As of the end of September 2018, there are more than 2 thousand different cryptocurrency projects in the world. Each month their number is only increasing. For example, at the beginning of this summer, the CoinMarketCap website indicates that there were about 1,600 coins, i.e, globally speaking 400 new ones appeared in 4 months. In this article we will talk about the nuances of creation of your own cryptocurrency and discuss about how much it may cost and how you can do it. So, there is a lot of information, let’s get started.
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- Why do you need to create your own cryptocurrency?
- What shall you thoroughly consider while creation of your own cryptocurrency?
- What are the main ways to create a new coin?
At the very beginning it is necessary to determine the value that your coin will have. There is a huge number of projects which have been created and launched for fun, for example: TrumpCoin, PutinCoin, etc. Such coins will hardly ever become successful nor get at least into the TOP 100 projects.
An idea that underlies your future coin creation shall solve some major problem or improve the already existing product. Also, the coins that will be used as the settlement means within a particular platform (a service, a game, etc.) are considered as promising.
Suppose, you already have a clear idea about the purpose of your future offspring, therefore let’s talk now about the nuances that will affect the algorithm of the cryptocurrency creation.
1. Define, whether it will be a coin or a token. The process of creation of these two types of cryptocurrency assets is significantly different. The coin runs on its own blockchain, and the token can be launched by using a third-party platform (Ethereum, EOS, NEM, etc.). Due to its assignment the coin often serves only as a payment mean, but the token can have various applications.
2. If you decide to create a coin, you also need to make a choice between a completely new product written from a scratch or a fork of one of the most popular coins. It should be admitted that writing a code from a scratch is rather a hard work that requires to engage a team of experienced programmers and to spend a couple years. Thus, this kind of venture is quite costly from a financial point of view.
3. Emission. When you launch your own decentralized project you should carefully consider this issue. It is necessary to calculate everything properly. If you issue too many coins or tokens their value will decrease. And if, on the contrary, you make a very limited issue, then you have a risk that the coin will not be able to maintain a sufficient traded value. It is necessary to think over the working algorithm of your cryptocurrency, as emission control directly depends on it.
4. Mistakes and success. Before launching your own project, carefully scrutinize the history of similar coins. Analyze what can be done better, which mistakes shall be avoided, etc. The pioneers who were the first comers to the market paved their way from their correct and erroneous decisions. It is necessary to use this experience.
These are only the main aspects that are of the greatest importance, in fact there are much more nuances, but it is impossible to describe all of them within the frameworks of one article, since they have a purely individual character.
There are several options for creation of the cryptocurrencies, let’s take a closer look at them:
- Hard fork means changing the source code of the already existing coin but continuing to run on the same blockchain. Creation of such a project takes a relatively little time, but you still have to deal with the code. The following aspects are subject to a change: name and abbreviation, number of coins, block size, reward, logo, etc. As a rule, the codes of popular coins are in the public domain. You can download them from the Github resource.
- Writing your own blockchain. As it was mentioned above this option is the most time-consuming and expensive among all others, but with the right approach you can create a completely new project that will make a revolution in the entire industry.
- Launching tokens on the third-party platforms. Currently the most popular tokes are the those who have the ERC 20 format, which are created on the platforms such as Ethereum, EOS, NEM, etc.. It is worth mentioning that tokens can be created either by using a ready-made template of a smart contract, or you can write your template manually. The first method absolutely does not require any specific knowledge in programming. For a successful launch, you only need to specify the name and abbreviation, emission and number of symbols after comma. If you have a desire and an opportunity to write your own smart contract, then you can potentially create a token with almost any function. Its development can also take a sufficient amount of time and require substantial investments.
At the moment, the creation of a new cryptocurrency is not really surprising. If desired, you can launch your own decentralized project in several hours, even being alone, without any investments and programming knowledge. But if your goal is to create a fundamental cryptocurrency which will be able to compete with the market leaders, then be ready for multi-million dollar expenses and a long development process.
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