How to create an ERC20 Token on Ethereum Blockchain

How to create an ERC-20 Token on the Ethereum Blockchain

Deploying an ERC20 token to the Ethereum Blockchain is easier than you might think.

One of the best ways to learn more about how cryptocurrencies work is by creating your own digital token. And the good news is, anyone can create their own ERC20 token on the Ethereum Blockchain.

Ethereum Blockchain

Ethereum is an open-source blockchain-based platform that creates and shares business, financial services, and entertainment applications.

Ethereum Blockchain is specifically designed for smart contracts and the creation of decentralized applications (DApps).

The ERC20 Token Standard

Creating an Ethereum token is surprisingly simple. These tokens conform to a standard called ERC20.

The token standard ensures basic functions for the token, such as transferring funds, returning a balance, displaying token ownership, etc.

For each transaction that takes place with these tokens on the Ethereum Blockchain, a fee must be paid in ETH. This fee is a compensation for the validators for securing the network.

Install MetaMask

Let's start with the requirements to create an ERC20 Token.

Start by downloading MetaMask

Next, create a wallet
Write down the backup seed phrase somewhere secure
Without this phrase, your funds can’t be recovered if your device is damaged or lost
Finally, confirm your seed phrase by following the on-screen instructions

Create an ERC-20 Token

Start by going to coinmanufactory. If you are using your phone, make sure you are using the browser within the MetaMask app.

Make sure you have some ETH in your MetaMask wallet. If not, you need to transfer some ETH to your MetaMask wallet address.

Choose ERC-20 to create a token on the Ethereum Blockchain.

Next you need to fill in the details for your token. You must give your token a name and a symbol. You also need to specify the initial supply of your token and the number of decimal places each token can be divided into.

You can also enable the following features for your token.

Burnable: This check specifies whether your tokens can be burned to decrease the supply.
Mintable: This check specifies whether your tokens can be minted to increase the supply.
Fees/Taxes: This check specifies that a certain percentage of each transaction can be burned and a certain percentage of each transaction will be sent to an address of your choice.
Holder Redistribution: This check specifies that a certain percentage of each transaction is redistributed to the holders proportional to the tokens they hold.

Create Token

Once you select ‘Create', the next interface will show you the fee for the creation. This fee will be in ETH.

The token will be created once you approve this transaction fee.