How Much Does it Cost to Create Crypto Fungible Tokens?
Recently, blockchain technology is becoming well-known among the people in the crypto industry. Blockchain is a digital ledger that facilitates immutable transactions and tracking information. Blockchain is completely transparent and it can only be accessed by the permission members. Blockchain provides great security.
Nowadays, most industries are trying to implement blockchain technology. The Crypto industry is also one among them. Cryptocurrencies are virtual currencies that work on blockchain technology. There are different types of blockchain prevailing in the crypto industry namely Ethereum, Tron, and Binance smartchain. Crypto coins are created on an independent blockchain whereas crypto tokens are created using the token standards of the existing blockchain. Generally, Crypto tokens are divided into utility and security tokens based on their use cases.
In this article, we’ll discuss crypto tokens, types of crypto tokens, token standards for fungible token creation, etc…
Now, we shall begin with…
What is Crypto Token?
Crypto tokens are units of values that are created on top of existing blockchains. For instance, Tether(USDT) is an ERC20 token developed on the Ethereum blockchain. Crypto tokens perform a multitude of functions on the respective platforms they are built on. Various new tokens are bloomed out routinely for broadening blockchain’s use cases. So, a larger number of tokens are emerging at a remarkable pace.
Generally, crypto tokens are programmable, transparent, and permissionless. Crypto tokens run on software-based protocols named smart contracts that have all the features and functionalities of the tokens written in code format. There are no restrictions for creating a crypto token. Whoever wishes to create a crypto token can create it in a hassle-free way. Details of the crypto transactions can be viewed and recorded at any time.
Crypto tokens hold some values and can be used for buying traditional assets, products, or services. The process of creating crypto tokens for various purposes is known as tokenization. Now, we shall discuss the types of crypto tokens in detail.
Types Of Crypto Tokens
There are two types of crypto tokens available in the crypto marketplace based on their values. They are
- Non-fungible tokens
The non-fungible tokens do not have the same values and they are non-interchangeable. So, you can go with fungible token creation for all of your business needs. Now, let us discuss fungible tokens in detail.
What Is a Fungible Token?
The term fungibility refers to interchangeability with other products. Fungible tokens have the same values and they can be fractioned to smaller values. For instance, a bitcoin can be exchanged with another bitcoin. A bitcoin’s value can be fractionated into smaller values and used for various business needs.
The dissimilarity between fungible and non-fungible tokens are,
- Fungible tokens are exchangeable of the same kind. Fungible tokens are similar to fiat currencies as they hold similar values. For instance, a $10 note can be exchanged with another $10 while non-fungible tokens cannot.
- Fungible tokens can be divided into smaller values based on the token’s original value. For instance, If a token’s value is 10, then it can be divided into two 5’s, five 2’s, ten 1’s. Non-fungible tokens have separate values and cannot be divided.
- Fungible tokens are uniform of the same type while non-fungible tokens are unique.
Creating a fungible token has various use-cases. Fungible tokens are created using the token standards of prominent blockchains. Now, let us discuss the optimal blockchains for creating fungible tokens.
Best Blockchains For Fungible Token Creation
There are various blockchains prevailing in the crypto industry. Only some of the blockchains are most popular for fungible token creation like Ethereum, Tron, Binance smartchain, and Waves.
Ethereum is the second developed blockchain platform and it was created by Vitalik Buterin. It is an open-source platform used for financial, entertainment, and business purposes. Ethereum tokens are created under smart contracts. Smart contracts of ethereum are developed under the programming language named “Solidity”. Solidity is a programming code written that includes all the technical features of the tokens.
Ethereum has its own crypto coin named “Ether”. Various decentralized applications can be developed on the Ethereum blockchain. Most people call them dApps. For using the dApps, users have to pay a certain fee to Ethereum named “gas fee”. As of May 2021, Ethereum ranked second in the crypto market. There are more than 20+ token standards for Ethereum-based token creation. Various types of tokens like fungible, non-fungible, and semi-fungible tokens can be created in the Ethereum blockchain. Now, we shall discuss the fungible standard of Ethereum token creation.
ERC20 Token Standard
ERC20 is a token standard used for creating tokens under smart contracts on the Ethereum blockchain. ERC20 is a robust standard for fungible token creation. It is the most widely preferred fungible token standard in the crypto industry. If a startup wishes to create a fungible crypto-token, then he/she will surely choose the ERC20 standard. The reason is that most of the ERC20 tokens are listed in prominent exchanges. The most popular ERC20 tokens are Tether(USDT), Chainlink(LINK), Binance coin(BNB), Dai(DAI), etc.
Use Cases Of ERC20 Tokens
ERC20 tokens are used for various purposes. They are,
- Voting rights
- Lottery tickets
- To exchange with fiat currencies
Tron is a decentralized blockchain platform developed in 2017. It is also a popular blockchain that aims to host entertainment sectors in a cost-effective manner. Tron blockchain has its own cryptocurrency named Tronix(TRX). Tron works on peer-to-peer technology to eliminate middlemen. Tron works similar to the Ethereum blockchain. Tron has zero network fee for staking coins. Tron can handle 2000 transactions per second and it is comparatively higher than the other blockchains. Tron has more than 100+ million users and is a largely used blockchain in the crypto industry.
TRC20 Token Standard
TRC20 is a token standard for creating and managing fungible tokens on the Tron blockchain. Nowadays, most people wish to create tokens using the TRC20 standard. TRC20 is a fungible token standard where tokens can be created at a low cost. Secured transactions take place in the Tron blockchain. So, TRC20 tokens are considered the favourite tokens for most startups and investors. TRC20 tokens have similar characteristics to ERC20 tokens.
Use Cases Of TRC20 Tokens
The benefits of TRC20 tokens are,
- Facilitates swapping of tokens
- Infinite access
- High scalability
Binance smartchain is built for executing smart-contract-based applications. BSC has a dual-chain architecture that runs parallel with the Binance chain. It also runs with an Ethereum virtual machine(EVM). It allows developers to build decentralized apps with low latency and higher capacity. Binance smartchain has a low network fee and transaction fee. Binance smartchain is becoming a trending topic in the crypto industry and most people are creating their tokens using it. Binance smartchain is a standalone blockchain that runs all technical and business functions on its own. Binance smartchain has various token standards like BEP20, BEP721. Now, we shall discuss BEP20 tokens.
BEP20 Token Standard
BEP20 is a popular token standard of the Binance smartchain. It was created with the intention of extending the ERC20 token standard. BEP20 tokens are developed for faster transactions and low transaction cost. BEP20 is also a fungible token standard for token creation. It is easy to create a BEP20 token in a quick and efficient manner.
Use Cases Of BEP20 Tokens
- More effective
- Supports all wallets
Waves is an independent blockchain where your own customized tokens can be created without any hassles. Waves don’t have any token standards. It is used for fungible token creation and you can transfer them at any time. Tokens can be created and traded independently without the involvement of a middleman. Tokens created in Waves can be used for crowdfunding. Waves works on a proof-of-stake algorithm. It is ideal to create fungible tokens on the Waves blockchain. Popular waves tokens in the crypto marketplace are Tokes, Signature chain, ZR coin.
Use-Cases Of Waves Blockchain
- Low transaction fee.
- Can handle more than 1000 transactions.
- Peer-to-peer transactions.
Benefits Of Fungible Tokens
The key benefits of fungible tokens are,
- Fungible tokens are divisible and fractionable into smaller values
- They are non-unique tokens (i.e) the same type of tokens have the same values.
- Fungible tokens are interchangeable with other tokens, services, and fiat currencies.
- They can be used for payment methods in places that accept cryptocurrencies.
- They are used for utilities and crowdfunding.
Cost To Create Crypto Fungible Tokens
For creating fungible tokens, there is no accurate cost. The main point that influences token creation’s cost is based on the startup and entrepreneur’s idea. Various factors influence the cost of creating fungible tokens. They are,
- Blockchain you choose
- Design of your token
- Total number of tokens to be developed
- Features of your token
- Purpose of creating fungible tokens
The above-discussed features will influence the cost of creating a fungible token. The approximate cost for creating a fungible token will start from $4k. This is not the actual rate of creating a fungible token. It may vary based on your business requirements and features.
All the above-discussed standards and details are about fungible token creation. Recently, the crypto market skyrocketed as many people have started investing and trading in crypto. For trading, you should have fungible tokens. Fungible tokens can be easily created by approaching a team of skilled and seasoned developers from a reputed crypto token development service provider in the crypto industry. They’ll guide you with fungible token development and issuance. So, contact a top-notch token development service provider and create your fungible tokens for all of your future needs!!!