What is Cryptocurrency?
It’s more than just notes and coins. Currency is a unit of storage and account and a means of exchange. Simply put, it is a universally accepted way of buying and selling any goods or services.
In the old days, when the barter system was anything from rice and grain to wool, and even feathers were considered currency. Then came the banks to regularize these means of payment. At the same time as they minted coins and printed banknotes.
Now in the digital age and age, coins and banknotes are obsolete. So came a new form of currency, cryptocurrency.
It is similar to the common currency but in a digital platform and it is universally accepted as opposed to physical currencies that only operate in a specific country. A single central platform does not bind cryptocurrencies.
What is the difference between a token and a coin in cryptocurrency?
Here are the three main differences
- Coins are part of the same blockchain, while tokens work on existing blockchains.
- Tokens are limited to a specific industry or community. Coins can be used anywhere.
- Coins can buy tokens, but tokens cannot buy coins.
Let’s simplify using a real life scenario. If you visit Starbucks regularly, you can earn loyalty points for your repeated purchases. With these tips, you can get rid of beverages. These loyalty points offer an establishment (Starbucks in this case).
Now you can buy loyalty points by paying money which will give you free coffee. This money is a coin (in this case real life coin or banknote).
You can buy loyalty points using coins, but you can’t earn real money using loyalty points. So a crypto coin can be used to buy a business token, but you cannot buy a crypto coin using a token.
Launch a new Cryptocurrency: is it suitable for your business?
Now you have a fairly good understanding of what cryptocurrency is and how to use it. Now the question is, does your business really need cryptocurrency? Just answer the following questions and you will get a clear picture:
Will your business be on the Internet?
Does your income come from digital payments rather than cash?
Will online payment options increase your user base?
Do you plan to continue operating for more than a few years?
Okay, the last question is a rhetorical question. If the answer to all these questions is “yes”, then your business needs to integrate cryptocurrency.
The benefits of building your own cryptocurrency
Eliminate the risk of fraud
Anonymity of transactions
Reduce operating costs
Visit new customer base
How to make cryptocurrency?
Step #1. Choosing a consensus mechanism
The consensus mechanism is a protocol that treats a specific transaction as legal and adds it to the block.
Step #2. Choose a blockchain platform
The correct choice of blockchain platform for your business depends on the consensus mechanism you choose. (I will mention the top blockchain platforms below for you to choose from)
Step #3. Design The Nodes
You must decide how the blockchain works and what it does, and design the nodes accordingly. For example, are the permissions private or public? Will hosting be in the cloud or on-premises, or both? What are the hardware details required for execution?
Step #4. Establish the internal structure of the blockchain
Ensure all aspects before starting, because you will not be able to change several parameters of the blockchain after starting and running. These decisions may be as simple as what address format your blockchain will follow to provide exchanges between different cryptocurrencies without a third-party intermediary.
Step 5. Integrate APIs
Some platforms don’t provide pre-built APIs, so make sure your platform provides them. If you still don’t worry, there are several third-party blockchain API providers, such as ChromaWay, Gem, Colu, Bitcore, BlockCypher, and Tierion.
Step #6: Design The Interface
If your interface is not good, it is useless to build a world-class cryptocurrency. You need to ensure that the Web, FTP server, and external database are up to date, and consider future upgrades when completing front-end and back-end programming.
Step #7. Make your cryptocurrency legal
Make sure that your cryptocurrency is ready and comply with the laws that will become international cryptocurrency regulations. In this way, your work is retained, and any emergencies will not disrupt your efforts to create a new cryptocurrency.
The World’s top Blockchain platform
In the glorious monetary system, cryptocurrency is a very promising future. If you plan to run a successful and growing business for a long time, you must lay the foundation for your own cryptocurrency from now on.
To create your own cryptocurrency like Bitcoin, you need a smart technology partner who has extensive experience in using such future technologies.