How to Transfer Ethereum Token using NodeJS

This article gives you a step-by-step guide to transferring an Ethereum token using NodeJS.

Ethereum

Ethereum is the second-largest blockchain-powered cryptocurrency after bitcoin. It enables developers to program over its blockchain platform to create new types of dApps and smart contract solutions.

Ethereum is a decentralized platform that means any government, private organization, or centralized authority cannot control it. People can use applications built with the Ethereum blockchain from any part of the world with an internet connection.

Check Out: An Introductory Guide to Ethereum 2.0 | A Major Upgrade

Functioning of Ethereum Network

Smart contracts define how things get done in the Ethereum system. A smart contract is a set of governance rules used to achieve any business goal. Solidity language is used to write smart contracts.

You can create a token over the Ethereum network using a smart contract. Network users can utilize these tokens as digital currencies. One of the most popular types of tokens on Ethereum is an ERC20 token.

The smart contract can be used for various business purposes. It can be used to support other contracts in a similar way software libraries work.

Types of Tokens on Ethereum

ERC20: These are fungible tokens, they hold a specific value.
ERC721: These are non-fungible tokens. They hold unique assets like documents and certificates that are not interchangeable.

Read More about Ethereum ERC Token Standard

How to Transfer Ethereum Token using NodeJS

To connect tokens to any network, you can use an infra API key, set up a local node, and sync it with Mainent or another testnet.

Prerequisites

NodeJS
Infra API
Smart contract ABI and address

Steps to Transfer Ethereum Token using NodeJS

Step 1: Install the required dependencies for Ethereum

npm install web3
npm install ethereumjs-tx

Step 2: Create a connection to testnet

const Web3 = require("web3");
const Tx = require('ethereumjs-tx');

// Create connection with test net
var web3=new Web3("Infura API endpoint);

var contractAbi = ABI //ABI in JSON format
var contractAddress = Contract_Address

var sender = Sender_Address
var private = Sender_privatekey

var receiver = Reciever_Address
var amountInDecimal = 1 //Amount of token

Step 3: Create a signed transaction and send tokens

const myContract = new web3.eth.Contract(contractAbi, contractAddress);
var privateKey = new Buffer(private, 'hex')

var txObject = {};
txObject.nonce = web3.utils.toHex(result);
txObject.gasLimit = web3.utils.toHex(90000);

txObject.gasPrice = web3.utils.toHex(10);
txObject.to = contractAddress;
txObject.from = sender;
txObject.value = '0x';

// Calling transfer function of contract and encode it in AB format
txObject.data = myContract.methods.transfer( receiver, web3.utils.toHex(
web3.utils.toWei(amountInDecimal.toString(), "ether"))).encodeABI();

//Sign transaction before sending
var tx = new Tx(txObject);
tx.sign(privateKey);
var serializedTx = tx.serialize();
web3.eth.sendSignedTransaction('0x' + serializedTx.toString('hex'))
.on('transactionHash', ((data) => {
console.log(data);
}));
}).catch(err => {
console.log(err);
})

Also, Read: ERC-20 Token Standard | A Compact Guide to Development

Conclusion

By following the above steps you can create your code to send tokens from one account to another account. You don't need to rely on any third-party software to interact with the Ethereum network. You can simply send tokens with very few lines of code.