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Looking to create your own cryptocurrency

06.07.21 08:26 AM By Bindya

CryptoCurrency-How to create?

 

    To understand cryptocurrency, we need to understand what a token is and what is a coin. In broader terms, a token doesn't have its own blockchain and it lives on top of an existing blockchain infrastructure, whereas a coin operates on its own blockchain.

    A blockchain can be defined as a series of blocks where each block carries a series of transactions secured by the network itself. So, we can say,a crypto coin has its own independent transaction ledgers, whereas a token relies on the underlying network’s technology to verify and secure transactions and ownership. 

To make it more simple, a coin is used to transfer wealth while a token represents a contract for anything.

Tokens are primarily released as an ICO (initial coin offering) through crowd sale in exchange of existing coins which can fund project like digital wallets but one can buy available public tokens later too using the underlying currency to make the purchase.

    Anyone can create or release token but this could be tricky for investors as the creators can take investors money and run, therefore investors have to do thorough research before buying tokens.

    Digital currencies are created in a way so underlying code is accessible to everyone but not everyone can understand the code but yes, code availability is always there.

    For creating token or coins, one can choose any of the two ways:

  1. Build your own blockchain

  2. fork an existing blockchain

    For choosing any, one either needs to be technical enough to understand how to create the code or should be able to hire competent developers who can either create a new blockchain or can modify the existing one to for creating a new coin.

    Creating a new blockchain is time-consuming and requires a lot of resources and even after that, to achieve the full functionality is tough and so is the path to public exchange.

    The second method, forking an existing blockchain where one uses the available open -source code and makes few changes and launch a new blockchain is still achievable in shorter time. However, to achieve this, one needs to have a good know how of coding and understanding of how this code is working and how, where and why to modify the code.

 Launch a coin or token on an existing blockchain  

     Understanding the code is a tough task especially if one doesn't know the in's and out's of coding, for this one can hire a developer or can use the creation services available online (Yes, there are few companies which are providing a ready solution for you to log in choose from and create your own coin without doing any coding). there are companies helping one create their own coins using Bitcoin / Ethereum/Litecoin blockchain, one just have to check and explore.

    One can create a token (a smart contract) which is faster, simpler and cheaper than creating a coin as it only relies on the underlying technology already in use, with or without Public ICO with or without any real value or just to exchange among the friends. Common example is ERC-20 token, build on Ethereum blockchain and code for the same is also available and many tutorials and videos for a walk through is also available online.

    If you want to experiment with tokens, you can start with ERC-20 token that could be distributed and then cash in to whoever is buying for the group, this has no value or commitment attached but will help you understand how token work. Once one has learnt then can move to ICO because of SEC regulations and to avoid penalties for any misrepresentation.

    Creating a token or coin is not where things stop, major work starts afterwards, as one has to give the coin some value, build the infrastructure , maintain it and convince the buyers out there to buy the currency and this needs a team of developers and staff.

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