Creating Token In 5 Minutes. Enecuum Example
Creating your own token has become much simpler over the past decade, but still, you have to know how to write a smart contract to launch an Ethereum (ETH) token or purchase some RAM to do it on EOS.
The team behind Enecuum—a blockchain mobile network for decentralized application—believes that creating tokens doesn’t have to be that complicated. They have made it their goal to simplify the process down to a few clicks.
In this piece, we explain what crypto tokens are and how to make your own on the Ethereum, TRON, EOS, and Enecuum blockchain, as well as demonstrate how to create a new token from scratch in five minutes.
What’s a Token?
A token is a cryptocurrency-based digital asset. ERC20 is a token standard on the Ethereum blockchain.
The token issuer sets the name for a new token, emission, and transaction fees.
In an interview with ForkLog, Pavel Kravchenko, the founder of the blockchain expertise center Distributed Labs, pointed out the key functions of a token, which are:
- an analog of shares
- a means of payment
- a tool for keeping immutable records on the blockchain.
Tokens reside on the blockchain of the corresponding cryptocurrency and don’t require a separate wallet. The complexity of the token creation, as well as fees and transaction speed depend on the platform.
How To Make Ethereum-, TRON-, EOS-, and Enecuum-based Tokens
According to Enecuum, there are 19 token emission platforms. Let’s compare how tokens are made on the Ethereum, TRON, EOS, and Enecuum blockchain.
Comparison between token creation specs on Ethereum, EOS, TRON, and Enecuum
Ethereum: Code, Compile, Publish
- Install a text editor like Atom or SublimeText to make contract editing easier.
- Type in the code of the smart contract or download a template and change the token name and emission.
- Interpret the smart contract text into bytecode.
- Publish it via MyEtherWallet or Metamask.
- Pay 320,000 GAS for the deployment of the contract (around $6, at press time). Note that larger contracts cost more GAS to deploy.
EOS: Command Line and EOS Cleos Client
- Install the EOS Cleos client via the command line. This could be tricky, however, if you have never used a console before.
- Purchase RAM, so the network could process token transactions.
- Type in the code of the smart contract or create it via EZEOS.
- Deploy the contract via EOS Cleos.
TRON: Standard and Custom Smart Contracts for Token Issuance
- Go to Tronscan.
- Log in and choose the type of token: whether it will be TRC-10 on a standard smart contract or TRC-20 on a custom one.
- Fill in the information about the token and confirm the creation.
- The website will enter the information about the token in the smart contract template and deploy this contract on the blockchain. BitTorrent’s token was created this way.
- If you develop a TRC-20 token contract, input the smart contract code in the form, and confirm the deployment.
- The TRC-10 network will debit your account with 1,024 TRX (around $17, at press time).
- To avoid the fee, install the TronBox development environment, and write the contract yourself.
Enecuum: Standard Smart Contract for Quick Token Issuance
- Go to the website and log into the app.
- Create a wallet and deposit of 1,000 ENQ (around $8, at press time).
- Fill in the form: name, emission, and transaction fees.
- The website will enter the information about the token into a standard smart contract and deploy it on the blockchain.
- The network will debit your account with 1,000 ENQ for creating the token.
The whole process of the token creation takes no more than five minutes, but more on that is covered below.
Why Enecuum Uses Standard Smart Contracts for Token Issuance
An inexperienced developer may write a smart contract with errors, which could potentially lead to a loss of money. Thus, a hacker once stole $50 million worth of ETH from The DAO due to an error in the code. The attacker had sent tokens to a smart contract and restarted it several times before the exchange was completed. Each time, the contract mistakenly thought it received new tokens, and subsequently sent ETH back to the hacker’s wallet.
A smart contract allows the coins to be withdrawn if the transaction is signed by the majority of the wallet owners. Yet, you only need one signature to change the number of signatures required to make a withdrawal. This allows a potential attacker to reduce the required number of signatures to one and then take coins without other owners’ consent.
That is why Enecuum introduced a standard smart contract for token issuance dubbed SHARNELL. It has several advantages:
- Users can’t change the smart contract code and create vulnerabilities.
- SHARNELL uses linear logic and simple operations, so it’s easy to check for errors.
- Auditors assess the security of the smart contract before it is added to the main network.
How Enecuum Solves the Fee Problem
In Ethereum, you have to pay transaction fees in the main coin: to send Tether USD over the Ethereum network, you’ll have to pay fees in ETH. This is a problem for users.
Imagine having $100 and not being able to buy bread because you have to pay operational fees for any transaction in Chilean Peso.
You have to pay transaction fees with the main cryptocurrency because miners don’t accept tokens.
In Enecuum, miners get paid by the token issuer. The issuer pays a 1,000 ENQ fee when creating the token and miners receive transaction fees from that sum.
Users pay fees in tokens. The issuer sets up a fixed fee or a percentage of the sum, or even assigns a zero commission, making transactions free for the users.
Transaction fees in Enecuum
The smart contract balance for paying commissions can only be replenished. If the creator doesn’t replenish it, users can do it instead.
What Consensus Protocol Does the Enecuum Network Run on?
The Enecuum network uses the Trinity Consensus Protocol. It combines three consensus algorithms, which are:
- Proof of Activity. Enecuum smartphone app checks random transactions and bundles them into microblocks. To mine, you need a wallet with at least 25 ENQ on it.
- Proof of Stake. One of the 100 biggest wallets becomes the leader of the network. It confirms transactions in microblocks, combines them into a macroblock, and signs it with a key.
- Proof of Work. Enecuum nodes running on personal computers verify the macroblock and then add it to the blockchain.
Enecuum users can also mine with their smartphones.
What Tokens Can Be Issued on Enecuum?
Token creators can set specific parameters like the fungibility and mineability of the token.
Enecuum lets you issue the following types of tokens:
- Fungible tokens, which are generally used for making payments.
- Non-fungible tokens (NFTs) which are identifiers of items, cryptocurrency addresses, or gift cards.
Fungible tokens can be mineable, with users being able to mine such tokens using their smartphones.
Currently, Enecuum is testing the emission of fungible tokens, use cases for which are limited only by the creator’s imagination. Here are just a few ideas:
- Internal currency. Launch a decentralized application, where users can use the token as the means of payment inside the app.
- Stablecoins. Create a token backed by a stable asset.
- Tokens for initial coin offerings (ICO). Issue tokens to be subsequently sold over an ICO. Such tokens can grant their holders access keys to your products or provide discounts for services.
- Record-keeping tool. By issuing a token and making a small transaction, you can include certain data to the transaction. These data will get to the blockchain and remain there unchanged.
- Voting token. Distribute tokens among users and create two addresses corresponding to “for” and “against.” After that, users can send their token to one of the addresses to express their opinion.
Exercise: Creating a Token on Enecuum in 5 Minutes
Step 1. Go to https://explorer.mybit.network/. Register a wallet, save the address and private key. Copy the public address of the wallet.
Be sure to save the address and key as you won’t be able to recover this information after leaving the page.
Step 2. Request BIT coins to your wallet by clicking “Get BIT coins,” enter the public address of your wallet and click “Confirm.”
Step 3. Go to the wallet and select the “Issue token” tab. On this page, you can specify the name, ticker, emission, and fees associated with the token, as well as its type. After choosing the settings, click “Issue token” and confirm the action.
Step 4. Check whether the token is on the list.
Bonus: Sending Tokens to Another Wallet
Now, when you have issued the tokens, let’s check if they can be sent and see how the fees work.
Step 1. Go to your wallet and pick a token to send. Specify the amount and the recipient address.
Step 2. Confirm the transaction. Fees are shown in tokens, not in the main currency, which is ENQ.
Step 3. Receive the tokens.
Enecuum is planning to introduce token issuance on the main network in Q2 2020. The developers have simplified this process and shielded users from making errors when writing a smart contract code. The team is currently working on the integration of the main network with popular crypto-exchanges to make the listing process of new assets just as fast as of standard ERC-20 tokens.
Enecuum fees mechanics make tokens easier to understand and use in a variety of applications. When the team gets mineable and non-fungible tokens up and running, users will get a simple tool to bring yet more ideas to life.
There’s a chance that in the future stores will hand out bonus tokens instead of loyalty points.
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