ERC-20 token development company: How to find the most suitable one?
The Ethereum development team has unveiled a platform designed for the development of ERC20 tokens and secure dApps (decentralized applications) powered by smart contracts. erc20 token development company But Ethereum was one of the first major ETH open source solutions to introduce trusted token standards for creating custom digital assets used to provide development services even before this release.
Initial coin offerings (ICOs) were held on the Ethereum blockchain network. Among them are projects as prominent as Filecoin and The DAO, and hundreds of DApps of various kinds are being developed:
Uniswap, 1 inch, Synthetix, dYdX and other AMM protocols.
Curve, Aave and Compound landing protocols.
OpenSea and Rarible NFT markets.
Blockchain games and Axie Infinity.
Leading token development companies use Ethereum to build feature-rich and secure blockchain applications that provide a wide range of financial services within the DeFi ecosystem. Let’s find out what Ethereum crypto tokens are, what types of tokens exist, what is needed to create tokens, and how token development services are useful.
Token — What is that?
A token is a digital asset deployed on an established blockchain. Unlike cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dogecoin (DOGE), tokens work on an existing blockchain, not on their own.
The tokens are minted through the launch of a new smart contract that governs the issuance of assets and operations with them: transferring tokens, adding and removing assets from liquidity pools, staking, atomic swaps and more.
Ethereum (ERC20 token)
Binance Smart Chain (BSC) — BEP20
Tron — TRC20
Cardano (ADA)
Cosmos (ATOM)
Sunshine (SUN).
Some Ethereum token development services create solutions for the BSC network and are similar in many ways, making token migration easy.
What types of tokens exist?
There are several types of Ethereum tokens adapted to different purposes:
security tokens
Blockchain-powered securities. This type of crypto asset is distributed through a Security Token Offering (STO), a simplified analog of an Initial Public Offering or tokenized IPO.
utility tokens
They are used for specific purposes, such as staking or farming, payments on a specific platform, etc. Examples of utility tokens include Shiba Inu (SHIB), Uniswap (UNI), 1 Inch (1 INCH), and Filecoin (FIL).
Non-Fungible Tokens
Unlike other types of tokens, they are based on the special Ethereum token standards ERC721 or ERC1155.
What is the ERC20 token?
ERC20 is a standard token developed by the creators of Ethereum to create digital assets without implementing a new blockchain. ERC20 is the default standard among token development services. USDT Stablecoin — The token with the largest capitalization was launched in accordance with the ERC20 token standard .
Characteristics of the ERC20 token
Why are ERC20 tokens popular with ICO development services, not to mention ordinary users? Firstly, due to its high liquidity, Ethereum is the most widely used blockchain-enabled DApp and smart contract development platform.
Second, the Ethereum token standard supports the EVM virtual machine and Solidity, the most popular and refined programming language in which programmers and erc20 token development write smart contracts that govern their crypto tokens.
Third, most crypto wallets accept the ERC20 token standard: MetaMask, Ledger, Trezor, Trust Wallet, SafePal, Exodus, and many others. Almost all multi-currency wallets have support for ERC20 tokens.
Additional Benefits of Ethereum Token Development
Network security and reliability of smart contracts.
Availability of services for token migration.
Uniform standard for DApps and token development.
Stability of work, absence of problems and interruptions. The Solana network, one of Ethereum’s main competitors, suffers from suspended transactions on a semi-regular basis. Simplified token development, accompanied by extensive documentation, not to mention a plethora of user manuals on the subject. Any user can easily create their own custom source code.
The ERC20 token standards are accepted by virtually all token development exchanges and services, avoiding many issues related to product compatibility and lack of liquidity.
The only downside to Ethereum is network scalability issues — the platform only processes up to 15 transactions per second and lags far behind most modern platforms in this regard. The performance of Tron, for example, reaches 1000 transactions per second.
The scalability issue is a hurdle for Ethereum token development services, as lack of speed and high cost of transactions are major issues, and the cost of transactions can reach tens of dollars. However, token developers are thinking long term: Ethereum’s upgrade and upcoming sharding mechanism will solve scalability issues, and the network itself will move from proof-of-work (PoW) consensus to proof-of-stake (PoS) consensus. ).
Why do you need your own Ethereum token?
Some solutions, such as lending protocols or AMMs, do not need to create their own blockchain to transfer tokens. Instead, its developers implement an application (DApp) based on an Ethereum smart contract.
The development of the ERC20 token allows companies to reduce costs and eliminate intermediaries, making services more accessible to other users. Furthermore, this opens up the possibility of using custom programs on the Ethereum blockchain tailored to the needs of a specific project.
Ethereum Token Development
Blockchain technology offers a variety of solutions to develop flexible and productive highly decentralized systems that have low operating costs. The Ethereum blockchain offers a set of tools to create DApps, tokens and smart contracts that users can use to solve various problems and the ecosystem in which these applications work.
However, token development is not fast and is quite a complex process that requires a certain level of professionalism. Even if you have a custom token for the project, success cannot be expected without a proper marketing campaign. Ethereum Token Development Services will help you create and promote a project whose specialists know exactly how to build a blockchain platform and bring it to success. erc20 token generator
