If you have ever thought of creating your own cryptocurrency token, then this article is for you. In today's article, I will show you how to create your own cryptocurrency token in less than 10 minutes. To create your own cryptocurrency token, we will be using the Simple Ledger Protocol [SLP] that runs on the Bitcoin Cash blockchain. We will also discuss some of the advantages and disadvantages of creating your token with the SLP and compare SLP based tokens to the more familiar ETH based tokens .
Introducing The Simple Ledger Protocol
The Simple Ledger Protocol is a token creation system that runs on the Bitcoin Cash blockchain. I'll cut through all the technical details and get to the most important point. The Simple Ledger Protocol is a game changer because it allows anyone to create their own cryptocurrency token in a few minutes and costs less than a few cents. Before demonstrating how to create your own token, it is important to briefly cover the basics of the SLP and how tokens created on the SLP differ from the more common ERC-20 tokens that run on the Ethereum blockchain.
The vast majority of the tokens that most people have heard of (BAT, ETH, Dai, etc) run on the Ethereum blockhain, so its easy to think that all tokens are the same. However, different tokens run on different blockchains, and the underlying blockchain can have significant effects on the token itself. Therefore it is important to discuss some of the advantages and disadvantages of creating tokens with SLP as opposed to creating an Ethereum based token.
The two biggest advantages of creating your crypto token with the SLP are that it is incredibly easy and transaction fees are quite low. Creating a token on the Ethereum blockchain requires knowing Solidity, or paying someone that does. By contrast, even novice users like myself can easily create their SLP based token with a wallet based Graphical User Interface (GUI). Additionally, tokens that are created with SLP will run on the Bitcoin Cash blockchain which means that transaction fees can be considerably less than fees on the Etherum blockchiain. At the time of writing, ETH fees are about 11 cents for a safe low transfer while Bitcoin Cash (and consequently any SLP created token) fees are barely 1/10th of a cent. Although 11 cents is still a small fee, this is 100 times more than the fee for a SLP based token which can add up as transaction volume increases.
As with everything else in life, there are rarely any free lunches, and there are also some disadvantages of creating a token with SLP as opposed to an Ethereum based token. The most notable difference is the average block time. With Ethereum, block times hover around 15 seconds, but transaction times with Bitcoin Cash average about ten minutes. This is a huge difference, and is something to consider especially if your token is going to be used in an application where speedy transactions are important. The difference in block times becomes even more apparent if you are using an application that requires funds be held for several number of confirmations before they can be moved or transferred.
Another important consideration is that using an SLP token might be incompatible with user's existing wallets. What I mean by that is that the vast majority of tokens I deal with on a daily basis are ERC-20 compliant tokens that run on the Ethereum blockchain. BAT, Dai, USDC, Hydro, Loopring, etc are all easily accommodated by ETH based wallets such as MetaMask. The proliferation of ETH based tokens means that many users might not have a Bitcoin Cash compatible wallet, and even then, their wallet would also need to be SLP enabled. I have been active in crypto for about a year, and I didn't have a BCH compatible wallet until I began writing this article, so I'd assume there are many casual crypto users who in the same situation. There are quite a few free BCH/SLP compatible wallets that are available,, so this isn't a major issue, but it could be one more obstacle that your intended user has to navigate before using your token.
All in all, there are advantages and disadvantages to launching your token on SLP as opposed to creating a token on Ethereum. SLP offers an easier on ramp and lower transaction fees while Ethereum offers faster transaction speed and more widespread compatibility. Given the lower barriers to entry, I'd say that creating a token with SLP has significant advantages especially for non-technical users like me.
Creating Your Token
Now that we have the technical stuff out of the way, lets jump right in and create your own cryptocurrency token. In order to create your token, you will need a small amount of Bitcoin Cash and a Bitcoin Cash wallet that supports SLP. For the purposes of this article, I will be creating a token with the freely available Electron Cash wallet, although there are other options such as the (also free) Bitcoin.com Mint wallet. The first step in creating your token is to download and install the wallet. If you choose to use Electron Cash, make sure that you install the SLP compatible wallet and not just the default Electron Cash wallet.
Once you have downloaded the wallet, you can either import an existing BCH wallet or create a new wallet. If you don't already have some BCH in your wallet, you will need to get a small amount to create your token. Since this version of the Electron Wallet supports both BCH and SLP, it has two sets of public keys. In order to make sure that your funds arrive, you will need to click on the receive tab of your wallet. After you get to the receive screen, make sure that you click on "Show BCH Address" to make sure you are copying the BCH public key.
After you have the public key, you need to deposit some BCH into your Electron Wallet. In this example, I am simply pasting my public key from the Electron wallet into the withdraw option on Coinbase Pro.
Once you have deposited funds in your wallet, select the tokens tab and then click "Create New Token."
This will bring up a dialog box where you can enter the name and ticker symbol for your token. You also have the option of choosing the total circulating quantity of your new token as well as deciding whether the token will have a fixed supply or not. Once you have entered all the appropriate details, click "Create New Token."
Once you have completed this step, the tokens will appear in your Electron wallet. Once the newly created tokens are in your wallet, you can send them to other users and wallets just as you would any other token. Keep in mind that the transaction fees for sending your new token will still have to be paid in Bitcoin Cash since BCH is the underlying blockchain. This is similar to how ETH is used to pay the gas fees for sending BAT and other tokens that run on the Ethereum blockchain. For this example, I will send some tokens to the Badger wallet. All we have to do to send the token is click the "Send" tab in Electron and enter the appropriate details. Just as we can select the gas fee with ERC-20 type tokens, we can select the BCH amount that we are willing to pay to send the transaction.
Within a few minutes, your token will arrive in the Badger wallet.
Although tokens created with the Simple Ledger Protocol are far easier and cheaper to create and share than ERC-20 tokens, that doesn't mean that they are simply novelties. They can be used just like any other token. Depending on what you want to do with the token, you could build a website that uses them as a utility token, give them away in exchange for bounties, or simply hold onto them and brag to your friends about having a cryptocurrency token named after you. Although it is easier to create tokens with SLP and cheaper to send them, keep in mind that using a SLP based token will require your users to have a SLP-enabled Bitcoin Cash wallet and transaction times could be considerably slower than when using an Ethereum based token. All in all though, I think that there is a lot of potential in the Simple Ledger Protocol and that it is a great way to easily and cheaply create a crypto token, so why not give it a try.
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.