Anyone can create a cryptocurrency, but the process requires commitments of time, money, and other resources, in addition to advanced technical knowledge. The main options are creating your own blockchain, modifying an existing blockchain, establishing a coin on an existing blockchain, or hiring a blockchain developer.
Native coins, which by definition have their own blockchains, are considered as superior to tokens, which are digital currencies that operate on other blockchain networks.
So What is a Blockchain?
It is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.
Important Things To Do:
- Choose a consensus mechanism. A blockchain’s operating protocol is also known as its consensus mechanism. The most commonly used consensus mechanisms are proof of work (PoW) and proof of stake (PoS).
- Design your blockchain architecture. Should your blockchain be private or public? Permissioned or permissionless? You get to decide, and it all depends on your reasons for making a cryptocurrency.
- Audit your new blockchain and its code. Many cryptocurrency developers choose to hire specialized blockchain auditors to review their blockchain’s code and identify any vulnerabilities.
- Verify legal compliance. It’s a good idea to pay for expert legal advice before you mint any new cryptocurrency. Legal professionals can confirm that your cryptocurrency is compliant with all relevant laws and regulations.
And then, finally, you are ready to mint your new cryptocurrency. How many coins you decide to issue initially is up to you. You can decide to mint the complete supply of coins in a single batch, or gradually increase the coin supply over time as new blocks are added to the blockchain.
Another Method To Having Your Own Crypto:
– Modify the code of an existing blockchain
You can decide to use the source code of another blockchain to create a new blockchain and native cryptocurrency. Pursuing this option still likely requires technical knowledge, as you may choose to modify the source code to satisfy your design objectives. The code for most blockchains is open source, meaning that anyone can view and download it. You can find the source codes of most blockchains on the GitHub platform.
After you download and modify the source code of an existing blockchain, you still need to work with a blockchain auditor and obtain professional legal advice. After that, you are ready to mint your new cryptocurrency.
Another Method To Your Own Crypto;
Establish a new cryptocurrency on an existing blockchain
You can make a new cryptocurrency without first creating or modifying any blockchain. Platforms like the Ethereum blockchain are designed to host the cryptocurrencies of many different developers. The resulting new currency would be classified as a token, which is any digital money that is not native to the blockchain on which it operates.
Creating a token that uses an existing blockchain can require some technical expertise, but anyone with moderate computer knowledge can probably create their own token without too much difficulty. Let’s run through the basic steps to create a new token on an existing blockchain platform:
Your first step is to decide which blockchain should host your token. You have many options, with the Ethereum platform and Binance Smart Chain being among the most popular.
Create the token: The process required to create your token varies based on how much you wish to customize the token. Creating a highly customized token generally requires advanced technical knowledge, but free online tools such as WalletBuilders can facilitate the token-creating process in just a few clicks.
After creating the cryptocurrency, you are ready to mint the new tokens. Using a trusted platform like Binance Smart Chain or Ethereum means that you may not need the services of a professional auditor or lawyer before issuing a batch of tokens.
Tokens are generally less customized than coins, but making a token is usually the fastest and cheapest way to make a cryptocurrency. Your token can benefit from the security provisions of an established blockchain platform, and the blockchain platform may offer other innovative features for token creators. Being associated with a well-established blockchain platform can help to enhance your token’s value and credibility.
Ofcourse you don’t need to do all this work if you have some money on you. Just hire a great developer.
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