ERC-20 tokens are the digital tokens that are designed to use solely on the Ethereum platform.
They follow a list of standards on ethereum ERC20 token, so that they can be shared, exchanged for other tokens, otherwise transferred to a crypto-wallet.
The Ethereum community created these standards with three optional rules, and six mandatory sets of creating ERC Token creation.
- Token Name
- Decimal (up to 18)
What is ethereum and how it works?
Ethereum is nothing but a decentralized network of computers with two basic functions.
The first thing is the blockchain, it is used to store all digital transactions and the
Another one is the virtual machine that can produce smart contracts.
With the support of two functions, Ethereum is able to support decentralized applications. These DApps are built on the existing Ethereum blockchain, piggybacking off of its underlying technology.
How do smartcontract works?
Smart contracts is the digital agreement is used to create ERC-20 tokens.
Smart contract is used to facilitate those crypto transactions of tokens, and record balances of tokens in an account.
Smart contracts are written in the programming language “Solidity” on the basis of If-This-Then-That (IFTTT) logic.
As of now there are number of standards in ethereum token development, these standards are the protocols that helps in functioning of smart contracts. Among those various token standards erc20 standard is the best and commonly used one.
The major question is how much does it cost to create erc20 tokens?
The range start from minimum to maximum and it depends upon the concerning ideas, ERC token standards like(ERC20. ERC223, ERC 667 etc.) depends upon your standards.
This erc20 token development is the P2P network that has a value and can be sent or received like any other cryptocurrencies(bitcoin, litecoin, altcoin etc)and the biggest advantage of erc20 tokens is that any other application of smart contract can be interacted with these tokens. Hence it is very easy to create several tokens that can interact with each other in a standard way.
In ethereum block chain, the ERC20 tokens are created using the agreement called smart contracts. The algorithm used for the creation is ERC20. The smart contracts are nothing but the execution code built on the ethereum functions and they are written using the language called solidity. Ethereum and ETH tokens are stored on the digital storage space called Meta Mask.
Hence, there are many more steps ahead before creating the erc20 token development, if you want to learn one by one, refer this article on erc20 token creation-Step by step guide.
Smart Contracts are the most prominent part of token development and it involves a lot of technical resources to code and it cost. So, the every stages of token development needs to be handled by the expertise technical team in order to avoid the last minute hassle. You have to be well experienced in developing that too. After the completion of smart contract, it needs to be audited by the expert. Because, the insecure smart contract won’t perform well among the investors. If small error may cause millions of dolor loss for investors. It could be serious. The cost for security audit is average.
How to utilize ERC20 token for your business?
- Tokens can be coupons or vouchers for your customers. Ex: You can decide that a token is worth a 50% discount on a certain product. This will create an artificial market for your tokens, making them worth something to your customers (and to you).
- Tokens can be given away as a reward for contests or for filling out surveys to incentivize people to participate.
- Tokens as “member’s-club”. You can decide that token owners are now members of your member’s club and get special discounts.
Possible use-cases for crypto-tokens are endless and may vary significantly between businesses. What worked for the other guy may not work for you, and vice versa. In one word, experiment.
Once you have a solid idea of what to do with your tokens, start engaging your existing customers and see what sticks.
Also, don’t worry too much about your tokens not being worth anything in the beginning. Instead, focus on creating a market for them. The value will take care of itself
You need to talk for getting average cost for developing your erc20 tokens? Give us a message our experts will give you detailed pricing for the entire token development setup.