The Distinction Between a Coin and a Token
It's vital to remember that cryptocurrencies are divided into two categories: coins and tokens. The primary distinction is that coins have their own blockchains, whereas tokens rely on the blockchain or some other pre-existing backbone.
What Is an ERC20 Token and How Does It Work?
ERC20 is a digital asset that can be used to represent anything, such as securities and loyalty points. The Ethereum token standard, also known as ERC20, is a technical specification for smart contracts on the Ethereum network. A token can be easily exchanged on the internet and backed up by a digital asset once it is created.
ERC20 The ERC20 standard is used to create Ethereum tokens (Ethereum Request for Comments). This is a method that the Ethereum community uses to develop and specify various standards. When anything is defined as a standard and qualifies as an ERC, it automatically becomes a platform standard.
The Ethereum platform supports ERC20 coins. Ethereum is made up of blockchains that can store transactions and an Ethereum virtual machine (EVM) that can perform smart contracts.
The Ethereum blockchain is where tokens live. They profit from its technological advancements. Tokens are not self-contained and are dependent on the Ethereum blockchain and platform. Ether is the Ethereum platform's native currency. It can also support additional tokens that can be used as currencies in addition to Ether.
They can also stand for:
shares of a corporation
The ERC20 Token's Structure
A smart contract can generate a token. This contract is in charge of not just producing tokens, but also managing token transactions and keeping track of each token holder's balance.
Ethereum Request for Comments (ERC) is an acronym for Ethereum Request for Comments. ERC20 specifies six mandatory and three optional functionalities that your smart contract must implement.
The following functions are available as options:
The ones that are required are more difficult:
Total supply - the total number of tokens in circulation at any given time.
Balance of – displays the address's balance.
Transfer – delivers a specific number of tokens to the address Transfer from – used for exchanging tokens between users who hold them.
Allowance – shows whether or not a user has enough tokens to transmit to another user. Approve – confirms that your wallet address is eligible to give tokens to another user.
Other smart contracts detect and identify these 6 functions. In a word, the ERC20 token is popular because it works nicely with other smart contracts.
The following is an example of a basic ERC20 token:
It's likely that an ERC20 token will be integrated and added to several cryptocurrency wallets when it's created. In fact, ERC20 tokens are generally accepted by a wide range of cryptocurrency wallets. This is why, rather than inventing a separate sort of token, most people who want to start an ICO use the ERC20 token.
Solidity Remix Overview
IDE Remix is a smartcontract development environment with an integrated development environment (IDE). It focuses on the creation and deployment of written smart contracts in Solidity.
If you want to do the following, Remix is a fantastic option.
construct smart contracts (Remix integrates a Solidity editor.)
access the state and characteristics of a previously deployed smart contract to debug smart contract execution
evaluate solidity code to decrease coding errors and enforce best practises debug a previously conducted transaction
Remix can be used to test and debug a Dapp in conjunction with Mist (or any other tool that injects web3).
The Token-Generation Process
We need to define a few pieces of information before we begin the creation process:
Symbol of a token
Tokens are limited (how many of them are going to be created)
Decimal places in a number
1. We'll need a code to create a token (the basis of your token). You can acquire a pre-programmed code based on the ERC20 standard here and copy it. Things will be easier and faster as a result of this.
2. Paste your code into the Solidity IDE (which includes a debugger and testing environment).
3. Define the type of compiler you'll use in the Settings section. Choose the most recent version. This is an ERC20 token, thus the system will recognise it.
Introducing Faster ERC20 Token Creation Methods
The ERC20 token is now even more widely available. It is possible to create one without any source code or Solidity programming language quirks. If you're new with ERC20 basics or are short on time, these apps may be useful.
In about 5 minutes, you may create your own ERC20 token.
All you have to do is head to HEXEL to create your own ERC20 token quickly and effortlessly. Hexel allows you to construct your own community coin. You can make tokens for fun using this tool and start using them right away, without any technical hurdles or other crowdsale restrictions. Click Create a Token after you've logged in.
Give your token a unique name. Let's call it RoboToken for short.
Enter the abbreviation RT.
We can now proceed with the procedure.
To submit your token to a network, you must first sign a transaction. On Ethereum, you must pay a little amount of gas whenever you complete a transaction. This is a cost that you pay to the computers on the network in order for them to perform your transaction. Use the MetaMask extension for this step. To really deploy and start utilising it, you'll need some Ether in your account. Another thing to bear in mind is that the more gas you pay, the faster your transaction will be processed by the network.
The next step is to wait for a response. The more gas you pay, the sooner the transaction will be implemented.
Click Go to my page once the transaction has been deployed.
You can begin minting tokens after you've arrived at your homepage. Mint Tokens can be accessed by clicking the Mint Tokens button.
Fill in all of the fields in the window. Select the number of tokens you wish to send and the addresses to which they should be sent. After that, click Submit to approve the purchase. You'll see that the gas fee has dropped significantly. This is due to the fact that we were introducing a completely new token to the network, but now we are simply minting and sending tokens.
You'll see that the token supply has changed if you refresh the page. You may also check who the token holders are, as well as the addresses where your token is kept. This feature is useful since it allows everyone to keep track of who owns what.
Tokens can be created using the Trust Wallet application.
This tool features a user-friendly UI and makes producing a token relatively simple. This programme can be used if you are unfamiliar with the Solidity language and source code, or just don't have enough time to work with it.
The first step is to visit the Trust Wallet website and download the Trust Wallet app from the App Store or Google Play.
Go to your Wallet App after you've installed it, and you'll notice a dApps browser tab. This browser works with a variety of applications. Token Factory will be one of them. Select it by clicking on it.
Then, under Establish Token Contract, enter the information for the contract you wish to create. For example, suppose we want to create a thousand tokens with the name ViK coin, a decimal number of 0 decimals, and the symbol ViK
Also, make sure you've selected the network you wish to use in the Settings area. In our situation, we'll be using Ropsten ETH.
You'll see after selecting Create Token that you'll need to spend some money (gas) to deploy this contract on the network. This transaction is sent to the blockchain to be turned into a smart contract after you approve it. You should be aware that the token will not be deployed immediately (it depends on the amount of gas you paid.)
Done! You can copy the address of your ERC20 token and then define the information in the Tokens section by selecting Add Custom Token and then clicking Done.
Your tokens will then be loaded to your wallet! You may use them as you see fit.
Make sure you've read the ERC20 Token Economics and ERC20 Compatible Wallets articles.