How to create an ERC-20 token on Ethereum

Blockchain technology has enabled anyone to create their tokens and use them for payment. It is very similar to Bitcoin, yet any individual can create their token with the Ethereum platform. This article will look at how you can create an ERC-20 token on the Ethereum network.

What is a token, and why create one?

A token is a unit of account, representation of value, or loyalty points.

Tokens can be used to represent any form of value or asset. For example, you can purchase a token representing shares in your company or reward yourself with free electricity or stamps at the post office. A cryptocurrency may be backed by gold, so holders can only exchange it for its real-world equivalent value (such as $1).

What is an ERC-20 token?

An ERC-20 token is a standard that describes how tokens are transferred between different Ethereum wallets. It’s built on the Ethereum blockchain and follows specific rules that allow it to be compatible with other tokens built off the same standard.

What you need to get started

To create an ERC-20 token, you must first have an Ethereum Wallet. An Ethereum wallet allows you to manage your Ether and ERC-20 tokens stored on the Ethereum blockchain. A good option for beginners is MetaMask, which is available as an extension on Chrome or Firefox browsers. There is also a mobile application for smartphones.

You also need access to a testnet (a different version of the Ethereum network) where you can deploy your new smart contract and test it before launching it onto the mainnet (the primary version). You can get this by creating an account on any testnets: Rinkeby, Kovan, or Ropsten (you don’t need more than one).

Lastly, before starting development, you must have basic knowledge of Solidity programming language and its syntaxes. It also helps to understand how Uniswap works because that will help accelerate development time when interacting with exchanges and liquidity providers during the testing phase.

Follow the steps below to create your ERC-20 token

• Create a smart contract for your token.
• Create a private blockchain for testing.
• Compile and deploy the smart contract on the test net. Test that you can use it by sending transactions with the appropriate amount of gas. Then deploy it again with more gas to verify that there are no errors, and so on. Repeat until you have run out of all available resources (gas). These steps are essential because a transaction could fail because of an error in your code. As such, users may lose their funds if they send them to an address whose owner doesn’t exist yet or has been changed without notice by someone else. It is unlikely but possible; better safe than sorry!
• Deployment cost: 0 Ether (default)

Step 1. Create Your Ethereum Wallet To Store ERC-20 Tokens

An Ethereum wallet allows you to access your account. It’s like a bank account with private and public keys.

To create an Ethereum wallet, you need to:

• Download Mist Wallet or other wallets if you prefer (like MyEtherWallet or Metamask). We recommend Mist as it comes with all the features needed for this tutorial, plus more advanced ones later on!
• Create an address using [the “Receive” option] This address will be visible in every transaction you make, so don’t forget it!

Step 2. Create A Private Blockchain (Test Net/ Local Net)

Now you will create a private blockchain (test net/ local net). That is the environment in which your code will run and where you’ll deploy your smart contract once it’s ready.

It is important to remember that this environment should be a separate network from the main Ethereum network. For example, if you use Parity as an Ethereum client on your computer, it creates its private chain by default if you tell it to do so.

Step 3. Compile and Deploy the Smart Contract On Test Net (Local Net)

• Install the MetaMask plugin on your browser. It is a plugin that allows you to connect to the Ethereum test net.
• Create a new account on the testnet. You can do this by going to https://testnet.etherscan.io/#accounts and clicking “Create Account” in the top right corner:
• Connect to the testnet. Once you have created an account, you will need to connect it with MetaMask so that your browser can interact with smart contracts deployed on Ethereum’s TestNet chain:
• Compile and deploy your smart contract using Remix IDE.

Step 4. Testing The ERC-20 Token On Test Net (Local Net)

The first thing to do is to deploy your ERC-20 token contract on Ethereum. You can do this by using Etherscan.io, which is an online browser that allows you to view and interact with the Ethereum blockchain. You’ll need Ether to pay for gas fees so your transactions can be processed, but don’t worry if you don’t have any! It is possible to buy Ether from exchanges like Coinbase or Gemini using fiat currency (USD).

Once you have some ether, go ahead and start up your local testnet node to create a new private network. Here, all your interactions will occur through RPC calls instead of being broadcast onto the main net. It makes it much easier for development because there aren’t any other users connected.

Step 5. Deploying Smart Contract On Mainnet

The next step is ensuring you have a wallet with an address on Ethereum’s mainnet.

To do this, follow these steps:

• Create a new account on Mainnet. You can do this by visiting MyEtherWallet and clicking on “New Account”, then pressing “GENERATE THE ADDRESS HERE”. That will generate a new private key for your account, which needs to be saved somewhere safe, as you’ll need it in the future! 
• Make sure your computer isn’t compromised by malware while creating this new private key. Malware could compromise its security and allow someone else to access your funds later. 
• OPTIONAL: A good way around this risk would be using Tails OS with MyEtherWallet installed onto an encrypted USB drive. It’s designed specifically around keeping everything secure while working offline and remaining compatible with Ethereum’s underlying software components like Metamask. 

Step 6. Testing The ERC-20 Token On Mainnet

Once the contract has been compiled and tested on Mainnet, you should test the token to ensure it works as intended.

• Testnet: If you have access to a Testnet, use it! You can use all of your Ethereum tokens there without spending real Ether. It will enable you to test things like gas prices and transactions per second with no risk of losing any ETH or tokens in your account.
• Local Network: Use a private blockchain and deploy contracts there. You can use tools like Geth or Parity locally on your computer if they are available for your platform (macOS, Windows). After deploying them on this network, perform the same tests as mentioned above in the “Testing The Token On Mainnet” section

Conclusion

You can create an ERC-20 token using a smart contract on the Ethereum network. You can use this article as a guide to help you get started with your ERC-20 token, but feel free to experiment and have fun!

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