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Blockchain Development

How To Develop Tokens on The Solana Blockchain?

written by Nitin Garg | Sep 17, 2022
How To Develop Tokens on The Solana Blockchain

A decentralized application based on open-source blockchain, Solana supports smart contracts such as NFTs. The Solana foundation, based in Geneva, currently operates it. Compared to Ethereum, Solana offers much faster transactions with much lower transaction fees. 

Anatoly Yokovenko and Raj Gokal created the open-source blockchain in 2017. In addition to Raj Gokal, Anatoly Yokovenko now serves as CEO of Solana Labs. The Solana blockchain platform was created to reduce workload and increase productivity at the global level to meet demand.  

What is a Token?

Tokens represent something else, such as another object (both physical and virtual), or an abstract concept, such as a gift that shows the giver’s respect for the recipient. A token on the blockchain represents a set of rules encapsulated in a smart contract. A blockchain address is associated with each token.

A blockchain-based digital asset is essentially a digital asset.

What is Solana?

In addition to hosting decentralized applications, Solana is designed to be scalable and decentralized. Solana Foundation is currently running the open-source initiative, while Solana Labs built the blockchain.

A significant advantage of Solana over rival blockchains like Ethereum is its speed and significantly lower transaction fees.

In 2022, Solana (SOLUSD) and its ticker symbol SOL, the cryptocurrency that runs on the Solana blockchain, rose almost 12,000%, reaching a market capitalization of over $66 billion at one point.

The Solana blockchain for software development experienced tremendous growth, becoming a strong competitor to the Ethereum network. Therefore, it’s no surprise that many developers are interested in learning how to create a Solana token. The smart contract functionality of Solana is also similar to Ethereum’s. Therefore, Solana can be used to develop dApps, tokens, and other Web3 applications.

Therefore, Solana is a fierce competitor to Ethereum because its blockchain overcomes some of its limitations. In order to achieve this throughput, how does Solana do it? 

Solana’s Consensus Mechanism – Proof-of-History

Blockchain industry consensus mechanisms generally fall into two categories: proof-of-work (PoW) and proof-of-stake (PoS). Bitcoin and Ethereum currently use PoW. This prevents economic attacks and other issues such as double-spending by allowing nodes to agree on the state of the information. As a result, the networks remain secure, but they are relatively slow. In contrast, Solana uses both proof-of-stake and proof-of-history. 

In other blockchains, blocks are formed by validators communicating with one another. The PoH consensus mechanism, however, can bypass this because it creates a historical record that proves a specific event occurred at a specific time. This makes it possible to achieve greater scalability since blocks are easier to form. 

Additionally, on the Solana blockchain platform, you do not build programs (smart contracts) in Solidity, but rather in Rust, another blockchain programming language. The Solana ecosystem requires Rust proficiency to develop dApps. Therefore, it is beneficial to be proficient in Rust. 

What are SPL Tokens?

SOL, the native token of the Solana ecosystem, is another key component. In addition to serving as a cryptocurrency, SOL acts as a governance token for the Solana blockchain. By holding SOL, holders have the opportunity to vote on the blockchain’s future and help govern it. 

We’ll also discuss what SPL tokens are in this section, since SOL is a SPL token. ERC-20 tokens, ERC-721 tokens, and ERC-1155 tokens are what Ethereum is to Solana. The Solana blockchain can therefore be viewed as using SPL as a token standard. 

Why Would You Want to Create Your Own Token?

Tokens are digital assets that can be created by anyone.

Money/assets are created when people agree that something has value, without getting too into the weeds. It was common for people to trade only goods before fiat money was introduced.

To get another thing of relative approximate value, they exchanged products of value (according to their agreement).

In the same vein, you can make a digital asset and require people to pay you through it instead of conventional currency today if you have a community or a product.

Similarly to money, crypto/blockchain tokens should have some kind of scarcity, which is called “total supply”. In the current market, the total supply of coins or tokens refers to the number that currently exists and is in circulation. Everything that has value should not be available in an unlimited quantity.

How to Create a Solana Token in 6 Steps

How to Create a Solana Token in 6 Steps

The central part of this is how to create a Solana token once you have a better understanding of the token development on Solana blockchain and SPL tokens. 

You can easily create a fungible or non-fungible SPL token. The process can now be broken down into five steps to make it even more understandable: 

Step 1: Set up a wallet

First, let’s install the Solana CLI. The commands differ depending on which operating system you’re using, and you might also need to add some environmental variables. However, once we’ve installed the SPL CLI, we can proceed to the second step, generating a wallet and acquiring some testnet SOL. 

Step 2: Installing the Solana and SPL CLI

The next step in creating a Solana token is to create a “file system wallet” and acquire some testnet SOL. In order to pay for network transactions, we need this. 

Step 3: Create a Wallet and Get Testnet SOL

Due to the Solana and SPL CLIs, the process of creating a fungible token becomes relatively simple. The next step will be to take a closer look at how to create an NFT once we’re done with the fungible token.

Our token has no initial supply since we haven’t added anything to it. You don’t need to worry, we will demonstrate how to increase the supply to your desired level. It is necessary to create a program account before actually minting the supply. As a result of the token development on Solana blockchain’s lack of storage by default, programs on the blockchain are manually added. The account must therefore be added manually: 

spl-token create-account <token-identifier>

This command allows us to mint a specified amount of tokens from an account we have created for our token: 

That’s all there is to it! The process of creating a fungible SPL token is as simple as that. Up next, we’ll create a Solana NFT! 

Step 4: Create a Fungible Token

This step can be skipped if you are not interested in creating a Solana NFT. Otherwise, follow along to learn how to make a Solana NFT.

In the previous step, you already collected all the essential information, so we only need to address a few minor details. 

As a first step, you must once again create a new token. This time, you’ll need to specify the decimals to be “0”, as this is an NFT. So, here’s how you create an NFT:

  • spl-token create-token –decimals 0

Following the creation of the NFT, you will need to create an account for the program, just like you did for the fungible token. The process is exactly the same:

  • spl-token create-account <token-identifier>

Once you have the account, you can begin minting the token. Due to the nature of NFTs, you’ll only be minting one token since each token is meant to be 

completely unique. To replace the token ID and account with your own values, enter the following: 

  • spl-token mint <token-identifier> 1 <token-account>

The spl-token mint command mints one token for each account.is able future minting as we only want one of these tokens to exist. This can be done through this command: 

  • spl-token authorize <token-identifier> mint –disable

Step 5: Create a Non-Fungible Token (NFT)

By inputting the following command, you can check the wallet balance if you’ve created fungible, non-fungible, or both tokens: 

  • spl-token accounts

As a result, you’ll get something like this: 

All the tokens in your wallet should appear here, including those you created during this tutorial. Once the tokens have been created, you’ll also need to transfer them to your wallet. Although we will use a Phantom wallet in this tutorial, the process won’t differ much if you use any other alternative. 

Step 6: Add the Tokens to your Wallet

The first thing you will need to do is change your Phantom wallet’s network to the testnet since we created testnet tokens in this tutorial. Transferring tokens becomes relatively easy when the right network is chosen. It’s as simple as entering the following command and changing the parameters to meet your needs:

  • spl-token transfer <token-identifier> <token-amount> <wallet-address> –fund-recipient

As you can see, we need the token ID, the amount you’d like to transfer, and your can get the wallet address by copying it from the top of your Phantom wallet interface. With the proper information inputted, all you need to do is run the command, and the tokens should transfer. 

To Use the “spl-token accounts” command, you can verify that everything worked as expected. You will notice, however, that the tokens do not have names, symbols, or icons in your Phantom wallet. 

BR Softech is a great place to start if you’re interested in Solana token development. Registering is free and only takes a few minutes!

Read More:- Top Blockchain Platforms of 2022-23

How Does Solana Is better than Ethereum?

How Does Solana Is better than Ethereum?

Over the past few years, cryptocurrency has gained much attention through Affiliate programs and their rising prices. Due to the high threat of new entrants into the market, Ethereum and Solana are considered each other’s biggest competitors. Volatility levels also differ between them. Here are some tips to help you decide:

1. The mechanism 

Similar technology is used by Ethereum and Bitcoin. Hundreds of miners secure Proof of Work (POW). To determine the time gap between two events, Solana uses Proof of History (POH), a series of sequential computations.

2. Transaction Speed

Solana’s speed in offering its investors is well known to all cryptocurrency investors. A Solana transaction can be processed 65,000 times per second, while Ethereum can process 30 transactions per second. Solana’s block time is just one second, compared to Ethereum’s 15 seconds.

3. Transaction Costs

As Transaction costs are something many of us hate to pay. The low transaction costs charged by Solana are another reason for its popularity. In comparison to Solana, Ethereum charges much higher transaction fees.

4. A transparent process 

Solana lacks adequate transparency about its developers, unlike Ethereum, which has a large community of developers. Solana just entered the market in 2020, while Ethereum has been in the market since 2014. Additionally, Ethereum maintains a higher level of transparency than Solana.

5. Capitalization of the market 

Ethereum ranks second among all Cryptocurrencies in terms of market capitalization. Compared to Ethereum, Solana lags far behind. It may take some time for them to reach Ethereum’s level of market capitalization since they are new to the market.

6. Size of the network

Smart contracts are the most prevalent in Ethereum’s network. In the current scenario, Solana cannot compete due to its small network. Solana lacks institutional and crypto experts’ support, whereas Ethereum has the first mover advantage.

What Is The Estimated Cost To Make Solana Token?

On the Solana blockchain, how much does it cost to create a token? Startups and large businesses who wish to create crypto-token projects often ask the blockchain development team, “How much does it cost to create a token?” An understanding of the cost of Solana token development is crucial to estimating the actual budget and preparing a budget. 

The cost of token or Web3 development depends on the functionality, features, and blockchain platform used.  What token development costs are and how you can impact them will be explained by our team. The primary factors behind Solana token development costs will also be explained.

Creating a market costs approximately 10-15 Sol, which is about $350 USD at the moment. The top right of Serum will allow you to connect your wallet.

The next section talks about the estimated cost of running NFT on solana blockchain.

The Cost of Running NFT on Solana

It depends on the complexity of the project and the location of the development team how much it will cost to develop NFT projects on Solana. Launching an NFT wallet costs between $ 25,000 and $ 70,000 (Eastern Europe) whereas creating an NFT marketplace costs between $ 35,000 and $ 100,000. This section provides more detailed calculations of how much it costs to run an NFT platform on Solana.

Why Choose BR Softech for NFT Token Development on Solana?

  • BR Softech provides solutions for tokens, smart contracts, dApps, and Defi at the leading Solana NFT Development Company. To create NFT tokens on distinct blockchain networks, the Solana NFT development team uses scalable and modern technologies.
  • Depending on your business needs, the development team will set up the project. BR Softech provides custom quality Solana NFT token development.
  • We provide you with a quality token on a blockchain network that caters to your business needs as one of the top non-fungible token development companies.
  • It is possible to create your own Solana-based NFT token within a given timeframe with these highly scalable and completely optimized solutions.

Read More:- TON Blockchain Development- A Comprehensive Guide

Conclusion

Are you looking for a company that develops Solana NFT tokens? Solana Blockchain Development Company BR Softech provides top solutions for Solana token development, NFT marketplace development, and NFT exchange wallet development. Get to know more about Solana NFT token development services by connecting with experienced professionals. Contact us today to discuss your idea.

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Nitin Garg

I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning, app, web & game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.

About Us

BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2010 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, mobile/ software development and other digital marketing services intending to deliver outstanding digital outcomes.

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