How to Make BEP20 Token and Whether It Is as Easy as It Might Seem on the Surface

What Is the Purpose of a Digital Token?

Basically, it is a smart contract record that confirms the allocation of funds among all participants of a certain transaction. When deploying their own decentralized applications, the owner needs to issue a new token to ensure the unification of all operations.

What Are Smart Contracts?

Technically, it is a source code that uses conditional statements to describe the rules of transactions. For example, “If the sender confirms a transfer, N coins are transferred to the recipient’s wallet address.” Smart contracts are programmed by users or created automatically by special services.

What Is the Connection Between a Token and Smart Contracts?

Simply put, a token arises and exists as part of a contract. Many actions according to the specified conditions change the existing data. This is how assets are moved between various addresses.

What Are BEP20 Tokens?

BEP20 is a standard for the development of smart contracts that contains a set of technological rules of the Binance Chain environment, describing the functions of the source code. Based on the common ERC 20.

Who Might Need to Create a BEP20 Token?

First of all, token ownership can be useful for entrepreneurs who develop a business in DeFi. There are still lots of opportunities in decentralized finance to be explored which is why many startups appear in this sphere. A project is presented as a white paper and promoted. Companies issue their own new tokens and distribute them as part of an initial offering among their first followers. If a project becomes successful, both token creator and token owner gain profit.

Cost to Create BEP20 Token

The price for the creation is equal to the commission of the site. For example, on Binance, you will currently pay about 3.5 USD.

Why Binance Smart Chain Network?

On the surface, it seems that the Ethereum blockchain is more reliable as it has operated for almost nine years while Binance Smart Chain was only launched last year. However, the fork was designed not as a source of additional income for the Binance Chain exchange owners. Its main purpose is to improve the capabilities of the main blockchain. First and foremost, it concerns the technical characteristics.

  1. The block time of the Binance Smart Chain is only 3 seconds.
  2. The transaction (gas) fee is several times lower than that of the Ethereum blockchain.

How to Make Your Own BEP20 Token: Step-By-Step Instructions

Setting up a Wallet

Most often, a Metamask wallet is used because Binance Smart Chain supports its extension. Another option is a Trust Wallet.

Connecting to the Binance Smart Chain Testnet

Right now, we are connected to the Ethereum blockchain. Select Binance Smart Chain.

Topping up the Account

So far, the wallet is empty.

Writing the Program of a Smart Contract

In order to mint your own BEP20 token, you need to create a token source code in accordance with all protocol requirements. It should feature the basic functionality of a standard interface, with the functions specified in the table below.

Compiling a Smart Contract

In order to get a working contract code, you need to compile it. As the token generator, we will use Remix, a web-based integrated development environment.

Make a BEP20 Token Deployment

After successful completion of all the above-mentioned steps, we will proceed to the deployment tab.

The Amount of the Fee to Create a BEP20 Token

You will see the default fee paid when issuing a token. The fee can be changed, but we do not recommend doing so. If you set up low fees, the transaction might not be performed successfully.

A Custom Token and Contract Transaction

Let us copy the identifier, go to https://bscscan.com and choose the test Binance Smart Chain network. BSCScan is a service that allows checking the total supply and transactions, verifying a contract, and viewing token ownership. Let us insert the data and click the search button.

Finish of the BEP20 Token Development: Verification and Publication

After following the link containing the token address, the “Contract” tab will appear in the BSCScan, and you need to click the verification link. Fill in the necessary information and confirm the transaction.

The Specifics of Developing a BEP20 Token

Token development requires not only programming skills but also the understanding of project algorithms: you need to define the conditions and describe token characteristics:

  • whether it is possible to burn tokens;
  • who can mint tokens and whether this function can be turned off;
  • what are the limits;
  • the voting logic;
  • whether the token roles should be allocated, or the token will be open to the public;
  • whether it is necessary to create your own digital token that the token owner can generate.

Project Promotion

Usually, it takes some time for an idea to start yielding returns because you need to promote your services and bring attention to them. This is why marketing is an integral part of any startup.

Conclusion

From the technical point of view, it is not difficult to create BEP20 tokens because you can simply use any token generator and connect a Trust Wallet or a MetaMask wallet. However, it should be taken into consideration that coding is required for creating a smart contract in order to set up the algorithm of the project’s idea. Therefore, its implementation requires a thorough analysis and a simulation of all business processes. This is why it is better to turn to experts who specialize in token development for the Binance Smart Chain network.

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