The blockchain industry is constantly evolving with numerous updates and new businesses emerging every day. Entrepreneurs who want to succeed in the industry are exploring the potential of Ethereum token development. You may question, ‘Why choose Ethereum token development as a business idea?’
Because the Ethereum tokens in the crypto market are redefining the digital market with their secure, transparent, and scalable assets. As the Ethereum tokens are dominating the blockchain sector, entrepreneurs are utilizing them for various purposes. Hence, the Ethereum token has become essential for businesses. Let’s dive into the world of Ethereum token development and its business potential.
What is Ethereum Token Development?
Ethereum token development is a streamlined process of creating crypto assets that run on the Ethereum blockchain with reliable token standards. The ETH tokens follow various token standards like ERC20, ERC721, ERC1155, etc. Based on the token standard, the Ethereum tokens comprise unique functionalities. As the Ethereum blockchain is a trustworthy blockchain network, they are utilized for several business purposes. In the next section, let’s have a detailed look at the ETH token types.
Core Types & Token Standards of Ethereum Tokens
Depending on the business scope and needs, multiple kinds of ETH tokens are utilized and created. Some of the widely used Ethereum tokens are listed below,
Fungible Tokens (ERC20)
ERC20 or Fungible tokens are the most widely utilized token standard from the Ethereum blockchain. The tokens are fungible in nature, where they are interchangeable and tradable. With this token standard, cryptocurrencies, stablecoins, governance tokens, utility tokens, etc, can be created.
Non-Fungible Tokens (ERC721)
ERC721 or Non-fungible tokens can be traded, but each token is unique and not interchangeable one-to-one like ERC20. Users can convert any kind of digital art, collectible, real estate, or gaming items into Ethereum tokens. The ERC721 token provides metadata and ownership details for users.
Semi-Fungible Tokens (ERC1155)
ERC1155 (semi-fungible tokens) comprises the features of fungible and non-fungible token smart contracts.
Other ERC Token Standards
Apart from the usual token standards, many other Ethereum token standards possess different values. Some of them are listed below,
- ERC777 – An advanced fungible token standard that enhances the ERC20 token standard with high-tech security and operator features.
- ERC223 – A secured ERC20 alternative designed to prevent accidental token loss.
- ERC1400 – This is a hybrid token standard that combines both fungibility and compliance features for security tokens.
- ERC998 – The composable ERC998 token standard allows users to own both fungible and non-fungible tokens under one parent NFT.
These are the top ERC token standards that are utilized in the crypto market. Each token standard possesses different features and smart contract functionalities. Some of the common features of the Ethereum token are listed in the next section.
Core Features of Ethereum Tokens
Key features are the essential part of creating an Ethereum token. Depending on the business purpose, scope, and need, smart contracts are developed for the Ethereum tokens. Some of the top features of the Ethereum tokens are,
- Interoperability – The Ethereum tokens are integrated with interoperability features to interact with DeFi platforms and other Ethereum-based applications.
- Burnable – The crypto tokens can be integrated with this feature, where a certain amount of tokens can be burned to increase the demand.
- Mintable – Similar to the burnable feature, the token is developed with a mintable feature where a small amount of tokens can be minted (created) to increase the supply.
- Standardized Protocols – Built on ERC standards to ensure compatibility across wallets, exchanges, and dApps.
- Fractional Ownership – With this feature, the tokens can be divided into multiple units that allow micro-transactions.
- Community Governance – The DeFi tokens are created with this feature, which makes the users participate in the DeFi voting process.
These are the top features to create Ethereum tokens. Apart from these, based on the business needs, additional features can be integrated for hassle-free trading.
Benefits of Ethereum Tokens
As the Ethereum blockchain has turned into a potential blockchain network, Ethereum token development has turned into an ideal business idea. Some of the top business perks of creating an Ethereum token are listed below,
- Liquidity – As the Ethereum blockchain has a wider ecosystem, the liquidity is higher compared to other blockchain networks.
- Market Access – With Ethereum token creation, the accessibility to the market is higher.
- Investment Advantage – With the loyal user engagement and base, startups that create Ethereum tokens can grab a lot of attention.
- Revenue Streams – Startups can conduct token sales, new tokens, meme coins, etc, and gain huge profits with Ethereum token development.
From these business perks, it is evident that Ethereum token development offers a lot of business benefits for startups and established entrepreneurs. As we have listed the business benefits, it is essential to know about the use cases and applications.
Use Cases & Applications
The Ethereum tokens are widely created for various purposes across industries. They are also utilized in several industries apart from the crypto industry. Some of the top use cases of Ethereum tokens are,
- DeFi – The DeFi sector is using the Ethereum tokens for voting purposes, token swapping, and other crypto transactions.
- NFTs – Primarily, the Ethereum token standard of ERC721 is widely used for non-fungible token creation and transactions.
- Healthcare – The patient’s diagnosis, medical reports, and insurance details are tokenized into Ethereum tokens for high-tech security.
- Real Estate – The physical land, properties, etc, are converted into Ethereum tokens and traded as a potential investment.
Apart from these, sectors like gaming, Metaverse, and Supply chains are also creating Ethereum tokens for business purposes. This paves the way for the Ethereum tokens to shine in the digital space with benefits.
Future Trends in Ethereum Token Development
Presently, Ethereum is a widely utilized blockchain network with multiple token standards. They have turned into emerging tokenization technologies with layer-2 and Ethereum 2.0 solutions. With features like interoperability, high compliance regulations, and global adoption, they are unbeatable in the crypto industry. New features and functionalities are integrated into the blockchain for enhanced protection.
Why Choose Cryptiecraft for Ethereum Token Development?
Cryptiecraft is a renowned Ethereum token development company that offers the best-ever crypto token development services. With our end-to-end expertise in development, we help you go beyond token creation. Our development team helps you to get secure and scalable services by ensuring compliance with the jurisdictions. We follow enterprise-grade security measures to create a secure and trustworthy token. Grab a demo from our team. Partner with us to create a reliable Ethereum token that powers your business journey!!
Frequently Asked Questions
Q1: What is Ethereum Token Development?
Ans: The Ethereum token development is the process of creating Ethereum tokens by using a wide range of token standards. These developed Ethereum tokens are used as cryptocurrencies, utility tokens, and NFTs.
Q2: How Do ERC-20, ERC-721, and ERC-1155 Differ?
Ans: The key differences are below:
- The ERC20 token is a fungible token standard that is identical and exchangeable with each other.
- The ERC721 token is a non-fungible token that represents the value of digital collectibles, art, and other valuable assets.
- The ERC1155 token standard is a unique token standard that combines both fungible and non-fungible token properties.
Q3: How Long Does It Take to Develop an Ethereum Token?
Ans: The time taken to create an Ethereum token may fall between 3 to 6 business days. However, this might be fixed based on various factors like feature integration, customization, and project complexity.
Q4: What are the Costs Involved in Token Development?
Ans: The cost to create an Ethereum token cannot be disclosed directly. This overall cost is fixed depending on the token type, smart contract auditing, and marketing activities.
Q5: How Do I List My Token on Exchanges?
Ans: The newly created crypto tokens can be listed on the crypto exchange platform through smart contract verification, liquidity provision, marketing, etc.
Q6: Can ERC-20 Tokens Be Used for Governance?
Ans: Yes, the ERC20 tokens can be used as governance tokens in DeFi platforms. These tokens can allow users to make votes for making platform decisions.
