With the advanced technical knowledge, many investors want their own cryptocurrency, which sounds like a crazy and exciting idea. Does it?
If creating cryptocurrency sounds interesting, this blog is undoubtedly for you. In the present blog, we will find ways to create your own cryptocurrency which requires advanced technical knowledge. This blog will give us some significant ways while keeping the business and technical aspects for creating your own cryptocurrency on your own blockchain. We will also discuss the tokens, coin and digital currency and their working criterion. This blog will help in some significant respects, which are mentioned in the proceeding lines:
- Definition of cryptocurrency in colloquial language.
- Working criterion of cryptocurrency and cryptocurrency transactions.
- Advantages and disadvantages of creating a cryptocurrency.
- Legal ways to develop your crypto coin, blockchain developer and blockchain architecture.
- Process of developing cryptocurrency.
- Capital investment for developing your cryptocurrency.
Let’s go through the details of each previously mentioned point to get a precise and complete idea of cryptocurrency development.
How to define cryptocurrency?
Let’s start with the fundamental question what is cryptocurrency? It is regarded as one of the new technologies, although cryptocurrency market is celebrating its 13th birthday. Despite this long presentation period, huge investments and media hype, this technology needs to be understood and understood by the masses.
There is a belief among people that this is one of the best ways to earn and double their investment, while others think it absurd to even think about it. Before diving into the deep and complex phenomenon of the cryptocurrency world, let’s understand the basic definition before moving on to the cryptocurrency creation.
Decentralized Digital Asset
Cryptocurrency is a decentralized digital currency that uses encryption to generate currency units. The verification of funds is done for the sake of transfers and transactions. Certain features are regarded as mandatory for any cryptocurrency. These features include anonymous handling, security and decentralization. Any banking organization, government or central authority do not govern cryptocurrency.
Blockchain is a P2P (peer-to-peer) network consisting of data blocks, regarded as a mandatory part of cryptocurrency. The primary motive of these blocks is to arrange the chronological storage of information regarding the transactions and save the protocol for the validation of new blockchains in addition to inter-code communicational purposes. The plus point of these data blocks is that the information held in this block cannot be changed at any moment.
Working Criterion of Cryptocurrency
The working criterion of cryptocurrency is based on the blockchain ledger, as mentioned in the proceeding lines. The distributed blockchain ledger is based on consensus algorithm, which help create and regulate new blocks of information. For peer-to-peer transactions, the users must accept blockchain technology to record their transactions. There are certain types of consensus mechanisms which include Proof of Work (POW), Proof of stake (POS), Proof of authority (POA) and delegated Proof of stake (DPOS). The consensus mechanism are some of the most popular tools.
Uses Of Cryptocurrency
Now there is the question of whether native cryptocurrency is only used in a trade or if there are other uses for digital currencies. Well, there are many uses for it. It is used for the following purposes:
- It is used for creating every new block.
- It is used as a reward.
- it is used for representing digital assets.
- it is used for the cryptocurrency project as well as to represent digital assets.
- It incentivises blockchain participants to participate in the consensus mechanism actively.
- It is also used to allocate processing powers, block closing, staking coins, and other resources.
- It is used for offering transparency.
- It is used for trust building and verification of blocks.
- It is also a digital asset for transferring investments among blockchain addresses and wallets.
- It can be used in exchange for fiat money.
- It is used for trading purposes.
Although the transactions are public while the identity of the trader/ investor is always kept private/ anonymous, the essences are encrypted as unique keys connecting an individual and account.
Pros and Cons of Cryptocurrency
In this section, we will discuss the pros and cons of cryptocurrency. This is one of the essential points to consider if you want to develop your cryptocurrency.
The advantages of developing cryptocurrency are mentioned in the proceeding lines:
Certain aspects are considered favourable for the investor, and decentralization is one of them. Decentralization is the fundamental trait that makes the cryptocurrency independent from any central or higher authority. With no central control, there are no dictation, rules and regulations and other sanctions for owners.
Unlimited And Fast Transactions
Fiat money is used for the transaction, which requires some significant time for processing and settling down. You have to wait someday to receive cash in your bank account. With the help of cryptocurrency, users can make unlimited transactions and get immediate transfers of funds in the crypto wallet. These services are usually global.
If you pay for availing services, you will surely want to spend less. The same is the case in cryptocurrency. Cryptocurrency takes a low fee as compared to banks and other financial institutions. It does not mean that you must pay in pennies. This means that there is a relatively lower fee structure than other institutions.
The services offered by the cryptocurrency are usually global. There are restrictions from some countries which could be improvedin the worldwide operation of services.
Anonymous And Transparent Services
Distributed blockchains are recorded in every transaction. At the same time, they are immune to changes. If someone has not confirmed the public address, there will be no identity presentation regarding the transaction owner. At the same time, all transactions are public and can be seen by anyone sitting anywhere in the world.
There are some disadvantages of cryptocurrency, which are mentioned in the proceeding lines:
- Cryptocurrency offers minimal acceptance. There is a narrow platform where cryptocurrency can be used. Due to its complex structure and working criterion, you cannot use this currency in daily life.
- It is highly volatile. The high volatility is a friend and enemy at the same time. It is an unstable market. One day it may have the highest rates, but the next day, due to some security or other issue, currency may lose all its worth, and you can come to zero.
- Another loophole is that transactions of cryptocurrency can never be reversed. Once you have made a wrong transaction, there is no way back.
- Lack of storage is another option that is a drawback of cryptocurrency. There are many stories where cryptocurrency owners have lost their investments. This loss can include losing the device, inability to access the account, forgetting the private key, etc. There is no system. If you have issues accessing it, you can manage it at home.
How To Develop Your Own Cryptocurrency?
Now comes the actual question that how to make a cryptocurrency. Let’s go through the technical matters to get the fundamental idea. For starting a new cryptocurrency, cryptocurrency developers make a whole new blockchain. You can also carry one with the existing blockchain and cryptocurrency. Let’s start from scratch.
There are two significant ways to develop a new cryptocurrency. You can make your own or go on with the existing cryptocurrency.
Coin Creation Using Existing Blockchain Infrastructure
If you want an easy yet fast way to create a cryptocurrency that needs to be free of charge, there may be a better option than this one. For these purposes, an experienced cryptocurrency developer must work on the technology. Additionally, a lot more technical knowledge is required for this purpose. For creating your own cryptocurrency, yoi can use the new blockchain platform (your own blockchain) and can use the existing blockchain.
To create a cryptocurrency coin, you may take just five minutes. It is a lot easier to copy the Bitcoin code. After that, add a new variable for your own coin. You can also add the value you choose to the new crypto coin, and that is over. Now you have your cryptocurrency along with your blockchain. The primary issue that requires intensive skills and expertise is handling code. This phenomenon requires a lot more effort and professional skill.
Another professional part is maintaining, supporting, and promoting the coin. Cryptocurrency creation is one of the easiest takes, but encouraging and making people believe that it is one of the valuable things to invest your money in is one of the most challenging tasks.
There are customized software development services for promotional issues of your own crypto coin, but they can also cost heavily on your pocket. The professional team may help you until you succeed, but it will cost you a high fee.
You can get an idea in this way that basic cryptocurrency on existing blockchain platform on a consensus mechanism by cryptocurrency developer is not a big deal. the issue is to promote your crypto coins to the level where they can invest in your business happily.
This is one of the better ways of becoming a cryptocurrency creator. In this option, we have absolute control of the blockchain. It sounds like a fantastic idea. Some drawbacks of this creation include the increased time duration of development, a significant amount of capital and many others.
The existing blockchain is used for trust and fame to build the forked cryptocurrency. After that, consensus mechanisms are used to overcome underlying technology requirements. When you take a chance to develop a cryptocurrency token on sound blockchain technology, you are more secure from security breaches and fraud.
For example, if you create a new cryptocurrency blockchain, it may be more prone to the attacks of hackers and fraudsters. Compared to this, if you use the blockchain of famous and well-reputed coins such as Ethereum and Bitcoin, you will have more security than your blockchain.
In addition to security, this option is more feasible because it costs less. It saves time and money. You can also utilize the existing blockchain; hence, less time and effort are consumed. There needs to be a better implementation of blockchain architecture and consensus mechanisms in this process.
Creation of Cryptocurrency From Popular Solutions
There is some blockchain that offers ways to create your coin/ token. Some cryptocurrency coins, including EOS, NEO and Ethereum, offer famous tools that are relatively easy navigation and more secure.
The first option in this list is the Ethereum blockchain which provides token-creating services. It offers an exceptional trust level. The Ethereum blockchain provides strength, maturity and a distinguished position among all cryptocurrency markets. ERC-20 standard is used for building all the cryptocurrency tokens and coins.
It is one of the most prescribed blockchains because it offers organized and well-written documentation for making the process of creating cryptocurrency more accessible and more efficient at the same time. Additionally, there are defined languages for each blockchain. For example, for the Ethereum blockchain, language is written in solidity. Decentralized applications can have their blockchain written in HTTP API and other languages.
The following blockchain that offers its services for creating a new cryptocurrency is known as NEO. This blockchain uses the NEP-5 standard. It provides services in high-scale programming languages, including Kotlin, Python, Java and C+ etc. HTTP API is available for interaction.
The tokens used at EOS are known as EOSIO. It is one of the standard tokens which can be created with the help of professional language. There is much more scalability and cost efficiency, which offers many transactions. It is one of my favourite languages due to the low transaction fees. EOS always comes first whenever there is a question regarding developing your cryptocurrency.
Professional Business Process For Creating A Cryptocurrency
There are specific steps that need to be considered before creating your cryptocurrency.
The first step is defining the idea and criteria regarding which you want to have your cryptocurrency. Once you get an idea of which type of cryptocurrency you want, What will be the token supply of your cryptocurrency? Will you look into cryptocurrency legal matters, or can you allow fraud in the name of transactions? What language will be used for building the blockchain platform? How much of your cryptocurrency will go in rotation, and what will be the share of developers? After going through the know-how of programming knowledge and the rest of the professional aspects, it will get easier for you to go with the subsequent phases, which seem to be more complex.
The second step is based on the selection of a blockchain platform. As mentioned in the previous lines, there are two options for everyone wanting to own cryptocurrency. They can make their own blockchain platform or go with the existing one.
There are certain advantages attached to your blockchain and the existing blockchain platform. If you choose your blockchain platform, it gets easier to have your terms and conditions. There needs to be a body to present rules and regulations. Using the existing blockchain technology to create a cryptocurrency, you can have more secure transactions and services.
The third step is choosing the right team for development. To create a cryptocurrency, having the right team by your side is mandatory. The right team can make your decision to create a cryptocurrency a success. The blockchain developer dares to generate cryptocurrency and crypto coins that have absolute potential to be a success among all other cryptocurrencies.
With the right team of cryptocurrency developers, marketing and publicity are a piece of cake because they know how to get media attention for crypto tokens. They also get their due share of this cryptocurrency. Hence, they treat it as their coin.
If we take the example of the Bitcoin blockchain, it was no more than a rumour in the initial years. With time, it has become the darling of all investors. With the right team by your side, it becomes easier to be in the limelight with little time and effort invested.
The fourth step is deploying rules for the smart contracts and the rest of the cryptocurrency working criterion. When developing your own cryptocurrency and crypto token, you are the boss of your ecosystem. Do you know how many coins there are which lend others security protocols and rules for their work? There is not a single one. All cryptocurrencies have their own legal information, regulations and working criterion.
The next step is hiring external audit companies to do proper audits. To create your cryptocurrency on a new blockchain, it is mandatory to have an audience audit company must be required to can offer you a detailed report that your cryptocurrency is going in the right direction.
The sixth step is to maintain the white paper of cryptocurrency. This is one of the steps that needs dedication and time investment simultaneously.
The seventh step is the promotion of ICO.
The eighth step is the creation of strong community support for cryptocurrency.