethereum token standards, and the fundamental aspects of Ethereum token development.
Steps to Consider for Ethereum Token Development:
Before creating an Ethereum-based token, some important steps are to be considered for developing the tokens. The steps are as follows,
- First, choose the type of Ethereum token to be created and finalize the features to be included in it. Main aspects, like total token supply, decimal value, token name, etc., should be finalized. The next step is a roadmap and white-paper
- There are many Ethereum token standards. Choose the standard based on the token you’re going to create. ERC20 are fungible tokens that can be exchanged for another token, ERC721 for non-fungible tokens, ERC1155 for semi-fungible tokens, and ERC1400 for security tokens.
- Develop your smart contract and test run to check if it is executed as per your requirements.
- After successfully executing your smart contract, check it with Etherscan to prevent duplication of tokens.
- After verifying, run the code multiple times to avoid errors or bugs.
- The final step is to deploy your code on the Ethereum blockchain after testing is done.
These are the steps to be followed for Ethereum token development. There are many benefits of Ethereum tokens for both creators and holders. Let us now discuss the benefits of Ethereum token development.
Benefits of Ethereum Token Development:
- With Ethereum tokens, transactions can be verified quickly and effortlessly.
- These tokens can be easily traded on all platforms.
- They are widely used in crowdfunding like ICOs and IDOs and act as a medium to quickly raise funds.
- Ethereum tokens are highly secure, and there is no risk of fraudulent activities.
- Ethereum tokens possess high liquidity enabling them to be converted to cash immediately.
- They are the easiest tokens to develop.
- Ethereum tokens functions are highly valuable, benefiting the users.
There are many other benefits of Ethereum token development that you can count on. Various ERC Token Standards Available:
Though there are multiple Ethereum token standards, few are popular and widely used. Let us briefly discuss these popular ERC Standard Token Development.
ERC20 tokens are considered one of the popular and robust standards for fungible token creation on the Ethereum blockchain. These crypto tokens are created using smart contracts. These tokens can be swapped with another token having the same value. Since ERC20 tokens are fungible, they are entrepreneurs’ most preferred token standards.
ERC721 is another popular token standard for creating non-fungible tokens on the Ethereum blockchain. These tokens cannot be interchanged with another as these are non-fungible and have different values. They are the first token standard developed for NFTs. These tokens have unique functions and characteristics, making them different from other tokens, and are considered the best token standards for NFT development. ERC721 token development company can help you develop tokens for your NFT project.
ERC1400 is a combination of ERC20 and ERC777 and is considered a security token standard on the Ethereum blockchain. It is important to follow the rules and regulations of the SEC before creating ERC1400 tokens. Since ERC1400 is a security token standard with many technical risk factors, hiring a professional Ethereum token development company is recommended.
ERC1155 is a combination of both ERC20 and ERC721. It is a semi-fungible token standard that can be used to develop both fungible and non-fungible tokens. The ERC115 is considered a gold standard for NFT platform development because of its fungibility and non-fungibility nature.
Major Fundamental Functions in ERC Token Development:
- Total Supply: The token owner should decide the predefined number of tokens that will be in circulation in the market. The owner also decides the number of tokens that could be created and minted.
- Balance Of: The smart contract is responsible for the execution of storing and returning of the balance tokens.. It is one of the smart functions of ERC20 tokens.
- Approve: The specified amount of ERC tokens gets transferred automatically after the approval.
- Transfer: The ERC tokens can easily be transferred from one address to another.
- Automatic Transfer : This token feature enables the transfer of pre-decided tokens automatically.
- Allowance: Tokens can be withdrawn from the owner’s address by the pre-approved address.
Brace your crypto project by hiring professionals for Ethereum token development and create a revolution in the crypto sphere.