How to create your own cryptocoin?
18 jan 2018
Money - a generally accepted counterpart for measurement of diverse products and services prices and their purchase.
Before “money” appeared, the world economy operated through barters, grants, gifts and debts. Many regions and countries in the world used “commodity money” as a payment mean. For instance, South American tribes used shells and pearls, stones with openings in the center were used in New Zealand, and in Kievan Rus, “hryvnia” - a golden plate served as a currency unit. “Money” were an alongside coin to fur, salt, honey, cattle, etc.
First paper money were used in China during the Song dynasty and later, in the 13th century, banknotes became known in Europe. In the 17th-19th centuries, banknotes were secured by a preset quantity of gold and counted to be completely convertible to the secured quantity. The WWII changed the situation so the most countries adopted fiat currencies that were fixed to U.S. dollar which, in its turn, was fixed to gold.
The time passed by, the world changed, currencies were progressively de-pegged from the U.S. dollar, and most of the world’s currencies became unbacked by anything. Anything but government’s fiat of legal tender and the ability to convert the money into goods and services via payment.
Later on, paper currencies started to fade into insignificance comparing to the digicash. The era of internet shifted the world’s economic negotiations to a new profound digital level. Nowadays, there is no need of packing suitcases and traveling abroad to close a deal. Everything is bought and sold through the internet in a matter of time.
The latest news is all about Bitcoin, Ethereum, and other cryptocurrencies, that buzz around. Once, the blockchain, Bitcoin and so much for it were counted as something freaky and the people digging the cryptocurrency ground were alike nerds. But as soon as the price for one bitcoin rose to the $1k value, the whole world, from baby to adult, started trying to make sense of the “cryptowhat?”.
What is cryptocurrency?
Cryptocurrency, just as the paper money and digicash we know is used for obtaining goods and services. It commonly refers to digital currency or asset that was created to secure the medium of transactions of money.
Cryptocurrency is fraud-proof. The underlying system of cryptomoney is blockchain technology, which provides the top-grade security, so the probability of fraud is next to none. A blockchain is a type of a decentralized database that keeps continuously and constantly updated digital registers of who holds what.
As distinct from a traditional database usually having an administrator, a decentralized database has a network of replicated databases, synchronized via the internet and visible to anyone within the network. Blockchain networks can be private with restricted membership similar to an intranet, or public, accessible to any person in the world.
When a digital transaction in the blockchain network is accomplished, it gets grouped in a cryptographically protected block with other transactions that have occurred in the last 10 minutes and sent out to the entire network an all its participants.
Miners then compete to validate the transactions by solving complex coding problems. The first miner to solve the problems and validate the block receives a reward (For instance, in Bitcoin blockchain network, the miner receives a Bitcoin).
Then, the validated block of transactions gets a timestamp, and, after that, is added to a chain in a linear, chronological order. The newly-created, validated, and stamped blocks of validated transactions are linked to older blocks in the network, making a chain of blocks that show every transaction made in the history of that blockchain over the time.
The chain of those blocks is constantly updated so that every ledger in the network is the same, giving each member the ability to prove who holds and owns what any time needed.
A blockchain is a magic computer that anyone can upload programs to and leave the programs to self-execute, where the current and all previous states of every program are always publicly visible, and which carries a very strong crypto economically secured guarantee that programs running on the chain will continue to execute in exactly the way that the blockchain protocol specifies.
The decentralized, open and cryptographically protected nature of the blockchain allow people to trust each other and transact peer to peer, making the need for third-party representatives outmoded and inappropriate.
Turning back to the low possibility to hack the blockchain. If someone wanted to hack into a particular block in a blockchain, then he would not only need to hack into that block, but all of the proceeding blocks going back the entire history of the specified blockchain. Moreover, he would need to repeat his hacks on every ledger in the network, which could be millions and billions.
Cryptocurrency is accessible. All you need to start earning and trading is a secure internet connection. Literally, every single person having access to the internet has the ease of operating with cryptocurrency.
Cryptocurrency is decentralized. You hold the ownership rights for your cryptocurrency. You can make your digital currency work for you in the real-time mode. Thanks to the blockchain technology (again), cryptocurrency offers instant transactions without the intermediary of third-party representatives - you can act as your own bank in all meanings of the word.
Many people nowadays wonder if it is possible to create their own cryptocurrency and if yes, then how can it be done. Let us try to find out and enlight some ideas.
The most popular and widely used cryptocurrencies today are Bitcoin, Litecoin, Ethereum, Zcash, Ripple, and many more altcoins (to admit, 1500 various coins). As it is clear, Bitcoin is the most valuable cryptocurrency, its value swings in the range $12,000 - $16,000 for one coin (at the moment). The rest of the list is cheaper, but, their price growth is a matter of capitalization and time.
The process of creating a cryptocurrency involves writing a sophisticated and complex code, which is much easier than creating physical currency. Literally, almost anyone with basic coding skills can develop a digital currency code, but that is just the beginning.
In order to successfully create a cryptocurrency and make it piping hot, you need to pursue the following path.
1. Define the community for your cryptocurrency.
Before creating your cryptocurrency, the first and foremost step is to find a community that is interested in the type of cryptocurrency you are going to create. The currency has to be relevant to their requirements. Since the moment you engaged in the community and defined the type of digital currency they are interested in, start to code.
2. Viable and long-term code.
Developing a code of your own cryptocurrency will not be a very difficult process as the code of Bitcoin and Litecoin is already free to use on GitHub. The time to make your own currency will depend on how much change you wish to implement in your code.
We, as experts in digital transformation and blockchain technology, advise building a future-oriented cryptocurrency.
Conduct a proper and meticulous market research to figure out what is coming to the peak of demand in the specified time, and build your digital currency around that.
As for the code development part, you may need to enhance your C++ expertise as it may require advanced skills of the language to develop and tailor your customized features. In order to create a cryptocoin that people will like and continuously use, you must focus on things like constant bugfixing, maintaining security, etc.
3. Find miners.
Once your product is ready, you need to find the miners. Instead of selling your digital currency to them, build trustworthy relations with them, share your insights and vision. This will help people get a clear understanding of your intentions and your idea, hence, they will be interested in your currency for a long run.
4. Find investors.
The final step in the creation of your cryptocurrency is searching for investors. The majority of cryptocurrency creators start their way with the idea of finding investors first. The problem is in the fact, that the idea of the product and its uniqueness is not defined, and the enthusiastic creators are not sure about what should they do next. Avoid such mistakes, leave investors for a dessert.
In the end, we would like to make some mentions.
- Think of local perspectives first. Do not aim to conquer the global market. At least, for a couple of first years. Start with limited local markets, where you have a chance to make your cryptocurrency big.
- Build a merchant base. It is important to acquire merchants interested in your cryptomoney and ready to buy/sell it for goods and services. It is a vital point for your currency users. If they have your coins but cannot spend them, what’s the purpose?
We are LANARS, and we know how to create your successful cryptocoin. Do not hesitate to contact us for a free quote.
Thanks for reading our article. This is the beginning of cryptoseries. Stay tuned.