The recent introduction of SLP technology may be the most important innovation to hit BCH since its inception, but what is it? What purposes does it serve? How can we use it? And what are its wider implications?
SLP stands for Simple Ledger Protocol, and all non-devs really need to know about it is that it enables quick and cheap (almost free) transactions, and it allows for permissionless building of “simple tokens” on top of BCH.
Simple tokens are easy to build; they cost fractions of a penny to send and spawn, and creating them requires little to no development skills. But before I get into the tutorial on how you can make your own simple token, let’s go over some of the use cases.
Meme Coins. A vast majority of the over 10,000 simple tokens built on BCH are memes. They are mostly jokes within the community. They’re designed to have no tradable value. For that reason, creating and sending them on SLP offers a significant advantage to say Ethereum, where gas prices (and the Solidity learning curve) are incredibly high.
Customized tokens. As more and more people embrace a self-driven entrepreneurial, gig economy way of life, it’s highly likely that we’ll see an increase of personal tokenization. Customized tokens could allow people to sell or trade their time and services once a decentralized SLP exchange, or DEX, is created.
Stable tokens. Though controversial, cryptocurrency’s original stable coin USDT has already been built and functions on SLP. This allows users of SLP-enabled wallets to easily switch into and out of what some view as a more “stable” asset for transferring or holding value.
Multi-layer constructions. In addition to building single-layer tokens, SLP facilitates more complex constructions by allowing users to build tokens on top of each other. Although it’s seldom used now, the implications of this technological innovation may be beyond our current comprehension.
Rewards tokens. Offering rewards points that can be used for discounted or free goods and services is one of the oldest tricks in the marketers’ handbook. Nearly every chain from Starbucks to Bloomingdales already awards them, but issuing these points (or tokens) on SLP would make keeping track of them easier, AND (in conjunction with an SLP DEX) it would allow token holders to freely trade them.
Securities tokens. Along the same lines as rewards, SLP allows for the construction of tokenized securities, like dividend tools. Though possible, this option is not yet being taken advantage of.
Non Fungible Tokens. NFTs are the talk of the cryptoverse lately. Many argue that NFTs will ultimately be the catalyst that spurs mass awareness. Thus, bringing them to BCH -where artists can create them for fractions of what they cost on some competing chains- might be what sparks community adoption of bitcoin cash.
Now, how to create your own simple token
While there are several methods for creating an SLP token, mint.bitcoin.com is by far the easiest, though you’ll have to use something like Electron Cash if you want to create an NFT.
First, you’ll need to create an account at mint.bitcoin.com. Enter your details and select, “create account”.
The next step will be to fund your account. To create an SLP, you’ll need fractions of a BCH in your wallet. You can either import a wallet or create a new one and transfer in some funds. To do this, I scanned the QR code in mint from my mobile bitcoin.com wallet, and sent 10 cents of BCH. The transfer fee was 0.00000266 BCH, which equates to less than a tenth of a penny at present values, and it appeared in my mint account instantly.
Enter the details of the token you’d like to create. You can enter your token’s symbol, name, number of decimals (up to 9 places), and total supply. You can also chose if you want the token to have a fixed supply (like bitcoin), or if you want to be able to create more at any time (like you’re the federal reserve, and your token is the dollar). For additional functions, you can add a token icon from the images on your computer. You can also add a link to the project’s white paper and website if you have those readily available.
The final step is to hit the “Create Token” button, and bada-boom! You’ve just created your very own simple token on Bitcoin Cash.
How do I list my simple token on CC Tip Bot?
Once you’ve created your simple token, you may wonder how you’re going to distribute it. You could ask people to share their SLP QR codes for a more custom experience, but if you plan on circulating a large supply, you’ll probably want something you can automate.
The CC tip bot isn’t perfect, but I’m comfortable using it for distributing, so if you feel the same, here’s how:
Create an account at CCtip.io and link it to the social media of your choosing. Your options should include: Twitter, Telegram, Discord & Reddit.
After you’ve created your account or logged in, you’ll need to set a payment password. This step is very important because without one, you won’t be able to get your token listed. So click settings, then next to Payment Password, select “Change”. Then, enter and set your password.
At the top, select “list your coin” and then chose whichever social media platform you logged in through or have connected.
Select “SLP”.
Open your mint.bitcoin.com tab, select the token of your choosing, and copy the token ID. Then, go back to CCTip and paste it in the first line. Enter your token’s ticker symbol, your email address, and optionally, the website, as well as your handles on twitter and/or telegram. Then, click “Next”.
On the next page, you’ll see all 4 of the available social media platforms where you can use the tip bot. Each one costs 1 cent to list for the year. Deselect any you don’t use. Then, click the down arrow next to the payment coin to select which currency you’ll pay in.
Pro Tip: The first time I did this, I selected USDT thinking it would utilize the SLP version, but it didn’t, and I ended up paying several dollars in gas fees for a 4 cent transaction. This time, I selected bitcoin cash instead).
Click the box, acknowledging that you agree to the terms and conditions, and finally click “Submit”.
Enter the captcha and go to the email inbox you entered on the previous page.
Open the email from CCTip. Scroll down until you see “Go to Pay” in blue. Click it.
On the next screen, select “Pay”.
Enter the payment password you set up in My.CCTip.io and hit enter.
Wait 60 seconds, and that’s it. Your simple token should now be ready to tip people with on the social media platform of your choosing.
And remember: read, learn, enjoy, follow me on my new Twitter (or the less important one: tip me if you liked it)... and with or without SLP, be happy!
Source: Nicole Grinstead