Last Updated on August 11, 2020 by CryptoCreed
Cryptocurrency is a digital currency that is not regulated by any government. These are secured by cryptography and every transaction in a ledger where the data can never be manipulated or deleted. There are many platforms where one can trade Bitcoin like cryptoprofit. People can easily earn huge profits with minimal risk.
There is no doubt that cryptocurrency can help a business grow immensely. This why many people often consider creating their cryptocurrency. Mentioned below are a few ways on how to make your cryptocurrency.
What is the goal?
Before getting a cryptocurrency of your own, a few things that need to be understood is what your aim is? Are you interested in smart contracts, verification, and authentication of data or managing smart asset? Once the objective and purpose are clear, it is time to begin.
Choosing the consensus mechanism
The blockchain operates smoothly; both the participating nodes should agree on the transactions that will be considered legit and added to the block. The protocols on which they are based are called consensus mechanisms. One has many options to choose from so that it suits the business objectives perfectly.
Choosing a blockchain platform
There are many blockchain platforms that one can choose from. Depending on the type of consensus mechanism chosen, the blockchain platform is selected. Mentioned below are ubiquitous blockchain platforms:
- Chain Core
- Hyperledger Fabric
- BitShares 2.0
- Open chain
- IBM blockchain
- Nxt (NXT)
The Nodes are a very integral part of a blockchain, without which it cannot function. Nodes can be defined as Internet-connected devices that give the ability to perform different tasks like storing data, verifying them, and processing all transactions at the same time. Without nodes, blockchains will lack efficiency and security.
Before employing the nodes, there are a few choices that one needs to make like:
- Is it going to be a private, public, or hybrid in terms of permission?
- Where will they be hosted, cloud, premise, or both?
- Necessary hardware details are required, like processors, memory, etc.
- Among the joint base operating systems like Ubuntu, Windows, Debian, Red Hat, Fedora, or CentOS, one needs to be chosen.
Choose the various parameters
This where one needs to be very careful as once the settings are set, they cannot be changed. Hence, one should think it through before making any decision.
Mentioned below are a few things that one needs to consider:
- Giving permissions to who can access what data and perform transactions
- Deciding what the blockchain addresses should look like
- The different formats of the keys that will be used for generating the signatures during transactions
- Issuance of assets
- Re-issuance of assets
- Building a system that will store and keep the private keys protected that allow blockchain access
- Multi signatures
- Planning smart contracts that will help to exchange different cryptocurrencies
- Various parameters like what should be the maximum block size, block mining rewards, etc.
- Signatures of blocks
- Establishing protocols that the nodes will follow while identifying themselves when they are connecting
As all the platforms do not offer pre-built APIs, it is essential to ensure that the one that is being used has one or not. However, if the platform does not come with an API, one can easily reach out to many reliable providers of blockchain API.
Mentioned below are a few that one can check out:
- Blockchain APIs
- Coinbase’s API
- Colored Coin APIs
- Factom Alpha API
The Design of the Interface
For any process to be successful, communication is the key. It helps design a strategic interface where interaction between blockchain and its participants is smooth and convenient.
Mentioned below are a few things that should be considered in this stage:
- Mail, FTP servers and Web
- External databases
The cryptocurrency should be made legal
Some various rules and regulations may affect the cryptocurrency. It is essential to understand the trends in regulating and directing cryptocurrency so that it is easy to avoid unwanted surprises. Hence it should be made legal in as many ways as possible.