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How to Create ERC20 Token? - An Exclusive Guide For Crypto Startups

zabtechnologies profile image Zab Technologies Updated on ・8 min read

When everything is converting into digitalization even the payments, so for making those payments more safe some startup people used blockchain. I hope you might be aware of blockchain which is a complex and emerging technology in today’s digital world. This technology is widely used in many industries like banking, insurance, finance, decentralized platforms, supply chain management, and more. The birth of bitcoin made people believe in blockchain and after bitcoin, Ethereum was introduced in the marketplace as a new crypto coin.

Ethereum was first founded in 2013 and it was first proposed by Vitalk Buterin, a Russian-Canadian programmer. Ethereum acts as both a crypto coin and an open-source blockchain platform. Besides, ethereum will also be used for running smart contracts on a blockchain.0

On the flip side, Ethereum is a well-known token development blockchain platform in the marketplace. So it is used for crypto token creation, smart contracts development, Dapp development, and much more.

Ethereum is a permissionless network so it is a kind of public blockchain platform. Importantly you must note that, If you develop any application using Ethereum, then you have to pay charges in Ethers. Presently, many startups are preferring the ethereum blockchain for creating crypto tokens.

Ethereum has different ERC token standards when it comes to token development. Such as ERC-20, ERC-721, ERC-998, ERC-223, ERC-777, ERC-621, ERC-827, ERC-1155, and more. Among these standards, ERC20 is a prominent and most used standard for creating ethereum-based tokens.

So how to create ERC20 tokens easily? If you are a startup or an entrepreneur willing to create an ERC20 token. Then this article would be very helpful for your ethereum token business.

Without wasting our time, let us quickly begin this electrifying article with…

What is an ERC20 Token?

ERC20 is a type of ethereum token standard that helps to develop ethereum-based crypto tokens and smart contracts. This type of standard tokens defines a set of rules that apply to all ethereum-based crypto tokens. ERC20 standard token has helped many dapps across distinct domains by becoming a part of various ICO projects. When compared to other ERC token standards, ERC20 is more efficient with many productive practices.

An ERC20 token is a digital token that holds a certain value and is developed under the ethereum blockchain. In other words, we can say that the ERC20 token is a blockchain-powered crypto token with similar functionality to Ethereum. ERC20 tokens are widely used for trading, fundraising, brand promotions, transactions, and making payments.

So what is the difference between the ERC20 tokens and crypto coins? The major difference between ERC20 tokens and coins is, ERC20 tokens are developed under the existing blockchain - Ethereum. Whereas crypto coins are developed on their own blockchain network.

Experts in the ethereum community say that ERC20 is the most effective ethereum token standard. As previously mentioned, the ERC20 standard is used for creating smart contracts. So by using smart contracts, one can avoid the interference of third parties. That’s why there is a huge demand for ERC20 token development.

Prominent ERC20 Tokens in the Blockchain Industry

After the launch of ethereum in the market, many altcoins were introduced in the marketplace. But still, ethereum is the second and most traded crypto coin in the crypto market. It is due to the potential benefits and functionalities of ethereum. It is an open-source blockchain, so any developer can create tokens under the ethereum.

Thus, many ERC20 tokens were introduced in the market. But only a few ERC20 tokens tasted success in raising funds and others failed due to some reasons. Currently, many ERC20 tokens are available in the industry. But only a few grabbed more traders and prevailed in the marketplace. Here is the list of popular ERC20 tokens that are ruling the global blockchain marketplace.

  1. Qtum
  2. Zilliqa
  3. Bytom
  4. Vechain
  5. ICON
  6. Wrapped bitcoin
  7. Augur
  8. Golem
  9. Maker
  10. Rchain

These above-mentioned tokens are the well-known ERC20 tokens in the marketplace. Besides, most crypto traders will prefer these tokens for trading in the crypto exchange platforms.

Why Should You Create ERC20 Token?

There are various ways to create an ERC20 token. Because ERC20 tokens have lots of beneficial factors and are widely used by most traders in the crypto marketplace. Here is the list of valuable reasons that you must note down for creating an ERC20 token.

  1. The development cost of an ERC20 token will be less. So one can easily develop an ERC20 token as per their business requirements.
  2. The ERC20 token creation process will be simple and easy.
  3. ERC20 standard tokens can be quickly deployed on the ethereum network without any hassle.
  4. This kind of token can be easily used for raising the funds through the crypto crowdfunding platform. Most people create erc20 tokens for fundraising and boost their brand value in the marketplace.
  5. ERC20 tokens are completely implemented on smart contracts & executed in an Ethereum Virtual Machine(EVM). So it completely operated in a decentralized manner.
  6. ERC20 standard tokens will help to figure out the issues and problems with the different tokens
  7. At this present time, the ERC20 standard has become the most effective ERC token standard in the industry. It is due to the usage and prominence of ERC20 tokens in the global crypto marketplace.
  8. ERC20 standard tokens are easily usable. So if you create an ERC20 token, then your users can easily handle the tokens & perform secure transactions.
  9. Currently, many crypto wallets are supporting ERC20 standard tokens. So you can link your tokens to the wallet. Else, you create a new ERC20 token wallet that supports your token. This would help your users to store, receive, transfer, and make sure their ERC20 token is safe.
  10. Smart contracts are built inside the ERC20 tokens. So once the transaction is done. Then ERC20 tokens will be automatically transferred to the user’s ethereum token wallet within a few minutes.
  11. ERC20 tokens already got the attention of millions of traders and investors in the crypto marketplace. In case, if you launch an ERC20 token, then you can raise your funds quickly in a hassle-free manner.

By considering these above-mentioned reasons, many crypto startups and entrepreneurs are showing their interest in creating ERC20 tokens.

Now, let’s figure out our main topic…

How to Create ERC20 Token For Business?

As the usage and popularity of ERC20 tokens are growing in the blockchain space. So every crypto enthusiast and startup will have a dream of developing their own feature-packed ERC20 tokens for raising funds and enter into the crypto market quickly. So they are searching on the internet - how to create an ERC20 token?. You will get a clear answer by further reading it. The answer is simple, if you are a startup or an entrepreneur, then you can create your ERC20 token in two possible methods.

Firstly, if you are an experienced developer, good with technical programming skills, and specialized in ethereum blockchain codings(like solidity). Then without any hassle, you can create your ERC20 token by yourself within a short time. So if you are an experienced blockchain coder, then you can make your ERC20 token by considering some important steps. Here is the list of steps that you must take into your account while creating an ERC20 under the ethereum blockchain.

  • Decide your Token requirements

The first step in making an ERC20 token is to determine the primary aim of how your ethereum-based ERC20 token should be. Also, you must know how this ERC20 token is going to be helpful for your fundraising and crypto business. Then you need to list the outstanding features it should have and plan according to that.

  • Writing a smart contract

In this step, you need to write a smart contract for cross-checking the ERC20 standard. Smart Contracts are one of the essential parts of the Blockchain network, so if you are creating an ERC20 token. Then you should give importance while writing smart contracts. When it comes to the ERC20 smart contract, there would be 6 different functions. Such as

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

These 6 functions play a major role in ERC20 smart contracts.

  • Test contract code

In this step, you need to test the contract code for etherscan verification. So once you have completed writing the Smart Contract code, you must compile the code to check and verify whether the given functions are perfectly okay.

  • Validate the tokens

After verifying the contract code, you can test the ERC20 Token transactions. You can validate your tokens by seeing their performance. If your ERC20 token encounters any issues, errors, or bugs. Then you can easily make the modifications accordingly.

  • Deployment for sales to crowdfund without fail

It is the final phase, where you need to deploy the constructed code on top of the Ethereum Blockchain. So that you can launch a fully functional ERC20 token for crowdfunding.

These 5 steps would help you in the deployment of ERC20 tokens on a crowdfunding platform or run dApps successfully. In case, if you have made a small mistake in coding or any other essential part of ERC20 token creation. Then, in the end, you might face any issues, errors, bugs, or else fail in the token output. So creating a token by yourself is risky and not a recommended one.

So, what is the second possible way to create your ERC20 token? you can develop ERC20 tokens by connecting with the professional ERC20 token development company in the crypto marketplace. Because token development companies will have high-skilled blockchain developers and a well-experienced token development team. So that you can request your business needs easily and create your ERC20 token in a risk-free manner. Besides, you can get all the essential features in their ERC20 token development service. Such as

  • ERC20 Contact generation
  • ERC20 token wallet app for Android and IOS
  • Setting Initial Supply
  • Setting No of Issues
  • Setting Fractions
  • Deploy Contracts
  • Generate Tokens
  • Validate Contract
  • High-end security features

One gets all the extraordinary features in the ERC20 token development service. That’s why many startups, entrepreneurs, and business class people are approaching the best ERC20 token development company for creating secure and feature-packed ERC20 tokens.

What will be the Cost to Create an ERC20 Token?

The cost of ERC20 token creation will be based on various essential factors. Here is the list of factors that shape the ERC20 token development cost.

  • Business type
  • Features of token
  • The design of the token
  • Number of ERC20 tokens to be developed
  • The complexity of your token project
  • Location of the ERC20 token development team
  • Distribution
  • Ongoing support and maintenance

These above-mentioned factors will determine your ERC20 token development cost. But as you know, we can not predict the exact cost of developing an ERC20 token. But the cost of creating ERC20 tokens will range from $5k to $6k. However, the ERC20 token development cost would vary according to your business concepts and urgent needs.

Final Words

After bitcoin, usage of Ethereum and ERC20 tokens are high in the global marketplace. So currently, many traders and investors would prefer ERC20 tokens. The crypto market is ready for you and it is the best time to launch your own ERC20 token in the marketplace & make profits. All you need to do is hire a handful of experienced blockchain developers from a trustworthy ERC20 token development company in the blockchain space.

I hope this article will be helpful for starting your ERC20 token business. Cheers!

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