Best Tips For ERC20 Token Development

Posted by Antier Solutions on June 29th, 2022

Crypto tokens have widespread usage in the blockchain world. They are often used for making sales & purchases, exchanging funds, and governance purposes. Organisations may create their own standardized tokens to be used for fundraising purposes. 

The term ‘ERC20’ is a combination of ‘ERC’ (an abbreviation for ‘Ethereum Request for Comment’) and ‘20’, which refers to the proposal identifier number.  ERC20 is more often used for writing smart contracts for token implementation on the Ethereum blockchain network. 

In general, the Ethereum blockchain provides the best platform for ERC20 token development. It’s also the most preferred blockchain for creating smart contracts. 

Choosing the right token development company would help you to stick with ERC 20 token standard, and also develop an ERC20 token wallet conveniently. 

Why ERC20 Tokens Are So Popular?

Here are some of the admirable features of ERC20 tokens:

• ERC20 tokens are secured with the help of smart contracts.
• This type of token has an in-built wallet in which the tokens are stored safely.
• They are interchangeable assets. 
• They can be developed and designed quickly. A reliable ERC20 token development company can do it for you hassle-free. 
• They are simple and easy to deploy.
• It’s not easy to break the contracts based on ERC20 tokens. 
• Such tokens have high liquidity and help yield high revenues. 

If there are so many usages of crypto tokens, aren’t you curious to know the best ways of token development?

Prerequisites For ERC20 Token Development

In general, the Ethereum blockchain provides the best platform for crypto token development. It’s also the most preferred blockchain for creating smart contracts. 

ERC20 tokens come with a value and are used to send or receive the price of something, just like Bitcoin or Litecoin. Each transaction of ERC20 involves a gas fee. 

Besides choosing the right  token development company, here are some of the essential requirements for the creation of an ERC20 token:

• Set up a MetaMask Account

Setting up a MetaMask account is the first requirement for ERC20 token development, as enables interaction with the Ethereum blockchain network and enables the crypto user to store and swap cryptocurrencies. It also serves as a host of varieties of dApps (decentralized applications). 

• Acquisition of a Blockchain Node

ERC20 tokens can be developed with or without using the ERC20 token generator. However, one must acquire a blockchain node to have full access to the decentralized digital ledger. It would enable the token creator to record all transactions. It can be challenging for a novice. Hence, hiring a reputed token development company would be a great relief. 

• Get Native Tokens

Possessing native tokens of the blockchain network would be necessary, as it would enable the token developer to conduct transactions and pay the gas fee.

Step By Step Guide For ERC20 Token Development

The web space is full of informative content regarding the procedures for creating ERC20 tokens. Is it really that simple to do it on your own, without involving a token development company? 

One needs to have practical knowledge and experience to handle the complex parts of token creation rightfully. 

Let’s understand the fundamental steps of token development:

1. Decide About The Motto of The Token To Be Developed

It’s the first and most crucial step of ERC20 token development. You must know the purpose of the ERC20 tokens you are going to create. Prepare a list of desirable features and functionalities to match the requirements. 

2. Assign Specifications For The Token

Here are some of the necessary specifications for token development:

• Name the token. Developers from a token development company can simplify the decision-making steps for you.
• Provide a symbol to the token. A token would have an address, a logo or an image to be used as an identifier. 
• Decide about the token’s decimal places. It means, if the token is divisible, how many maximum decimal places would be there. 
• The total number of tokens in circulation. It defines the limit when the smart contract will stop creating new tokens. 

3. Code a Smart Contract

Writing codes for a smart contract is another significant part of ERC20 token development, and it must align with your business logic. It requires a deep understanding of Solidity language and deployment tools, such as Truffle. Let the token development company proceed with the coding phase. 

A smart contract based on the ERC20 token must have these 7 essential functionalities:

• Total supply
• Contract Owner
• Approval
• Transfer
• Allowance
• Add or Remove Holder
• Remove Appointee

4. Test The Code

Once the development of the smart contract is done, the next step would be to test the code and make sure that all functionalities are working properly. 

5. Validation of Tokens

ERC20 token development would not be completed without validating whether tokens are solving the purpose and performing well. Hiring an experienced token development company would help identify the bugs and fix them correctly. 

6. Deployment

Deploy the smart contract on the mainnet. It’s the final step. After completing the deployment process, the smart contract is transferred to all nodes across the blockchain network. 

Final Thoughts

ERC20 is the most acceptable type of token used for running smart contracts. It is a time-consuming process to create new tokens. Although there are different tools and techniques used for ERC20 token development it might be a bit complex to handle everything on your own.  

Antier Solutions is a token development company that has proved its excellence in handling several projects related to blockchain technology. 

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