The term “cryptocurrency” has been a buzzword in every nook and corner of the world. Everyone wants to know whether it is a 21st-century unicorn or the money of the future. In today’s world, the demand of the cryptocurrency is at the top level, and it is considered as a global phenomenon, which is known to many people.
While still some geeky didn’t understand its value, but a government, banks as well as other companies are aware of its importance. But, beyond this noise, there is the overwhelming majority of the audience, which includes scientists, consultants, bankers, and developers have limited knowledge about the cryptocurrencies, and often fail to understand why cryptocurrencies are used.
Also Read: Different Ways To Name A Cryptocurrency
Well, the rise in the demand of cryptocurrency has changed everything and has created a tsunami in the entire industries. It’s been a revolutionary kind of currency, which has several uses and benefits in increasing the productivity of the firm. Unlike other currencies, cryptocurrencies are having huge value and demand because people think it has the potential. Some of the currencies are backed by precious metals, whereas, gold backs few.
And others are backed by nothing but the hot air, which also has value because users consider it as precious things, which are used as a unit of exchange. Furthermore, the best part about cryptocurrency is, they help the user in storing the assets, even without relying on the central bank. Users can have access to know the details of their transaction and can shift it to another place as well whenever they wish for.
After observing a majority of all the centralized attempts fail, the organization tried to build digital cash system, which is complete without a central entity and most valuable for the peer-to-peer network file sharing. Due to the spectacular growth of cryptocurrency over the past few years, huge amounts of interests, especially in the field of digital currency as well as brand new altcoins are being constantly created.
In addition to this, hundreds of digital currencies exist now, and out of those, more than 80 of which are already listed in the past month record. While designing this, it only needs few coding concepts and dedication. When you look at the process of making the physical dollar, it seems difficult and needs extra effort to take care of the amount. Isn’t it?
There are chances that physical dollar may have some duplications and often user feels reluctant to print the new form of the currency on a daily basis. This daunting task of making the physical dollar is surprisingly moving towards a new direction known as digital currency. The method of creating the digital cash is quite easy as compared to the physical one, and even needs few basic coding skills.
One needs to have enough ideas about the coding tactics, which will further help them to develop more digital cash of new styles and value as well. If you are not an expert and didn’t have any idea about the coding, but at the same time, if you are a keen observer of the bitcoin, then everything is sorted.
You might be wondering for the question that is it easy to create your currency, but in short, the answer is yes. There are few steps to consider, and you need to keep them in mind before delving deep into the discussion. Apart from the coding, here are some steps mentioned for the makers of cryptocurrencies. Have a look!
First, know the difference between a token and coin
Initially, one needs to understand the different coins and tokens. Of course, both of them are cryptocurrencies, but in case of the coins such as Litecoin, Bitcoin, and Dogecoin, all of them are operating on the blockchain, whereas the token lives at the top of this existing blockchain infrastructure like the Ethereum. Well, the concept of blockchain is quite simple and easy to understand, a record of several transactions that are made on is safe and secured by a network.
But, the coins have their independent transaction ledger, and the tokens are completely relying on the network’s technology to verify as well as to maintain secure transactions and the ownership. Moreover, coins are mainly used to transfer wealth, and the token is therefore used to represent a “contract” for everything, starting from the physical objects to the tickets of the events to loyalty points as well.
In addition to this, tokens are released through a secure system called crowd-sale, which is otherwise known as initial coin offering, and this is valid for the existing coin. This, in turn, helps in the fund projects such as the gaming platforms or the digital wallets. And the user can also get the token even after the ICO has ended, which is similar to buying the coins by using the underlying currency to make the purchase.
Now, it is possible for anyone to develop the token as well as to run the crowdsale, but the ICOs have become increasingly obscure as the creators take away the investor’s money and run. The idea behind the cryptocurrency is not easy to understand, but if one puts their efforts and dedication, then they can create own coins and tokens as well.
Form a community to nurture currency
Before delving more into the discussion of developing the currency, one needs to begin with a community. Of course, coding is important for creating the cryptocurrency, but it is too difficult to build them when you didn’t have a team with you. As per the reports, Chris Ellis who is an efficient London entrepreneur has a community activist at the Feathercoin.
The initial step would be the related to the idea of forming a community, which helps in building the currency and even can show them as well. According to Ellis, it is quite sensitive to follow the rules, and at the same time, one needs to consider their background as well as cultural heritage. Peter Bushnell initially started the concept of Feathercoin in the year April 2013.
Bushnell has left his job to start his currency, which in turn will put the people at the center. So, in response to this, lack of community will destroy the idea of forming the cryptocurrency such as Bitcoin, which is a very popular cryptocurrency in the world. Ellis had been actively promoting the things and educating users on the cryptocurrencies since last month, but apart from this, shared the importance of community in developing own currency.
The community needs to be strong in various aspects such as in welcoming the newcomers or the minority groups, tech-focused and to formulate the team in a better way. Working in a team always help in sorting out the vulnerabilities as well as the security threats such as the 51 attack.
And in case of the Feathercoin, the developers have successfully built the protection system against the threats as they had the support of each other. Hence, building such coins and nurturing the development of the currency helps in giving you the coin legitimacy, builds the trust in front of the public and much more.
Code to the last
Coding your currencies is not time taking and difficult as well. The process to code the Litecoin and Bitcoin are already on the GitHub without any cost. It completely depends on you what changes you want, and based on that, the code time can be calculated.
Initially, for you, it is recommended to build the future-oriented cryptocurrencies after doing proper research of the market to figure out what is trending in the market in the present scenario and what will come shortly as well. In the coding session, one needs to brush up their coding skills and should take their level to one step more to understand the advanced language for developing the customized features.
Start your mining
Apart from the coding, now you need to promote your coin, so for that, you need to spare sometime in the beginning days. Mining is one of the major steps in building the cryptocurrencies. Thus, you need to promote the coins to the potential users, so that you can initiate the mining process to get some value in the market. Moreover, you need to tell people how your coin is different from others, what are the additional feature of it, how it can help the users and what types of benefits it can deliver.
Merchant base is a must
After getting the miners who are interested in digging into your coins, the next big step is the merchant base. This base is mainly associated with selling and buying your currencies for actual things. Build a marketplace so that user can have the space to spend the currency. Merchant base is quite similar to that of building a customer base. It is all about building trust and confidence in the product. If you are confident in your motives then you are ready for marketing the coins to forums, businessmen and friends as well.
The local market is the target than global
Instead of covering the global market, you need to focus on the local marketplace for your cryptocurrency. No matter what other says, focus on what you want the most and try to dominate the world, but start with the local shape. It is better you target limited areas when you have the chance of making things bigger.