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Creating an ERC20 token is like building a strong foundation for the digital business empire. It’s no wonder that ERC20 tokens have become the “go-to currency” for innovation in the crypto space.
With diverse use cases like fundraising through ICOs, creating loyalty rewards, enabling seamless transactions, and even powering decentralized applications, ERC20 tokens have come a long way.
Is that hard to create an ERC20 token with potential features?
No, They can be created with the 5 easy step-by-step process. Let’s discuss the effective steps in creating an ERC20 token.
How To Create An ERC20 Token?
We have listed the best and simplest 5-step solution to create an ERC20 token for newbie startups.
STEP 1: Planning
The first step in creating the ERC20 token involves preparing a roadmap and blueprint. This helps create an ERC20 token without any hassles or technical glitches. The top-prior things to consider in preparing the roadmap includes,
- Identification – Clear objective about the crypto token’s purpose and use cases.
- Use Cases – Find the use cases for crypto token development. Either the newly created ERC20 token is for utility, governance, or rewarding purposes.
- Set Goals – Set the milestones or timeline for completing the ERC20 token development process.
- Cost Estimation – In addition to the basic costs, additional costs and gas fees must be paid to deploy the ERC20 token to the Ethereum Mainnet.
- Target Audience – Prepare the complete list regarding the token allocation. The hierarchy of the token distribution has to be finalized in this phase.
STEP 2: Token Design
After creating a token development plan, it is important to design the token. This will be an influential factor in gaining the attention of crypto users.
- Attribute choice – Choose the relevant name, symbol, decimal number, and total supply for the crypto token.
- Essential Feature Integration – Important features have to be integrated within the crypto token to ensure smooth functioning. Some of the essential features are,
- Total Supply: This ensures the number of tokens that will be circulated within the blockchain network. The setting limit can be finalized in the token development.
- Balance Of: This ensures the return of the account holder’s balance.
- Transfer: The transfer feature helps transfer tokens from the sender to the recipient.
- Transfer From: This helps the spender to transfer tokens on behalf of the owner.
- Approve: Approves a spender to spend on behalf of the owner.
- Add-On Features – Enhance the crypto token with various features, including minting, burning, and pausing. This helps the ERC20 token function and transaction speed.
STEP 3: Smart Contract Creation
The blockchain network will run with potential smart contracts. Smart contracts are digital agreements that have predefined conditions and are executed when they are met. The Solidity programming language is used for the Ethereum blockchain to create ERC20 tokens.
Other development tools are also used for enhanced token development. Some are,
- Remix – This website-based tool is used to write and deploy solidity contracts.
- Truffle – This is a popular framework used for token development, testing, and Mainnet deployment.
As smart contracts are the important source for the ERC20 token, conduct regular auditing for smooth functioning.
STEP 4: Testing
After the successful creation of the ERC20 token, it is essential to test its workings and functionality. Development networks like Hardhat or Ganache can test the crypto token’s smart contract, back-end, and front-end features.
Depending on the tools, the testing process can also be conducted manually or automatically. MythX, Slither, or Remix Analyzer are utilized for automatic ERC20 token testing.
- Regular Smart Contract Auditing – This is an important process that helps to enhance the ERC20 token’s functionality, and working process effectively. Regular upgrades can be done based on the growing demand.
- Security Audits – The security features of the ERC20 tokens have to be checked thoroughly to enhance trustability.
The testing process can be done with the help of the development company’s testers. Presently various paid tools are utilized for higher security and protection. Collaborate with them to ensure the functionality of the ERC20 token.
STEP 5: Mainnet Deployment
After the development and testing process, the ERC20 tokens are ready to deploy in the Mainnet of the blockchain.
- Testnet Deployment – At first, the ERC20 tokens have to be deployed in networks like Goerli, Sepolia, or other testnets. This helps to get feedback from potential crypto users.
- Actual Deployment – After the Testnet deployment, the bugs, technical glitches, and errors can be fixed.
Once the ERC20 tokens are deployed, they are circulated within the ecosystem. The newly created ERC20 tokens can be bought, sold, and traded by crypto users. With a skilled team of developers, startups can easily create ERC20 tokens with potential features at an affordable cost.
Business Benefits of Creating an ERC20 Token
Creating an ERC20 token for various businesses will offer a lot of benefits. Some of the business benefits of creating an ERC20 token have been listed below.
Revenue Generation
As the Ethereum blockchain is highly scalable, secure, and reliable, creating an ERC20 token will help startups generate revenue. Startups who want to raise for their upcoming projects will conduct crowdfunding. ERC20 tokens are sold to investors to gain profit and raise funds. With a minimal development cost, revenue can be generated.
Global Access
Through the development of ERC20 tokens, startups can gain global accessibility for crypto users. Regardless of the region, location, etc., startups can get the attention of potential investors. Startups can bypass intermediaries like banks or other traditional firms, reducing costs and maintaining greater control over the business.
Community Engagement
The issuance of ERC20 tokens will help startups to build a potential community in the crypto market. Startups can distribute ERC20 tokens as rewards for beginners, early adopters, investors, and crypto users. The issued tokens can be used as loyalty points, rewards, or access to premium services.
Branding
Distributing the ERC20 tokens is a stepping stone to creating a brand identity in the crypto world. In the competitive digital market, establishing a brand will allow startups to engage with various kinds of crypto users and act as a marketing tool for higher revenue.
Entry For DeFi platforms
With the ERC20 token development, startups can easily enter into the decentralized exchange platforms. For instance, token holders could use the token as collateral for loans. By integrating into DeFi, tokens gain additional use cases, enhancing their value proposition to investors and users.
As ERC20 token creation comprises a lot of business benefits, startups are taking this as their major business model. In addition to these benefits, one can easily create an ERC20 token with potential methods.
Development Method To Create An ERC20 Token
ERC20 tokens can be created through various development methods based on the business needs, budget, feature integration, etc. Some of the popular methods that are adopted to create an ERC20 token include,
Approaching a Freelancer
There are many freelancers all around the world who are experts in creating ERC20 tokens. Many online platforms provide the portfolio of these token-creating freelancers. The average cost to hire a freelancer for token creation will be around $25/hr to $45/per hr.
The problem with approaching a freelancer is that you may not be sure about their previous work, testimonials, and professionalism. So, to avoid these, the best method to create an ERC20 token can be done with the help of a Ethereum token development company.
Approaching A Development Company
A well-known crypto token development firm will offer you the best and most potential crypto token development service at an affordable cost. They possess a set of skilled developers, blockchain experts, legal advisors, technicians, testers, etc. Hence, the trustability factor is high when choosing a token development.
Apart from the token development process, prolonged support, client care, 24/7 availability, and upgradation are also offered. The cost of developing a crypto token will also suit the budget of the newbie startups. Hence, approaching a crypto development firm will be an ideal choice for newbie startups.
The choice of the development method is a crucial factor in creating an ERC20 token. And also the choice of the crypto token development company and its developers.
As crypto token development is a long-term profit-reaping business idea, getting the best team to support you is essential. One such Blockchain development firm in the crypto digital market is Pixel Web Solutions.
Collaborate With Pixel Web Solutions To Create An ERC20 Token
Pixel Web Solutions is a renowned crypto token development company that offers various crypto token development services based on business needs. Our developer team provides valuable insights regarding the creation of crypto tokens in a hassle-free manner. Along with the ERC20 token development, we also offer you custom solutions, smart contract programming, token auditing services, prolonged support, etc for our clients.
With a track record of successful projects, we ensure you offer the best crypto token creation services at an affordable cost. Partner with our Business team and get a price quote for your digital business!!
