How to Create Your Own Cryptocurrency Ethereum ERC20 Token
Creating your own cryptocurrency or a token on Ethereum is not only exciting endeavor but often vital from several points of view. First, by creating your own Ethereum token you will be able to launch ICO, the fundraised money you can spend to develop a full-fledged version of the project. Second, when a project is created, the domestic currency is its life force. Of course, the second point related only to digital projects. Do remember that ICO and own cryptocurrency token is allowed almost for any industry. Just do not forget about ICO marketing.
So, what you need to create your own cryptocurrency Ethereum token? At first, it is necessary to determine which functionality and capabilities Ethereum provides for these purposes. As you remember, the company and Ethereum blockchain were successfully launched after the ICO at which they collected millions of dollars and deserved the general trust of users. By the way, the early investors who bought Ethereum for $0.7 earned a fortune, despite the fluctuations and volatility of the cryptocurrency market.
Previously, we wrote a detailed review of Ethereum smart contracts, so we will not focus our attention on this point much. Smart contracts are automatically executable programs. Thankfully to them, you can create whole decentralized worlds such as decentralized cryptocurrency exchanges, DApps, one of which is your own Ethereum token on the ERC standard.
Smart contracts and their development has come a hard way. Many people compare their programming like as in the early 90s when the Internet was just emerging and among the server languages, programming was only Perl.
There are 4 programming languages that allow you to create your own Ethereum token:
- Mutan, Go-like language. The last few years strongly condemned by the community.
- LLL, Lisp-like language. Very rarely used due to its complexity.
- Serpent, a Python-like language. Despite Python is popular among developers because of its functionality, versatility, and involvement in different industries. Web development, IoT development, and even desktop applications. However, in the case of Serpent, Vitaliy Buterin does not recommend using it from the middle of 2017. Good security is very important in the development of smart contracts, the cryptocurrency tokens Ethereum and especially the cryptocurrency platforms.
After the chosen language, it remains to decide which token to develop.
ERC, or Ethereum Request for Comment - Ethereum token standard. It implies technical requirements for a token and a smart contract. Actively working and supported standards are just a few but the difference between them is significant. Namely:
As you probably know, the ERC20 standard token is now the most popular, and it is no wonder after all because it was suggested in late 2015. To comply with this standard, you need to have the functionality such as the token name, supply available for circulation, the ability to get a wallet balance, the functionality of transferring tokens funds between wallets.
An important feature of tokens upon Ethereum is the inability to mine them. If you require a token, or rather the cryptocurrency that miners can mine, you should refer to a slightly different type of development. Like cryptocurrency forks or creation upon ready-made blockchain such as a Hyperledger with modular architecture for example.
To successfully create cryptocurrency tokens, they must first be tested. There is not any usual test functionality, because actions occur with money. However, there are 2 types of blockchain testnet and mainnet. Testing should be done on the first, and the second serves as the main Ethereum blockchain.
If there is a very popular standard ERC20, then why the heck do we have others? In particular, ERC223: what is it and how does it differ from ERC20? Functionality or the requirements for ERC20 token compatible and for the most part are the same for ERC223. With the exception of one small caveat, which was once suggested a very well-known developer in narrow circles - Dexaran. Its essence is simple and implies a return of funds. One of the biggest dangers that can be met not only by a novice but also even by a very experienced investor is the incautious money transfer and their incompatibility with other wallets. You can send coins from your Monero wallet to Litecoin and your money will go away but will not be converted. This is exactly the problem that the ERC223 token solves. Absolutely compatible with all previous wallets and software and gives a little protection.
This standard will definitely appeal to financial managers. After all, it is associated with the issue and supply of additional tokens, as well as their decrease. Let us just consider typical situation. You suddenly underestimated the market, and realized that you can release another 1 million tokens that investors are going to buy with enthusiasm during the ICO. Or vice versa, in your white paper you indicated that all unreleased tokens will be burned. ERC621 token rather provides additional functions to ERC20 or ERC223 tokens and is not an independent.
Unlike previous tokens, ERC721 token is a unique non-replaceable element. Remember the famous Cryptokitties which raised $20 million in round A? So they work on the ERC721 standard of the Ethereum token. Which makes each token to be unique, individual, and not interchangeable.
Add-on for ERC20 and ERC223 tokens allowing you to provide access to the transfers of your tokens on behalf of an external service. For example, it can be used in centralized cryptocurrency exchangers that don't have an internal wallet in the system but simply request permission to your account. Something like how Google's or Facebook authorizations work. They share some of your data with an external platform. It can be a monthly subscription to your telecom's services or a magazine subscription.
If you still have not decided which Ethereum token is right for your business case and the company, contact our managers and we will gladly give you advice and help with the development of your own cryptocurrency Ethereum token in the shortest possible time.