Creating your own cryptocurrency or token on Ethereum is not only exciting, but often vital from several points of view.
Firstly, by creating your own Ethereum token, you can launch an ICO, and you can spend the money collected on developing a full-fledged version of the project. Secondly, when a project is created, the internal currency is its life force. Of course, the second point concerned only digital projects. Remember that ICOs and native cryptocurrency tokens are allowed for almost any industry. Just don’t forget about ICO marketing.
So, what do you need to create your own Ethereum token cryptocurrency? First, you need to determine what functionality and capabilities Ethereum provides for these purposes. As you remember, the company and the Ethereum blockchain were successfully launched after an ICO, where they raised millions of dollars and earned the general trust of users. By the way, early investors who bought Ethereum for $0.7 made a fortune despite the fluctuations and volatility of the cryptocurrency market.
Ethereum smart contracts
Previously, we wrote a detailed review of Ethereum smart contracts, so we will not focus on this. Smart contracts are automatically executed programs. Thanks to them, you can create entire decentralized worlds, such as decentralized cryptocurrency exchanges, DApps, one of which is your own Ethereum token according to the ERC20 token development standard.
Smart contracts and their development have come a difficult way. Many people compare their programs to the early 90s, when the Internet was just emerging, and among the server programming languages there 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 have been strongly condemned by the community.
— LLL L, Lisp-like language. Very complicated; very seldom used.
- Serpent , a Python-like language. Despite the fact that Python is popular among developers due to its functionality, versatility and inclusion in various industries. Web development, IoT development and even desktop applications. However, in the case of serpent, Vitalik Buterin has not recommended using it since mid-2017. Good security is very important when developing smart contracts, Ethereum cryptocurrency tokens, and especially cryptocurrency platforms.
- Solidity , a Javascript-like language. Focused exclusively on the development of smart contracts. It is gaining popularity outside of the Ethereum community. Today, this is the most correct choice. After choosing a language, it remains to decide which token to develop.
Ethereum Token Standards
ERC or Ethereum Request for Comment — Standard Ethereum token. It implies technical requirements for the token and smart contract. There are only a few actively working and supported standards, but the difference between them is significant. Namely:
Standard Ethereum token ERC20
As you probably know, the create ERC20 token standard token is the most popular right now, and this is not surprising since it was proposed at the end of 2015. To comply with this standard, it is necessary to have such functionality as the name of the token, the stock available for circulation, the ability to obtain the wallet balance, and the functionality for transferring token funds between wallets.
An important feature of Ethereum tokens is the impossibility of mining them. If you require a token, or rather a cryptocurrency that can be mined by miners, you must turn to a slightly different type of development. Such as cryptocurrency forks or creation on a ready-made blockchain such as Hyperledger, for example.
Tokens for cryptocurrencies must first be tested in order to be created successfully. There are no usual tests, because actions take place with money. However, there are 2 types of blockchain testnet and mainnet. Testing should be carried out on the First, while the Second serves as the main Ethereum blockchain.
Standard ERC223 token
If there is a very popular ERC20 standard, then why do we have others? Specifically, ERC223: what is it and how is it different from ERC20? The functionality or requirements for ERC20 token development service are compatible and mostly the same for ERC223. With the exception of one small caveat, which was once proposed by a very famous developer in narrow circles — Dexaran. Its essence is simple and implies a refund. One of the biggest dangers that not only a beginner, but even a very experienced investor can face is careless transfer of money and its incompatibility with other wallets. You can send coins from your Monero wallet to Litecoin and your money will go out but not be converted. This is exactly the problem that the ERC223 token solves. Fully compatible with all previous wallets and software and provides little protection.
Standard ERC621 token
This standard will definitely appeal to financial managers. Ultimately, this comes with the issue of supplying additional tokens as well as reducing them. Let’s look at a typical situation. You underestimated the market and realized that you could issue another 1 million tokens that investors would enthusiastically buy during the ICO. Or vice versa, in your white paper you indicated that all unissued tokens will be burned. The ERC621 token provides additional functionality to the ERC20 or ERC223 token rather than being independent.
Standard ERC721 token
Unlike previous tokens, the ERC721 token is a unique non-fungible element. Remember the famous Cryptokitties, which raised $20 million in Series A? This is how it works on the standard ERC721 Ethereum token. What makes each token unique, individual and non-fungible.
Ethereum ERC827 token standard
Addition for ERC 20 and ERC223 tokens, allowing you to provide access to the transfer of your tokens on behalf of an external service. For example, it can be used in centralized cryptocurrency exchanges that do not have an internal wallet in the system, but simply request permission to your account. Something like how Google or Facebook logins work. They exchange some data with an external platform. This could be a monthly subscription to your carrier or a magazine subscription.