Now a days Cryptocurrency trends in the market. There are many popular Cryptocurrency available in the market like Bitcoin, Litecoin, Ethereum, Ripple etc… Some you might don’t know that you can create your own Cryptocurrency as well. How? Well, here we are going to explain everything from step by step.
What is Cryptocurrency?
Here we are excepting that everyone know about currency.
Cryptocurrency are like normal currency but in digital platform and accepted globally unlike physical currency that only accepted in specific country. Cryptocurrency have coins instead of banknotes. There is also one term Token in Cryptocurrency where people get confused between coin and token.
What is the difference between coins and token?
– Coins can be used anywhere, tokens are limited to specific service or industry.
– Coins are part of single blockchain while tokens work with existing blockchain.
– Tokens can’t buy coins, but coins can buy tokens.
Benefits of building own Cryptocurrency
– Lower Operational Costs
– Security of Funds
– Immediate Transactions
– Eliminate Fraud Risk
– Transaction Anonymity
How to make A Cryptocurrency?
1. Choose a Consensus Mechanism
Consensus mechanisms are the protocols that consider a particular transaction legitimate and add to the block. There are plenty to choose from for the best fit for your business objectives.
2. Select a Blockchain Platform
Right choice of blockchain platform depends on consensus mechanism you have selected. For better overview below are some popular blockchain platforms.
– Ethereum (highest market share)
– Waves (WAVES)
– Nxt (NXT)
– IBM blockchain
– BitShares 2.0
– Hyperledger Fabric
3. Design the Nodes
Consider blockchain as a wall, nodes are bricks of it. It’s an internet connected device supporting a blockchain by preforming various tasks, from verify data to storing data and processing of transaction. It’s depends on terms or permission, hosting platform, selection of hardware, operating system.
4. Define Blockchain’s Internal Architecture
Check everything carefully as some parameter cannot be changed once blockchain is already running or launched. Need to double check some configuration or elements like permissions, address format, key format, key management, multi signatures, parameters, block signatures, atomic swaps, hand shaking, asset issuance.
See also: What is Blockchain Development?
5. Integrate APIs
First of all make sure that blockchain platform provides pre-build API which you choose as some of not provide. If your platform doesn’t come with pre-build API, there are reliable blockchain API providers. Below are some of them.
- Blockchain APIs
- Factom Alpha API
- Colored Coin APIs
6. Design the Interface
7. Make your Cryptocurrency Legal
First of all make sure that your Cryptocurrency is prepared and abiding to become laws of international Cryptocurrency regulations and protect yourself from any surprises by looking into the trends around the Cryptocurrency regulations and the direction they are headed.
Cryptocurrency is a promising future in the digital transaction of currencies. If you plan to run a successful and growing business for a long future, you must start by your own Cryptocurrency in the present.
In the next upcoming post, we will learn about forking and get your coin listing to Cryptocurrency exchange.