Bitcoin, Ethereum, Ripple, Dogecoin sounds similar right? You are thinking right, these are trending cryptocurrencies. In Fact, there are 1000 different coins and tokens in the market that are based on cryptocurrency. As per Wikipedia, the number as on 12 July 2021, 1,384 cryptocurrencies are in use worldwide.
How to Cryptocurrency work?
Cryptocurrency is one of the most popular usage of block chain technology. This distributed technology works on the algorithm of creating new blocks connected with the existing ones through Hashing. The members in the P2P network have to accept the block by participating as miners. Moreover, there are many consensus like proof-of-work, proof-of-stake, delegated proof-of-stake, proof-of-authority.
Cryptocurrency is issued every time on creation of a new block. It is used as a reward for participants taking part in the consensus process. Besides that, the process involves allocating participant’s resources to support transparency of blockchain.
There are a lot of cryptos! Why don’t you add one to your pack? Wait!!! a little.
Before we get started we need to keep 3 things in our mind. You should:
- Have a good idea
- Earn people’s trust
- Have knowledge of Coding and Crypto Security
Let’s get started, A cryptocurrency can be created in two ways:
- Firstly, developing a coin that shall have its own blockchain.
- Secondly, creating a token through applications such as Ethereum or NEO.
Hold Back! You might be wondering, are coins and tokens identically same?
Nope, they are not the same. Coins and tokens both are cryptocurrencies. A coin has its own blockchain. However, tokens are made on top of existing blockchain.
Difference between Coin and token
Building a Coin or a Token
|Has its own blockchain||Built on an existing blockchain|
|Time Consuming||Time effective|
Ohhhh!!! You have to choose only one. Choosing between tokens and coins is a major decision. It affects many aspects of the process.
Initial Coin Offerings
Blockchain-based businesses use initial coin offerings (ICOs). ICOs are similar to IPOs except getting shares investors receive tokens. Want to raise funds higher? Adopt ICO to make a product launch successful.
Points to remember before initiating ICO
- Benefits of your blockchain project to a specific industry
- Expert team of developers to create ERC-20
- Developers expert in creating ICO smart contracts
- High security to protect your token and smart contract
- A Document that represents your idea- Whitepapers
- Marketing campaign
- Community management team
Benefits Of your own Cryptocurrency
- Financial Flexibility
Being digital currency cryptos are no longer controlled, monitored and tracked by any financial institution
- Transparent Transaction
Cutting out the third party, cryptocurrency transactions follow peer-to-peer networking
- Asset Transfer
Crypto ecosystem may facilitate you with special modes of transfer such as adding third party approval
- Strong Security
Crypto has strong encryption techniques. It safeguards the system against fraud or account tampering
- Removing Third Party
Blockchain eliminates the third party in various ways. You don’t have to pay extra every month.
Crypto has a glorious promising future in this world of digitization. If your plan is to make your business grow strong roots. What are you waiting for? Put the foundation of developing your own crypto today. Worry not, you can rely on us as it will require a smart technology part with good experience.
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