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7 min read · Oct 16, 2023
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Ethereum serves as a blockchain platform facilitating the development of decentralized applications (dApps). While Bitcoin & Ethereum are both blockchain techs, they diverge greatly in their technical attributes. Bitcoin supplies a peer-to-peer electronic payment system, whereas Ethereum prioritizes the implementation of program codes for different decentralized apps. The widely acclaimed Ethereum blockchain allows the deployment of tokens that can be purchased, traded, or sold. Launched in 2015, Ethereum has emerged as a key force in driving the widespread adoption of cryptos.
Within the Ethereum ecosystem, tokens embody digital entitlements. These cryptocurrency units are essentially smart contracts that autonomously execute their designated functions according to the encoded instructions, all facilitated by the blockchain system. Each coin carries out a designated task, and the integrity of these protocols remains untampered with. With the introduction of the ERC-20 standard, Ethereum established a more structured environment, enabling tokens to function seamlessly and engage effectively with decentralized applications and exchanges.
When it comes to token creation, the preference of many entrepreneurs is to issue ERC-20 cryptocurrency units, benefiting from the Ethereum blockchain’s robust flexibility and security. This makes Ethereum a convenient platform for the development of cryptographic tokens, which are widely adopted due to their interchangeability with similar alternatives.
Ethereum Request for Comments (ERC) comprises a collection of documents serving as essential references for developers to implement protocols. These materials establish the prerequisites for generating tokens within the Ethereum ecosystem. Typically authored by developers, these technical documents encompass details regarding protocol specifications and contract descriptions. Prior to achieving the status of a standard, an ERC must undergo a comprehensive evaluation, receive feedback, and gain community approval through the Ethereum Improvement Proposal (EIP) process.
The ERC-20 standard effectively tackled the problem by establishing a well-defined framework that simplifies the process of enabling wallets and exchanges to effortlessly handle and engage with various tokens. This standardization has greatly streamlined the integration of tokens, resulting in a much smoother experience for their exchange and management.
ERC-20 tokens represent cryptocurrencies designed for specific functions. These digital assets can hold value and facilitate transactions and payments. The Ethereum community introduced the ERC-20 standard, consisting of five essential and four mandatory rules.
MANDATORY
Token Name — the designation of the token.
totalSupply — the overall quantity of ERC-20 units in existence.
Symbol — an emblem used for exchanges.
Transfer — a function enabling the transfer of tokens from the source to the recipient’s account.
Decimal — a value, typically set to 18, representing the smallest divisible unit of ether.
NECESSARILY
Approve — verifies the transaction against the total cryptocurrency unit count.
balanceOf — a function that provides the quantity of tokens held in an account with a given address.
Allowance — reviews the user’s balance and aborts the operation if there are insufficient funds.
transferFrom — facilitates the transfer of cryptocurrency units to another account.
ERC-20 simplifies the creation of Ethereum-based tokens while preserving their adaptability. With this standardized framework, new digital assets can be sent to an exchange or transferred to a wallet automatically upon deployment.
Ethereum tokens have gained powerful popularity & success due to several key factors:
- The creation and deployment of ERC-20 tokens are notably uncomplicated. Developers have easy access to the token development process through the ERC-20 standard. This straightforwardness has played a significant role in the widespread adoption and growth of ERC-20 tokens.
- Standardization & Interoperability: The ERC-20 standard plays a pivotal role in resolving a key issue within the blockchain ecosystem. By furnishing a universal collection of instructions, it facilitates the uniform interaction of blockchain-based marketplaces, exchanges, and wallets with a diverse range of tokens. This standardization fosters effortless integration and harmonious coexistence among various tokens, assuring users and developers of compatibility and user-friendliness.
- Industry Acceptance: While ERC-20 wasn’t the initial token specification on Ethereum, its wide embrace and strong adoption among developers established it as the industry’s default standard. This surge in popularity spurred the emergence of various Ethereum tokens, fostering a robust ecosystem of projects, exchanges, and decentralized applications (dApps) centered on ERC-20 tokens.
- Token Purchase & Interaction Rules: The ERC-20 standard offers a set of rules for purchasing and interacting with tokens, guaranteeing uniformity and reliability across various tokens. This standardized method streamlines token transactions, transfers, and operations, enhancing users’ comprehension and interaction with ERC-20 tokens.
Having gained insight into ERC-20 tokens and their operations, let’s delve into the process of creating and launching our own token.
In this section, we will explain how to deploy the token contract on the Ropsten testnet. To proceed, it’s essential to have the Metamask browser extension to set up an Ethereum (ETH) wallet and acquire some test ETH.
- Install the Metamask browser extension & create an Ethereum wallet.
- Access the Ropsten Test Network within your Metamask wallet settings.
- Copy your wallet address from Metamask.
- Visit the Ropsten faucet website & locate the text field provided.
- Paste your wallet address into the text field on the faucet webpage.
- Click the “Request test Ether” or a similar button to receive test ETH in your wallet.
Proceed to the Ethereum Remix IDE and create a fresh Solidity file, such as “token.sol.
Here’s a simple ERC-20 token contract written in Solidity
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0; contract SimpleERC20Token {
string public constant name = "SimpleToken";
string public constant symbol = "ST";
uint8 public constant decimals = 18;
uint256 public totalSupply;
mapping(address => uint256) public balanceOf;
mapping(address => mapping(address => uint256)) public allowance;
event Transfer(address indexed from, address indexed to,
uint256 value);
event Approval(address indexed owner, address indexed spender, uint256 value);
constructor(uint256 initialSupply) {
totalSupply = initialSupply * (10**uint256(decimals));
balanceOf[msg.sender] = totalSupply;
}
function transfer(address to, uint256 value) external returns (bool) {
require(to != address(0), "Invalid recipient address");
require(balanceOf[msg.sender] >= value, "Insufficient balance");
balanceOf[msg.sender] -= value;
balanceOf[to] += value;
emit Transfer(msg.sender, to, value);
return true;
}
function approve(address spender, uint256 value) external returns (bool) {
require(spender != address(0), "Invalid spender address");
allowance[msg.sender][spender] = value;
emit Approval(msg.sender, spender, value);
return true;
}
function transferFrom(address from, address to, uint256 value) external returns (bool) {
require(from != address(0), "Invalid sender address");
require(to != address(0), "Invalid recipient address");
require(balanceOf[from] >= value, "Insufficient balance");
require(allowance[from][msg.sender] >= value, "Allowance exceeded");
balanceOf[from] -= value;
balanceOf[to] += value;
allowance[from][msg.sender] -= value;
emit Transfer(from, to, value);
return true;
}
}
This contract embodies a fundamental ERC-20 token with the subsequent capabilities:
- The variables “name,” “symbol,” and “decimals” serve to specify the token’s name, symbol, and the number of decimal places it uses.
- The “totalSupply” variable stores the entire token supply within the contract.
- The “balanceOf” mapping keeps a record of the token balances associated with each address.
- The allowance mapping enables token owners to authorize other addresses to expend tokens on their behalf.
- The Transfer event is triggered each time tokens move between different addresses.
- The Approval event is broadcasted whenever authorization for token expenditure is provided to another address.
Please note that this serves as a fundamental illustration for educational purposes and may not encompass the advanced features or security measures usually found in production-grade token contracts. While this represents the most basic and potentially risky contract, genuine contracts tend to be considerably larger and more intricate. It’s imperative to conduct a comprehensive audit and testing prior to deploying any smart contract onto a live network.
If the individual behind the cryptocurrency’s creation lacks development skills or isn’t familiar with the Solidity language, there’s a significant likelihood of them making errors in writing the smart contract code. The following are some prevalent errors frequently encountered during Ethereum cryptocurrency development:
throw is deprecated.
This implies that the smart contract contains distinct functions intended for exclusive invocation by a specific address identified as the owner. Before Solidity 0.4.10 (and occasionally thereafter), this practice was widely used for enforcing permissions.
Should anyone other than the owner attempt to invoke the useSuperPowers() function, the program will raise an error, resulting in an invalid opcode.
In this scenario, the “throw” will deplete all the gas, whereas “revert” will refund the unused gas fee.
Now that you’ve grasped the process of ERC-20 token creation, it’s worth noting that Stfalcon specializes in blockchain and token development. We stand ready to assist you in crafting an Ethereum token, leveraging our technical expertise. We are capable of elucidating the potential and technical intricacies surrounding the establishment of an ERC-20 token. Moreover, the proficient developers at Stfalcon can proficiently construct the smart contract code for your ERC-20 token, demonstrating their extensive experience in Solidity, the language commonly employed for Ethereum smart contracts, to ensure compliance with the ERC-20 standard.
Our expertise extends to seamlessly integrating ERC-20 tokens into pre-existing wallets, DeFi exchanges, and blockchain platforms. Stfalcon is also well-equipped to deploy tokens on the Ethereum network, with the capability to do so on the Ropsten testnet. If you’re interested in providing the successful implementation of your token project, contact us, a free consultation is available.
Originally published at https://stfalcon.com.
