Seven Steps On How To Create Your Own Cryptocurrency
How does cryptocurrency work? How to make a cryptocurrency? How to create my own cryptocurrency? All these questions must be popping into your head. Don’t worry we have the answers for them. Keep reading to get enlighted with knowledge of cryptocurrency and how to benefit your business from it.
What is currency?
First of all, let us go back to basics. What is currency?
It is far more than just a banknote or coins. A currency is a unit of storage and account and a means of exсhаnge. In simple terms, it is a universally accepted way of buying or selling any goods or services.
In older times, when the barter system was in place anything from rice and grains to wool and even feathers would be considered a currency. Then came banks to regularize this means of payment. That’s when they made coins and printed banknotes.
Now in the digital time and age, coins and banknotes seem to become outdated. So came a new form of currency, cryptocurrency.
What is cryptocurrency?
It is just like a normal currency but on a digital platform and accepted universally unlike physical currencies that work only in a specific country. A single centralized platform does not bind cryptocurrencies.
Steps to make your own cryptocurrency
Before answering the $100 billion question (the total valuation of Bitcoin) of how to create your own cryptocurrency, there are a few things you need to learn about the future of money. Here are the steps on how you can create your own cryptocurrency.
Choose a Consensus Mechanism
Consensus mechanisms are the protocols that consider a particular transaction legitimate and add to the block.
Pick a Blockchain Platform
The correct choice of the blockchain platform for your business depends on the consensus mechanism you’ve selected.
Design The Nodes
You have to decide the workings and functionality of your blockchain and design the nodes accordingly. For instance, will the permissions be private or public? The hosting will be on the cloud or on-premises, or both? What would be the required hardware details for the execution?
Establish Blockchain’s Internal Architecture
Be sure about all the aspects before the launch as you won’t be able to change several parameters of the blockchain after it’s launched and running. The decisions could be as simple as what address format your blockchain will follow to provide exchanges between different cryptocurrencies without a 3rd party intermediary.
Some platforms don’t provide pre-built APIs so make sure yours does. If it doesn’t still no need to worry, there are several 3rd party blockchain API providers like ChromaWay, Gem, Colu, Bitcore, BlockCypher, and Tierion.
Design The Interface
Building a world-class cryptocurrency is of no use if your interface is not good. You need to make sure that the web, FTP servers, and external databases are of the most recent and that the front-end and back-end programming is done with future upgrades in mind.
Make Your Cryptocurrency Legal
Make sure that your cryptocurrency is prepared and abiding by the soon-to-become laws of international cryptocurrency regulations. This way your work is preserved and no sudden surprises can ruin your efforts in creating a new cryptocurrency.