Blockchain technology is one of the most disruptive technologies since the Internet came into existence. While Bitcoin was the pioneer and brought this technology to light, it’s Ethereum that took things to the next level.
The Ethereum network allows not only the creation of cryptocurrencies but also gives you the ability to create your own DAO (Decentralized Autonomous Organization). In this article, we will show you how to do just that in 5 minutes!
Step 1: Choose your platform
Decentralized Autonomous Organizations (DAOs) can be created on Ethereum, which is designed specifically for smart contracts. Unfortunately, deploying a smart contract to Ethereum is not for amateurs (it requires knowledge of Solidity), but it’s still possible to create a simple DAO using basic accounts. For simplicity’s sake, I’m going to show you how to create a DAO on Ethereum in five minutes; however, if you are so inclined, feel free to use another platform. For example, you could create one on NXT or Counterparty or Bitshares or Steem. Whichever platform you choose will determine your next steps – but don’t worry about that right now! We’ll cover how to move funds around at various decentralized exchanges later.
The following tutorial was written by Andreas M. Antonopoulos and appears in his book Mastering Bitcoin. It explains how bitcoin works under the hood and demonstrates how to create a provably fair lottery using its native tools: first generating an ECDSA keypair offline, then offering bets over IPFS and accepting them through an online form, then displaying lottery results over IPFS as well. It should give you some understanding of what bitcoin does behind the scenes and how it facilitates trustless interactions between two parties without requiring either party to trust each other or any third party services.
Step 2: Decide on your token name
What you name your token will help communicate what you’re trying to achieve. For instance, if you create an ERC20 Token, then it makes sense to use DAO as part of your name for easy identification. Here are some good tips: When choosing a name for your Token think about how it could be abbreviated. For example, DAO (Decentralized Autonomous Organization) is easily identifiable when abbreviated to its initialism. However, DAC (Distributed Autonomous Corporation) or DMC (Distributed Mutual Fund) may not be understood so easily by others outside of crypto-communities unless they are familiar with these terms and/or proper acronyms & abbreviations.
It is also important to consider that many projects have already claimed names that can be confused with yours. This includes other common words like coin, token, platform etc. You can check out our DAO Naming Guide here. Also, remember that anything created on Ethereum needs at least one uppercase letter in its name otherwise there would be confusion between lowercase ‘dao’ and uppercase ‘DAO’.
Step 3: Register your ERC20 Contract Name
Every new blockchain begins with an Initial Coin Offering (ICO). An ICO is simply the act of distributing a certain amount of cryptocurrency tokens to potential users. For example, you might create 100 Ether Tokens and give them away for free during your ICO. The official name of your token is its contract name and is created when you register it on your platform. You can use an online tool like MyEtherWallet to do so. If you’re creating a token that has no real-world value, such as a game currency or reputation points, then there’s no need to create an ERC20 Contract Name. However, if your token will be used as money or have other uses outside of just being used in your system, then we recommend creating one.
The following information will help you create your ERC20 Contract Name: Symbol: This is how others will refer to your token in public transactions. It must be between 1 and 32 characters long and consist only of alphanumeric characters (0-9A-Z) with dashes (-) separating words. If possible try not to start any word with a dash; they are difficult for people to read in public transactions.
Step 4: Add a Token Symbol
Each Ethereum smart contract has its own unique address, much like an email address or website URL. You can call your contract anything you want, but it’s recommended that you give it a name that will identify it later and be recognizable when your customers are filling out forms with details about sending money to your new project. For example, ‘MyToken’ or ‘Bitventurer’. Next, add a symbol. The most common type of symbol is an uppercase letter: ETH or BTC; others use uppercase letters and numbers (like XRP) or even lowercase letters (like XRP). It doesn’t really matter what you pick as long as there’s no chance someone else might pick that same token for their own project! If you’re using a service like MyEtherWallet or Mist, they’ll help you create your contract. If not, skip ahead to Step 7. Otherwise:
Create A New Account on MyEtherWallet (or Mist): When creating a new account on either MyEtherWallet or Mist, make sure to save your password somewhere safe and never share it with anyone else! # Download Keystore File & Save Your Private Key: After creating an account on one of these services, click Download Keystore File in order to download a file containing both your public key and private key information.
This file should be saved in a safe place where only you have access to it—and never shared with anyone else! If someone has access to your private key, they’ll be able to steal all of your funds from any accounts that use that same key! # Unlock Your Wallet With The Keystore File: Now that you’ve downloaded your wallet’s Keystore file, go back into MyEtherWallet or Mist and select View Wallet Info from the menu at the top. Under Keystore File, select Unlock and enter your password/key file.
Step 5: Save the following code into your Token Code field
0x41, 0x60, 0xc8, 0xb1, 0xf9 and click ‘Next’. Leave all other fields at their default values. You can leave your Account Details as they are and click ‘Next’. On your final screen fill in anything you want in Description and Token Symbol. Once finished click ‘Generate New Token’ to generate your Ethereum token code. Copy that token code by clicking on ‘Copy Address’ under your token contract address (At least until MetaMask adds some way to copy it more easily). Finally, save that new generated smart contract’s address and click OK. Your MetaMask wallet should look something like this now Now click Add Token from the left-hand menu of your MetaMask wallet.
This will open up a popup where you will paste in your newly created token contract address into the Token Contract Address field and then add a description of what it is if you wish before finally hitting Add button: That’s it! You have just created an ERC20 compliant Ethereum token! Note: if you have trouble creating tokens with MetaMask, try installing Parity or Mist browser extension instead. They both seem to work better than MetaMask for creating tokens. If you’re still having problems, please post them in the comments below and I’ll do my best to help out.
How to Create A Custom ERC20 Token Using MyEtherWallet At MyEtherWallet (MEW), creating a custom token requires only two extra steps compared to creating one using MetaMask. First of all, visit the MEW homepage and select the Tokens tab at the top right corner of your screen. Then choose Click To Load Tokens option followed by Add Custom Token. It will take you to a page where you need to input certain information about your token including its name, symbol, decimal places etc. You can see an example of such information in the image below: After entering the above details hit Save button and return back to the main page.