Home > Blog > How To Create Your Own ERC20 Token - A Comprehensive Guide for Beginners 2020

How To Create Your Own ERC20 Token - A Comprehensive Guide for Beginners 2020

How To Create Your Own ERC20 Token - A Comprehensive Guide for Beginners 2020

“Gaining Knowledge is the first step to wisdom. Sharing it, is the first step to humanity”- One of the inspirational quote I would like to share it with you folks. Yes! Sharing our thoughts & knowledge can foster the vision of the people who are working in professional tiers. As a professional blog writer, I would like to exchange my knowledge on the most vital & frequently researched topic "ERC-20" tokens. Consider this small checklist listed below for one’s who wanna know this subject elaborately.

 

Table of Content

  1. Ethereum Tokens & It’s Types.
  2. Utility Token.
  3. Etherum Token Development.
  4. What is the ERC-20 token?
  5. How to create an ERC-20 token.
  6. How ERC-20 acts as a utility token
  7. What makes ERC-20 Tokens different?
  8. Features & Benefits Of ERC-20
  9. Future Scope
  10. BlockchainAppsDeveloper - No 1 ERC-20 Token Development  Company
  11. Why choose us?

 

Ethereum Tokens & It’s Types

Empty your mind, guys! I am here to start this concept from scratch. Let’s begins!

Ethereum Tokens” - Ethereum tokens are nothing but the digital currency/assets that are built on the Ethereum blockchain. The Ethereum blockchain ecosystem owns a native token widely known as the ether (ETH) that is Farley used by the people within the Ethereum network.

Considering its types & taking brief note of it, the tokens are used in the Ethereum network falls under a variety of categories like the asset-backed currency, equity token, fan token, fund, game token, utility token & other security tokens.

In this post, you will get detailed knowledge of the utility tokens as we are going to see about the ERC-20 utility token in the later part of the article.

 

Utility Token

A digital token is offered for utility purposes by the issuer of the cryptocurrency and then once after the token is offered, anyone can use it for purchase of a good or service.

Further, a token created for utility purposes can be exchanged, shared and even it can be rewarded to the newly registered users in the crypto exchange platforms.

 

Etherum Token Development

First and foremost, the purpose of creating a token is for a utility purpose used in a wide variety of crypto exchange platforms, smart contracts, dApps, and many more. Such a token is created under Ethereum token standards.

I would like to list some of them with you, ERC20, ERC 721, ERC 223, ERC 82, ERC 621, ERC1440. The functionality of the above-listed tokens differs based on the functions & attribute written on it.

That being set, let us explore the highly talked utility token development standard called "ERC-20 token".

 

What is the ERC-20 token?

It takes a couple of minutes for you to learn about utility tokens. Afterward, let’s move on to the topic “ERC-20 token”. Alright! That being finalized, Utility tokens are nothing but the owner of the token grants an opportunity to use their utility token by the users in a particular platform or a network.

Access of the token is delivered in order to directly reduce the cost of trading fees. Some of the experts say, most of the tokens created are utility tokens & it is used in various blockchains like Ethereum, EOS, etc,...

Well, one of the well-familiar & mostly used utility tokens is ERC-20 Ethereum Standard (20 refers to a unique ID). This utility tokens can be bought & sold in the decentralized applications (dApps) running in the cloud online platform.

Nowadays people are voluntarily wishing to start their own dApps which runs on the top of the Ethereum network. Particularly for such entrepreneurs, the utility tokens matters the most. Initially, they have to own their own tokens before their exchange is processed in the public ledger.

It’s stated a token must be created and put it into utility. Do you get it, folks! Further, in this blog, we are going to explore “How a utility token is created and put it into use”.

 

How to create an ERC-20 token?

ERC-20 Token is creating a buzz among the people who are fond of the token development services in the blockchain & cryptocurrency network. Do you agree with me? Okay, Let’s have a complete look at this concept.

I am here to state some of the steps that give a pathway for you to understand about How an ERC-20 token standard is developed in simple terms. By the way, you will get a clear & complete idea about it.

 

  • Initially, there are some set of standard rules that are defined for creating a token on the Ethereum blockchain network. Creating the ERC-20 token that follows their own particular standards is quite easy & simple.
  • Once after a token is developed it needs to be properly managed, right? Hurrah, a proper solution is provided by the ERC-20 standard. Here, the wallet that holds the ERC 20 tokens must be defined with a standardized set of rules (i.e) range of tokens that can be managed as well as about the token purchase rules.
  • Within a short span, the specification about the token is widely reached to the audience across the globe.
  • Once after it’s launch, it is globally called as industry specified token standards

 

How ERC20 acts as a utility token

ERC20 token standard follows six mandatory rules that it is listed to you right below. For your notice, the rules are nothing but the functions used in the ERC20 Ethereum Standard.

 

  1. totalSupply
  2. balanceOf
  3. transfer
  4. transferFrom
  5. approve
  6. allowance

 

On a whole, the above functions are written in the ERC-20 Ethereum standard were the attributes used in it is developed purely for the tokens to be utilized by the people using irrespective of the blockchain.

 

What makes ERC-20 Tokens different?

To be precise the way of generating an Ethereum token-based of different token standards basically differs. Similarly, the prototypes and attributes in it also change for bringing out the best functionality and characteristic of a token.

Taking a quick view about the ERC-20 token, it is abbreviated as the Ethereum Request for Comment (20 referral are done). At this place, a token standard defines a set of rules that is being applied to one’s who have the ERC-20 tokens. Its main intent is to give better communication in the ERC-20 token network.

Even the ERC-20 is launched with smart contracts that run on the decentralized network.

 

Features & Benefits Of ERC-20

Some of you may be skimming through this article to know about its benefits. So let me convey its powerful benefits to you.

 

  1. Exchanged & interacts with other cryptocurrencies
  2. % Risk-free tokens to be deployed on crypto exchange platforms & P2P applications.
  3. Operated well with decentralized applications.
  4. Secure, safe & easy transaction.
  5. Token implementation is easily understood.

 

Future Scope

Ever booming & increased demand is arising for deploying their ERC20 token on their decentralized platform/ exchange platforms. As there are many new numbers of applications that are supporting the transaction with the ERC-20 tokens, this token has a great scope in the future.

 

BlockchainAppsDeveloper - No 1 ERC-20 Token Development Company

Before I wind up from this blog I am excited to share about the soul part of this article.

We BlockchainAppsDeveloper - One of the leading Ethereum Token Development Company creates and deploy the ERC-20 token to you sticking with the ERC-20 standards in it.

Our team builds smart contracts with multiple functions defined for a token while developing & deploying a standard Ethereum token like ERC-20.

 

Why choose us?

  1. Low cost for token development.
  2. On-time delivery of tokens.
  3. Error-free Smart Contract Development.
  4. Offer unhackable smart contracts.
  5. Delivers bug-free source code.
  6. Multi cryptocurrency & token support

 

Check Out Live Demo of ERC20 Token Development 

 

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