Let's Make Our Own Crypto (Concept)

It has been a while since I dived head first into the cryptoverse. While I am floating around aimlessly in the vastness of this realm, I am absorbing ideas and concepts that are really interesting to me.

We all know what cryptocurrency stands for. We know that it is the digital equivalent of money and it is the cash of the future. But as I traversed the infinite possibilities of this cryptoverse, I noticed that cryptocurrencies pop up like mushrooms in the middle of the forest amidst the humid summer’s day.

Almost every single day a new coin or token is the talk of the town. And that makes me wonder, how are cryptocurrencies made?

We know that physical money is printed by a central entity and it is managed by the goverment. And that’s not true with cryptocurrencies, as it turns out, virtually anyone can create his or her own crypto. Wow. So, basically, it means that anybody could make their own money since crypto is the future money.

So…how does one really create a cryptocurrency?

For this particular article, I will just list down some steps that I have collected around the web on how to create a cryptocurrency. But these steps will all be limited to concepts and general ideas. Nothing specific will be shown nor demonstrated here. The specific set of steps will come at another time, I guess. So without further ado, what do we really need to do to make our own cryptocurrency?

1. Use Case

What is a use case? In programming, a use case is a scenario wherein the software will be used and utilized. It a scenario where the sofware may be useful. And I think that it is fundamentally the same with the use case in cryptocurrency because just like software programs, cryptocurrencies are nothing but compiled 1’s and 0’s.

You should know what your cryptocurrency will be used for, will there be any real use for it or will it be another shtcoin to be used to scam people, I mean to be used for trading purposes only.

Also, while designing what it would be used for, you should already think of what you will call your own Cryptocurrency? What would its name be? That’s pretty important.

2. Decide on a Consensus Mechanism

Now that’s a scary pair of words but basically, consensus mechanism is just simply choosing from two choices, will it be proof-of-work or would it be proof-of-stake? Consensus mechanism is just the protocol in which the transactions are confirmed. Of course, the right consensus mechanism will depend on what you envision your coin or token will be doing. Do you need the transactions to be fast? Do you need the transactions to be cheap? All goes back to your Use Case.

3. Pick or Create a New Blockchain

As you know, transactions for both coins and tokens are recorded in a huge digital ledger call the blockchain. In creating your own cryptocurrency, you also need to choose what blockchain it will be running on. Will it run on the bitcoin blockchain, will it run on Ethereum, or would you like to run it on a totally new blockchain.

You can create your own blockchain for your own coin to run. But of course, the very first requirement to pull that of is that you have the know-how and some programming skills. But if you aren’t that confident with your coding skills, you can maybe edit an existing blockchain and create a fork of an existing one.

Of course, you can also do the simplest way and build your token on top of an existing blockchain.

4. Designing Nodes

Without being so much technical, nodes are the end-devices connected to network, or in this case, your blockchain. Mobile devices and computers are the nodes. The blockchain needs nodes to be connected and be alive to function. The basic principle of cryptocurrency is decentralization. Instead of having one server to cater to all the transactions, the blockchain uses all the nodes that are connected to it to process and record the transactions. These nodes will also be the ones to confirm any transaction and they should reach a consensus for it to go through.

When you design your nodes, you determine what kind of devices will these be, what are the technical requirements both on hardware and software. Basically, the nitty-gritty of your infrastructure.

5. Blockchain Infrastructure

This step is the most difficult to implement and to even explain. Let me just compare it to creating a software or a computer program. In this stage, you put all the features and functionalities together. You make sure that your software can handle the input, it knows whether the input is valid or not, your software should know what to do with those inputs and how it will process them.

This is also the stage wherein you put the interfaces and API in place. Your coin will not just be working on its own, it shall be connected to the whole cryptoverse so you will need to establish how it will work with other blockchains.

6. Make your Cryptocurrency Legal

There is no use in creating a cryptocurrency if you do not know how to make it a legal tender. It’s just like printing money that you can’t really use because it will not be accepted anywhere. You can use them but you will be facing fines or even jail time. So it is important to know the legalities about securities and such stuff.

The Easy Way

If you want to skip all those things, you can just pay a minimal amount of around $2 and make your own token. You can go ahead to WalletBuilders and they would allow you to make your own token in just a few clicks and several minutes.

Hi!!!

How’s it going today? Are you ready to create your own crypto? If ever you decided to build one, what would you call it? What would it be its use case? What is it going to do?

I already made mine and I called it SHTcoin. You know how it is. If you want to be rich in cryptocurrencies, the secret is with shitcoins. :)

That’s it from me and until we read again.

Cheers!!!

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Series    : All About Crypto
Title     : Let’s Make Our Own Crypto
Published : 01-Mar-2022
Author :  © RB

References:

How to Make a Cryptocurrency. (2022, January 14). Investopedia. Retrieved February 28, 2022, from https://www.investopedia.com/how-to-make-a-cryptocurrency-5215343

Shevchenko, O. (2021, May 13). How to Create Your Own Cryptocurrency: A Beginners Guide. HackerNoon. Retrieved February 28, 2022, from https://hackernoon.com/how-to-create-your-own-cryptocurrency-tips-to-get-started-947ba92f79f9

Welcome. (n.d.). Sofi. Retrieved February 28, 2022, from https://www.sofi.com/learn/content/how-to-create-your-own-cryptocurrency/