As blockchain technology revolutionizes various industries, ERC20 token development has become a gateway for startups, businesses, and individuals looking to innovate and tokenize assets. Thus, most entrepreneurs are considering creating ERC-20 tokens.
When developing ERC-20 tokens, most individuals get stuck on the overall cost of creating ERC-20 tokens. If you are one of them, you’re in the right place.
But, before we move on to the costs involved, we’ll take a look at some of the essentials, such as what an ERC-20 token is, its features, benefits, and other crucial factors.
So, let’s begin with…
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An Overview of ERC-20 Tokens
ERC-20 tokens are built on the Ethereum blockchain. It defines a set of rules and functions that any token on the network must follow to be considered ERC-20-compliant. These tokens enable the creation and management of fungible assets such as cryptocurrencies, loyalty points, and tokenized assets.
The ERC-20 standard ensures interoperability between tokens and allows them to seamlessly interact with dApps and smart contracts on the Ethereum platform. ERC-20 tokens have gained immense popularity today due to their simplicity, flexibility, and compatibility with various wallets and exchanges. This has made them a preferred choice for blockchain projects seeking to tokenize assets or raise funds through ICOs.
Use Cases of ERC-20 Tokens
ERC-20 tokens were earlier used to create smart contracts on the Ethereum blockchain network. These utilize some essential guidelines for developing tokens on the Ethereum network. According to cryptocurrency development experts, there will be more than 442K ERC-20-compliant tokens by the end of 2021. This figure reflects the overall demand to build ERC-20 tokens.
Today, ERC-20 tokens are widely used for several purposes, including:
NFTs, or Non-Fungible Tokens
NFTs are tokenized digital items that are created on Ethereum. You can seamlessly buy or sell NFTs and can even use them to conduct transactions on the blockchain network. These tokens establish ownership as the owner’s wallet address that is stored in the encrypted data.
DAOs Development
DAO, or Decentralized Autonomous Organizations are collaborative decision-making methodologies that are used across diverse networks. It uses smart contracts to collect the votes and automatically distribute returns. The cost of creating ERC-20 tokens for DAO is different from other types of tokens involved.
Gaming
Like other industries, gaming is influenced by Ethereum. The virtual world uses blockchain technology to protect the items. The cost of ERC-20 tokens for the gaming industry varies depending on the type of game involved.
Reasons to Develop the ERC-20 Token
Undoubtedly, Ethereum is now the talk of the town. But many entrepreneurs still doubt it. They are surrounded by a common query: ‘Why should I consider ERC-20 token development’? Thus, here are some major reasons why one must invest in ERC-20 tokens for their business:
Cost-Effective
Most entrepreneurs stay under the misconception that creating an ERC-20 token is a costly affair. But it is not! The cost of ERC-20 tokens is lower as compared to other types of tokens available. Thus, if you have a particular budget in mind, you can go for it.
Simple Creation
The process of developing NFT marketplaces is a challenging task that one undertakes, but the ERC-20 token development process isn’t that complex. Or, if you are a non-tech-savvy individual, you can partner with the top token development company that can help you create the ERC-20 token easily. Also, its cost will be reasonable.
Smart Contract Security
Every user today is concerned about their data privacy and security. Furthermore, businesses are also worried about cyberattacks, thefts, and breaches. But ERC-20 comes with an in-built smart contract security mechanism. It not only ensures the token’s security but also gains the user’s trust and loyalty.
Easy Usage
One of the best parts about ERC-20 tokens is that they can be used easily. It enables anyone to conduct secure transactions with ERC-20 tokens. Also, it’s an opportunity for entrepreneurs to develop tokens easily since it doesn’t require much experience.
Quick Fundraising
We are aware of the fact that ERC-20 has garnered significant popularity in the crypto space. This has resulted in several investors, entrepreneurs, and enthusiasts interested in ERC-20 token development. Thus, businesses that are planning to gain quick fundraising can benefit from this token.
Automatic Transactions
ERC-20 tokens come with smart contract functionality. Thus, once transactions are completed, the user’s wallet is automatically created with the assets. This will allow users to feel relieved about their transactions.
Deploy with Mobile Apps
While creating ERC-20 tokens, businesses can easily deploy a mobile wallet app based on Ethereum. It allows entrepreneurs to store, send, transfer, and receive ERC-20 tokens easily.
A Cost Estimate to Create ERC-20 Tokens
The cost of creating ERC-20 tokens plays an integral role in developing a crypto token on the blockchain network. One won’t be able to tell you the exact cost of creating ERC-20 tokens. Yet, an estimation lies somewhere between $8000 and $10000. However, the actual cost depends on your business goals and needs.
Factors Affecting the Cost of Creating ERC-20 Tokens
Let’s discuss the essential costs involved that affect the overall cost of building ERC-20 tokens!
Complexity of Token Features
The complexity of the ERC-20 token’s features is directly related to the overall development costs. Some of the basic tokens with standard functionalities are less expensive to create compared to tokens with advanced features such as minting, burning, staking, or complex smart contract interactions.
Smart Contract Development
ERC-20 tokens are implemented using smart contracts on the Ethereum blockchain network. The complexity of the smart contract code also contributes to the token development cost. More complex smart contracts that involve multiple functionalities require more development effort and thus increase costs.
Tokenomics Design
The design of tokenomics, including token supply, distribution mechanisms, vesting schedules, and utility within the ecosystem, impacts the cost. Designing a robust tokenomics model that aligns with the project’s goals and regulatory compliance requires careful planning and may involve additional costs.
Team Expertise & Location
The expertise and experience of the development team you choose also influence costs. Highly skilled blockchain developers with experience in ERC-20 token creation typically charge higher fees. Moreover, the geographical location of the development team also plays a role.
Additional Features & Integrations
Integrating additional features such as multi-signature wallets, governance mechanisms, or integrating the token into existing platforms or exchanges can increase costs. Each integration increases the complexity and even requires additional development and testing efforts.
Steps to Create ERC-20 Tokens
Here are the essential steps that you need to follow to create ERC-20 tokens easily:
Step 1: Decide on ERC-20 Token Needs
Before you dive into the actual ERC-20 token development process, it is important to understand the basic goal of your token. Businesses need to know how they’ll be using the ERC-20 tokens for crowdfunding and their ventures. This will ensure that they can make the best use of it.
Step 2: Identify the Crucial Features
Once you’re all set with the essential requirements, start listing the features that you wish to integrate into your token. You can find hundreds of applications in the market; just think of out-of-the-box features that will make your ERC-20 token stand out. If you lack technical expertise, you can reach out to professional blockchain developers who can guide you along the way to incorporate the best-in-class features.
Step 3: Create a Smart Contract
Smart contracts play an integral role in the ERC-20 token development process. The tokens perform major functionalities, such as:
total supply
balance
allowance
transfer
approve
transfer from
Step 4: Test the Smart Contract
Once you’ve created the smart contract, your next task is to test it for Etherscan verification. Not every code you develop is error-free in the first attempt itself. Thus, after you have written the smart contract code, run it for testing and check whether it functions as intended. This will help you find and mitigate bugs before users find them.
Step 5: Validate Tokens
After thorough testing of your ERC-20 tokens, you need to go for beta testing to validate the token transactions. You can even validate the tokens based on their performance. If your tokens encounter bugs or errors, you can make the essential changes. This will help you create an error-free ERC-20 token that will help you drive more profits for the business.
Step 6: Deploy
The final step is to deploy the code on the Ethereum network to launch your ERC-20 token. If you find this step a little confusing, you can hire professionals for that purpose.
Wrapping Up
Creating ERC-20 tokens is not an easy task. But, once you’ve gone through this blog from start to finish, you might find this task easier. We hope that after going through the ERC-20 token development process, cost, and other essential details, you can build a thriving token for your business.
For even better results, it is suggested to hire professional blockchain developers who can help you build ERC-20 tokens.
Coin Developer India is a well-known crypto token development company that boasts a team of dedicated developers who can create top-notch applications that adhere to your business needs. Get in touch with us and share your crypto needs with us!
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