Everything about securing an ERC-20 token before launch on the cryptocurrency exchanges

In the cryptocurrency industry, ERC-20 tokens are the most commonly used token. According to an ERC-20 token developer, ITSpectrum, the ERC-20 tokens have become very popular in terms of creating digital assets and even assigning protocol voting rights mostly applicable for the Ethereum blockchain. Before the launching process of the ERC-20 tokens, the cryptocurrency exchanges do perform a security assessment in terms of checking some of the primary qualities such as a verified source code, industry-standard library usage, limited scope for any privileged role-playing, and a unique modular design.

As suggested by a crypto exchange development company in India, the ERC-20 tokens are one of the standard tokens ever created. The best thing is that the developed process of the tokens is totally based on the Ethereum blockchain network, and the ERC20 tokens can be exchanged with other ERC20 tokens as well. The ERC-20 tokens can be easily integrated into cryptocurrency wallets provided by the cryptocurrency exchange platforms. However, the ERC tokens are generally launched to be used for crowdfunding (ICO) in order to generate capital or funds.

As depicted by the cryptocurrency exchange development services, before the launch of the ERC-20 tokens on the cryptocurrency exchanges there are some security guidelines as mentioned-above which should be strictly followed.

• Proper verification of the source code

According to ITSpectrum, proper verification of the source code is highly necessary before getting the ERC-20 tokens listed on the cryptocurrency exchanges. Without proper access to the actual source code, the auditors of the tokens might not be able to analyze the token’s behavior. In order to verify the token’s code, the source code of the smart contracts is needed to be uploaded to a reliable platform. If the ERC-20 tokens are upgradable then distinct releases can be used to communicate the situation of the token for every upgrade.

• Use of industry-standard library

According to an ERC20 token development company, before launching the ERC-20 tokens you have to avoid writing the smart contract codes from scratch every time. If the code is written from scratch then the developer team might lose track of the vital detail which may hamper the integrity of the tokens. It is required to screen the token launching standards whenever possible and proper scrutinizing of the smart contracts for secure implementation is equally important as well.

• Limit the privileged roles

As suggested by a crypto exchange development company in India, the ERC-20 tokens might often have privileged roles which in other words can be termed as super users or even controllers as well. For some smart contracts, these privileged roles might brandish significant power like pausing the transactions, modifying the balances, and even changing the token’s logic as well. In terms of limiting the privileged roles, it would be best not to allow any roles to freeze or burn without permission. Using an upgradable pattern is suggested where the user will agree to a token upgrade, thus allowing the privileged role to bias the smart contract’s functionalities.

• Use of simple and modular design

It nothing surprising that evaluation of a token can be quite boring from the security perspective. As depicted by an ERC20 token development company, there can be complex protocols that might help in enabling the advanced features of the tokens. For minimizing the possibility of failure the token’s complexities can be reduced by keeping the token-related functionalities at the minimum simply by separating the token contract from the entire protocol. Reduction or elimination of the external token dependencies is also equally important as well. In the end-use, fewer contracts are quite necessary to implement the token.

Some important benefits of using ERC20 tokens –

Before the launch of ERC-20 tokens on the cryptocurrency exchanges, there were many ERC-20 specifications that had made things change in a streamlined manner. However, the ERC-20 token does come with a lot of benefits such as –

• It is less complex in order to understand the token implementation.

• It is high on Liquidity.

• It has uniformity of Protocols.

• It is free of any risks involved in terms of breaking the smart contracts.

• It evolves and grows with time.

Cryptocurrency is totally suitable for making payments and digital transactions. However, its main function is to solidify the whole purchasing process. ITSpectrum is one of the leading companies which provide cryptocurrency exchange development services helping you develop and launch your own ERC-20 tokens. The tokens developed can help you in maintaining various blockchain applications in several exchange platforms. With the development of the ERC-20 tokens by maintaining the best security practices it makes way for a much safer financial ecosystem.