Businesses have now started exploring ways to create their cryptocurrency and use it to optimize operational efficiency and productivity. In this article, find out key technical and business aspects of cryptocurrency creation.
A cryptocurrency is a blockchain-powered digital currency that uses encryption techniques to regulate the creation of additional currency units and verify transactions. Its key features are anonymity, decentralization, and security. Also, any centralized authority, government, or bank does not regulate or track cryptocurrencies. However, compliance with jurisdictional regulations is a must.
Blockchain refers to a decentralized peer-to-peer (P2P) network, which comprises of distributed data blocks. It is used as an underlying infrastructure for cryptocurrency creation. Now, let’s understand the types of cryptocurrency creation.
We can divide cryptocurrencies into two large subsets – coins and tokens. While both are cryptocurrencies, some significant differences make them distinguishable. Understanding their main concepts can assist you in making your own cryptocurrency for specific business needs easily.
A coin runs on its blockchain platform, where all transactions occur. For instance, Ethereum, and Neo operate on their blockchain platform. In this case, if you want to create your own cryptocurrency (crypto coins), you need to develop a blockchain platform first.
A token operates on top of an already built blockchain infrastructure. It is used to verify transactions and strengthen their security. We can also use tokens as smart contracts that can represent, from physical objects to digital assets and services. Essentially, anyone can create a new cryptocurrency using an existing blockchain infrastructure. We mainly us tokens for security token offerings (STO). STO enables businesses and startups to gather funds for their project idea through a crowdsale on a blockchain platform. Indeed, we can say that it is the primary reason businesses want to create their own cryptocurrency.
The use of blockchain technology as the underlying infrastructure is one of the main arguments in favor of cryptocurrencies. It makes cryptocurrency independent from any central authority, and enable only crypto developers and owners to define the rules of governance.
Generally, traditional currencies consume a significant amount of time and cost to be executed and settled. However, with cryptocurrency payments, businesses can execute numerous transactions at once and settle it immediately by sending it directly to users’ crypto-wallets.
Financial institutions like bank levy significant charges for processing transactions. It does not mean that cryptocurrency transactions are free; the amount they require for processing is relatively low.
Users sending and receiving funds can be anywhere in the world and still exchange cryptocurrencies. Businesses can save costs on currency conversion and bypass fees required for international funds transactions.
It is because of the blockchain’s distributed nature, transactions being recorded on its database become immutable. Also, no one can know a transaction recipient and sender of the cryptocurrency if their address is not publicly confirmed.
These advantages of using your own cryptocurrency are sufficient enough to motivate businesses to invest in cryptocurrency development services.
Oodles is a cryptocurrency development company that provides a range of cryptocurrency development services. We have experience of more than 4+ years that enables us to build even the most complex blockchain and cryptocurrency-related projects.
Create your own cryptocurrency to participate in the new world of Digital Economy.
Cryptocurrency is the new form of money built exclusively to facilitate the digital economy. This form of currency, rather than extracting their value from tangible materials, extract the value from information on the digital ecosystem. Cryptocurrency is understood as a medium of exchange for information. With the primary characteristics of being fraud-proof, easily accessible and no involvement of a third party, Cryptocurrency is emerging as an appropriate medium of transactions on the internet.
Profitability and innovative business solutions are thCreate Your Own Cryptocurrencye prime reasons to create your own cryptocurrency. It is a lucrative idea because a new currency has unlimited possibilities if they are viable enough in the market.
For creating your own cryptocurrency or altcoin to enter the crypto world, regardless of the purpose, you require an entirely new blockchain based crypto development. A new altcoin based on the blockchain technology provides complete control over the coding and underlying mechanisms. Such blockchain based cryptocurrencies have their own unique features and it is possible to provide them with any characteristic.
The creator may set the size of a block, limit the supply of the coin and set rates for issuing new coins. Users can either mint the coin following an algorithm or mint them on the basis of their earnings. Creating a new blockchain based cryptocurrency requires intensive knowledge of coding.
A token is created using an existing blockchain based cryptocurrency. A blockchain is forked by customizing a block with a new set of protocols and starting a new line of blockchain with unique properties. It is comparable to modifying an existing coin and customizing it with new features. This clearly requires the primary coin. The process to acquire the primary coin to alter them into the new coins is accomplished by launching an ICO, which is a company raising public funds, similar to IPO. ICO stands for Initial Coin Offering. If Tokens are not created with intensive care, they might exhibit serious flaws.
There are many top tokens in the cryptocurrency market such as:
Most of these are based on Ethereum blockchain.
Building a new blockchain or launching an ICO involves loads of strategies, planning apart from time as well as money. They need an in-depth analysis of the technology and excellent coding to implement the unique idea. Still, there are risks involved both from business and technology perspectives. There is this is an option to hire an outsourcing cryptocurrency development firm that can help you create your own cryptocurrency. Such services even evaluate the best option to follow as per the business objective or the idea. Even Smart Contracts could act like tokens, not only for currencies but also for tangible objects.
Oodles Blockchain has been providing cryptocurrency development services as a top forte. We provide effective consultation to start with the development of a new cryptocurrency. As security, scalability, and transparency are the prime features of a coin, we follow strict methodologies to attain the objective of an ICO or a new Blockchain.