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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 Built-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).
Current Projects on Avalanche
At the time of writing, Avalanche lists 191 projects on their ecosystem ranging from Culture, DeFi, Exchange, Infrastructure and Tools to Wealth Management. Recently the project Tether, which is among the most popular stablecoins in the market, launched their USDt token on Avalanche network.
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 (Dapps) 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.
Test Token Tool using the Avalanche Testnet
If you wish to to assess the functionality of creating a token on Avalanche, you can go through the process by simulating a fake purchase using a test network. Creating a token on the Fuji testnet is similar to creating a token on the Avalanche mainnet. However, you pay gas and service fees using faucet coins. Faucet coins are basically “fake” currencies of the network you’re using, in this case it would be AVAX, it is the means of payment used on the testnet of the designated network. You can request a limited amount of faucet coins for free, using the AVAX faucet request platform.
Note that the “testnet” differs from the “mainnet” and you will need to set up a different network when creating a real purchase. Follow the process described in Step 1 below in the guide to learn how to add a network in your MetaMask wallet. The information to be filled for adding the Avalanche Fuji testnet are the following:
- Network name: Fuji Testnet
- New RPC URL: https://api.avax-test.network/ext/bc/C/rpc
- ChainID: 43113
- Symbol: AVAX
- Explorer: https://testnet.snowtrace.io
You can then follow the steps described in the guide below to go through the process of creating a token.
How to create a token on AVAX using Token Tool
Now that you have background information on the Avalanche network and that you tried to create a token on the testnet, it is time to follow the process using the Avalanche mainnet.
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 or wallet of your choice.Open the “Networks” Page and click on “Add network”. Then, set up the Avalanche Mainnet according to the information you find below:
- Network name: Avalanche C-Chain
- New RPC URL: https://api.avax.network/ext/bc/C/rpc
- ChainID: 43114
- Symbol: AVAX
- Explorer: Mainnet: https://snowtrace.io
You can find a more detailed guide for setting up Avalanche network on your wallet here.
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 service fees in the native currency of the network you’re issuing the tokens on (AVAX), your tokens will be successfully create and the transaction will be processed only if you have sufficient funds available.
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. NFTs use fall under the ERC-721 standard, check out our guide on how to create an NFT for more details.
To issue your tokens 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:
- Token Name
- Token Symbol
- Initial supply
- initial pricing
You can then add additional features to further characterize your token. In addition to the basic characteristics of your token, Token Tool offers five optional functionalities.
These optional features consist of:
- “Can Burn”: enables token burning after initially creating your token which serves to decrease supply
- “Can Mint”: support additional token minting to increase supply.
- “Can Pause”: specifies whether your token and all associated operations can be halted and resumed whenever needed. This feature can be useful in cases of a vulnerability or a malicious attack. You should take into consideration that enabling pausing gives central authority to the token creator.
- “Can Blacklist”: indicates whether individual accounts such as malicious actors can be blacklisted after initial token creation. Similar to enabling pausing, blacklisting gives central authority to the token creator.
- “Change Ownership”: allows you to change ownership of your tokens.
- “Has document”: a hash or URL can be used to reference documentation of the underlying asset. Can be edited after a token is successfully minted.
- “Max number of tokens per address is limited”: Sets maximum token balance per individual address. Limits can be increased after initial token creation.
- “Requires Whitelisting”: defines if token transfers are only possible to whitelisted addresses or if the token is freely transferable.
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 in your wallet, your tokens will be automatically created and transferred to your wallet.
A pop up window will appear with your block explorer link and contract ID as shown in the screenshot below. You will also find an “Add to Metamask” button to easily import and see your tokens in your wallet:
Congratulations! Your token has been successfully deployed to the Avalanche network.
Ethereum network has proven to be quite costly and more time consuming, making it less efficient than other blockchains available. This lead to the rise of so-called EVM-compatible protocols that have much higher transaction processing speed for a significantly lower cost. EVM stands for Ethereum Virtual Machine, meaning they are compatible with the Ethereum network as they are written in the same programming language (i.e. Solidity). Avalanche is a great alternative for creating tokens due to its fast transaction speed, low costs and EVM compatibility. On the other hand, creating smart contracts and deploying them on blockchain, can come with great technical hurdles, especially when someone lacks the necessary technical knowledge.
As we believe in the tokenization of everything and strive to make tokenization accessible for everyone, Token Tool enables users to effortlessly create, deploy and manage ERC-20 and ERC-721 tokens to Avalanche and other EVM protocols without requiring them to do any coding. Participating in DeFi and leveraging the power of blockchain technology has never been easier, simply connect your wallet, fill in the blank and click create tokens.
If you want a more detailed description of how to create any token on Token Tool, you may want to read our article create your own token in 5 minutes using Token Tool. If you’re interested to implement tokenization technology within your organization, make sure to reach out for a free consultation with one of our experts.