What topic is discussed most often on the internet during 2017-2018? What is the subject of posts placed on social networks every 3 seconds? What is a major issue of concern to thousands of investors worldwide?
It is blockchain technology.
Surprisingly, until 2009, this technology did not exist in practice. Five years ago, most of us heard somebody created virtual money, and this money doesn’t depend on a specific state nor its economy.
Today, in 2018, we have the opportunity to learn everything about the blockchain, take part in the development of this technology and, as an additional profit, get a good financial reward.
All over the world, people have begun to show their interest in blockchain projects and actively participate in them. For example, the following graph shows the level of involvement in the world of cryptocurrency in various countries.
At first glance, the numbers are not impressive. However, think about the fact the total capitalization of the cryptocurrency market today is more than $125 billion. That is impressive!
In this article, we talk step by step about ways to implement projects based on the blockchain, especially the goals and methods for creating your own currency.
The Need for Using Cryptocurrency
Cryptocurrency is the digital equivalent of any fiat currency we use every day. The main difference is it is used to pay for goods and services online and for the digital information exchange. This process is provided thanks to the principles of cryptography, which provides each transaction with the maximum level of security.
Blockchain technology itself and the first cryptocurrency were created in 2009. Today, every internet user knows what Bitcoin is. To highlight the capitalization of Bitcoin in comparison to the most famous brands in the world have a look at the chart below.
Although the popularity of Bitcoin has exceeded all possible expectations, this currency is far from ideal. Its main drawbacks are:
High transaction fees
After the creation of Bitcoin, dozens and then hundreds of cryptocurrencies entered the market. When this article was written, there were 2,486 different cryptocurrencies in the world.
In the pic below, you see the list of the TOP 10 cryptocurrencies available in the market.
Each of them tries to beat Bitcoin in at least several features and seeks to achieve the same success.
Following the goals and needs of the holders, certain principles for its creation have been formed.
Decentralization. Cryptocurrency is subjected only to the algorithm of the program, but not the state, bank, or any other financial institution in the world.
Anonymity. The process of creating a crypto wallet does not require customer personalization.
Free access. One of the most enjoyable principles is regardless of background or status,
The publicity of transactions. All transactions are publicly available. At the same time, given the anonymity of the user, the technology gives complete protection.
Irreversibility of the transaction. Each detail of each action in the system, including the information about transactions, is recorded in the blocks. In this regard, an unauthorized refund is impossible.all internet users have the same rights and chance to create their own crypto wallet and should not worry about the money being frozen or withdrawn.
Difference Between Coin and Token Cryptocurrency
Recognizing the advantages of using cryptocurrency, most readers are probably starting to think about the creation of their own. However, when digging deeper, we face new terms, which do not help to understand how the process works.
One of the first issues for businesses and startups to understand is the meanings of the terms “coin” and “token” are not similar. We will explain the difference.
Here our tutorial starts. The blockchain is a unified technology and all platforms (protocols) and assets are created on its basis. The coins and tokens are developed on the basis of the protocols (platforms) like Bitcoin, Ethereum, etc.
The main difference between coins and tokens is the first use their own platform, where they are the independently circulating native currencies, a certain equivalent of fiat money, and can be used to buy houses, cars and coffee (Bitcoin, Litecoin, Ethereum are coins). Tokens represent an asset or utility and are created on the basis of an existing protocol or blockchain, which already has its own coin.
Here’s an example:
The popular Ethereum platform is based on blockchain technology and has its own, same name coin (ETH = Ethereum). BNT (Bancor), CVC (Civic), ICN (Iconomi) are tokens created on the Ethereum protocol. These tokens can be used for transactions, exchanges, access to products and services, or as a type of securities and coupons. Most often they become an investment goal.
We mean if you want to launch your own coins, you have to not only create a new cryptocurrency, but also an entirely new platform. If your attention is directed towards tokens, you can safely use existing protocols to build your assets.
To clarify all given information, look below on the table.
Tokens serve as evidence of ownership in any of these areas and can be used, for example, in voting or polls, while coins are usually used to pay for goods, services or, for example, speculation in the cryptocurrency market.
How to Create Your Own Blockchain
Provided you have enough knowledge of programming, you can try to create your own blockchain. In this case, it can be done in two ways:
Create a new solution in the world of blockchain technology from scratch and light up the whole world with it.
Create your blockchain based on one of the existing protocols (Bitcoin, Ethereum, etc.).
If programming is not your forte, then leave it for a source for the specialists who could help realize your ideas. Of course, the second option is more expensive. However, regardless of whether you fully rely on your knowledge, hire few freelancers or contact the team of professionals with vast experience in the sphere, the idea of the whole project is of the first importance.
“I want to create my own cryptocurrency.”
as well as
“Let’s make a project using blockchain technology because it’s cool.”
These are not ideas for a viable project. Think about how your new product can differ (positively) from existing cryptocurrencies, and what values for the users it can bring to the blockchain market.
We have mentioned the number of existing cryptocurrencies; keep in mind, the more benefits your product has, the more chances you have to outrun competitors.
Here are the must-have steps to complete when creating your blockchain:
Dip into the world of blockchain technology and define a problem which is still unsolved or the one which is not properly solved. Try to find a better resolution and take it as an idea for the entire project.
The team of developers
If you do not feel you have enough skills to create a cryptocurrency yourself, feel free to ask professionals for help. The team of developers is the second factor influencing the quality of the final product.
Each project, in almost any field, must start with a white paper, and blockchain is no exception. This is a document highlighting the information concerning the project and containing the answers to questions about the idea, the offered solution, a detailed timeline of the steps needed to accomplish the project, the team, and their qualifications, etc.
The development of a blockchain requires investments. The needed sum may vary significantly depending on the specifications of the task. For most stakeholders, the question of first importance is where to get the money. This is one of the cases when you need your white paper. Find investors, show them the document and prove the viability of your ideas.
Do not forget to let the world know about your product. By advertising your blockchain, you build the trust and loyalty of the community. Remember, you are creating a cryptocurrency not just for yourself, but for other people too. Imagine how can you help people without letting them know about your presence.
How UDTech Can Help You with Cryptocurrency Development
The UDTech company provides a range of services in the field of blockchain development. When we talk about the development of a new cryptocurrency, we mean we are ready to give you full support and assistance in this challenging task.
The basis for the creation of any cryptocurrency is the program code, which must contain the technical characteristics and parameters of the network. This code can be accomplished in two ways:
Based on a ready source code. The essence of this method is we take the open source code of one of the existing cryptocurrencies as Ethereum, Bitcoin, etc. We edit it, create and load our own libraries, configure the network ports, set unique parameters for coins’ generation and mining, create security keys, and so on. It is a relatively simple, fast and cheap way, which sometimes is suitable especially for beginners.
From scratch. This option is much more complex and costly (both in time and financially). You need the knowledge of an experienced specialist, and maybe, of several experts. However, if the process is wisely approached, the costs not only pay off, but also bring a decent income in the future.
Regardless of which of the two options you choose for your project, for its successful implementation, you need a good coder and a desire to earn money. Here, the concept is crucial.
Is it bad to make some money? Of course, it’s not! However, most of the existing cryptocurrencies are created on the basis of the open-source Bitcoin code, and hardly differ from each other. This faceless mass cannot withstand the competition of primary cryptocurrencies. As a result, creating another faceless cryptocurrency, you have a high probability of irretrievably losing your assets and funds invested in the project since the beginning of its development.
If you want to create a top cryptocurrency, the only way to do this is to find the right niche in the market, occupy it and give the users something they don’t receive with other altcoins.
The UDTech team knows how to develop a cryptocurrency, and is ready to provide you with qualified assistance in creating new currencies and in any matters that concern:
Smart contracts development
All sorts of consultations, etc.
How Much Does It Cost to Create Cryptocurrency
The precise cost of each cryptocurrency development project can be estimated only after drafting the technical task. To give you at least an approximate understanding of the project’s costs, here’s a table with minimum and maximum values.
|Blockchain development||From scratch||7000h - 10000h|
Based on an existing framework
|600h - 1500h|
As you can see, the development of a project on the basis of a framework or fork of an existing coin can take several hundred man hours. However, in comparison with the hours needed to build a blockchain project from scratch, this time seems to be pretty moderate.
You can send us a request via the contact form, and we will individually estimate the cost of your project.
If you choose the wrong team to develop a new cryptocurrency, the subsequent processes will be performed without following the requirements. What happens next? You know!
In conclusion, we would like to add nothing is impossible. If you want to make a cryptocurrency, we are the experts in the field who are able to cope with any tasks.
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