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How to Create Your Own Cryptocurrency Coin
To create your own cryptocurrency is much easier than you think and does not cost you much for the blockchain and code itself. Not even for a full sized project with all the extra websites needed for coin-sale, block-explorer and mining function.
I will look into two different approaches depending on how much you can do yourself, your budget and how much you need others to do for you. This really depend on if you can do programming or have a programmer to help you. I’ll get back with details down the page.
Know the Difference Between a Coin and a Token
Also we need to be clear on the terms Token and Coin also called altcoin as there are a really big difference and not much alike on those two even that both are cryptocurrencies, but as Bitcoin, Dogecoin, Litecoin, Ripple ect. run their own Blockchain, a Token is created as a layer on an existing Blockchain like Ethereum and depending on that Blockchains function, thereby NOT a real coin of its own but a part of a underlying Blockchain.
In my opinion Tokens is to easy to setup for less a few hundred bucks and not a serious cryptocurrency project of its own but more like a fund-raising program (ab)used by to many.
A Token does not contribute with any Blockchain technology or new thinking and since it rely on an existing Blockchain it does also not require setup of Block-explorer, Mining server, Node servers as a real Altcoin would do.
By that said we will move on to the real coin as is the main subject in this article. How to create a Tokens is for another day.
Creating the code!
Since all code of any Blockchain is open-source, the code itself is easy to come around and is well tested and documented with mostly all child-diseases eliminated. There is not much idea inventing the wheel once again when you already have some solid well-tested code to use.
Building from scratch would also require million dollar budgets and 1-2 years in the process like a new rumored Libra coin and other solid projects.
Selecting your algorithm
What we need is to pick a Blockchain using a algorithm we want to use. There are 4 well known types mostly used as:
- SHA256 (Bitcoin),
- Scrypt (Litecoin),
- X11 (Dash),
Of course there are many other algorithm to use but this 4 are the most stable and well-tested to use for your Blockchain.
All the source code can be found on Github website with all needed files, updates and documentation. Now the tough part is you need to know coding as C++, Phyton and others, so in case you DO know coding, you would probably not even have read this article but just done it already.
Setting the parameter on the Blockchain
When you have chosen your algorithm you need to find the settings for how your blockchain works. This part need some thoughts from your end to define and need to fit the type of the coin you create.
Total amount of coins
Bitcoin has a total amount of coins of 21million to be created. After this no more coins can be mined. As a contrast Dogecoin has a unlimited amount of coins to be created, mean it will create new coins forever. Looking on those two solutions there is no doubt that Bitcoins concept allow the price to keep grow as there are more and more people sharing the same coin whereof Dogecoin keep create new coins thereby the price will never really get high.
So when you create your coin think about the type and what should be the maximum coin to create.
Mining reward size and halving
You need to figure out your settings for how many coins the blockchain release (create) every time a new block is created. Bitcoin started out with 100 BTC 10 years ago what is then being halved every time block number 210000 has been created. So currently we are on 12.5 BTC soon entering a 6.25 BTC after next Bitcoin halving.
It is important to balance this setting with your total coin distribution.
Block creation time
Same as above it need to fit your type of coin project. The creation time is important for how fast it create new blocks. It will also affect the speed of confirmed transactions. Sample: Bitcoin Block-creation is set to 10 minutes so you can not get confirmations faster than that. Some coins is low as 1 minute or less what I would consider as a short lived coin or low price coin as Dogecoin.
Mining difficulty level adjust itself in the code as Bitcoin adjust itself every 12 days approx. You should anyway keep this level low and let it adjust to fit the total hashrate.
I would like to mention that starting a new coin and dump multiply terahertz ASIC mining on it is a bad choice and will force the code to create new blocks immaturely before time as the mining difficulty level has not yet adjusted itself. It it therefor important to start low with mining just enough to keep transactions smooth and then upgrade hashrate over time naturally as transactions grow. Yet another reason to keep mining out of public as then you cannot control this part what will make the block-creation unstable.
Name on your coin and a nice icon
Last is to find the name. Here you need both the full name like “Bitcoin” and the symbol name like “BTC”
You will also need to think of a name like Bitcoin use the name “Satoshi” for coins in decimal size. This will be used in the wallet software together with your logo to make this your own.
Two ways for a none-coder to get the Blockchain code
For most of us none-coders we got two choices left.
- You can buy the source code customized to your needs and install yourself or
- You can buy a full projects all included and setup.
The price difference on those solutions start as 0.25 BTC for the Blockchain source code itself to a full project size for 1.9 BTC everything included.
Be careful where you buy.
The danger about buying is the many scam sites selling without deliver anything. Fake and scam what is 90% of most.
In fact I know only about two sites who deliver what they say and I will detail the sites products for you here and explain what they do for you and your choices.
CryptoLife Development is a popular site with a easy click ordering system and a fast delivery, usually in a few days or a week.
The site let you select in steps with a starting price on just 0.25 BTC for the node itself and add-ons select for wallet types, block-explorer, mining and mostly any you need for a full size project except the coin sale site and design what is a must have to start selling your coin.
But if you can do some parts yourself this is a great choice with a fast delivery. And the more you can do yourself the more you save.
Blockchain-Experts is a full project site only. They include all thinkable software, wallets, Blockchain-explorer, mining server, sale site and management and will setup everything for you.
You can not part select on this site but accept the full project in all its details and for a full project price of 1.9 BTC all included and takes 4-5 weeks to final deliver it all.
Blockchain-Experts will be your choice if you cannot do some of the parts yourself or simply just don’t want to spend your time on such a project what is a considerable amount of time to give.
IF we compare the two site prices you are better of with CryptoLife Development IF you don’t need it all but able to put in some work yourself, BUT if you need all products on CryptoLife Development site you end up pay more than on Blockchain-Experts site where you still get more included why Blockchain-Experts would then be your choice.
I hope that made it clear enough!
How to order a Blockchain Coin and what you need?
Lets first list up all parts you need to launch a Cryptocurrency project.
- Full node (wallets)
- Blockchain explorer
- Mining and block-creation software
- Your coin sale site or presentation site
- What else?
1. The Full Node wallet to Windows, Mac, Linux
The node as they call it is the blockhain itself and what makes your coin alive. You will need this node (wallets) to all systems so it can be installed on servers and computers by anyone.
The code also need to be placed on Github with all source code and documentation for anyone to use and contribute with new code.
The blockchain explorer is an important part to display all transactions, amounts, mining difficulty level and blocks created. Of course each wallet can look up same data from the blockchain but you will need some for the public to view so they know whats going on with your coins.
3. Mining software
One cannot work without the other. You can have your own blockchain but if you don’t have some kind of mining running to confirm transactions and create new blocks your blockchain is for no good.
So mining software is a must have to setup to keep it alive.
I would not recommend offering mining for public as you could quickly face a problem with 51% attack. You will be better of install to own use and run mining from a few computers is more than enough unless you have hundreds of transactions per minute. In any case you can add resources to it as you grow. This way you will also benefit from a steady hashrate difficulty level increasing naturally as Bitcoin did 10 years ago.
4. Coin sale site/presentation site
Last thing you need to go public with your coin is your main coin site for presentation, information, details and download of wallet software. Maybe you also want to sell coins then you need a management program to do this.
On a site like this you need to focus on design, functionality and security since it might involve real money transactions. On this part I strongly recommend look into before mentioned Blockchain-Experts who deliver top quality program, designed and setup with anything you need.
5. What else do you need?
As last part to run a full project you need to get noticed and visible so people can find you.
Here you need
- 5.a Social Media accounts
- 5.b Coin-listing sites
- 5.c Articles on Cryptocurrency News pages
- 5.d Advertising
- 5.e ICO – Initial Coin Offering
- 5.f Crypto Airdrop coin offering
The above is quiet a large area to cover itself and I will cover it on a few followups articles on this site in near future.
This article was borrowed from hashant.com with their approval.
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