Today, 22904 cryptocurrencies are existing in the market. Haven’t things changed at a rapid rate after the introduction of the first cryptocurrency, Bitcoin, in 2009? Yeah, it is true that the market is now filled with endless choices of tokens and coins that can be invested in different ways. Does the rising number of crypto mean that even you can proceed with cryptocurrency development? If so, do you need the help of a seasoned crypto development company for it, or it is possible to launch your coin or token on your own?
Before we start a discussion about how to create a cryptocurrency, we must try to understand the real meaning of cryptocurrency.
Cryptocurrency is a digital currency that is secured using encryption technology and helps to regulate the production of units of currency and also for verification for transactions.
The main features of cryptocurrency:
- Decentralization
- Anonymity
- Security
Digital currency is not regulated by any central authority, such as a bank, government, or financial institution. It is transferred from one wallet address to another through a peer-to-peer network, which is composed of blocks connected chronologically and stores the information of transactions. The data stored in blocks are unalterable.
Difference Between Coins & Tokens
Cryptocurrencies is mainly divided into two subcategories, coins and tokens. What’s the difference between these two?
- Coins are native to the blockchain, but tokens can even use another coin’s blockchain. For example, Ether is a native coin of the Ethereum blockchain, but tokens like BEP or BAT can also be operated through Ethereum.
- Coins are used as a medium of payment, while tokens represent an asset. Tokens can be staked or traded.
- Transactions of coins can be handled through a blockchain, but for tokens, one has to rely on smart contracts.
- When a token is spent, its ownership changes and it moves from one place to another. A coin is not moved, but the transaction is recorded on the blockchain.
Advantages of cryptocurrency development
There are several benefits of developing and using cryptocurrencies. Before you start searching for a crypto development company, you must know how will it be advantageous for anyone. Let’s understand!
1. Decentralization
The best part of using cryptocurrency is that it is not controlled by any central governing authority.
2. Faster and Quicker Transactions
Unlike traditional ways of transacting fiat currency, cryptocurrencies are sent or received through the blockchain network, which automatically speeds up transactions.
3. Low transaction fees
There is no middleman that charges fees, so there are no other charges than the gas fees of the blockchain being used for the transactions.
4. Global acceptance
Unlike the fiat currency that is valued only in its own country, cryptocurrency is acceptable everywhere across the globe.
5. Easier cross-border transactions
It neither takes days for payment processing from one country to another nor do you have to pay a currency exchange rate. Paying someone in your own country or in another country won’t make any difference.
6. Privacy & Transparency
The records of transactions are stored safely on a distributed ledger, so the sender and receiver can access the data and information clearly. Secondly, the sender and receiver need not disclose their identities, which means they can exchange the finances anonymously.
How to create a cryptocurrency?
As we enter a discussion about cryptocurrency development, We will talk regarding the processes of developing a token and coin separately.
1. Token Development
It’s easier to create a token than a coin. There is no need to develop a blockchain or to define a consensus mechanism. All you need to do is to follow these steps:
- Determine the purpose.
- Choose the token standard.
- Set a limit of supply.
- Decide about the utility of the token.
- Choose the blockchain platform on which you need to develop a token.
- Develop a smart contract for the token. Usually, the developers stick with ERC or BEP token standards.
2. Coin Development
For coin development you have to develop a new blockchain, which is tiresome and time-consuming. It requires technical expertise, therefore, it is better to choose the right crypto development company, even if you know how to create a cryptocurrency. Here’s how you can create a coin with the help of experts:
- Choose the consensus mechanism for the new blockchain
- Decide about the blockchain architecture, i.e., whether it should be a public or private blockchain.
- Make a choice about the block size.
- Set the node design and development.
- Choose the privacy and security features.
- Define the purpose of launching a new coin.
- You may even copy the code of an existing coin and create hard forks of its blockchain. For example, Dogecoin was created on the basis of the hard fork of Litecoin.
Estimated Time Consumed For Coin Development
The process of developing a coin is complex and time-consuming. It might take days, or even months to launch a new coin, depending on several factors. If you are going to write the codes from scratch, it will automatically consume more time as compared to hard forking a blockchain.
The Cost of crypto development
The cost of creating a new cryptocurrency depends on the service charges of the crypto development company you have hired and the process of development. Secondly, the creation of a token will be far cheaper than the creation of a coin. It’s your choice whether you want to run an ICO for fundraising or manage the expenses on your own.
Wrapping Up
When you spend digital money, you might have thought at some point in time how to create a cryptocurrency and invest it for profit-making or trading in a worry-free manner. Well, Antier, a crypto development company with years of experience can make it easier for you to launch a new coin or token. We turn your ideas into reality. Consult us today!
