Create Your Own Blockchain ERC20 Token Using Python, Brownie, and Solidity

·

Introduction

Embark on your blockchain development journey with this comprehensive guide to creating an ERC20 token. Designed for beginners, this tutorial leverages Python, Brownie, and Solidity to provide hands-on experience in token creation while explaining core Ethereum concepts.

ERC20 represents the gold standard for Ethereum-based tokens, enabling seamless interoperability across wallets, exchanges, and dApps. Our approach combines:

Understanding the ERC20 Standard

The ERC20 protocol defines six mandatory functions and three optional features that ensure token compatibility across the Ethereum ecosystem:

Core Functions:

  1. totalSupply() - Returns circulating token amount
  2. balanceOf() - Checks holder balances
  3. transfer() - Moves tokens between accounts
  4. transferFrom() - Enables delegated transfers
  5. approve() - Sets spending allowances
  6. allowance() - Checks approved amounts

Development Environment Setup

Initializing Brownie

pip install eth-brownie
mkdir erc20-project && cd erc20-project
brownie init

Project Structure

erc20-project/
├── contracts/
│   └── Token.sol
├── scripts/
│   └── deploy_token.py
└── brownie-config.yaml

Building the Token Contract

Create Token.sol in the contracts folder:

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import "@openzeppelin/contracts/token/ERC20/ERC20.sol";

contract MyToken is ERC20 {
    constructor(uint256 initialSupply) ERC20("MyToken", "MTK") {
        _mint(msg.sender, initialSupply);
    }
}

Deployment Workflow

Local Deployment Script (deploy_token.py)

from brownie import accounts, MyToken

def main():
    deployer = accounts[0]
    initial_supply = 1_000_000 * 10**18  # Including 18 decimal places
    token = MyToken.deploy(initial_supply, {"from": deployer})
    print(f"Token deployed at: {token.address}")

Execute with:

brownie run deploy_token

Advanced Customization

Adding Dependencies

Update brownie-config.yaml:

dependencies:
  - OpenZeppelin/[email protected]
compiler:
  solc:
    version: 0.8.0

Multi-Token Deployment (custom_tokens.py)

from brownie import accounts, MyToken

TOKEN_SUPPLIES = [10**6, 2*10**6, 3*10**6]

def deploy_tokens():
    deployer = accounts[0]
    tokens = []
    for supply in TOKEN_SUPPLIES:
        token = MyToken.deploy(supply * 10**18, {"from": deployer})
        tokens.append(token)
        print(f"Deployed token at {token.address}")
    return tokens

Network Configuration

Testnet Deployment

Add to brownie-config.yaml:

networks:
  covenant:
    host: https://covenant-testnet.rpc
    chainid: 12345
    gas_price: 20 gwei

Deploy with:

brownie run custom_tokens --network covenant

Token Economics Best Practices

  1. Decimal Precision: Standard is 18 decimals
  2. Supply Management: Implement mint/burn functions
  3. Access Control: Use OpenZeppelin's Ownable
  4. Taxation: Optional transfer fees
  5. Pausability: Emergency stop functionality

👉 Discover advanced token strategies for commercial projects

Frequently Asked Questions

What's the minimum ETH needed to deploy?

Deployment costs vary by network congestion. Typically 0.01-0.05 ETH on testnets.

Can I upgrade my token later?

Yes, using proxy patterns like OpenZeppelin's Upgradeable contracts.

How do I list on exchanges?

Most decentralized exchanges (DEXs) allow permissionless listing. Centralized exchanges require compliance checks.

What's the difference between ERC20 and BEP20?

BEP20 is Binance Smart Chain's equivalent with faster transactions but different security assumptions.

How can users add my token to wallets?

They'll need:

  1. Contract address
  2. Token symbol
  3. Decimal places

👉 Learn wallet integration techniques for better user adoption

Conclusion

This guide has equipped you with:

Continue exploring with:

Remember to test thoroughly on testnets before mainnet deployment and consider security audits for production tokens.