Hello friends and welcome to my assignment task by professor @reddileep, In this assignment, I will provide a detailed review of How to Create Your Own Crypto Token. I hope you enjoy the class.
All images used in this post unless otherwise stated are not mine and were extracted from Metamask for the purpose of this assignment.
Question One
Introduce how to create your own Cryptocurrency by differentiating between token and coin.
Hahaha! Creating my cryptocurrency? When I first thought of this idea, it felt impossible to me. Something preserved for tech gurus. However, last week I had to research on scam/fraud cryptocurrencies during one of the assignments, and I came across the token: SQUID, with the way SQUID was built up immediately preceding the hype surrounding the Netflix Series: Squid Game, it had an undertone that at least building a token that is domicile on a blockchain cannot be that hard. Initially, I expected it would involve some strict mathematical process, but apparently from this week’s class exercise, it may not. First let’s break the difference between a token and a coin.
I myself have been guilty countless times of interchanging the terms “coin” and “token” perhaps mostly in the course of my assignment, but this is what I found to be the difference between Coin and Token.
A Coin is simply the native finance to a blockchain. Basically, a blockchain is internet, a shared database of computer networks that has proven vital in the promotion and functioning of cryptocurrencies. This vital role is possible because it functions to record data for transactions, guarantees security, and fosters trust on the exchange platform. So, any exchange system that is native to a blockchain is a Coin. One of the most prominent examples of coin is the Bitcoin built on the Bitcoin Blockchain and Ethereum on the Ethereum Blockchain. However, tokens are built on blockchains that are already existent. For example, taking a blockchain like the Ethereum blockchain and building an exchange that is reliant on it. That exchange is called a token. Typically, to build a token is easier than the process it takes to build a coin because the latter involves mathematical processes of developing a blockchain, however for both to succeed, they need heavy publicity and the coin achieves that by allowing its blockchain has a very convincing and unique use case which attracts investors or users. This relationship between coin and token is the explanation for why in most cases when certain coins plunge or move in a direction, other coins follow, this is because the demand and supply for a token can also mean the same for a coin.
Let’s see the steps it takes to make a token.
Question 2
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. (Here you should deposit at least 15$ worth of BNB coins from your exchange wallet to the newly created wallet)
Below is a step-by-step process to making my own crypto token for this project:
Finding my blockchain: Blockchains determine a lot about a token’s success because a token can benefit from the success ability of the blockchain. For this process, I’d use the Binance Blockchain because I am very conversant with the Binance Blockchain, and I have BNB (its coin), and also because it has cheaper gas fees. The Binance blockchain can be accessed via www.bscscan.com
Get a Plugin Supported Browser: during one of our initial assignments, I had the cause to use Metamask which is already a plug-in on my Google Chrome, it is the plugin I would use for this assignment. Also, because my laptop is configured to work with Google Chrome, I am more conversant with Google Chrome as it is my go-to browser.
- Fund Metamask Wallet with at least 15$ worth of BNB: The Binance Option is not an immediate option on the Metamask Wallet as can be seen below:
The Binance option is not an immediate option on Metamask, so I have to include it by clicking the option “Ethereum Mainnet” stated above and inputting the network name, Chain ID, currency symbol, and Block Explorer in this manner:
Preceding this, my BNB wallet is available, and so I move to fund my new BNB wallet from my existing wallets with 0.0265 BNB approximately 15$ worth as can be seen...
Question 3
Explain the Remix IDE and download the source code by showing each step. (Screenshots required)
The Remix IDE is a project of Remix, a platform that is concerned with building smart contracts. The Remix IDE is an open-source tool of code-like designs (in Java Script) that are a plug-in to your computer’s browser, it assists majorly in creating smart contracts, debugging, and deploying them. It sounds a bit technical because it involves a little bit of coding, but it is as basic as the term Java suggests. The Remix IDE is available by visiting https://remix.ethereum.org but to deploy smart contract on Binance’s blockchain, we will first have to obtain the Binance Source Code via its webpage
- From this part, we download the BEP20 Token Template’s source code
- I click on the portion above that says “here”, indicating I want to create a new BEP20 token and immediately, a source code downloads into my PC.
- It is this source code we would utilize on the Remix IDE page which looks like this:
Question 4
Customize the source code according to your imagined future project. (In addition to simply stating the steps, you should provide a clear explanation about each customized code)
After accessing Remix IDE on the above link and following what we see in the above extract, we proceed to right- click on “Contracts” and create a folder we name “BEP20Token.Sol” which then looks like this:
- Then I go-ahead to access the previously downloaded source code on Binance webpage and paste it in the empty chart above, looking like this:
- Now it looks like a bunch of numbers and alphabets in coding, this is because this is the typical tool in which configurations are made on the web. To proceed from here, we have to look for the exact section numbered “351”. It is in this section that we can be able to give a name to our token as well as other features like: symbol, total supply, balance, and decimals. Let’s have a look at it:
- In this section, I will edit the details for my cryptocurrency:
Name: “WhiteStallion”, Symbol:”WHS”, Decimals:15, Total Supply: 500,000 * 0 ** 15. It is important it goes in this format while coding because the quote ensures that the input for Names and Symbols are registered as so. The Decimals section refers to how divisible the token can be, it usually ranges from 0 to 18, they usually account for how many decimal places a token/coin can have (o.xxxxxxx – “x” standing for the decimals). Total Supply indicates how many of this token is to be inexistent at creation. These are vital details that serve as the whitepaper for the token.
- After our input, the next step is to compile the token, and this step is done by scrolling to the left hand side of the page and clicking on “Solidity Compiler” indicated by a swap symbol and then clicking on “Compile BEP 20 Token Sol” as may be seen below.
- After clicking on “Compile BEP 20 Token sol”, we get this:
- The next step from here is to Deploy and Run Transactions, to access this we click on the icon just below the swap icon:
- After clicking “Deploy”, we get a page in which we can verify our input, as can be seen below:
- From this, we can say the Whitestallion (WHS) token has been created successfully and is ready for use.
Question 5
Demonstrate all the steps to add your created crypto token into your any wallet such as Trust Wallet and MetaMask wallet. (Screenshots required)
Money needs a place to be stored, digital money likewise needs a wallet, hence why the Metamask wallet was deployed in the beginning, so now what we must do is link the metamask wallet to our token. The first step to linking it is to initiate the Metamask wallet leaving it open and clicking on the “Account” option to access “Connected Sites”
- The following is the next pop-up after clicking on “Connect site”:
- From here, I click on “Manually connect to current site”
- From here on, I click next:
- And finally, I connect it.
- After connecting it, we return to the Remix IDE page to continue Deploying by clicking on the “Environment Section” and selecting “Injected Web3” and after this, we click “Deploy”.
- After clicking Deploy, a pop-up on metamask shows indicating Gas fees and total and it is from this we confirm.
Question 6
Verify transactions and other details through the relevant Block Explorer. (Screenshots required)
Blockchains are an amazing technology that reflects every transaction done on its platform for the sake of security purposes, and it was at the attempt of this project that I came to the realization of this. The above transaction can be confirmed on the Binance blockchain. First, it is important to take note that the transaction was conducted under the hash transaction code: 👇
- Having known this, let’s see if the transaction was reflected on the blockchain. First, we access the Binance Blockchain:
- Then input the hash transaction code in the search bar and search:
Every detail of the transaction can be seen including the token name: WHITESTALLION, when we click on the name, the token’s information is brought out.
- What we need from here is the contract address which is: 0xae65cc6cd01aba20375a99c640b79793268fd8db. With this, we return to MetaMask Wallet and import our token.
- Click on “Import Token”
- As can be seen, I have successfully created 500,000WHS resident in my MetaMask Wallet.
Conclusion
I am indeed pleased with how easy it is to create a token and I would be honest that I thought of the advantages and economic values this lesson exposed me to. The world is indeed moving towards a new dispensation of finance and I am pleased that I get to see the process in which tokens are made. I look forward to the lessons on how to list these tokens on public exchange platforms.
Special thanks to Professor @reddileep