Intermediate

Sample Contracts – ERC-20 Smart Contract

Welcome to our tutorial on ERC-20, a widely used sample smart contract standard on the Klaytn blockchain network. ERC-20 is a token standard that describes the basic functionality of a token on the Ethereum blockchain. It is widely used in the development of digital assets such as cryptocurrencies and other tokens. In this tutorial, we will explore the ERC-20 contract standard and its functionalities, walk through the process of deploying a sample ERC-20 token contract on the Klaytn network, and provide best practices for using ERC-20 in your own development. Whether you are a developer, researcher, or simply a blockchain enthusiast, this tutorial will provide valuable insights and hands-on experience in working with ERC-20 contracts on the Klaytn network.

This tutorial helps you to create an example ERC-20 compatible token that conforms to the Klaytn Token Standards, especially Fungible Token Standard (ERC-20).

ERC-20 Token Standard defines two events and 9 methods (including 3 optional methods) as below. ERC-20-compatible tokens are token contracts that implement the following interface.

function name() public view returns (string) //optional
function symbol() public view returns (string) //optional
function decimals() public view returns (uint8) //optional
function totalSupply() public view returns (uint256)
function balanceOf(address _owner) public view returns (uint256 balance)
function transfer(address _to, uint256 _value) public returns (bool success)
function transferFrom(address _from, address _to, uint256 _value) public returns (bool success)
function approve(address _spender, uint256 _value) public returns (bool success)
function allowance(address _owner, address _spender) public view returns (uint256 remaining)

event Transfer(address indexed _from, address indexed _to, uint256 _value)
event Approval(address indexed _owner, address indexed _spender, uint256 _value)

1. Writing ERC-20 Smart Contract

1.1 Overall structure of MyERC20

The complete source code of MyERC20.sol is given below. In this implementation, constructor invokes _mint to mint a predefined amount of tokens on contract deploy.

pragma solidity ^0.5.0;

/**
 * @dev Interface of the ERC20 standard as defined in the EIP. Does not include
 * the optional functions; to access them see `ERC20Detailed`.
 */
interface IERC20 {
    function totalSupply() external view returns (uint256);

    function balanceOf(address account) external view returns (uint256);

    function transfer(address recipient, uint256 amount) external returns (bool);

    function allowance(address owner, address spender) external view returns (uint256);

    function approve(address spender, uint256 amount) external returns (bool);

    function transferFrom(address sender, address recipient, uint256 amount) external returns (bool);

    event Transfer(address indexed from, address indexed to, uint256 value);

    event Approval(address indexed owner, address indexed spender, uint256 value);
}

library SafeMath {
    /**
     * @dev Returns the addition of two unsigned integers, reverting on
     * overflow.
     *
     * Counterpart to Solidity's `+` operator.
     *
     * Requirements:
     * - Addition cannot overflow.
     */
    function add(uint256 a, uint256 b) internal pure returns (uint256) {
        uint256 c = a + b;
        require(c >= a, "SafeMath: addition overflow");

        return c;
    }

    /**
     * @dev Returns the subtraction of two unsigned integers, reverting on
     * overflow (when the result is negative).
     *
     * Counterpart to Solidity's `-` operator.
     *
     * Requirements:
     * - Subtraction cannot overflow.
     */
    function sub(uint256 a, uint256 b) internal pure returns (uint256) {
        require(b <= a, "SafeMath: subtraction overflow");
        uint256 c = a - b;

        return c;
    }

    /**
     * @dev Returns the multiplication of two unsigned integers, reverting on
     * overflow.
     *
     * Counterpart to Solidity's `*` operator.
     *
     * Requirements:
     * - Multiplication cannot overflow.
     */
    function mul(uint256 a, uint256 b) internal pure returns (uint256) {
        // Gas optimization: this is cheaper than requiring 'a' not being zero, but the
        // benefit is lost if 'b' is also tested.
        // See: https://github.com/OpenZeppelin/openzeppelin-solidity/pull/522
        if (a == 0) {
            return 0;
        }

        uint256 c = a * b;
        require(c / a == b, "SafeMath: multiplication overflow");

        return c;
    }

    /**
     * @dev Returns the integer division of two unsigned integers. Reverts on
     * division by zero. The result is rounded towards zero.
     *
     * Counterpart to Solidity's `/` operator. Note: this function uses a
     * `revert` opcode (which leaves remaining gas untouched) while Solidity
     * uses an invalid opcode to revert (consuming all remaining gas).
     *
     * Requirements:
     * - The divisor cannot be zero.
     */
    function div(uint256 a, uint256 b) internal pure returns (uint256) {
        // Solidity only automatically asserts when dividing by 0
        require(b > 0, "SafeMath: division by zero");
        uint256 c = a / b;
        // assert(a == b * c + a % b); // There is no case in which this doesn't hold

        return c;
    }

    /**
     * @dev Returns the remainder of dividing two unsigned integers. (unsigned integer modulo),
     * Reverts when dividing by zero.
     *
     * Counterpart to Solidity's `%` operator. This function uses a `revert`
     * opcode (which leaves remaining gas untouched) while Solidity uses an
     * invalid opcode to revert (consuming all remaining gas).
     *
     * Requirements:
     * - The divisor cannot be zero.
     */
    function mod(uint256 a, uint256 b) internal pure returns (uint256) {
        require(b != 0, "SafeMath: modulo by zero");
        return a % b;
    }
}

/**
 * @dev Implementation of the `IERC20` interface.
 *
 * This implementation is agnostic to the way tokens are created. This means
 * that a supply mechanism has to be added in a derived contract using `_mint`.
 * For a generic mechanism see `ERC20Mintable`.
 *
 * *For a detailed writeup see our guide [How to implement supply
 * mechanisms](https://forum.zeppelin.solutions/t/how-to-implement-erc20-supply-mechanisms/226).*
 *
 * We have followed general OpenZeppelin guidelines: functions revert instead
 * of returning `false` on failure. This behavior is nonetheless conventional
 * and does not conflict with the expectations of ERC20 applications.
 *
 * Additionally, an `Approval` event is emitted on calls to `transferFrom`.
 * This allows applications to reconstruct the allowance for all accounts just
 * by listening to said events. Other implementations of the EIP may not emit
 * these events, as it isn't required by the specification.
 *
 * Finally, the non-standard `decreaseAllowance` and `increaseAllowance`
 * functions have been added to mitigate the well-known issues around setting
 * allowances. See `IERC20.approve`.
 */
contract MyERC20 is IERC20 {
    using SafeMath for uint256;

    mapping (address => uint256) private _balances;

    mapping (address => mapping (address => uint256)) private _allowances;

    // NOTE Start of https://github.com/OpenZeppelin/openzeppelin-solidity/blob/v2.3.0/contracts/token/ERC20/ERC20Detailed.sol
    string private _name;
    string private _symbol;
    uint8 private _decimals;

    constructor (string memory name, string memory symbol, uint8 decimals) public {
        _name = name;
        _symbol = symbol;
        _decimals = decimals;

        _mint(msg.sender, 100000 * 10 ** uint256(decimals)); // CAUTION!
    }

    /**
     * @dev Returns the name of the token.
     */
    function name() public view returns (string memory) {
        return _name;
    }

    /**
     * @dev Returns the symbol of the token, usually a shorter version of the
     * name.
     */
    function symbol() public view returns (string memory) {
        return _symbol;
    }

    /**
     * @dev Returns the number of decimals used to get its user representation.
     * For example, if `decimals` equals `2`, a balance of `505` tokens should
     * be displayed to a user as `5,05` (`505 / 10 ** 2`).
     *
     * Tokens usually opt for a value of 18, imitating the relationship between
     * Ether and Wei.
     *
     * > Note that this information is only used for _display_ purposes: it in
     * no way affects any of the arithmetic of the contract, including
     * `IERC20.balanceOf` and `IERC20.transfer`.
     */
    function decimals() public view returns (uint8) {
        return _decimals;
    }
    // NOTE End of https://github.com/OpenZeppelin/openzeppelin-solidity/blob/v2.3.0/contracts/token/ERC20/ERC20Detailed.sol

    uint256 private _totalSupply;

    /**
     * @dev See `IERC20.totalSupply`.
     */
    function totalSupply() public view returns (uint256) {
        return _totalSupply;
    }

    /**
     * @dev See `IERC20.balanceOf`.
     */
    function balanceOf(address account) public view returns (uint256) {
        return _balances[account];
    }

    /**
     * @dev See `IERC20.transfer`.
     *
     * Requirements:
     *
     * - `recipient` cannot be the zero address.
     * - the caller must have a balance of at least `amount`.
     */
    function transfer(address recipient, uint256 amount) public returns (bool) {
        _transfer(msg.sender, recipient, amount);
        return true;
    }

    /**
     * @dev See `IERC20.allowance`.
     */
    function allowance(address owner, address spender) public view returns (uint256) {
        return _allowances[owner][spender];
    }

    /**
     * @dev See `IERC20.approve`.
     *
     * Requirements:
     *
     * - `spender` cannot be the zero address.
     */
    function approve(address spender, uint256 value) public returns (bool) {
        _approve(msg.sender, spender, value);
        return true;
    }

    /**
     * @dev See `IERC20.transferFrom`.
     *
     * Emits an `Approval` event indicating the updated allowance. This is not
     * required by the EIP. See the note at the beginning of `ERC20`;
     *
     * Requirements:
     * - `sender` and `recipient` cannot be the zero address.
     * - `sender` must have a balance of at least `value`.
     * - the caller must have allowance for `sender`'s tokens of at least
     * `amount`.
     */
    function transferFrom(address sender, address recipient, uint256 amount) public returns (bool) {
        _transfer(sender, recipient, amount);
        _approve(sender, msg.sender, _allowances[sender][msg.sender].sub(amount));
        return true;
    }

    /**
     * @dev Atomically increases the allowance granted to `spender` by the caller.
     *
     * This is an alternative to `approve` that can be used as a mitigation for
     * problems described in `IERC20.approve`.
     *
     * Emits an `Approval` event indicating the updated allowance.
     *
     * Requirements:
     *
     * - `spender` cannot be the zero address.
     */
    function increaseAllowance(address spender, uint256 addedValue) public returns (bool) {
        _approve(msg.sender, spender, _allowances[msg.sender][spender].add(addedValue));
        return true;
    }

    /**
     * @dev Atomically decreases the allowance granted to `spender` by the caller.
     *
     * This is an alternative to `approve` that can be used as a mitigation for
     * problems described in `IERC20.approve`.
     *
     * Emits an `Approval` event indicating the updated allowance.
     *
     * Requirements:
     *
     * - `spender` cannot be the zero address.
     * - `spender` must have allowance for the caller of at least
     * `subtractedValue`.
     */
    function decreaseAllowance(address spender, uint256 subtractedValue) public returns (bool) {
        _approve(msg.sender, spender, _allowances[msg.sender][spender].sub(subtractedValue));
        return true;
    }

    /**
     * @dev Moves tokens `amount` from `sender` to `recipient`.
     *
     * This is internal function is equivalent to `transfer`, and can be used to
     * e.g. implement automatic token fees, slashing mechanisms, etc.
     *
     * Emits a `Transfer` event.
     *
     * Requirements:
     *
     * - `sender` cannot be the zero address.
     * - `recipient` cannot be the zero address.
     * - `sender` must have a balance of at least `amount`.
     */
    function _transfer(address sender, address recipient, uint256 amount) internal {
        require(sender != address(0), "ERC20: transfer from the zero address");
        require(recipient != address(0), "ERC20: transfer to the zero address");

        _balances[sender] = _balances[sender].sub(amount);
        _balances[recipient] = _balances[recipient].add(amount);
        emit Transfer(sender, recipient, amount);
    }

    /** @dev Creates `amount` tokens and assigns them to `account`, increasing
     * the total supply.
     *
     * Emits a `Transfer` event with `from` set to the zero address.
     *
     * Requirements
     *
     * - `to` cannot be the zero address.
     */
    function _mint(address account, uint256 amount) internal {
        require(account != address(0), "ERC20: mint to the zero address");

        _totalSupply = _totalSupply.add(amount);
        _balances[account] = _balances[account].add(amount);
        emit Transfer(address(0), account, amount);
    }

     /**
     * @dev Destroys `amount` tokens from `account`, reducing the
     * total supply.
     *
     * Emits a `Transfer` event with `to` set to the zero address.
     *
     * Requirements
     *
     * - `account` cannot be the zero address.
     * - `account` must have at least `amount` tokens.
     */
    function _burn(address account, uint256 value) internal {
        require(account != address(0), "ERC20: burn from the zero address");

  _balances[account] = _balances[account].sub(value);
        _totalSupply = _totalSupply.sub(value);
        emit Transfer(account, address(0), value);
    }

    /**
     * @dev Sets `amount` as the allowance of `spender` over the `owner`s tokens.
     *
     * This is internal function is equivalent to `approve`, and can be used to
     * e.g. set automatic allowances for certain subsystems, etc.
     *
     * Emits an `Approval` event.
     *
     * Requirements:
     *
     * - `owner` cannot be the zero address.
     * - `spender` cannot be the zero address.
     */
    function _approve(address owner, address spender, uint256 value) internal {
        require(owner != address(0), "ERC20: approve from the zero address");
        require(spender != address(0), "ERC20: approve to the zero address");

        _allowances[owner][spender] = value;
        emit Approval(owner, spender, value);
    }

    /**
     * @dev Destoys `amount` tokens from `account`.`amount` is then deducted
     * from the caller's allowance.
     *
     * See `_burn` and `_approve`.
     */
    function _burnFrom(address account, uint256 amount) internal {
        _burn(account, amount);
        _approve(account, msg.sender, _allowances[account][msg.sender].sub(amount));
    }
}

MyERC20.sol consists of one interface IERC20, one library SafeMath, and one contract MyERC20 which implements IERC20 interface.

• IERC20 interface defines mandatory interface described at ERC-20 specification.

• SafeMath library defines wrappers over Solidity’s arithmetic operations with added overflow checks for safe calculation of uint256 type of Solidity.

• MyERC20 implements IERC20 interfaces and also defines three optional methods described at ERC-20 specification.

  • In addition to ERC20, constructor is defined and this constructor is used to define a new ERC20 token name and symbol, and to mint a predefined amount of tokens. constructor is called once on its first deployment.

1.2 Take a look at important methods

Let’s take a look at some important methods in detail.

(1) function balanceOf(address account) external view returns (uint256);

balanceOf is a mandatory method of ERC-20. balanceOf returns the balance of the given address.

function balanceOf(address account) public view returns (uint256) {
    return _balances[account];
}

balanceOf just returns of value of key account stored in _balances which is mapping (address => uint256) type as below.

mapping (address => uint256) private _balances;

If there is no key account available in _balances, then it just returns 0.

(2) function transfer(address recipient, uint256 amount) external returns (bool);

transfer is a mandatory method of ERC-20. transfer transfers amount of tokens to recipient, and MUST fire the Transfer event. The function SHOULD throw if the message caller’s account balance does not have enough tokens to spend.

transfer just invokes internal method _transfer which implements actual transfer and event as below.

function transfer(address recipient, uint256 amount) public returns (bool) {
    _transfer(msg.sender, recipient, amount);
    return true;
}

_transfer implements the actual behavior of transfer method of ERC-20.

In addition, it prevents sending tokens from or to zero addresses using require as below.

function _transfer(address sender, address recipient, uint256 amount) internal {
    require(sender != address(0), "ERC20: transfer from the zero address");
    require(recipient != address(0), "ERC20: transfer to the zero address");

    _balances[sender] = _balances[sender].sub(amount);
    _balances[recipient] = _balances[recipient].add(amount);
    emit Transfer(sender, recipient, amount);
}

(3) function approve(address spender, uint256 amount) external returns (bool);

approve is a mandatory method of ERC-20. approve allows spender to withdraw from your account multiple times, up to the amount. If this function is called multiple times, it simply resets the allowance to amount.

approve just invokes the internal method _approve which implements the actual behavior of approve. msg.sender is passed as the account owner.

function approve(address spender, uint256 value) public returns (bool) {
    _approve(msg.sender, spender, value);
    return true;
}

function _approve(address owner, address spender, uint256 value) internal {
    require(owner != address(0), "ERC20: approve from the zero address");
    require(spender != address(0), "ERC20: approve to the zero address");

    _allowances[owner][spender] = value;
    emit Approval(owner, spender, value);
}

_approve updates _allowances which is a 2-dimensional dictionary maintaining allowed value for spender from specific address.

mapping (address => mapping (address => uint256)) private _allowances;

mapping (address => mapping (address => uint256)) private _allowances;

(4) function _mint(address account, uint256 amount) internal

_mint is not part of ERC-20. However we need a way to create new ERC-20 tokens and introduced _mint to create new tokens in this implementation as below.

function _mint(address account, uint256 amount) internal {
    require(account != address(0), "ERC20: mint to the zero address");

    _totalSupply = _totalSupply.add(amount);
    _balances[account] = _balances[account].add(amount);
    emit Transfer(address(0), account, amount);
}

_mint is an internal method and can be invoked inside of this contract.

In MyERC20.sol, _mint is invoked only once from constructor when deploying the smart contract to mint a predefined amount of token.

If you want to issue additional tokens after deploying the smart contract, you have to introduce a new public method such as mint. The method should be implemented with CAUTION because only authorized users should be able to mint tokens.

2. Deploying Smart Contract

You can use Remix Online IDE or use Truffle to deploy MyERC20 smart contract.

You can refer to the previous documents on how to deploy using Truffle or Remix Online IDE

3. Interacting with ERC-20 token from Klaytn Wallet

You can use Baobab Klaytn Wallet to query your balance and transfer the ERC-20 compatible BAOBABTOKEN you just deployed.

You can add ERC-20 compatible token in your wallet with the address of the deployed MyERC20 contract as below

After adding the ERC-20 token to the wallet app, the balance of your BAOBABTOKEN will be shown in addition to the balance of KLAY as below. You can see there are 100000 BAO tokens in the account.

With this, you complete this workshop successfully!!