Protocols are crucial components of blockchain technology that enable information to be shared automatically across a network securely and reliably.
In the field of computing, protocols are essentially rules that define how data is allowed to be transferred between different computer systems. Protocols define the way that data must be structured to be accepted into a system, and they establish safeguards to prevent malicious users from causing damage.
The same protocol can be utilized for different blockchains. For example Ethereum can be used on the public mainnet as well as in a private chain installation. In both cases the protocol is the same but the chain is different.
When assets are tokenized, a protocol and a particular chain need to be selected. There is a large number of feasible protocols and blockchains to choose from. At Bitbond we recommend and therefore support the blockchains that are listed on this page.
In the past years Stellar has been a frequently used protocol for regulated security token offerings because of its scalability, simplicity and low network fees. Regulators around the world have approved several security token offerings on Stellar.
However, with the advent of Ethereum scaling solutions and EVM (Ethereum Virtual Machine) compatible blockchains, currently it seems like EVM compatible chains will remain a core part of asset tokenization in the coming years. These solutions address some of the shortcomings of Ethereum (mainly network congestion and high network fees), while keeping the advantages of the Ethereum protocol (a Turing complete approach to building decentralized software).
These chains are all share the technical foundation and compatibility with the Ethereum Virtual Machine. You can find a comprehensive list of EVM chains here. The ones listed below are the ones that are supported by Bitbond Token Tool.
Ethereum is a global, open-source platform for decentralized applications (dApps) on which you can write code (usually referred to as a smart contract) that controls digital value and runs exactly as programmed. The Ethereum mainnet is the most popular blockchain for asset tokenization because of the apps you can write on top of it.
Etherum is also the most popular blockchain that uses smart contracts. Etherum is the best choice whenever we need to set parameters for the smart contracts. The most popular applications for the Ethereum blockchain are decentralized finance (DeFi) and asset tokenization.
Avalanche has four basic interrelated mechanisms that compose structural support of the consensus tool. These four mechanisms are Slush, Snowflake, Snowball, and Avalanche.
By using randomized sampling and metastability to ascertain and persist transactions, It represents a new protocol family. Although the original paper focused on a single protocol, namely Avalanche, it implicitly introduced a broad spectrum of voting-based, or quorum-based consensus protocols, called the Snow family.
While Avalanche is a single instantiation, the Snow family seems to be able to generalize all quorum-based voting protocols for replica control. Unlike prior quorum-based work, the Snow family enables arbitrarily parametrizable failure probability at the quorum intersection level.
Standard quorum-based protocols define this failure probability to be precisely zero, but by introducing errors in the quorum intersection, a larger set of consensus protocol design is available.
The Polygon network is Ethereum-native, aligned to be interoperable with all of Ethereum’s existing and even future infrastructures while offering a framework for its interoperability with other layer-2 solutions, sidechains and sovereign blockchains.
The Polygon network is thus also categorized as a layer-2 aggregator, aiming to create a multichain ecosystem of Ethereum-compatible blockchains with superior interoperability.
BNB Chain is an innovative solution to bring programmability and interoperability to the Binance Chain. BNB Chain (formerly Binance Smart Chain or BSC for short) relies on a system of 21 validators with Proof of Stake Authority (PoSA) consensus that can support short block time and lower fees.
The most bonded validator candidates of staking will become validators and produce blocks. The double-sign detection and other slashing logic guarantee security, stability, and chain finality.
BNB Chain also supports EVM-compatible smart contracts and protocols. Cross-chain transfer and other communication are possible due to native support of interoperability.
Binance DEX remains a liquid venue of the exchange of assets on both chains. This dual-chain architecture will be ideal for users to take advantage of the fast trading on one side and build their decentralized apps on the other side.
Fantom is a high-performance blockchain platform designed to support decentralized applications and real-time use cases. It leverages a unique consensus mechanism called the Lachesis Protocol to deliver fast and efficient transactions.
Fantom's Lachesis Protocol delivers fast and efficient transactions, making it ideal for real-time use cases such as micropayments, gaming, and supply chain management. The consensus mechanism also provides a high degree of security, ensuring that transactions are processed and recorded securely on the blockchain.
The platform's modular architecture makes it easy for developers to build and deploy dApps, and it supports smart contracts for self-executing agreements. Additionally, Fantom's ecosystem is highly interoperable, allowing for seamless communication between different blockchains and dApps.
Arbitrum is a Layer 2 scaling solution for Ethereum that offers increased speed, efficiency, and privacy. It uses off-chain computation and on-chain enforcement to process transactions quickly and securely.
The platform supports a wide range of use cases and is interoperable with Ethereum-based solutions. This allows for seamless communication and opens new opportunities for developers.
Arbitrum's combination of speed, efficiency, and privacy make it a leading platform in the decentralized space.
Optimism is a Layer 2 scaling solution for Ethereum, designed to bring increased speed, efficiency, and scalability to the Ethereum network.
It uses an innovative technique called Optimistic Rollups to process transactions off-chain, reducing congestion on the main Ethereum network. Optimism also offers increased security compared to traditional Ethereum-based solutions.
This makes it an ideal platform for decentralized finance and other high-volume use cases. With its commitment to Ethereum compatibility, Optimism is poised to become a leading platform in the decentralized space.
Base is an Ethereum Layer 2 (L2) network designed to be secure, affordable, and developer-friendly. Built on top of the OP Stack developed by Optimism, Base leverages the security of the Ethereum blockchain while offering faster transaction processing and lower fees. This makes it an attractive platform for building and deploying decentralized applications (dApps).
One of Base's key features is its focus on ease of use for developers. It integrates seamlessly with Coinbase products and tools, providing developers with access to a large user base and various resources.
Polygon zkEVM is also an Ethereum Layer 2 (L2) network, aiming to address scalability issues like high gas fees and slow transaction speeds that plague the Ethereum mainnet. However, unlike Base which utilizes Optimism's OP Stack, Polygon zkEVM employs a different scaling method called zero-knowledge (ZK) rollups.
This ZK-rollup technology allows Polygon zkEVM to inherit the security of the Ethereum blockchain while processing transactions off-chain, significantly enhancing speed and lowering costs.
Blast is a new Ethereum Layer 2 blockchain offering interest on ETH and stablecoins. Built for scalability and DeFi, it leverages Ethereum's security while proposing its own high-yield stablecoin.
These chains are built on protocols that are independently developed and technically different from the Ethereum protocol and the Ethereum Virtual Machine.
Stellar was created in 2014, after Bitcoin but before Ethereum. Stellar uses a more environmentally-friendly consensus mechanism than many other chains and was designed specifically for remittances and payments. Therefore it has “cash-like” delays between transactions (i.e. very short) and it’s more or less free to use (transactions cost way less than a penny).
Like Ethereum, Stellar allows you to issue other custom assets or tokens (say, a digital representation of a dollar or a peso) and to trade them very easily within the network.
Stellar has the Stellar Decentralized Exchange (SDEX) built directly into the protocol which provides a convenient way for secondary trades.
Token creators / issuers and investors need to safekeep their tokens. This can either be done through self-custody or by working with a third-party custodian (a bank or regulated financial institution that holds a custody license).
At the heart of token custody is the management of cryptographic keys. Someone who owns digital assets typically sees their so called public key or address. If you want to receive tokens, you need to give your public key to the token sender. You will normally find this key in your wallet.
If you want to send your tokens to another wallet (e.g. because you sold tokens to someone else), you will need their public key. When you send tokens, your wallet will sign the transaction with your private key.
In order to make sure that nobody can spend your funds or tokens, the private key needs to be managed in a highly secure way. At the same time convenience is important, so that tokens can be sent when necessary without an overly complicated approval process.
Custodians take the responsibility of managing private keys for investors and issuers in a secure and compliant way. They are therefore an important component in the whole setup of token offerings.
As the issuer of a token you normally don't hold tokens for a long time. Typically tokens are distributed to investors shortly after they are minted.
However, often additional tokens need to be minted after the primary issuance. Sometimes certain properties of tokens need to be changed. Only if you can be sure, that additional token minting, burning or other configurations will never change after the primary issuance, the issuer account key for a particular token can be deleted or token ownership can be explicitly renounced. This is a non-reversible action that disables further changes to the token configuration.
In all other cases, issuer keys need to be kept in a safe location from where transactions can be signed ideally in an automated way. At Bitbond we work with several regulated custodians and can recommend partners for you.
For robust, large-scale production deployments, we advocate for implementing a transaction authorization policy or transferring token contract ownership to a multi-signature wallet. Such precautions minimize risks associated with a singular point of failure, such as key leaks or the potential misuse of ownership rights by a malicious actor. Requiring multiple approvals from the team that oversees the token increases security. In certain scenarios, teams opt to organize themselves as a Decentralized Autonomous Organization (DAO) to further bolster decentralization and enhance transparency in their operations.
If you create tokens on an EVM chain with Bitbond Token Tool, there are the following ways to manage your issuer keys.
You can work with a custodian as described above. The custodian needs to support Web3 login through Wallet Connect. In such cases the custodian can log in to Token Tool from within their key management software and create tokens, manage tokens and distribute tokens on behalf of the issuer.
If as an issuer you want to be independent of a custodian when it comes to token management, you need to maintain a key management solution yourself. There are several secure and convenient solutions in the market, some of which are listed here.
Fireblocks is a sophisticated key management software that has very comprehensive functionality around digital assets. It can store nearly all currencies and tokens that currently exist and lets you configure sophisticated governance and approval rules.
Typically custodians would utilize Fireblocks. If you need to manage multiple keys for several tokens and need a more sophisticated approach to governance, Fireblocks is they right way to go.
With Fireblocks you can log in to Token Tool with Wallet Connect.
Ledger is one of the leading hardware wallets. You can use it with Token Tool directly or use it as a more secure way to mange keys behind Metamask and log in to Token Tool with Metamask. For institutions, Ledger Enterprise provides bank-grade key custody infrastructure.
Metamask is a simple and convenient way to log in to Token Tool. However, from a security standpoint it should not be used for transactions and tokens of higher value because it is not built for an institutional but rather a consumer context.
Safe is another secure and convenient way to manage issuer keys. It allows you to use Metamask or Wallet Connect to log in to Token Tool.
Token Tool is a publicly accessible Web3 application that provides core functionality for the creation, management and distribution of tokens and NFTs on Ethereum and Ethereum compatible blockchains (EVM chains). Use Token Tool via Web3 login. An enterprise version is available upon request.
Token Tool has a number of advantages compared to other products for token creation and management:
Uses simple Web3 login: no customized API integrations of key custody solutions is necessary. Manage your keys in the way you want as long as Web3 login is supported.
No-code smart contract deployment: configure your token via a convenient user interface (or via API if you use the enterprise version) without the need to code your own Solidity code. All Token Tool smart contracts have been audited by CertiK.
Supports leading blockchains and testnets: Ethereum (and Sepolia testnet), Polygon PoS (and Amoy testnet), Polyon zkEVM, Avalanche (and Fuji testnet), Fantom Opera (and Fantom testnet), Arbitrum, Optimism, Binance Smart Chain (aka BNB chain as well as BSC Test), Coinbase Base Chain, Blast, peaq and Stellar.
Supports different token standards: create ERC20 and ERC1400 tokens (and their equivalents on other chains) as well ERC721 NFTs with rich customization capabilities.
Supports Web3 wallets for login: login with most browser wallets like Metamask, Coinbase Wallet, Trust Wallet, MEWconnect, Farcaster Wallet and many others as well as Ledger as a hardware wallet. Via the Wallet Connect integration you can use different hardware wallets and sophisticated bank-grade key management solutions such as Fireblocks, Gnosis Safe, Ledger Enterprise, GK8 and others.
API access: all features are also accessible to enterprise customers programmatically.
Token creator remains in control: don't give away control over your tokens to third parties, instead remain in control through the elegant Web3 logic. The token creation is non-custodial.
Fair fee model: tokenize assets without complicated on-boarding or setup fees and only pay for what you use. You can find our fees under Token Tool Pricing.
To get started simply go to Token Tool and log in with your Web3 wallet.
A note on WalletConnect v2: Some wallet providers don't support blockchain switching during a WalletConnect session. A re-connection is needed when you switch blockchains to guarantee seamless integration with a variety of those providers. For example, if you initially established a WalletConnect session on Ethereum but decide to switch to Polygon, this transition would prompt an automatic disconnection of your wallet. Simply re-establish the connection and your session will resume, now utilizing your newly selected blockchain.
If you have issues connecting, please close the connection modal, select your desired chain, refresh the page and try again.
If your wallet provider supports multiple addresses, by default the connection will be established to the first address provided by the wallet.
Some wallet providers will only allow you to establish a session to a mainnet workspace while a mainnet chain is selected and testnet to a workspace when a testnet chain is selected. If you run into connection errors, please make sure you are connecting to the right workspace.
If you want to connect to a testnet workspace, please select one of the features (e.g. Create Token ), flip the toggle to select testnets, pick your desired chain and connect your wallet.
Gas fees need to be paid for all on-chain interactions. The amount of gas fee required is dependent on the complexity of the transaction and the current usage of the respective network. It's important to note that gas fees are paid in native coins, such as ETH or MATIC.
This table gives you an indication of the average gas fees stated in USD for the most common functions on Token Tool. The values are historical averages and can fluctuate depending on network utilization.
Some custody solutions are restrictive regarding external deposit addresses for security reasons. If a wallet is set up in a way that funds can leave this wallet to whitelisted addresses only, you can only use Token Tool only after you have whitelisted the Token Tool smart contract addresses first. Here is a list of the addresses that you need to whitelist in that case.
Mainnet addresses:
Ethereum: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Avalanche: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Polygon: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Binance Smart Chain: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Fantom: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Arbitrum: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Optimism: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Base Chain: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Polygon zkEVM: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Blast: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Peaq: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Testnet addresses
Ethereum Sepolia: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Avalanche Fuji: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Polygon Mumbai: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Binance Smart Chain Test: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Fantom Testnet: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Arbitrum Sepolia: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Optimism Testnet: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Base Chain Testnet: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Polygon zkEVM Testnet: 0x486F6AEA7d150254273AC7a5ffd872db54120b9a
Blast Sepolia Testnet: 0x4904Ba3148147D2f78b05a8446C01c48a7ABa4bd
Token Tool supports testnets for supported mainnet chains. This way you can test Token Tool for free. As an example: when you go to Create Token and select Ethereum as your chain, you can switch to Ethereum Sepolia Testnet in your Metamask. Token Tool will continue to function the same way as it does on mainnet.
To pay gas fees on testnets, you need testnet coins. Token Tool offers testnet faucets where you can get testnet coins for free.
Governance and security notice
We emphasize the importance of responsibly selecting contract configuration options based on your use case and target audience. While crypto-native projects may require a highly decentralized / trustless setup, enterprise customers often require a higher degree of controls and centralization to fulfill compliance requirements. To build trust with your audience, only grant yourself permissions that are required by your use case.
All contracts deployed via Token Tool are owned by the wallet you select. Depending on your configuration options, this wallet may have control over certain functions of your token, e.g. mint/burn, whitelisting or force transfers. Any compromise to the owner account may allow the hacker to take advantage of this authority. To avoid any a single point of failure, we recommend the use of multi-sig or MPC wallets such as Safe, Fireblocks or Ledger Enterprise.
In the case of a referral by one of our affiliate partners, users receive a 10% discount code to redeem upon completing a purchase on Token Tool. This section provides a brief explanation on how to use the discount code and Token Tool's crypto affiliate program.
If you received a discount code and would like to redeem it, simply go to the designated function, insert the code in the discount box field at the bottom of the page, and click "Submit":
Make sure to submit the code before you complete the transaction in your wallet.
The Token Tool crypto affiliate program is currently supported on these 4 chains:
Ethereum
Polygon PoS
Avalanche
BNB Chain
This means that referrers can only earn commission for these 4 blockchain networks, and referred users can use their discount codes only on these 4 supported networks. We are currently looking to include support for the rest of the available networks.
Using discount codes is currently possible on Token Tool's functions below:
Create Token
Distribute Token
Create Token Sale
Create Token Locker
Create NFT (not on NFT minting)
Distribute NFT
Referrers earn 30% commission on each transaction that takes please using their unique referrer code. Learn more about Token Tool's crypto affiliate program and start earning money easily.
Token Tool is a Web3 app where payment upon check out takes place in the native cryptocurrency of the network being used. When users decide to use Token Tool to configure and deploy smart contracts, they need to connect their wallet and complete payments in crypto by confirming the transaction in their wallet. Our contains a detailed breakdown of the costs for all Token Tool functions and features.
Purchasing cryptocurrency can prove to be a challenging to users who are not familiar with the space. It can also be difficult to investors looking to invest in token sales that were created with Token Tool.
Many wallet providers like MetaMask, offer a user-friendly interface to easily buy crypto directly from their apps. We put together a guide to walk you through the process of . You can use the guide for your own reference, or refer your investors to that guide if you're with Token Tool.
| Value in USD | Create Token | Mint | Burn |
|---|---|---|---|
Ethereum
63.04
1.21
1.27
Polygon PoS
0.22
0.01
0.01
Binance
3.25
0.05
0.14
Avalanche
1.06
0.10
0.03