If you are wondering how to develop your own crypto token that will attract more users to your Defi App, or raise money, or perform other utilities–- then look no further. Let’s take a sneak peek into how you can Develop your own crypto token, even if you don’t know much about the blockchain technology.
Features Of A Token:-
We have somewhere around 10000 tokens running on top of more than 30 blockchains (as of 2022). The bitcoin, ethereum, binance blockchains are one of the leading blockchains along with a couple of others.
- You can create either a crypto coin or a token. There can be only one coin per blockchain, and you make it when building a new blockchain. But tokens are plenty, and also easier to develop.
- A token is basically a smart contract living on a blockchain and is fully encrypted by the process of cryptography.
- The common use cases for creating a token is– to raise funds, trade, to store a value. Tokens are also used as a digital currency.
- Tokens are managed by smart contracts, which are securely encrypted through cryptography. This makes tokens a secure asset.
- Tokens operate on top of a blockchain which also acts as a medium for creation and execution of dApps and help in facilitating the transactions.
- Tokens are often used for fundraising, trading, or for the purposes to store the value. Tokens are also used as a fully encrypted digital currency.
- Tokens are created, distributed and sold through the process of initial coin offerings I.C.O’s. Investors who are interested in the company can purchase these tokens.
- Tokens provide users with access to a number of bank-like services such as loans, lending and insurance purposes etc
Best Blockchain Platforms That Support Tokens
Every blockchain has its own rules for creating a token. Also, each token has its own specific and distinct use-case from another token (acc. to the specific coding done in smart contracts).
Now the interesting question arises– how do you pick up a blockchain that would be deemed fit for your token?
To answer this, if you allow me to come straight to the ongoing trend, I will recommend two most important blockchains to run your tokens. The Ethereum blockchain and the Binance blockchain are the two most popular and successful blockchains to run your tokens.
Tokens on Ethereum blockchain are very stable but Ethereum offers a high gas rate to develop tokens. Although Ethereum has the almost same amount of active wallets as bitcoin.
Whereas Binance blockchain is surpassing the Ethereum blockchain in recent times. As tokens developed on Binance blockchain provide you with the same features and stability as provided by the Ethereum blockchain but tokens (say BEP-20 tokens) on Binance blockchain are lot cheaper to develop as they do not charge you with high gas rates (as it is the case with ERC-20 tokens).
How To Build Tokens
Adapted from SaaS models, blockchain as a service (BaaS) offers to develop and implement specific “Smart Contracts” to host tokens on a blockchain for a number of different purposes(as coded in the contract). In a systematic way, building tokens go through 3 main stages:
- 1. Define token properties
- 2. Develop a smart contract
- 3. Deploy the contract on a blockchain
1. Define token properties:
A token has a number of different use-cases depending upon the context of its use e.g, if you are deploying a token to attract investors, you will use ERC-20 tokens. The tokens specifies the following:-
- The total supply of tokens
- Tokens name and symbol
- Tokens inherit and specific features/functions
2. Develop a Smart Contract:
All the tokens are governed by the basic fundamentals of “Smart Contracts”, so when you are building a token, you have to code the smart contracts according to the properties and features the token holds.
3. Deploy the contract on blockchain:
As tokens run on top of blockchains, the smart contracts, which are now fully encrypted by means of cryptography, are deployed on a particular blockchain to run and perform its functions and complete the transactions.
Your choice to develop your own crypto token, and what type of a token depends upon the use-case and utility you require to perform. Also, the costs involved will vary according to the work needed and if it requires any extra time or some extra developers. While pretty much anyone can get tokens created, but to develop your own crypto token requires serious work and dedication.
Of Course building tokens is not an easy job as you have to have complete knowledge about blockchain solutions. And this is where, we the developers at LBM Solutions, come to assist you. Our highly skilled team of blockchain developers provides you with quality blockchain solutions.