How to Create Your Own Crypto Token - Crypto Academy | S5W2 - Homework Post for @reddileep

Hello Everyone,

What an interesting topic. I always wonder what is the process behind the creation process of our own token. I'm sure this will be quite wonderful homework for me. Let's dive into creating my own token.

---

Introduce how to create your own Cryptocurrency by differentiating between token and coin

• Introduction

Cryptocurrency must be one of the most popular words on this planet earth. Within a very short period of time everyone talks about it, everyone wants to own it, and many believe it is the future of the financial system. If we own our business, it is not that far we can implement digital currencies to our business because it is already available as a form of payment and can make an international transaction within seconds.

The technology behind cryptocurrency is Blockchain technology, the world first cryptocurrency, Bitcoin was created using the same. The word's "CRYPTO" refers to encrypted electronic information are network through this technology. After the inception of Bitcoin now the world has seen many cryptocurrencies and several blockchain networks in use.

^{illustration of a blockchain source}

The concept behind all these initiatives was to provide control over securities for users. In such a way, cryptocurrencies can be kept in a digital wallet and transact in a peer-to-peer manner using any exchange. The decentralization characteristics of the concept have attracted the global financial economy to adapt and welcome the new concept. As of current data, cryptocurrencies were able to aggregate over $2 trillion in market capitalization.

• Creating a cryptocurrency

With today's technology, we don't need to be a developer to create a cryptocurrency nor have to know any program languages. Only if we know the blockchain that supports our choice of consensus mechanism we can simply plant our idea into a reality.

There are three main components consist in a cryptocurrency,

◾ a blockchain,
◾ a currency,
◾ a protocol,

As the first step of creating a cryptocurrency, we should have a proper idea about the use-case of this cryptocurrency. Then we should choose a blockchain platform which integrate with the consensus mechanism protocols.

For example, Ethereum, Bitcoin, Litecoin, Solona has their own blockchains, respective currencies and protocols.

• Coins Vs Tokens

There are two forms of cryptocurrencies that we should be aware of. Those are Coins and Tokens, often both are considered as cryptocurrencies. But fundamentally, these two cater to two different purposes.

Coins, are more likely the money we use and consider as the form of digital currency. Litecoin (LTC) for example is the cryptocurrency in Litecoin Blockchain. Likewise, the currency is built on its own blockchain becoming the native coin of that particular blockchain.

Tokens, are more likely the rewards points in real life scenario. With money we don't have any limitations to spend. But when we have reward points, it will be limited to the company they are issued. Likewise, tokens are limited to the existing blockchain and are considered as programmable assets.

When the tokens are programmed according to the purpose of the tokens, it will also differentiate as Security Tokens, Equity Tokens, Utility Tokens & Payment Tokens.

---

Demonstrate how to prepare everything needed to create a crypto token, such as making a wallet and adding a few coins to it to pay the gas fee.

In order to create a cryptocurrency, first we must have a digital wallet. To demonstrate configuration of a digital wallet, I wish to use the MetaMask wallet.

◾ Visit Metamask wallet website to download the Chrome extension : https://metamask.io

^{Metamask Homepage}

◾ There are different options to select according to the device user use. I'm choosing Chrome as I want this extension for my we browser. The click the "Install MetaMask for Chrome"

^{Metamask Homepage: Download options}

◾ Once clicked, it will redirected to the chrome web store. From there we can click the "Add to Chrome button"

^{Chrome web store}

◾ On the popped-up window, confirm the "Add Extension"

^{Adding Metamask extension}

◾ After a successful installation, this message will appear.

^{Metamask extension added}

◾ When I click "Get started" from the previous window, I have two options to select. If I want to import the data from a previous MetaMask wallet I can click the 1st option available and paste the recovery phase.

If the requirement is to "Create a wallet" we can simply click the option 2.

^{wallet options}

◾ Click "I Agree" to proceed.

^{creating a wallet}

◾ Now we have a section to fill the password. The click "create"

^{Adding Metamask extension}

◾ Then I got this video click educating about the recovery phase and security of the wallet. If you are using this wallet for the first time, I recommend watching it before you proceed to the next step.

^{Secure your wallet}

◾ Here we will get 12 words which are not connected to each other nor have any meaning to the phrase. This 12 words must be kept in secure place because this phrase will be the only option to recover your wallet in case something happen. Usual recommendation is to store such phrases is offline methods. Hence, I wrote it down and kept it somewhere safe.

^{Secret Recovery Phrase}

◾ Next step I had to select the recovery phase in order. Then clicked "confirm" to proceed.

^{Confirming the Secret Recovery Phrase}

◾ Once successfully configured, this message will appear.

^{After completing the wallet configuration process}

The next step would be to add some coins to the wallet. I usually use binance as my exchanger and wish to add Binance Smart Chain Mainnet to the MetaMask.

◾ Since the Metamask wallet is running on Ethereum Blockchain, by default we can see the "Ethereum Mainnet" is added on the network list. To add more networks, we can simply select the "Add Network".

^{Add Network to Metamask wallet}

◾ Now we have to input some details to correctly add the Binance Smart Chain Mainnet.

Network Name	Binance Smart Chain Mainnet
New RPC URL	https://bsc-dataseed.binance.org/
Chain ID	56.
Symbol	BNB.
Block Explorer	https://bscscan.com.

^{Adding BSC Network settings}

◾ Here we can see that the BNB is available on my asset, which mean to say that the BSC is successfully added. If I want to switch between two networks I can click the Network and simply switch.

^{BSC Network added}

Now that the wallet is completely setup, I will be able to send BNB from my exchanger to this wallet. I'm going to use Binance as I can simply transfer between BEP20 network .

◾ First, I logged in to my Binance account and check my wallet for some BNB. I'm going to transfer 20 USD worth of BNB for this homework. On Withdraw window, we should provide the address of the receiver. To get that just click on the account and your address will automatically copied to the clipboard.

^{Depositing BNB to Metamask wallet}

◾ Once the account address paste on the network will automatically picked up by the Binance. Then I entered the amount I wish to withdraw, However, though my intention was to withdraw 20 USD worth of BNB, there is a restriction for minimal 0.1 BNB.

^{Withdrawing BNB from Binance exchanger}

◾ This is the confirmation of the deposit. You can check the transaction details here

Hash: ^{0xfb0f172f460dc00313916053575cc73fafa2571ae49ba5a4b5de5ecb4f7cbdb3}
Transaction Fee: 0.00021 BNB ($0.13)

^{Adding Metamask extension}

---

Explain the Remix IDE and download the source code by showing each step

Remix IDE stands for "Integrated Development Environment". The open source web and desktop application help users to create new smart contracts on top of blockchain networks.

This Integrated development environment has many potential uses for developers, but not only the developers! if we have source code for an original project we can simply tweak the same straight from the browser.

This will allow us to create cryptocurrencies and resemble something that we would want. What most interesting is that this application has ability for modules testing and debugging too. It is indeed an Integrated Development Environment.

Now that we know how the Remix IDE can help us on this creating new cryptocurrency project, we should look for the Source Code to download. For this particular scenario I will be looking for BEP-20 token of the Binance Smart Chain.

◾ To find the source code we can use the Binance Chain Documentation. On the homepage, right corner we have Table of content, the bottom part of the list consist BEP 20 Asset.

^{Binance Chain Documentation}

◾ On the next window, click the "Issue BEP20"

^{Binance Chain Documentation}

◾ Once clicked you can see there is a BEP20 Contract and downlink to download the source code. BEP20token.template file will be downloaded within a snap.

^{Downloading the source code}

---

Customize the source code according to your imagined future project

It's time to do the tweaking part now.

◾ Visit the official web page of the Remix IDE https://remix.ethereum.org/, On the homepage right corner, we have a option to create a new file under "Contract", right-click and select the option "New File". Also, I renamed the file to BEP20 Token.sol, basically, BEP20 Token is the name of the file. Let's see the screenshots below.

^{Remix IDE setup}

◾ When the new file added to the list we can add a name to our file. I have named it as VirajProject.sol

^{Naming the file}

◾ Now open the BEP20 Token Template which was downloaded earlier, I have used notepad to open my file.

^{BEP20 Token Template opened using Notepad}

◾ Then I have copied what on the template and pasted in the file that created. I have a 592 long code just like that!! To amend the details we have to go to line 351 and change the constructor according to our preference. The editable options are Token Name, Token Symbol, Decimal, and Total Token Supply.

^{amends to the project}

◾ I'm going to insert below details to the code,

• Token Name = "SriLanka Coin";
• Token Symbol = "SLC";
• Decimals = 18;
• Total Token Supply = 1000000 * 10 ** 18;

Note that the SLC will have a 10 million token supply with 18 decimals.

^{amends to the code}

◾ After the data tweak, we can select the "Solidity Compiler" to Compile VirajProject.sol. If there's any error in the code in this step it will show. Compiling would take a second.

^{Compiling the project}

◾ Once it compile, the next is to deploy the project.

^{Deploy the project}

◾ This are final details of the token created.

^{SLC Token created}

---

Demonstrate all the steps to add your created crypto token into your any wallet such as Trust Wallet and MetaMask wallet

I will use MetaMask wallet to demonstrate the steps,

First go to the "Connected sites'', then click on ''Manually connect to the current site'', click on "next" and then on connect. Once connected copy the token address from the deploy menu.

^{Adding the SLC token}

Once added, we can import the tokens to our wallet.

---

Conclusion

To conclude, I'm glad that I found this homework, because now I know how to create a token. If a project needs a token this would be ideal, hence it is a very practical tutorial. Further, understanding the true difference between coins & tokens was interesting.

Thank you prof. @reddileep for sharing this wonderful tutorial about creating our own crypto token.