Crypto currency is a hot topic nowadays. Mineable crypto has become very popular as it offers various benefits to its users. However no matter crypto currency is gaining recognition there are still many doubts about what exactly it is, how it is created, and so on.
Crypto currency is a currency in a digitized form that is accepted universally. This type of currency is not bound or restricted by any centralized platform. Crypto currency does not include printed notes though it includes coins and tokens. Many consider coins and tokens as the same but it is not true. One of the major differences between these two is coin needs their blockchain whereas token works on the already existing blockchain. Coins can be used for acquiring tokens but the same is not true for the opposite.
Having your crypto currency for the business can bring lots of benefits such as reducing fraud risks, lower transaction costs, fund security, and many more. In short crypto currency can boost your overall business operations. As there are so many advantages attached to the crypto currency one must create their own. With the following steps, one can understand the process of how to create a cryptocurrency. These include:
- Business Idea: The first step is to clearly define why purpose one needs to achieve through the crypto currency. It will also help in identifying your target audience. A strong purpose will persuade people to use your currency.
- Consensus Mechanism: The main aim of the consensus mechanism is to see that all the nodes are properly synchronized and ensure all the transactions are legitimate. Thus one must choose the right consensus mechanism as it will enable the smooth functioning of blockchain.
- Blockchain Platform: The next step is to select the blockchain platform and this depends upon the type of consensus mechanism one has already selected. There are various blockchain platforms available that one can easily select as per their business purpose and consensus mechanism.
- Designing of nodes: Once the blockchain platform has been decided the next step is to design the nodes. Nodes are nothing but the infrastructure of the blockchain. Designing of nodes will be based on their functions and working. Various things are to be decided in this stage such as setting up nodes’ permission to public or private, hosting decision, and many more.
- Blockchain internal structure: One must be careful in this step as most of the parameters decided of the blockchain cannot be altered. Various parameters include address format, key formats, asset issuance, etc.
- Integrate APIs: Various blockchain platforms do not provide APIs so one must see that whether their blockchain offers or not. In case it is not provided then one can always use the help of a third party to get these integrated.
- Designing interface: No matter how great one develops their crypto currency it will be of no use if the interface is poor. Thus one must ensure that everything ranging from web to external database is recent and is updated.
- Make it legal: The last step in the creation of crypto currency is making it legal by confirming crypto currency regulations. This will help in avoiding any sudden shocks.
Hence with these steps, one can easily create their very own crypto currency.