The world is witnessing a financial revolution as we speak, and cryptocurrencies are the central circle of all these developments. We may all be familiar with Bitcoins, but that is just a single form of cryptocurrency that is a part of a group. According to fool.com, the number of cryptocurrencies around the world stands at over 12000, a figure that is so astonishing that the development that is taking place in this realm, truly leaves us stunned.
Now you may already be aware of what a cryptocurrency stands for and may be wondering how you can create your own cryptocurrency. Well, that is exactly what we will be taking a look at here. So, let the coin go to the moon, and let’s start.
Creating the coin.
Creating a cryptocurrency can be a particularly daunting task if you are not aware of the steps that go into making one. If you want to create your own cryptocurrency, one of the first things that you would need to do is avail of the blockchain on which the coin will be running, so that is what we will be checking out first.
Creating a brand-new blockchain.
Learning how to create a cryptocurrency starts with the blockchain. Now, you can decide to craft a new blockchain that you can then use to operate your coin. The major problem with this method is that you would need to be a skilled coder if you want to stand a chance to do it from scratch, and although you would be coming across a lot of tutorials online on how to create one for beginners, the process can still be a pretty unflattering one without the right set of tools and knowledge.
Forking an existing blockchain.
The next logical thing to do if you want to create your own cryptocurrency would be to fork an existing blockchain. Under this method, you need to download an existing code from a source like GitHub and execute the appropriate modifications to the codes to let your crypto run there. Now, although this is much simpler than creating one from scratch, one still needs to possess a considerable degree of coding expertise, since the codes need to be tweaked appropriately. Several notable coins like Litecoin were created by using this methodology.
You can use an existing platform.
If the previously mentioned methods do not tug at your heartstrings, you can always choose to use a pre-existing platform to launch your cryptocurrency. The Ethereum network is one of the most prominent ones that are used nowadays as a base for other cryptocurrencies. Using the ERC-20 standards, you can run your coin without any glitches.
Once the blockchain conundrum is sorted out, you can move on to the next phase of how to create a cryptocurrency.
- One of the first things that you need to consider if you are creating a new coin is that you will have a new consensus mechanism. This is a process that determines how all the nodes that are connected to a particular blockchain would recognize a particular transaction that takes place on that network. Bitcoin, one of the most popular cryptos to date, uses proof-of-work, as a consensus mechanism, wherein the various nodes recognize a transaction that has been executed, and then only it gets registered. Proof-of-stake is one such consensus mechanism that you’d come across as well, but there is a wide range of consensus mechanisms that you can choose from for your brand-new cryptocurrency.
- Creating the nodes is the next step that you need to execute. These are the singular units that make up the blockchain network, and you’d need to decide on how they would function, what their permission characters would be, what the hardware structure would look like, etc. Nodes are one of the most crucial technical components of a cryptocurrency. If you want to create your own cryptocurrency, you’d need to focus on the nodes of the system.
- Building the blockchain architecture is the next step, and this is a collection of several tasks that you would need to perform before the coin gets launched. The functionality of the coin needs to be tested critically, and these can be pretty complicated, like establishing the IBC protocols that would allow your blockchain to communicate with other blockchains that exist.
- API integration is an important step in the process if you want to popularize your bitcoin while boosting its adoption. Several third-party applications and companies provide API integrations, something that you can avail of as well.
- Designing an intuitive and attractive interface would help boost adoption and appeal in the market, thereby taking your coin to the moon as well.
The aforementioned are the technical steps that are involved in creating a new cryptocurrency. If you are looking for how to create a cryptocurrency, these are the processes that you should follow. The legality of the coins is something that you need to look out for as well, and since the legislation around these coins is dynamic and vague, you might consider hiring a legal consultant or a lawyer as well.
How to create a cryptocurrency is a question that is being asked over and over again in this present day and age, and you can use these steps to create your very own crypto as well. The age of the blockchain is now, and you should definitely consider entering this realm as well.