How To Create Your Cryptocurrency
So, you are with your laptop thinking of how you want to start your own cryptocurrency. Well, that’s nice and all, but how exactly do you create one? Look no further, and we are going to show you how it is done, what things you need in place, and if making one is right for you.
This article assumes you know all the basics of cryptocurrencies and how it works.
Everywhere on the internet, you see cryptocurrencies. You hear about the skyrocketing price of bitcoin and how many altcoins have been integrated into the market this year alone. Is that your incentive to make one? Do you want to create a coin that will break the market? Or do you have a start-up and you want your cryptocurrency as a payment option? Whatever the case, let’s guide you through how it’s done.
Know What Your Coin Is For
Before creating your cryptocurrency, you need to understand what it’s for. You might think that well it’s nice to have. But understanding its purpose can make it more successful. Do you have a business that needs an alternative payment mechanism? Define your goals before venturing into this path.
Choose a Consensus Mechanism
I’m pretty sure you are taking the hint by now; you have a lot of decision-making to do. For your blockchain to operate how you want it, the participating nodes must decide which transaction should be considered legitimate and added to the block. Your blockchain mechanism is a protocol that makes that decision. You have to research extensively to choose which works best for you.
Choose a Platform
Yes, more choosing. Your choice of a blockchain platform will depend on the Consensus Mechanism we discussed earlier. There are several blockchain platforms; you should make proper research into all you can find before choosing, don’t go jumping into one. Ethereum being the most popular platform, we also have NEMNxt, EOS, Multichain, Coin list, IBM Block-chain and so much more.
Designing The Nodes
Nodes are what make blockchain work. A node is an internet-connected device supporting a blockchain by performing different tasks. A node is responsible for storing the data, verifying, and processing transactions. The node design is an extremely crucial part of your blockchain.
You would have to pick an operating system(Linux and windows being the best and most common choice) and decide whether or not they will be hosted on the cloud or otherwise.
Block-chain Internal Architecture
For your blockchain to work how you want it, you must design your internal architecture carefully. This is the most tricky part as some things you develop here cannot be changed once it is launched.
You have to design your permissions — who access the data and performs transactions, Address formats, Key formats, Asset Issuance, and more.
Decide On What Programming Language to Use
To develop a blockchain system, you need to you several programming languages. There are several programming languages specifically good for making blockchain systems. Python, C++, C, C# and so much more. You can do proper research before choosing to know which developers to hire.
Design The Admin and User UI
The User Interface will ensure a smooth transition and communication between the user and the blockchain. Even the admin needs a UI to properly navigate through and complete tasks.
Popular UI technologies include HTML5, CSS5, JavaScript and its frameworks.
As you’ve noticed, these things take time and money; you have to properly invest time to make proper research to know what is right for your crypto. After coming this far, you have to take proper precautions to make sure you are on the legal side. You have to make your coin legal, the law is now making sure cryptocurrencies are kept on a tight leash, so you have to ensure you are ready for what comes next.
