There are no particular requirements for building a crypto token. Anyone can enter the crypto arena and develop their own crypto token, whether they’re raising money for app development, boosting a DeFi platform, or just for fun. Those buzz-making crypto coins like Dogecoin ($0.066) and Aave ($98.75) are good examples of how difficult it is to kick off a new crypto token.
In 2022, there will be more than 12,000 cryptocurrencies on the blockchain market, and while that seems like a lot, specialists are expecting a massive boom of new crypto coins in the near future. The main reason for the rising number of cryptocurrencies is that there is no barrier to entry. Anyone can create a token, but the development process requires massive commitments of time, money, experience, and advanced coding knowledge.
Developing a crypto token is the easiest part of your entire crypto journey. Growing it over time and maintaining it is far more challenging.
Crypto token or crypto coin: what’s the difference?
It’s extremely easy to confuse tokens with coins and vice versa since they are so much alike on the fundamental level. They can process payments, represent value, and are easy to trade. The main difference comes down to functionality. The things you can do with coins – you can’t do with tokens. Coins and tokens are like traders and investors. All traders can invest, but not all investors can trade.
Crypto coins are like virtual money that allow individuals to make payments or hold value. Tokens have far more functions. People can use them as a form of currency, as a store of value, as a key to dApps or DeFi platforms, and as a means of trading. So crypto coins are digitized money, while tokens stand for deeds or assets. Simply put, a coin represents what you’re capable of owning, while a token stands for what you own.
In fact, tokens existed long before crypto was invented. For example, a voucher for a free car wash you got in the mail is a token. Your property title is a token. When you sell your property, you transfer the value of the title to someone else. However, you cannot go to Apple and buy a new iPhone with that title or a car wash voucher.
Three types of tokens
Unlike coins, crypto tokens can serve different purposes. There are three primary types of crypto tokens:
As the name suggests, payment tokens are used for running transactions, and they don’t offer any extra functions. And security tokens don’t enhance the security of a crypto app; they secure your investments by freezing a certain amount of your holdings. Utility tokens serve the specific purpose of a decentralized app and provide access to certain dApp features.
NFTs are another popular form of crypto tokens in 2022. They are digital art tokens with verified and secured ownership. They can be anything from a funny DOGE meme and collectible item or even a lottery ticket.
How to develop a crypto token
Dozens of DIY platforms can help you not only build a web or mobile app from scratch but also create digital tokens. However, for all their benefits, they cannot help you develop a token with advanced functionality tied to your dApp ecosystem. In this case, you will need a team of seasoned blockchain developers. Here’s a step-by-step guide to building a crypto token:
- Choose a development team and discuss your project
At Unicsoft, we have every specialist required to develop a crypto token, from project managers and blockchain developers to QA engineers. While drafting a product development roadmap, you need to decide on the non-functional requirements like performance, maintainability, and scalability. During this phase, you have to follow such steps:
- Consult with our specialists
- Gather requirements
- Identify tools and platforms for blockchain development
- Finalize the project scope and create a roadmap
- Decide on the token type and kind
Depending on your needs, you can create utility, payment, or security tokens. At Unicsoft, we help you identify what type of crypto token will enhance your platform or business. It is often the case that a platform decides to go the route of the NFT.
- Choose a blockchain platform
Ethereum is the most widely used blockchain platform for developing crypto assets. It features the Ethereum Virtual Machine for developing blockchain-based apps. But your platform choice isn’t limited to Ethereum only.
- Build a smart contract
All crypto tokens are governed by smart contracts that run on a blockchain. So to develop your own token, you’ll need to code a smart contract that is fully autonomous and highly immutable.
- Run tests
When developing smart contracts, bear in mind that it won’t be possible to replace or change them, and bugs or errors can pop up. It’s better to run multiple tests on test chains like Ropsten or Rinkeby to ensure a contract’s impeccable performance by running through every conceivable test case. The process has to include manual and automated code reviews to analyze the code’s quality and report all errors and suggestions.
No one can modify smart contracts after deploying them. It’s much easier to debug and review simple code than to relaunch a buggy smart contract.
- Deploy smart contracts
Experienced developers can deploy smart contracts to a blockchain with their eyes shut. It doesn’t take weeks or months. Developers need to send transactions with compiled contract code without stating a receiver via particular tools.
Congrats! You now have your own crypto token that is developed, tested, and deployed on your blockchain network!
The Unicsoft difference
Creating crypto tokens requires the skill and ability to code, test, and deploy smart contracts. Building crypto tokens on existing blockchain platforms is much easier than creating a new blockchain platform from scratch.
With over 15 years of blockchain experience, Unicsoft can help you create crypto tokens, dApps, and DeFi solutions involving different distributed ledger technologies (DLTs), including private and public networks. If you want to develop your own crypto token and have no idea where to start, contact us for a free consultation with Unicsoft’s experts!