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These days, it’s impossible to avoid the topic of cryptocurrency. News, blogs, and even big-time financial institutions obsess about it; by now everyone agrees that the world is changing. If you don’t get on this bandwagon now, you may never catch up.

Here we are with this new company concept or startup, and you’ve decided that you’d like to take advantage of the exciting new world of cryptocurrency and build your own. However, how does one go about doing this? Often, the information on the Internet is contradictory, scattered, and difficult to comprehend because of the heavy industrial jargon.

You’ll have a better understanding of what a cryptocurrency is, how it differs from a coin, how to create your own cryptocurrency, and whether or not your business need it after reading this article.

What is the difference between a Crypto Token and a Crypto Coin?

Before we get into the nitty gritty of how to develop your own cryptocurrency, let’s make sure we’re on the same page with the common terminology.

What are Cryptocurrencies?

Let’s go back and review the definition of a currency. However, currencies are more than just currency notes and coins; they are also a globally recognized means of exchanging money as well as storing and disbursing wealth, which is why they are so important.

A cryptocurrency is digital money that relies on cryptography to create new units and verify transactions. It has all of the features of a currency, yet it doesn’t rely on a single centralized platform to function (such as a bank).

Coins, which are commonly mistaken for tokens, are not banknotes, although they do exist in the cryptocurrency world.

  • Tokens can run on the existing blockchains.
  • Unlike tokens, coins can be used in any location.
  • Tokens can be purchased with coins, but coins cannot be purchased with tokens.

In a real-world context, think of tokens and coins as your Frequent Flyer Miles and coins as actual money: you can use both to buy an airplane ticket, but with the miles your choice will be limited to the air company that issued them, while with the money you can take your business wherever you want.

To summarize, if you want to produce a crypto coin, you’ll need to develop a blockchain.

What are the advantages of having your own cryptocurrency?

Some projects and startups require their own blockchain, which necessitates the creation of their own digital currency to reward the nodes that contribute their processing power.

Another word on blockchains: a growing list of areas and industries where blockchain technology would drastically disrupt the current quo and handsomely reward early adopters has been predicted by numerous credible business strategists.

Even if blockchain technology has yet to take hold in many industries, it is still possible to join the ranks of pioneers.

As an added bonus, when you launch a cryptocurrency, you gain access to an array of strong marketing tools and customer perks that will let you to stand out from the pack. The following are the most important benefits:

  • Ridding the system of fraud risk – cryptocurrencies cannot be counterfeited, and no one can go back and undo previous transactions
  • Allowing customers to pick what information businesses should have about them without revealing any personal information about themselves
  • Lowering expenses – there are no exchange or interest rates, and no transaction fees with cryptocurrencies
  • You can now do business with those who don’t have access to traditional exchange resources, ensuring a ready supply of new consumers. In all markets, there will be no limits on trade
  • The decentralized nature of cryptocurrencies means that there is no Big Brother entity like a bank or government agency that can seize or freeze your assets

Blockchain Development: A Step-by-Step Guide

If you want to learn how to establish a blockchain, here are the most important steps.

  1. Learn about Blockchain: Smart contracts, data authentication, or asset management are all areas where your company may be interested. At the start of any project, make it clear what you want to achieve.
  2. Choose a mechanism: It is essential that all the nodes in your blockchain agree on which transactions should be included in the block. Protocols that accomplish this are known as consensus procedures. Several options are available to help you find the greatest fit for your company’s goals.
  3. Choose a platform: According to the consensus method you chose, the blockchain platform you use will be different. The following is a list of the most popular blockchain platforms to give you a better sense of what’s available:
    • Ethereum
    • Polygon
    • Polkadot
    • Binance Smart Chain
    • Avalanche
    • Hedera Hashgraph
    • Cosmos
    • Arbitrum

4. Design Blockchain Nodes: To put it simply, a node is a computer or other Internet-enabled device that serves as the backbone of a blockchain. Nodes are crucial to the efficiency, support, and security of blockchains.

There are a variety of decisions to be made when it comes to nodes:

  • On-premises, on the cloud, or a combination of the two options are all possibilities.
  • Acquire information on computer CPUs, memory and hard drive capacity.
  • Make a decision on a foundational operating system (most common choices would be Linux or Windows Operating Systems

5. Set up the internal structure of your blockchain.

Once the blockchain platform is operational, some parameters cannot be modified. Taking your time and thinking about the following is a smart idea:

  • Atomic Swaps
  • Parameters
  • Key Formats
  • Permissions
  • Address Formats
  • Block Signatures
  • Native Assets
  • Handshaking

6. Take a look over available APIs

Because not all blockchain platforms have pre-built APIs, be sure to double-check. Many trustworthy blockchain API providers exist, even if your platform does not already include them: Colu, ChromaWay, Bitcore, Gem, Coinbase, BlockCypher.

7. Interface Design

The key to a successful blockchain is good communication, and a well-designed user interface makes this possible. Take care of website, email, FTP setup, frontend and backend services.

Is It Worth It to Start a New Cryptocurrency?

You should now have a good idea of what it takes to construct a new blockchain after reading this far. Make sure you’re clear on what exactly you’re getting yourself into before embarking on a project that’s both time and money consuming.

There are various advantages to establishing your own blockchain, but the amount of labor required to do so is substantial and demands a wide variety of skills and equipment.

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