What is the purpose of a digital token?
Basically, it is a smart contract record that confirms the allocation of funds between all the participants of a certain transaction. When implementing their own decentralized applications, the owner must issue a new token to ensure unification of all operations.
All blockchain networks have their own cryptocurrencies and it is technically impossible to replace blockchain development company one currency with another; you can only change them. Historically, if you wanted to convert dollars to rubles, you needed to go to a foreign exchange office or a bank. In the online world, there are no banknotes, and their function is performed by a block chain code registry. Exchange of such registers between different protocols is simply impossible. You can buy one cryptocurrency by paying with another, for example, on Binance Chain.
On-chain tokens solve this problem by acting as universal values. They have specific rules and ensure the compatibility of smart contracts within a technology. Most often the Ethereum network is used.
What are smart contracts?
Technically, it is source code that uses conditional statements to describe transaction rules. For example, “If the sender confirms a transfer, N coins are transferred to the recipient’s wallet address.” Smart contracts are programmed by users or created automatically by special services.
When implementing a contract, its creator (or owner) starts the recording of the program on each node. The program is encrypted so it is very difficult to hack a token contract. The program can be started by request for receiving or sending a digital token.
What is the connection between token and smart contract?
Basically, a token emerges and exists as a component of an agreement. Many activities as per the predefined conditions change the current information. This is the means by which resources are moved between different addresses.
The token balance is stored in a smart contract table consisting of two columns: the recipient/sender wallet address and the amount of an asset. To find this information, connect your wallet to a token contract.
What are BEP20 tokens?
bep20 token generator standard for the development of smart contracts that contains a set of technological rules of the Binance Chain environment, which describe the functions of the source code. Based on the common ERC 20.
He came up with smart contract rules and token creation that were as simple as possible but yet efficient and implemented them on the Ethereum network.Since the Buterin blockchain can solve any task (describing any task as a program that, under certain circumstances, will have real conditions and be will perform), that’s why it’s a Turing Complete programming language.
Who might need to create a BEP20 token?
First of all, token ownership can be useful for entrepreneurs building a business in DeFi. There are still many opportunities in decentralized finance to be explored, which is why many startups appear in this space. A project is presented as a white paper and promoted. Companies issue their own new tokens and distribute them as part of an initial offering to their early supporters. If a project is successful, both the creator and the owner of the token make a profit.
Another group of users who might need a bep20 token creator are entrepreneurs who would like to ensure maximum security of their transactions. It is enough to simply create a smart contract with the conditions of a transaction, mint a token (which can be linked to any cryptocurrency) and launch the program.
Cost to create the BEP20 token
The price of creation is equal to the commission of the site. For example, on Binance, around 3.5 USD is currently paid.
Why Binance Smart Chain Network?
At first glance, it seems that the Ethereum blockchain is more reliable, as it has been in operation for almost nine years, while Binance Smart Chain was launched last year. However, the fork was not designed as a source of additional income for Binance Chain exchange owners. Its main goal is to improve the capabilities of the blockchain development company. First of all, it concerns the technical characteristics.
Binance Smart Chain lock time is only 3 seconds.
The transaction fee (gas) is several times lower than that of the Ethereum blockchain.
A BEP20 token is easy to implement and can be verified using Binance Smart Chain. Users do not have to generate a contract on the mainnet at once, but can use the service implemented by Binance Smart Chain to test a token source code.
to get more info
visit : https://www.blockchainx.tech/
