This content originally appeared on DEV Community and was authored by milad
In recent years, many startups have made a lot of money by creating a digital currency and selling tokens in the initial public offering. Creating a new digital currency may seem like an impossible process to most people. While making digital currency is possible if you have enough knowledge in this field. In this article, we will introduce you to the methods of making a digital currency and at the end, we will answer some common questions in this regard.
Why are new digital currencies being created?
Even if virtual money has been available to the public for a long time, Bitcoin is the first known and most successful cryptocurrency in the cryptocurrency market. Many cryptocurrencies have been created today, the most popular of which are Bitcoin, Ripple, and Ethereum.
Some unique features make companies and individuals think about creating cryptocurrencies. The most important features of digital currency are cryptography, security and confidentiality, no need to monitor a central institution, transparency of transactions, fast transactions, and ease of transfer.
The difference between coins and digital currency tokens
Some people mistakenly use tokens and quins as synonyms. While Token and Quinn are different. The most important thing that distinguishes a token from a quin is the lack of an independent blockchain. Tokens are created on the platform of other blockchains. But Quinn has an independent blockchain.
Another important difference between coins and tokens is that coins are used to buy and sell and are considered a method of payment. While most tokens can be used for use in an application or as an asset. Bitcoin, Ethereum, Ripple, and Light Coin are the most popular coins in the digital currency market. Tetra, Chainlink, Dai, and Avi are also in the category of tokens.
Digital currency making training; Introducing 3 methods
Method one: Create a new digital currency by creating tokens
One way to make digital currency is to create tokens. As we have said, a token is a digital currency that does not have its independent blockchain and has been created and launched in the context of another blockchain. For this reason, when a token is generated, there is no need to work on the rules of consensus.
Making tokens is cost-effective for blockchain developers because they do not need the astronomical cost of designing a blockchain to achieve their goals. Of course, it is also important to note that many digital currencies, when in their infancy, are implemented on another blockchain platform to save costs, but once they have been sufficiently developed, a dedicated blockchain for They are used to launch.
The token can be created on all blockchain platforms that use smart contracts. Ethereum is one of the most popular token-building platforms. At the time of writing, Ethereum has hosted more than 80% of the tokens on the market. Bainenschin, Ias, Kazmas, Thezos, and Theron are other common platforms for making tokens.
Ethereum's programming language is solidity. Solidarity uses concepts that exist in other programming languages such as PHP. It is a high-level programming language that has all the capabilities and capabilities needed for blockchain software.
Method 2: Create digital currency by copying and modifying current blockchains
Another way to build digital currency is to use open-source blockchains. Open source blocks are made available to the public with programming code after they are created.
Ethereum and Bitcoin programming codes are also open source and can be accessed by anyone on GitHub. Many blockchains have been launched following the example of these two digital currencies. For example, by making a few changes to the Bitcoin blockchain, the LightCoin network is created.
Method 3: Create a digital currency by creating a new blockchain
Build digital currency through the new blockchain
Building and designing a blockchain network is another way to create a new digital currency. In a blockchain, data is stored in blocks and forms an interconnected chain. This structure creates an immutable storage system. The blocks are connected using hashes.
Creating a new blockchain requires deep programming knowledge and a lot of time. In the following, the steps of creating a new digital currency through making blockchain are outlined in general.
Select the consensus mechanism
Consensus mechanisms are protocols for verifying transactions performed in blockchain without the need for a third party (intermediary). Proof of work and the stock proof is currently the most well-known and basic blockchain consensus mechanisms.Select the blockchain platform
The correct choice of blockchain platform depends on the consensus mechanism you have chosen. The best blockchain operating systems are:
Ethereum
Waves (WAVES)
Hyperledger Fabric
NEM
IBM blockchain
Nxt (NXT)
HydraChain
BlockStarter
BigChainDB
EOS
Quorum
IOTA
CoinList
MultiChain
Open chain
Chain Core
Design the nodes
You need to decide how the blockchain works and design the nodes accordingly. For example, will the licenses be private or public? Will the hosting be on-premises web systems or cloud systems?Specify the blockchain architecture
Before launching a digital currency, you need to be sure of all aspects; Because you can not change multiple blockchain parameters after startup. For example, you need to specify what address blockchain will follow to track exchanges of different cryptocurrencies.Design the user interface
If your user interface is not good, the cipher project will fail. You need to make sure you are using the latest version of FTP servers, databases, etc.
Frequently Asked Questions about Making New Digital Currencies
Here are some questions about building a new digital currency.
Does making a digital currency always lead to profitability?
No. More than a few hundred thousand digital currencies have been launched on various platforms, many of which have failed. For this reason, all aspects of work must be well weighed before creating a digital currency.What is the reason for the failure of some new digital currencies?
Unfortunately, this perspective often causes us to become overwhelmed when it's time to start a new digital currency. That's why we see so many teams being forgotten after spending so much money and energy to create a new digital currency, without gaining popularity. One of the main reasons for their failure is that they failed to do good marketing. Therefore, before any action, the marketing system must be well defined.What is the first step in building a new digital currency?
The first step in creating a new digital currency is to have a well-defined digital currency white paper. White paper in the world of digital currencies means a comprehensive and complete report of the problem that the introduced project seeks to solve. Project objectives should be clearly defined within the white paper. A standard and complete white paper include an abstract, introduction, problem definition, product description, technical details, descriptions of the new digital currency, details of the public offering, and introduction of the development team.How much does it cost to create a new digital currency?
Creating new passwords is not an easy task and will probably require some financial resources; Unless you can handle things like development, documentation, and marketing. The cost of building an encrypted currency depends on several factors, and no specific number can be specified.
Concluding remarks
Creating a new dedicated currency may seem like an attractive and profitable offer at first, but we must not forget that there are many challenges in this direction. For this reason, sufficient market research must be done before any action is taken. On the other hand, the necessary capital must be provided for manufacturing and marketing. Otherwise, the digital currency project is likely to fail in its infancy.
This content originally appeared on DEV Community and was authored by milad
milad | Sciencx (2021-08-11T05:56:21+00:00) Making digital currency; How to create a new cryptocurrency. Retrieved from https://www.scien.cx/2021/08/11/making-digital-currency-how-to-create-a-new-cryptocurrency/
Please log in to upload a file.
There are no updates yet.
Click the Upload button above to add an update.