Words like cryptocurrency, Bitcoin and there have transcended from being confined to the realm of technology to everyday conversations. Cryptocurrency has progressed into being a buzzword from having been a gizmo. It has crept so much into the mainstream world of technology that there are companies and even individuals that are contemplating creating their own cryptocurrency.
Whether or not a new cryptocurrency can be created is a billion dollar question, literally! The simple answer considering binary possibilities is definitely positive. However, there are a lot of options to consider and aspects not to compromise before you embark on Creating your own cryptocurrency.
The coin, the token and the blockchain
The trio of words used above finds frequent utterances in conversations related to cryptocurrency. It is important to understand the difference between the coin and the token - both of which can be considered cryptocurrencies, and the relevance of blockchain in context.
A coin has its own independent blockchain whereas a token operates over an existing blockchain ecosystem. A blockchain is, in simple words, a transparent and universally accessible record of transactions made on a self-secure network. Coins can transfer wealth and tokens represent a contract either for ownership or for accessing a utility.
The challenges
The tokens are often made available for public sale in a process called initial coin offering, commonly abbreviated as ICO. these tokens can be purchased either with Crypto or Fiat currency which can be used to either fund projects or invest in tokenized assets like art or real estate.
The creation of tokens has been made comparatively easier with the assistance of blockchain companies. However, there have been dubious instances which have tarnished the image of tokens. The Securities and Exchange Commission (SEC) has been constantly working to crack down these mishaps and has also recommended a procedure for regulating the tokens as securities, much like stocks. On parallel lines, it has also advised investors to be diligent and meticulous in their token investments.
The market for coins
It is estimated that there are close to 900 coins and 700 tokens available on public exchanges. While the numbers might seeing misleading on the surface, it is to be noted that not all tokens have made it to exchanges and it is estimated that there are about 71,000 token Contracts that exist in Ethereum alone.
Why and why not?
Cryptocurrency is like the Mona Lisa of Technology! The idea is universally accessible but it takes humongous technical prowess to create one. There are two ways to go about creating your own cryptocurrency.
Building your own blockchain or using an existing one
As already discussed, blockchain is literally the building block of cryptocurrency. Since coins need their own independent blockchains, you have to either create one by yourself or use a pre-existing open market blockchain and modify the right areas to customize it.
Creating your own blockchain requires masterly levels of coding skills and there are considerable chances that you might not be able to complete the coin creation process. Using an existing open source blockchain is not a joke either. In the vast expanse of codes, you will need to precisely know which section needs to be modified to your requirement.
Launching a coin using a cryptocurrency creation platform
Using a cryptocurrency creation platform is possibly the most feasible option. Companies like Blockchain App Factory will take care to do all the technical work required and present you with the finished coin or token. All you will need to do is to let the company no of the basic aspects of the coin like the logo and the number of coins to be awarded for signing a block. You can also avail the pre-built templates that need nothing more than a name and a symbol.
On the same lines of the coin, you can also create a token either with or without a public ICO. Tokens are an easier and simpler alternative to coins because tokens do not need an independent blockchain and can operate over a pre-existing blockchain. One of the most common product is the ERC 20 token, and it is considered to be the standard for the tokens that are built on the Ethereum blockchain. Although the code for the token contract is available if you would like to customize, there are a lot of user-friendly platforms as well.
Enter blockchain app factory
Blockchain App Factory’s coin creation and token creation services can help you launch your own coin without much hassle. Adding a few extensions can help you connect to the Ethereum Network, which solves the problem of needing blockchain. The technical expertise of the blockchain development team at our company will come in handy to create anything and everything between a token that has a casual utility and a full-fledged coin that you can trade as security.
