Jan 02, · natur-holzbausteine.de developer and Bitbox creator Gabriel Cardona has published a PR template for individuals and organizations wishing to create tokens. This means token creators can include a token name, symbol/ticker, genesis TXID and asset templates in sizes between 32×32, 64×64, × and SVG. Jan 27, · Bitcoin is a prominent example. Tokens, on the other hand, use another blockchain instead of their own. The most popular example of a token would be the ERC20 token, which are tokens that use the Ethereum (ETH) blockchain. Why are some assets tokens and not cryptocurrencies or coins?Author: Daniel Won. Jun 12, · Introducing The Simple Ledger Protocol. The Simple Ledger Protocol is a token creation system that runs on the Bitcoin Cash blockchain. I'll cut through all the technical details and get to the most important point. The Simple Ledger Protocol is a game changer because it allows anyone to create their own cryptocurrency token in a few minutes and costs less than a few cents.
Bitcoin create tokenCryptocurrency: How to Create Your Own Crypto Tokens
The proliferation of ETH based tokens means that many users might not have a Bitcoin Cash compatible wallet, and even then, their wallet would also need to be SLP enabled. I have been active in crypto for about a year, and I didn't have a BCH compatible wallet until I began writing this article, so I'd assume there are many casual crypto users who in the same situation. All in all, there are advantages and disadvantages to launching your token on SLP as opposed to creating a token on Ethereum.
SLP offers an easier on ramp and lower transaction fees while Ethereum offers faster transaction speed and more widespread compatibility. Given the lower barriers to entry, I'd say that creating a token with SLP has significant advantages especially for non-technical users like me.
Now that we have the technical stuff out of the way, lets jump right in and create your own cryptocurrency token. For the purposes of this article, I will be creating a token with the freely available Electron Cash wallet, although there are other options such as the also free Bitcoin. The first step in creating your token is to download and install the wallet.
If you choose to use Electron Cash, make sure that you install the SLP compatible wallet and not just the default Electron Cash wallet. Once you have downloaded the wallet, you can either import an existing BCH wallet or create a new wallet. If you don't already have some BCH in your wallet, you will need to get a small amount to create your token.
In order to make sure that your funds arrive, you will need to click on the receive tab of your wallet. In this example, I am simply pasting my public key from the Electron wallet into the withdraw option on Coinbase Pro. Once you have deposited funds in your wallet, select the tokens tab and then click "Create New Token. This will bring up a dialog box where you can enter the name and ticker symbol for your token.
You also have the option of choosing the total circulating quantity of your new token as well as deciding whether the token will have a fixed supply or not.
Once you have entered all the appropriate details, click "Create New Token. Once you have completed this step, the tokens will appear in your Electron wallet. Once the newly created tokens are in your wallet, you can send them to other users and wallets just as you would any other token. Keep in mind that the transaction fees for sending your new token will still have to be paid in Bitcoin Cash since BCH is the underlying blockchain. For this example, I will send some tokens to the Badger wallet.
All we have to do to send the token is click the "Send" tab in Electron and enter the appropriate details. Just as we can select the gas fee with ERC type tokens, we can select the BCH amount that we are willing to pay to send the transaction. Although tokens created with the Simple Ledger Protocol are far easier and cheaper to create and share than ERC tokens, that doesn't mean that they are simply novelties.
They can be used just like any other token. Depending on what you want to do with the token, you could build a website that uses them as a utility token, give them away in exchange for bounties, or simply hold onto them and brag to your friends about having a cryptocurrency token named after you. Although it is easier to create tokens with SLP and cheaper to send them, keep in mind that using a SLP based token will require your users to have a SLP-enabled Bitcoin Cash wallet and transaction times could be considerably slower than when using an Ethereum based token.
All in all though, I think that there is a lot of potential in the Simple Ledger Protocol and that it is a great way to easily and cheaply create a crypto token, so why not give it a try.
Hi everyone. I'm just a simple man trying to make my way in the universe. I am passionate about cryptocurrency and hope that I can make at least some small contribution towards promoting wider crypto adoption and understanding. This is just a place for me to post some of my thoughts and analysis. I hope that someone finds them useful. Tao of Satoshi. It only takes 15 seconds and it's free.
Many of the applications we use in our daily work marketplaces, exchanges, social networks, etc derive their value from their strong network effects. A network effect is when a product or service increases in value as more people use it. A classic example is Facebook.
Every new user connecting to other users on the platform non-linearly increases the number of connections. Network effects help build better products and services. When we talk about decentralized applications built on top of the blockchain, we might think of transaction-based platforms, such crowdfunding, remittances, payments, coupons, etc.
It might be a neat technical feat to have a decentralized version of these types of services, but the reality is, we already have existing apps that work perfectly fine for each of these use cases. For crowdfunding, we have Kickstarter.
For remittances, we can use TransferWise. Take WeiFund , for example, which is a decentralized crowdfunding platform. As a user, WeiFund's interface and user experience seems similar to conventional crowdfunding platforms such as Kickstarter or GoFundMe. The main differences seem to be that they claim to have lower costs and that they use smart contracts to run the crowdfunding, allowing for more complex agreements.
Is this enough to get users to make the effort to switch over especially when the costs aren't that much lower? By no means do I believe that decentralized applications have no benefits. In fact, I foresee a future where applications are 10x more secure, 10x cheaper, 10x more efficient, or 10x more on some dimension than the current ones. The point is that these benefits have not been proven yet, so there's little reason for users to consider using a decentralized application today.
Ethereum is a cryptocurrency launched in and built from the ground up using its own blockchain technology. As written in the Ethereum white paper :. The final state is what we accept as the canonical version of the current state of the world of Ethereum.
Just like Bitcoin, the Ethereum blockchain contains a log of transaction-like events. First is accounts. Both account types have an Ether balance.
The main distinction is that contract accounts have some piece of code associated with them, while externally owned accounts do not. Contract accounts, therefore, have the ability to perform any type of computation when its associated code is executed.
Next we have what are known as transactions, which are cryptographically signed data packages that store a message to be sent from an externally owned account to another account on the blockchain. Finally, there are messages. Messages allow contract accounts to call one another. When a contract account send a message to another contract account, the code associated with the account is activated. Remember how we learned that the protocol for the Bitcoin blockchain determines how transactions on the network get verified?
These get accumulated into a block, and then the nodes in the Ethereum network go through the transactions listed in the block and run the code associated with these transactions within the EVM.
As you might guess, this tends to be computationally very expensive. To compensate for this expense and incentivize the nodes or miners to run these computations, the miners specify a fee for running these transactions.
This is similar to how fees work in Bitcoin, where any fees attached to a bitcoin transaction go to the miner who mined the block that included the transaction. Note: This is a very high level description of how the Ethereum blockchain works and it certainly skips a lot of details for purposes of brevity.
They can accept and store Ether and data, and can send that Ether to other accounts or even other smart contracts. Just like regular contracts e. Another example of an application is a decentralized organization.
A decentralized organization is a programmatic organization that runs based on rules encoded within smart contracts. So instead of the typical hierarchical structure of an organization that is managed by humans, a decentralized organization encodes all its rules into a smart contract and then is completely managed by a blockchain.
Why is that? As we described above, Ethereum solves this problem by design through its expressive programming language and strong developer tooling. With or without Ethereum, seeding and spinning the network effects is still a huge roadblock. If someone builds a decentralized Airbnb, they still need to convince both sides of the platform, the users and hosts, to come on board.
And so, the question we might ask is, are we still right back to square one? The clearest way to make a 10x improvement is to invent something completely new. I believe Ethereum makes inventing something completely new possible by making it easy to build smart contracts. Well, the beauty of being able to easily build smart contracts on Ethereum is that it enables anyone to easily build a new protocol on top of Ethereum. Remember that a protocol is simply a set of rules that nodes in a network use when they to transmit information.
Remember that the purpose of a protocol is simply to specify rules for communication between nodes. Just like Ethereum makes it possible to build new protocols on top of its blockchain, it also makes it possible to use smart contracts to build new tokens on top of its blockchain.
Ethereum makes it especially easy to implement such token systems. More specifically, ERC20 token interface provides a standardized way to develop a token that is compatible with the existing Ethereum ecosystem, such as development tools, wallets, and exchanges.
Why does this matter? It then used these funds to develop its blockchain. Ethereum was not the first to do this. A token sale is when some party offers investors some units of a new cryptocurrency i. The idea is that investors buy into these tokens, and the units of the token are fungible and transferable on cryptocurrency exchanges e. While most token sales in the past have been restricted to building a new cryptocurrency e.
Ethereum, Ripple, etc , the smart contracts of Ethereum are now enabling startups to also to use token sales to fund development of various protocols and applications built on top of existing blockchains.
Before moving on, one important distinction to make is the difference between an application and protocol. An application can be built on one or more protocols. One example is Augur , which is a decentralized prediction markets application that is built on top of two protocols:. But neither of these protocols need to be tied to a single application.
Any application can in theory build on top of these underlying protocols. So in essence, a team can use an token sale to fund:. I can build non-profit organization and use tokens as a mechanism to fund the project.
In this sense, a token sale simply becomes a new way to fund a traditional centralized application. A plain old crowdsale. When a token is tied to a cryto-token-protocol, they look much more like intrinsic tokens like Ether and Bitcoin and are used to drive the development and network of a protocol.
But when they are not, tokens simply represent something much more general. In fact, these tokens are flexible enough to represent a lot of different things. I can build a storage protocol using smart contracts which serve as agreements between a storage provider and their client, defining what data will be stored and at what price.
I would then build a token for this protocol and do a token sale. If the protocol becomes widely used, then the protocol becomes more valuable, which in turn could increase the value of the token. Moreover, as a developer of this service, I could choose to make the tokens represent purchase rights to the services provided in the application.
This one is obvious. Using this money, the team could choose to invest in sales, marketing, etc. This is the more interesting piece of the puzzle.
Protocols and decentralized applications can solve the network effects problem by using a token sale as a mechanism to get early contributors and adopters. Early adopters who believe in the protocol or application have an incentive to buy the token because there is potential for that token to be worth more in the future.
So in essence, tokens could help bootstrap a network of early adopters because the incentives of the early adopters and the development team line up perfectly. At that point, they become stakeholders in the protocol itself and are financially invested in its success. Then some of these early adopters either become users of the products built on top of the protocol or build products and services around the protocol themselves, with the incentive to drive the success of the protocol further in order to increase the value of their tokens.