What is the Avalanche network?
The Avalanche ecosystem is a blockchain platform that was first introduced by Ava Labs in 2020. Avalanche provides a scalable option addressing the issue of congested blockchain networks. Being the fastest platform measured by time-to-finality, Avalanche can process 6,500 transactions per second with sub-second finality. In this article, we will go through the steps of how to create a token on AVAX in just a few simple steps.
To provide scalability, security and decentralization, Avalanche is based on its unique Proof-of-Stake mechanism. The “Snowball Mechanism” leverages on-chain interaction between the network’s validator nodes. When a transaction is initiated by a user, validators do not only check the transaction for agreement but also send the validation request to other nodes.
AVAX is a utility token that is native to the Avalanche network. It primarily serves as the medium of exchange of the Avalanche ecosystem as fees and staking rewards are paid using AVAX. As gas and servicing fees are automatically burned, AVAX is a scarce and hard-capped asset.
Avalanche Uses Build-In Blockchains
What differentiates Avalanche from other blockchain projects is that the primary network is a combination of three separate chains. Each chain has its specialized use case and is validated by exactly one subnet. The three blockchains that make up the core of the platform are: The Exchange Chain (X-Chain), Contact Chain (C-Chain) and Platform Chain (P-Chain).
Exchange Chain (X-Chain)
The Exchange Chain is the default chain of the Avalanche network. It serves to create, exchange and manage assets. One example for an asset traded on Avalanche’s X-Chain is the AVAX coin.
Contract Chain (C-Chain)
We will use the C-Chain to deploy our AVAX tokens as it allows the creation of smart contracts using the chains API. The Avalanche C-Chain is EVM compatible, meaning developers can use the same tools as on Ethereum for creating decentralized Applications on Avalanche.
The Platform Chain allows users to create subnets and specialized blockchains that can operate using their own set of rules. Thus, the P-Chain serves the management of subnets and coordination of validators.
How to create a token on AVAX using Token Tool
Step 1: Add Avalanche Network to MetaMask
To be able to create a token on AVAX, you need to add the Avalanche Network to your MetaMask account or the wallet of your choice. Open the “Networks” Page and click on “Add network”. Then, you need to fill in the information below according to whether you plan to issue your token on the Avalanche mainnet or Fuji testnet.
Fuji Testnet: 43113
Step 2: Ensure sufficient AVAX funds in wallet
Once you have set your wallet to the designated network, make sure to have enough AVAX coins in your wallet. As you have to pay network and transaction fees in AVAX, the transaction will only go through if you have sufficient funds available.
If you only plan to assess the functionality of your token, a test network can be used. Minting a token on the Fuji test network is similar to creating a token on the Avalanche mainnet. However, you pay gas and service fees using faucet coins. You can request a limited amount of faucet coins for free, using the AVAX faucet request platform.
Step 3: Connect Wallet to Token Tool
First, open tokentool.bitbond.com and connect your wallet to Token Tool by clicking on the “Connect Wallet” button at the top right. A pop up window will appear with the multiple supported wallet options. Select the wallet of your choice.
Step 4: Select Token Standard and Network
Depending on whether you want to issue a token using the ERC-20 or ERC-721 token standard, choose “Create Token” or “Create NFT” from Token Tool’s menu. To deploy your token on the AVAX network, select “Avalanche” from Token Tool’s dashboard and in your wallet.
Please note that both, your wallet and Token Tool, must be connected to the Avalanche network, otherwise a warning message pops up, reminding you that the selected network does not match the network from your wallet.
Step 5: Specify your Token’s Features and Create Token
Now, you need to specify your tokens basic and additional features. After reviewing the information you filled in, click on “Create Token” to deploy your token to the AVAX blockchain. As soon as you agree to Token Tool’s Terms and Conditions and confirm the transaction, your token will be automatically created and transferred to your wallet.
A pop up window will appear with your block explorer link contract ID as shown in the screenshot below.
Congratulations! Your token has been successfully deployed to the AVAX network.
Due to its fast transaction speed, low costs and EVM compatibility, Avalanche is a great alternative for token minting. Using Token Tool, users can effortlessly deploy ERC-20 and ERC-721 tokens to Avalanche’s C-Chain. If you want a more detailed description of how to create any token on Token Tool, you may want to read our last article create your own token in 5 minutes using Token Tool.