The development of blockchain technology has exploded in recent years. Smart contracts have been introducing to the world primarily through dozens of Ethereum-base applications. Successful smart contracts projects such as Aave, Compound, and Open Sea attract the interest of blockchain developers, investors, and institutions seeking financial gain.
Read this article if you already have a startup idea in mind and want to launch your project using a token to finance it.
Ethereum as a Blockchain Platform
Platforms based on the blockchain enable developers to create and execute smart contracts. Ethereum is the first and largest blockchain platform capable of running arbitrary code, enabling the execution of any program.
The Ethereum Blockchain is a distributed infrastructure (similar to the Android and iOS platforms for mobile applications) that enables the use of smart contracts to complete projects.
- Create your cryptocurrencies
You can create a tradable token that can be use as a new currency using Ethereum. Using a standard coin API, tickets built on the Ethereum platform are compatible with any Ethereum blockchain wallet. - Develop virtual organizations
To build a blockchain-based organization, you can write a smart contract. Then, you can expand your organization and enable voting rules. Members of your organization can vote, and the smart contract will execute automatically if it receives the required votes. - Build dApps
Ethereum enables a decentralized app developer to create secure, fault-tolerant, decentralized applications that are transparent and eliminate intermediaries. - Raise funds
Ethereum smart contracts can also be use for fundraising. Ethereum enables the creation of smart contracts and deadlines. If the goal is not met, all donations will be refund to the donors without any disputes or fees.
Some basics to start.
Decentralized applications (DApps) – are applications that run on the distributed ledger. In other words, they employ a peer-to-peer network of communicating computers or nodes. The greatest advantage is that the data is store on a so-called public ledger that records everything securely and transparently and guarantees no one can alter it. Like conventional, centralized applications, Ethereum decentralized applications consist of a backend (the logic) and a frontend (the visuals). The most significant difference is that blockchain technology is at the heart of the backend. Smart contracts are instruments able to manage and govern the blockchain system. And at this point, we will begin the actual development process.
Tokens in the Ethereum ecosystem -represent any fungible and tradable goods, such as coins, loyalty points, and in-game items. This also means that your token will be instantly compatible with the Ethereum wallet and any other client or contract that employs the same standards.
Smart contracts are where our application’s business logic resides. Smart contracts are simply programs store on a blockchain that enable users to exchange money and property or conduct other actions, such as voting, without a central authority.
From a technical standpoint, they are Solidity scripts that have been compiled into JSON and deployed to a specific blockchain address. Similarly to how we can invoke a URL endpoint of a REST API to execute some logic via an HttpRequest, we can execute deployed smart contracts at a specific address by providing the correct data along with Ethereum to call the compiled and deployed Solidity function.
Smart contracts are deploye to a decentralize database for a cost proportional to the code size they contain. It can also be define as a collection of code store in the blockchain network that specifies the terms upon which all parties to the contract must agree.
Consequently, by developing an application on Ethereum, you will create your token that users can trade using Smart Contracts.
Solidity is a programming language for smart contracts on Ethereum. It resembles the class- and method-based object-oriented programming language. It permits arbitrary computations but is use to send and receive tokens and store information. C++, Python, and Javascript heavily influence C++, Python, and Javascript.
How is it possible to launch an ERC20 token on Ethereum?
Ethereum is frequently compare to Bitcoin, but this is only partially accurate. Ethereum is a platform that enables users to construct and run applications on their blockchain, similar to how software runs on computers and tablets. They can store and transfer data and manage complex financial transactions.
Ethereum network is power by its native cryptocurrency, Ethereum tokens, which are similar to Bitcoin. It permits other users to purchase your tickets (aka invest in your project).
Prototyping and developing your application
We hope that the preceding information has not frightened you. Launching your project does not require a programmer, blockchain expert, or designer.
Typically, the entire process of launching a project takes several months. There are three crucial phases:
- Product ideation – standard excellent idea:)
- This is essential for every new venture. You must know what you create and why you intend to make it. In addition, it is helpful to have a list of potential features to discuss with blockchain software developers.
- Token launch – You prepare fundamental documentation, marketing, and the setup of smart contracts. It is essential for the financing of the project. Crypto space may appear crowded, but this is not the case if you have a solid project, effective communication, and a marketing strategy.
- Application development – where the actual coding takes place. Your project is public (website, Github documentation, roadmap, social media), and your token is already available on exchanges or dexes to raise funds for development.
Some recommendations to consider
- Market research – Analyze the project’s need, demand, and probabilities. This often accounts for more than 50% of success.
- Think about tokenomics – How will the token for your project distribute to your team, developers, and the general public? What will the initial price be? Should I conduct a prelaunch?
- Think about market timing – Your project’s financing will largely depend on bitcoin’s bull/bear cycles. For example, you would not want to launch your project’s tokens during a bear market. The optimal scenario is establishing the ticket when the cryptocurrency market appreciates, followed by application development.
- Find reliable blockchain developers – if you lack your development staff. This will allow you to focus on business-related matters, such as token distribution, marketing, public relations, and legal team. There are numerous software development firms, but few specialize in blockchain technology. The United States has the largest blockchain development community in the world. Still, if you’re on a tight budget, you should look for quality.
