Blockchain

Building a Decentralized Token Creator: The Tech Behind One-Click Token Generation

Azim Memon
Azim Memon
14 min read
BlockchainReactEthereumWeb3HardhatSmart Contracts
Building a Decentralized Token Creator: The Tech Behind One-Click Token Generation

Introduction

Imagine being able to create your own cryptocurrency with just one click. No complex Solidity knowledge, no deployment headaches—just a simple interface that handles everything. That's the power of modern web3 tooling.

In this hands-on guide, you'll build a complete token creation platform from the ground up. We'll harness React for a sleek frontend, wagmi for seamless blockchain interactions, and Hardhat for bulletproof smart contract development. By the time you're done, you'll have a live application that deploys custom tokens with a few clicks.

What you'll learn:

  • Setting up a professional Hardhat environment and compiling smart contracts
  • Building an intuitive React interface with wagmi for wallet connectivity
  • Deploying ERC-20 tokens programmatically straight from your browser

The Architecture: Understanding the System

Before diving into code, let's visualize how the pieces fit together:

Plaintext
User Interface (React) → Wallet Connection (wagmi) → Smart Contract Deployment → ERC-20 Token

The magic happens entirely on-chain. Unlike traditional factory patterns that rely on intermediary contracts, we compile the bytecode locally and deploy it directly from the frontend. This approach delivers:

  • No factory contract needed - Deploy directly to reduce complexity
  • Lower gas costs - Eliminate middleman contract calls
  • Complete control - Full ownership of your contract code
  • Zero dependencies - No reliance on third-party services

Part 1: Setting Up the Smart Contract

Step 1: Initialize Hardhat Project

Let's start by creating a new Hardhat project. Open your terminal and execute:

Bash
# Create a new directory
mkdir token-creator
cd token-creator

# Initialize Hardhat
npx hardhat --init

When prompted, select these options:

  • Which version of Hardhat would you like to use? - hardhat-2
  • Where would you like to initialize the project?: . (current)
  • Please provide either a relative or an absolute path: . (current)
  • What type of project would you like to initialize? · A Javascript project using Mocha and Ethers.js
  • Do you want to run it now? (Y/n) · true

Why Hardhat? It's the industry standard for Ethereum development, offering exceptional TypeScript support, comprehensive testing frameworks, and robust deployment tools.

Step 2: Install OpenZeppelin Contracts

OpenZeppelin provides audited, production-grade smart contract implementations trusted by thousands of projects:

Bash
npm install @openzeppelin/contracts

Step 3: Create the Custom Token Contract

Create a new file contracts/CustomToken.sol:

Solidity
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

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

contract CustomToken is ERC20, Ownable {
    uint8 private immutable _decimals;

    constructor(
        string memory name_,
        string memory symbol_,
        uint256 initialSupply_,
        uint8 decimals_
    ) ERC20(name_, symbol_) Ownable(msg.sender) {
        _decimals = decimals_;
        _mint(msg.sender, initialSupply_ * 10 ** decimals_);
    }

    function decimals() public view override returns (uint8) {
        return _decimals;
    }
}

Step 4: Compile the Contract

Run the Hardhat compiler:

Bash
npx hardhat compile

This generates an artifacts directory containing your compiled contract. Navigate to:

Plaintext
artifacts/contracts/CustomToken.sol/CustomToken.json

This JSON file contains two critical components for frontend deployment:

  • ABI (Application Binary Interface): Describes how to interact with the contract
  • Bytecode: The compiled contract code to deploy on-chain

Pro tip: The bytecode is what actually gets deployed to the blockchain. The ABI is like an instruction manual for interacting with that deployed code.

Part 2: Building the React Frontend

Step 1: Create React Project

In a new directory (or subdirectory), create a React app:

Bash
npm create vite@latest token-creator-frontend -- --template react
cd token-creator-frontend
npm install

Step 2: Install Dependencies

Install the essential Web3 libraries:

Bash
npm install wagmi viem @tanstack/react-query

Dependency breakdown:

  • wagmi: React hooks for Ethereum interactions
  • viem: TypeScript-first Ethereum library with excellent performance
  • @tanstack/react-query: Powerful data fetching and caching for seamless UX

Add Tailwind CSS (Optional but Recommended)

Since our components use Tailwind CSS for styling, it’s recommended to set it up in your React project.

Follow the official setup guide here: 👉 Tailwind CSS + Vite Setup Guide

Step 3: Configure wagmi with Chainlist RPCs

Create src/config.js:

Javascript
import { createConfig, http, injected } from 'wagmi';
import { bscTestnet } from 'wagmi/chains';
import { metaMask } from 'wagmi/connectors';

export const config = createConfig({
  chains: [bscTestnet],
  connectors: [injected(), metaMask()],
  transports: {
    [bscTestnet.id]: http(),
  },
});

Why BSC Testnet? Lower gas fees make it perfect for development and testing. You can easily switch to Ethereum mainnet, Polygon, or any other EVM-compatible chain by importing from wagmi/chains.

No API key required! The http() transport automatically uses public RPC endpoints. Explore more networks at chainlist.org.

Step 4: Setup wagmi Provider

Update src/main.jsx:

Javascript
import { StrictMode } from 'react';
import { createRoot } from 'react-dom/client';
import App from './App.jsx';
import './index.css';
import { WagmiProvider } from 'wagmi';
import { config } from './config.js';
import { QueryClient, QueryClientProvider } from '@tanstack/react-query';

const queryClient = new QueryClient();

createRoot(document.getElementById('root')).render(
  <StrictMode>
    <QueryClientProvider client={queryClient}>
      <WagmiProvider config={config}>
        <App />
      </WagmiProvider>
    </QueryClientProvider>
  </StrictMode>
);

Part 3: Building the Wallet Connection

Step 1: Create Connect Component

Create src/components/Connect.jsx:

Javascript
import { useEffect, useState } from 'react';
import { useChainId, useConnect } from 'wagmi';

export function Connect() {
  const chainId = useChainId();
  const { connectors, connect } = useConnect();

  return (
    <div className='buttons'>
      {connectors.map((connector) => (
        <ConnectorButton
          key={connector.uid}
          connector={connector}
          onClick={() => connect({ connector, chainId })}
        />
      ))}
    </div>
  );
}

function ConnectorButton({ connector, onClick }) {
  const [ready, setReady] = useState(false);
  useEffect(() => {
    (async () => {
      const provider = await connector.getProvider();
      setReady(!!provider);
    })();
  }, [connector, setReady]);

  return (
    <button
      className='button'
      disabled={!ready}
      onClick={onClick}
      type='button'
    >
      {connector.name}
    </button>
  );
}

Step 2: Create ConnectWallet Wrapper

Create src/components/ConnectWallet.jsx:

Javascript
import { useAccount } from 'wagmi';
import { Connect } from './Connect';
import { TokenDeploy } from './TokenDeploy';

export function ConnectWallet() {
  const { isConnected } = useAccount();

  return (
    <div className='container'>
      {isConnected ? <TokenDeploy /> : <Connect />}
    </div>
  );
}

This conditional rendering ensures users must authenticate their wallet before accessing sensitive token deployment features.

Step 3: The Token Deployment Component

This is where the magic happens. Create src/components/TokenDeploy.jsx:

Javascript
import React, { useState, useEffect, useMemo } from 'react';
import {
  useAccount,
  useDeployContract,
  useDisconnect,
  useEnsAvatar,
  useEnsName,
  useReadContract,
  useWaitForTransactionReceipt,
} from 'wagmi';

export function TokenDeploy() {
  const { address, connector } = useAccount();
  const { disconnect } = useDisconnect();
  const { data: ensName } = useEnsName({ address });
  const { data: ensAvatar } = useEnsAvatar({ name: ensName });

  const {
    deployContract,
    data: deployHash,
    isPending: isDeploying,
    error: deployError,
    reset,
  } = useDeployContract();

  const {
    isLoading: isConfirming,
    isSuccess: isConfirmed,
    data: receipt,
  } = useWaitForTransactionReceipt({ hash: deployHash });

  const [tokenForm, setTokenForm] = useState({
    abi: '',
    bytecode: '',
    name: '',
    symbol: '',
    supply: '',
    decimals: '18',
  });

  const [deployedTokens, setDeployedTokens] = useState([]);

  const formattedAddress = useMemo(
    () => (address ? `${address.slice(0, 6)}…${address.slice(-4)}` : ''),
    [address]
  );

  const handleChange = (key) => (e) =>
    setTokenForm((prev) => ({ ...prev, [key]: e.target.value }));

  const handleDeploy = async () => {
    try {
      const abi = JSON.parse(tokenForm.abi);
      const bytecode = tokenForm.bytecode.trim();
      const args = [
        tokenForm.name,
        tokenForm.symbol,
        BigInt(tokenForm.supply),
        parseInt(tokenForm.decimals),
      ];

      await deployContract({ abi, bytecode, args });
    } catch (err) {
      console.error('Deployment error:', err);
      alert('Error deploying contract: ' + err.message);
    }
  };

  useEffect(() => {
    if (isConfirmed && receipt?.contractAddress) {
      const newToken = {
        name: tokenForm.name,
        symbol: tokenForm.symbol,
        supply: tokenForm.supply,
        decimals: tokenForm.decimals,
        address: receipt.contractAddress,
        timestamp: new Date().toISOString(),
      };

      setDeployedTokens((prev) => [...prev, newToken]);

      setTokenForm((prev) => ({
        ...prev,
        name: '',
        symbol: '',
        supply: '',
        decimals: '18',
      }));
      reset();

      alert(`Token deployed successfully at: ${receipt.contractAddress}`);
    }
  }, [isConfirmed, receipt]);

  const isFormIncomplete =
    !tokenForm.abi ||
    !tokenForm.bytecode ||
    !tokenForm.name ||
    !tokenForm.symbol ||
    !tokenForm.supply;

  return (
    <div className='max-w-4xl mx-auto p-6 space-y-8'>
      <div className='flex items-center justify-between bg-gray-100 p-4 rounded-md'>
        <div className='flex items-center space-x-4'>
          {ensAvatar ? (
            <img
              src={ensAvatar}
              alt='ENS Avatar'
              className='w-10 h-10 rounded-full'
            />
          ) : (
            <div className='w-10 h-10 bg-gray-300 rounded-full' />
          )}
          <div>
            {address && (
              <div className='font-medium'>
                {ensName
                  ? `${ensName} (${formattedAddress})`
                  : formattedAddress}
              </div>
            )}
            <div className='text-sm text-gray-500'>
              Connected to {connector?.name}
            </div>
          </div>
        </div>
        <button
          onClick={disconnect}
          className='px-4 py-2 bg-red-500 text-white rounded hover:bg-red-600'
        >
          Disconnect
        </button>
      </div>

      <div className='bg-white shadow-md rounded-md p-6'>
        <h2 className='text-lg font-semibold mb-4'>Deploy Custom Token</h2>

        <div className='mb-4'>
          <label className='block text-sm font-medium mb-1'>
            Contract ABI (from artifacts)
          </label>
          <textarea
            rows={6}
            className='w-full border rounded p-2 font-mono text-sm'
            value={tokenForm.abi}
            onChange={handleChange('abi')}
            placeholder='Paste your CustomToken ABI here'
          />
        </div>

        <div className='mb-4'>
          <label className='block text-sm font-medium mb-1'>
            Bytecode (0x...)
          </label>
          <textarea
            rows={4}
            className='w-full border rounded p-2 font-mono text-sm'
            value={tokenForm.bytecode}
            onChange={handleChange('bytecode')}
            placeholder='Paste your compiled CustomToken bytecode'
          />
        </div>

        <div className='grid grid-cols-1 md:grid-cols-2 gap-4 mb-4'>
          <div>
            <label className='block text-sm font-medium mb-1'>Token Name</label>
            <input
              type='text'
              className='w-full border rounded p-2'
              value={tokenForm.name}
              onChange={handleChange('name')}
              placeholder='My Custom Token'
            />
          </div>
          <div>
            <label className='block text-sm font-medium mb-1'>
              Token Symbol
            </label>
            <input
              type='text'
              className='w-full border rounded p-2'
              value={tokenForm.symbol}
              onChange={handleChange('symbol')}
              placeholder='MCT'
            />
          </div>
          <div>
            <label className='block text-sm font-medium mb-1'>
              Initial Supply
            </label>
            <input
              type='number'
              className='w-full border rounded p-2'
              value={tokenForm.supply}
              onChange={handleChange('supply')}
              placeholder='1000000'
            />
          </div>
          <div>
            <label className='block text-sm font-medium mb-1'>Decimals</label>
            <input
              type='number'
              className='w-full border rounded p-2'
              value={tokenForm.decimals}
              onChange={handleChange('decimals')}
              placeholder='18'
              min='0'
              max='18'
            />
          </div>
        </div>

        <button
          onClick={handleDeploy}
          disabled={isDeploying || isConfirming || isFormIncomplete}
          className={`w-full py-2 px-4 rounded text-white font-semibold ${
            isDeploying || isConfirming || isFormIncomplete
              ? 'bg-gray-400 cursor-not-allowed'
              : 'bg-blue-600 hover:bg-blue-700'
          }`}
        >
          {isDeploying
            ? 'Deploying...'
            : isConfirming
            ? 'Confirming...'
            : 'Deploy Token Contract'}
        </button>

        {deployError && (
          <div className='mt-4 p-3 bg-red-50 border border-red-200 rounded text-red-700'>
            <strong>Error:</strong> {deployError.message}
          </div>
        )}
      </div>

      <DeployedTokensList
        tokens={deployedTokens}
        abi={tokenForm.abi}
        userAddress={address}
      />
    </div>
  );
}

Key implementation details:

  1. useDeployContract hook: Manages the deployment transaction lifecycle
  2. useWaitForTransactionReceipt: Tracks blockchain confirmation in real-time

Step 4: Add Live On-Chain Token Data Component

Now, let’s display real-time token data (like name, symbol, and total supply) directly from the blockchain.

Add the following component at the end of your TokenDeploy.jsx file:

Javascript
function DeployedTokensList({ tokens, abi, userAddress }) {
  if (tokens.length === 0) {
    return (
      <div className='bg-white shadow-md rounded-md p-6'>
        <h2 className='text-lg font-semibold mb-4'>Deployed Tokens</h2>
        <div className='text-gray-500 text-center py-8'>
          No tokens deployed yet. Deploy your first token above.
        </div>
      </div>
    );
  }

  return (
    <div className='bg-white shadow-md rounded-md p-6'>
      <div className='flex justify-between items-center mb-6'>
        <h2 className='text-lg font-semibold'>Deployed Tokens</h2>
        <span className='text-sm text-gray-500'>
          {tokens.length} token(s) deployed
        </span>
      </div>

      <div className='space-y-6'>
        {tokens.map((token, index) => (
          <TokenCard
            key={index}
            token={token}
            abi={abi}
            userAddress={userAddress}
          />
        ))}
      </div>
    </div>
  );
}

function TokenCard({ token, abi, userAddress }) {
  const parsedAbi = abi ? JSON.parse(abi) : [];

  const { data: name } = useReadContract({
    address: token.address,
    abi: parsedAbi,
    functionName: 'name',
  });

  const { data: symbol } = useReadContract({
    address: token.address,
    abi: parsedAbi,
    functionName: 'symbol',
  });

  const { data: totalSupply } = useReadContract({
    address: token.address,
    abi: parsedAbi,
    functionName: 'totalSupply',
  });

  const { data: decimals } = useReadContract({
    address: token.address,
    abi: parsedAbi,
    functionName: 'decimals',
  });

  const { data: balance } = useReadContract({
    address: token.address,
    abi: parsedAbi,
    functionName: 'balanceOf',
    args: [userAddress],
  });

  return (
    <div className='border rounded-lg p-4'>
      <h3 className='font-semibold text-lg mb-4'>
        {token.name} ({token.symbol})
      </h3>

      <div className='grid grid-cols-1 md:grid-cols-3 gap-4 text-sm mb-4'>
        <div>
          <span className='font-medium'>Initial Supply:</span>
          <div>{token.supply}</div>
        </div>
        <div>
          <span className='font-medium'>Decimals:</span>
          <div>{token.decimals}</div>
        </div>
        <div>
          <span className='font-medium'>Deployed:</span>
          <div>{new Date(token.timestamp).toLocaleString()}</div>
        </div>
      </div>

      <div className='border rounded-lg p-4 bg-gray-50'>
        <div className='grid grid-cols-1 md:grid-cols-2 gap-3 text-sm'>
          <div>
            <span className='font-medium'>On-chain Name:</span>
            <div>{name || 'Loading...'}</div>
          </div>
          <div>
            <span className='font-medium'>On-chain Symbol:</span>
            <div>{symbol || 'Loading...'}</div>
          </div>
          <div>
            <span className='font-medium'>Total Supply:</span>
            <div>{totalSupply ? totalSupply.toString() : 'Loading...'}</div>
          </div>
          <div>
            <span className='font-medium'>Decimals:</span>
            <div>
              {decimals !== undefined ? decimals.toString() : 'Loading...'}
            </div>
          </div>
          <div>
            <span className='font-medium'>Your Balance:</span>
            <div>{balance ? balance.toString() : 'Loading...'}</div>
          </div>
          <div>
            <span className='font-medium'>Contract Address:</span>
            <div className='font-mono text-xs break-all'>{token.address}</div>
          </div>
        </div>
      </div>
    </div>
  );
}

Why fetch on-chain data? This verification step confirms successful deployment and displays accurate, real-time information directly from the blockchain—not just what was submitted in the form.

Step 5: Final App Setup

Update src/App.jsx:

Javascript
import { ConnectWallet } from './components/ConnectWallet';

function App() {
  return <ConnectWallet />;
}

export default App;

Part 4: Deploy and Enjoy

Now that everything is ready, it’s time to bring your token to life!

  1. Connect your wallet (💡 MetaMask is recommended)
  2. Paste your ABI and Bytecode from the Hardhat compilation. You can find them in the generated JSON file: artifacts/contracts/CustomToken.sol/CustomToken.json
  3. Enter the token details — Name, Symbol, Total Supply, and Decimals
  4. Click “Deploy” and confirm the transaction in your wallet
  5. Voilà! Your custom ERC-20 token is now live on the BSC Testnet — fully viewable and interactable on-chain

Best Practices & Production Tips

1. Always Test on Testnets First

Never deploy directly to mainnet without thorough testing. Start with BSC Testnet, Sepolia, or Goerli. Get free testnet funds from:

2. Store ABI and Bytecode Securely

For production apps, never ask users to paste ABI/bytecode. Instead:

  • Import them directly from compiled artifacts
  • Use a secure backend service to provide them

Advanced Enhancements

Enhancement 1: Multi-Chain Support

Expand your app to support multiple blockchains:

Javascript
import { mainnet, bscTestnet, polygon, arbitrum } from 'wagmi/chains';

export const config = createConfig({
  chains: [mainnet, bscTestnet, polygon, arbitrum],
  // ... rest of config
});

Enhancement 2: Token Template Selection

Offer preset templates for different token types:

  • Standard Token: Basic ERC-20 functionality
  • Burnable Token: Users can destroy their tokens
  • Mintable Token: Owner can create additional tokens

Real-World Use Cases

Use Case 1: Community Tokens

  • Launch tokens for online communities, gaming guilds, or DAOs. Perfect for incentivizing participation and governance.

Use Case 2: Event Tickets & Memberships

  • Deploy tokens representing event access or exclusive membership tiers with built-in transferability.

Use Case 3: Educational Purposes

  • Ideal for teaching blockchain development, smart contract deployment, and Web3 fundamentals in workshops and bootcamps.

Use Case 4: Fundraising Tokens

  • Create tokens for crowdfunding campaigns or community fundraisers with transparent on-chain tracking.

Conclusion

Congratulations! You’ve built a working token-creation tool that demonstrates how ERC-20 contracts are written, tested, and deployed. With this foundation, you can deploy custom ERC-20 tokens in minutes without API keys, factory contracts, or complex setups.

Key Takeaways:

  • Hardhat streamlines smart contract development with powerful tooling
  • wagmi provides React hooks that make blockchain interactions intuitive
  • Direct bytecode deployment gives complete control without intermediary contracts
  • Public RPC endpoints eliminate API key requirements and vendor lock-in
  • Real-time on-chain data fetching ensures accuracy and builds user trust

The barrier to blockchain development has never been lower. With these tools and techniques, you're equipped to build sophisticated decentralized applications that can scale to production.

Try It Yourself: Live Token Creator (CryptoFusion 🚀)

If you want to skip the setup and see everything in action — try CryptoFusion my live token creation platform.

It’s built using the exact tech stack covered in this guide — React, Hardhat, viem, and wagmi — and lets you create fully customizable tokens, including:

  • ✅ Standard Tokens — basic ERC-20s
  • 🔥 Burnable Tokens — users can destroy tokens
  • ⚡ Mintable Tokens — owners can mint new tokens anytime

Just connect your wallet, choose your options, and deploy directly to the BSC Testnet — all in one click.

🧠 Built by me, Azim Memon — CryptoFusion is a decentralized playground for developers and creators to experiment with tokenomics and smart contract customization.

Check it out here 👉 cryptofusion.vercel.app/generate-token

🔮 Next Steps

Ready to take your skills further? Consider these extensions:

  • Add token transfer and allowance management
  • Implement multi-signature deployment for team projects
  • Build a token dashboard with analytics and charts
  • Create automated token vesting schedules
  • Integrate with DeFi protocols for instant liquidity

Further Resources

Ready to deploy your token? Grab the complete code from this guide and start building. Have questions? Get in touch—I'd love to hear from you!

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Azim Memon

Written by Azim Memon

Software Developer

Sharing insights on web development, microservices, and modern tech stacks. Passionate about building scalable applications and exploring new technologies.