Blockchain technologies are now at the peak of popularity and have overcome a new developmental milestone. Almost everyone has the opportunity to master algorithms for creating their own tokens. The Binance Smart Chain platform is relatively recent and allows you to create BEP20 tokens, which is what you will learn about next.
When you create a new cryptocurrency, decide what it will be. Choose between a coin or a token. The point is that the coin exists on its own blockchain, while the token exists on the existing one. Blockchain ensures the security and decentralization of cryptocurrencies.
In the case of creating a token, you need less experience and knowledge than when creating a coin. To create a coin, you need to find a team of developers and experts in this area. Tokens also require the latest tech knowledge, but they can be created in minutes on the basis of the Ethereum network, Binance Smart Chain, Solana and Polygon blockchains.
Choosing between a token and a coin is based on customization requirements and use cases for the asset. In general, the costs of creating crypto depend on the amount of work.
Ethereum network and Binance Smart Chain are measured to be the most popular blockchains for creating crypto assets. To create a token, it is enough to use a template code or use a paid coin creation service. There is also a fairly popular way to create tokens – the use of sidechains, which provide high flexibility in development while maintaining the advantages of the main blockchain.
Before you move on to creating your own cryptocurrency on BEP20 token standards, decide on its use cases, tokenomics, and legal status. Then, during the development phase, choose the blockchain, consensus mechanism, and architecture. Do not forget to conduct a project audit and due diligence. Despite the fact that everyone has the opportunity to create their own cryptocurrency, in order for the project to be reliable, a responsible approach is needed, and long-term interest is important. Learn more about how you can create your own token.
Differences Between Crypto Coins and Tokens
Cryptocurrencies are conditionally divided into 2 categories: coins and tokens. There are some differences between them that are easy to understand. The coins have a native blockchain, as is the case with bitcoin. ETH is launched on its own Ethereum blockchain. Coins usually provide some utility on the network, such as paying a transaction fee, staking, or participation in governance.
Tokens are created on already existing blockchains. They can perform roles similar to coins. However, this is only useful within your own projects. A prime example is a CAKE by PancakeSwap, which is powered by Binance Smart Chain smart contract. The token can be used to pay for some activities in the PancakeSwap ecosystem. But CAKE does not have its own blockchain, so it cannot be used in all BSC applications and BEP20 token standards. The same applies to the thousands of ERC-20 tokens issued on the Ethereum blockchain. Each crypto token is part of a specific project with different use cases.
Let’s Move From Theory to Practice: Create a Custom Token
First of all, connect to the Binance smart chain BSC Platform Metamask extension to create a BEP20 token.
Learn More About Binance Smart Chain Network
Binance Chain launched the Binance exchange in April 2019. The Binance Token ($BNB) cryptocurrency base is optimized for ultra-fast trading. To achieve this, several compromises had to be made, one of which was that it was not as flexible as other blockchains due to programmability. Smart contracts combined into a single System optimized for fast trading can significantly overload the network. How Ethereum’s CryptoKitties stalled the blockchain at the peak of its popularity and scalability remains one of the most difficult hurdles in the path of blockchain development.
Binance Smart Chain is designed to solve this issue. This is a new blockchain that has a comprehensive development environment. It was created to be cross-chain compatible with Binance Chain so that users can get the best of both worlds. Binance Smart Chain went live on the mainnet on September 1, 2020, by activating the parallel blockchain Binance Chain. This enabled the creation of a smart contract and a staking engine for the BNB block explorer URL.
What Is Binance Smart Chain (BSC)?
Binance Smart Chain (BSC) is best described as a blockchain that runs in parallel with Binance Chain. However, BSC has smart contract capabilities and compatibility with the Ethereum Virtual Machine (EVM). The purpose of the creation is to make Binance Chain without changes in throughput by introducing smart contracts into its own ecosystem.
BSC should not be taken as a second layer scaling solution. This is an independent blockchain that could work even if Binance Chain was disabled. Since BSC is compatible with the EVM, it is easy for developers to scale their projects from the Ethereum transfer. For users, this means that decentralized applications such as MetaMask are easily configured to work with BSC.
The leading tokens in the Binance Smart Chain ecosystem by market capitalization include:
- Ethereum (ETH) – $369.34 B
- Tether – $78.44 B
- BNB – $68.74
- USD Coin – $52.09 B
- Cardano (ADA) – $38.63 B.
The market capitalization is $849.05 B.
What Are BEP20 Tokens?
BEP20 token is a variety of crypto assets that do not have their own blockchain but are built on top of the Binance Smart Chain (BSC) smart contract blockchain. The BEP20 technical standard is used for all smart contracts on Binance Smart Chain to implement tokens. If you begin to understand the difference between Binance Chain and Binance Smart Chain, then you will quickly understand what a BEP20 token is.
The BEP20 token standard provides the foundation that is required to launch the BSC token on Chain. BEP20 tokens are native to the Binance network. As mentioned earlier, the BEP20 token is incredibly similar to ERC-20 tokens but has many fundamental differences.
Guide: How to Create a BSC Token?
The creation of a BEP20 token is similar to the creation of a token on Ethereum and BSC. Both processes require the same programming language, tools, and thought processes to be used. Solidity is used to create the BSC token, and the only tools needed are the Remix browser-based crypto wallet and MetaMask account.
Let’s take a look at the BEP20 token development process on the Binance Smart Chain. It is similar to the main network process.
Get a Node
For this step, you need to find a node to connect the MetaMask wallet. After that, you can connect to various blockchain networks. Open a node, and you will see a list of endpoints and other available nodes. Here you get a list of nodes such as the Testnet node and the BSC Testnet archive node. Click the “Copy to Clipboard” button on the BSC Testnet node, and you can move on to the next step.
Installing a Custom RCP
For this step, use the MetaMask wallet. You can use the wallet to upload a new token and access the token after launch. In the meantime, click on the symbol and open the wallet. Now you can see the list of networks at the top. Scroll down and look for the Custom RCP option. This option will provide a list of input fields. Enter the required information and continue.
Collect Your BNB
The next step to creating a BEP20 token requires you to have a few BNB coins in your wallet. If you don’t have them, you can purchase them on the mainnet.
Now open the MetaMask wallet and copy the wallet address. You can copy the address by selecting the account name at the top. Paste the token address and contract address into the box and select the “Give me BNB” option. This process results in a dropdown for 1 BNB. Select this option and wait a few seconds. You now see 1 BNB in your MetaMask wallet. If it doesn’t show up, it would be a good idea to check the RPC URL link and stay connected to the BSC token testnet.
As soon as you confirm the first transaction, you will receive the transaction hash and the address of the token.
Creation of the BEP20 Token
The most significant advantage of decentralization and open-source software is the freedom to copy, paste and modify code. You can find the code for this process in OpenZeppelin. The platform is an open-source organization that can map various token standards for developers to use. Since BEP20 is similar to Erc-20, the token standard Erc-20 token code can be used for this process.
Remix is one of the most popular environments for deployed contracts. You will use this platform to program your token. On the website, select the contracts button, and you will be able to create a new file by selecting the document symbol in the top left corner. It is very important to name the token somehow appropriate or memorable in order to draw the necessary attention to it.
- Copying code from OpenZeppelin requires some modifications to a few lines of code. Don’t forget to change these elements and code when creating the token.
- The first line of code should indicate the version of Solidity used for development.
- The next line is for importing the template. This line contains a URL link that contains the entire token structure.
- Now copy the smart contract of the token. In this part, you can change the parameters of the token.
- The second line of code refers to running the constructor when the token is created. Here you can specify the name of the token and its symbol.
- The next line is about creating a token and sending a receipt to the user’s wallet when you deploy smart contracts. In this part, you can enter the total number of BSC tokens you want to mainnet.
Now that you’ve written the contract, the next step requires it to be processed by the compiler. This step ensures that there are no errors, problems, or failures in the contract. This process requires you to navigate to the Solidity compiler icon. Please select it and click compile. If the process does not reveal any problems, you can proceed to the last step.
Select a cryptocurrency token symbol to deploy and start transactions. This first menu prompts you to select the required environment. Make sure you select the Web3 option. Then check and see if your account address matches the MetaMask account/contract address. You will now see fields for limit and gas costs. You don’t need to adjust these values, so leave them as they are. Finally, make sure your contract matches the filename you made. Click the deploy button and complete the process.
Benefits of Developing Your BEP20 Token
The use of different variants of tokens can bring convenience, benefit and material income. It is worth paying attention to the following positive sides of developing a token:
- You can develop and launch your own blockchain project with specific tokens within any business. This will bring obvious potential to the future development of the company.
- Tokens noticeably optimize and speed up trading processes due to the convenience of working with virtual currencies. There is no additional congestion due to the acceptance and processing of fiat money.
- Business gets rid of intermediaries. At the stage of smart contracts, it is not difficult to prescribe their participation.
- The use of tokens multiplies the basic functionality of the platform, expanding its potential.
- Tokens will help streamline the use of the service.
For users who are interested in cryptocurrencies, it is important to understand the features of tokens. Understanding all the nuances will open promising options for the use of these assets. Thanks to them, you can improve your business, optimize the capabilities of web projects, and implement a little-known but promising idea of earning money online.
These steps help you to develop a BSC token with a smart contract in Binance Chain. The process is simple, and you need minimal programming skills. If you are not sure that you can handle it on your own, seek help from professionals to get a modern solution. Token ownership is due to certain goals. Use your own cryptocurrency for internal company activities, validate transactions or for other purposes with basic functionality.
Once the token is created, you become the contract owner and can track any transactions on your network. Create more tokens only if you are sure that your cryptocurrency will be successful.