10 Top Blockchain Platforms for Crypto Token Development
Developing Crypto tokens has always had several benefits and lies as the basis for a lot of Crypto businesses. Hence, the demand for creating tokens has always been sturdy and on an increasing scale. The one area that needs more focus on while developing Crypto tokens is the blockchain platform you choose. Identifying and selecting the best blockchain platform for Crypto token Development is crucial for long-term success as each blockchain has its purpose and utility.
In this blog, I have explained the answer to the top 10 blockchain platforms for Crypto Token Development along with the criteria for choosing them. Let’s start with…
What are Crypto Tokens and what are their types?
Crypto tokens are digital assets created on an existing blockchain and represent some value. They are developed using token standards that define their functionality. The Crypto tokens have multiple serving purposes and can be used for exchange as well. Here are the types of Crypto tokens.
1)Fungible Tokens
Fungible tokens are digital assets that can be interchanged for another and the value does not change even when it is transferred. A Bitcoin is the best example of a fungible token as its value does not change when it is traded. Fungible tokens can be further divided into two types, Utility tokens and Security Tokens.
Utility tokens
Utility tokens serve a specific purpose like providing access to a product or a service in a particular platform. They do not come under the investment category but have benefits. The best example of a Utility token is a Cake offered by the Pancakeswap Defi exchange. Its purpose is to provide accessibility to different operations in the platform.
Security Tokens
Security Tokens are digital assets that represent real-world assets like bonds, debts, stocks, or equities stored on a blockchain. They have regulatory restrictions and are issued only when the SEC guidelines are met. Security tokens are used in the process of STO (Security Token Offering), a Crowdfunding method that is highly secured for raising capital.
Governance Tokens
Governance Tokens are powered by the respective Defi platforms for allowing users to participate in any decision-making process. These tokens are used for voting on important decisions and also to influence the way the decentralized protocol is running. UNI is one of the governance tokens issued by the DEX platform, Uniswap to foster engagement among users and build a community.
2)Non-Fungible Tokens
Non-fungible Tokens are digital assets that cannot be interchanged for one another without a change in value. Each NFT has its value and any form of digital collectible like a piece of art, a music piece, or anything unique can be converted into an NFT. The ownership of these NFTs is stored on a blockchain which makes them highly secured as well.
4 Important Criteria for Choosing a Blockchain Platform
There are plenty of blockchain platforms and choosing one among them is always a tough job while creating tokens. Here are the 4 main criteria to consider while choosing a blockchain platform.
Scalability:
Scalability is the ability of a blockchain platform to handle any number of transactions. At the start of any Crypto business, scalability might not be a big issue. However, once the business ticks off and more transactions take place, the scalability of the blockchain platform becomes highly crucial. Hence, always choose a blockchain platform that helps in handling several transactions.
Cost:
The transaction fee varies from blockchain to blockchain and it depends of certain factors. Network demand, size of the transactions, token standards, and market conditions play a big role in determining the overall transaction fee. Apart from that, the infrastructure development and maintenance influence the cost of the blockchain. Hence, choose the best blockchain according to your requirements and budget.
Security:
The blockchain you choose has to be highly secure and robust against attacks. There have been a lot of stories of hacking in Crypto businesses and users maintain trust in your tokens with the blockchain’s security. Hence, choose the blockchain platform with top security while creating tokens.
Community and Support:
When you choose a blockchain for creating tokens, look into its community and the developers in the community. This is directly proportional to the growth of the platform. Ensure that the blockchain platform has the best support system and resources available while developing tokens.
Top 10 Blockchain Platforms for Crypto Token Development
Here are the top 10 Blockchain Platforms for developing Crypto tokens.
- Ethereum
- Binance Smart Chain
- Solana
- Cardano
- Polygon
- Tezos
- Avalanche
- Tron
- EOS
- Algorand
Ethereum
Ethereum is a highly popular blockchain platform that was first enabled to develop decentralized applications using smart contracts. It has an open-source protocol and Ether is the native currency of the platform. Initially, Ethereum started with the Proof of Work mechanism, and in 2022, it switched to the Proof of Stake mechanism.
Popular Tokens in Ethereum blockchain:
ERC20
The ERC20 Token standard is the most popular one used for creating fungible tokens on the Ethereum blockchain. Tether is the best example of an ERC20 token. The primary purpose of creating ERC20 Tokens was security, reliability, and compatibility.
ERC721
The ERC721 Token standard is used for creating non-fungible tokens on the Ethereum blockchain. Digital collectibles like artwork, gaming, and real-world properties are all represented as ERC721 tokens. Cryptokitties is a great example of ERC721 Tokens on the Ethereum blockchain.
ERC1155
The ERC1155 Token standard emphasizes setting up the guidelines for creating semi-fungible tokens on the Ethereum blockchain. The tokens of this standard have both the characteristics of fungible and non-fungible tokens. This helps in managing assets and for a reduced gas fee in comparison to other standards. Axie Infinity and Decentraland were two gaming platforms based on the ERC1155 Token standard.
ERC4626, ERC777, ERC998, and ERC223 are other popular ERC20 Tokens on the Ethereum blockchain. The diverse applications make Ethereum Token Development a great choice for newbies.
Binance Smart Chain
Binance Smart Chain is the second most popular blockchain after Ethereum and was developed by Binance. Launched in 2020, Binance Smart Chain runs in parallel with Binance’s native chain. The advantage of Binance Smart Chain is it has the transaction capacity of Binance Chain and the smart contract functionalities of Binance Smart Chain.
Popular Tokens in Binance Smart Chain:
BEP20 Tokens
BEP20 provides the technical standards for creating fungible tokens on the Binance Smart Chain network. Just like ERC20 tokens, BEP20 Tokens are interoperable, compatible, and customizable. Binance Coin (BNB Coin) is an example of a BEP20 Token built on the Binance Smart Chain network.
BEP721 Token Standard
BEP721 is considered to be just an extension of the ERC721 Token standard and allows NFTs to be created on the Binance Smart Chain. The only major difference is that BEP721 Token Standard allows for less transaction fee for NFT trading and minting. Battle Pets is one example of a BEP721 Token on the Binance Smart Chain Blockchain.
Solana
Solana is a blockchain platform, launched in 2020 by Solana Labs to improve Scalability and speed of transactions. Running on the Proof of Stake Mechanism, the Solana Blockchain supports decentralized applications specifically. The native currency of the Solana Blockchain is SOL.
Cardano
Cardano was launched first in 2017 based on the proof of stake mechanism and is mainly utilized for decentralized transactions. The native currency of the Cardano Blockchain is ADA and the blockchain was aimed at providing more flexible transactions.
Polygon
Polygon was launched in 2017 and is a layer2 scaling solution of the Ethereum network. The Polygon blockchain’s main purpose was to provide the framework and connect Ethereum-compatible blockchain networks. Also, known as the MATIC network, Polygon focuses more on improvising Ethereum’s capabilities.
Tezos
Launched in 2017, Tezos blockchain’s key attribute was the self-amending protocol without requiring a hard fork and allowing continuous progress. Running on the Liquid Proof of Stake mechanism, Tezos has a unique governance model. Additionally, Tezos imposed a mathematical approach for declining the errors in smart contracts.
Avalanche
Avalanche blockchain was launched in 2020, to address areas like versatility and security. The native currency of the blockchain platform is AVAX and is usually, considered to be a network of blockchains. It has a secured and unique proof of stake consensus mechanism.
Tron
Tron was first launched in 2017 to create a decentralized internet. It uses a delegated Proof of Stake mechanism with TRX being its native Cryptocurrency. Tron blockchain introduced the content sharing feature for creators to control their data and monetize in a decentralized way. Initially, started as ERC20 tokens on Ethereum, and Tron created its own blockchain.
EOS
Launched in 2018, EOS is a decentralized Web3 blockchain platform that emphasizes building Dapps. The EOS token is the network’s native currency and uses a delegated consensus algorithm. The EOS blockchain handles high-speed transactions and operates on a resource allocation model instead of the transaction fee.
Algorand
Algorand was founded in 2017 and is a quantum-resistant blockchain. The native currency of the blockchain platform is ALGO which is designed to handle a large number of transactions at high speed. Affordable Transaction cost is one of the primary features of Algorand and allows increased accessibility for all users.
Conclusion
The choice of blockchain platform becomes the ultimate factor when you create a Crypto token. Hence, extra effort and time investment in learning the blockchains separately might be a better option. Sometimes, approaching a standard Crypto Token Development Company can solve the dilemma of choosing blockchains. Their seasoned developers have always managed to find answers to Crypto queries and can help you with the token development process.
