How to Create a Cryptocurrency in 2021 ?

How to Create a Cryptocurrency & How to make a Cryptocurrency token

How to Create a Cryptocurrency & How to make a Cryptocurrency Token

Cryptocurrency is one thing that you must have heard and something which has taken the whole world by storm in recent almost a decade. If you are looking to get yourself involved in it not just by trading but by creating something of your own, then you have come to the right place. Today we will show you How to Create a Cryptocurrency & How to make a Cryptocurrency token.

Before jumping right into the development of your crypto, let’s start with defining what cryptocurrency is. A cryptocurrency is a digital form of payment that can be exchanged in the real world. It relies on public-key cryptography to secure the transactions and verify the transfer of assets.

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How to Create a Cryptocurrency & How to make a Cryptocurrency token

What is the Difference Between the Coin and the Token?

First, it’s important to understand the difference between coins and tokens. Both are cryptocurrencies, but while a coin—Bitcoin, Litecoin, Dogecoin—operates on its own blockchain, a token lives on top of an existing blockchain infrastructure like Ethereum.

How to Create a Cryptocurrency?

If you want to develop your cryptocurrency from scratch, you will have to first plan a reason for its existence.

$POLYGON is an example of a cryptocurrency with a strongly defined purpose – a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.

Once you have a purpose for your cryptocurrency, be sure to explain it in a white paper, along with other aspects of your project. For your startup to succeed, people should have an actual reason to use your crypto. If you are going to make your coin, there must be a strong idea behind it.

As the blockchain space has grown, so has regulatory scrutiny of the space. You want to make sure that everything you’re doing is legal throughout the entire process by consulting with a legal professional.

Define a budget

Creating your own cryptocurrency is no easy task and will likely require some financial resources unless you can take care of things like development, documentation, and marketing yourself.

While costs vary from project to project, here is a rough estimate of what you can expect:

Category Time Cost
Legal Counsel Ongoing $20,000-$100,000+
Development 15 minutes – 6 months+ $0-$100,000+
Whitepaper and Other Documentation 1-2 weeks $5,000-$7,000, or about $500/page
Security Audit 1 month $3,000-$10,000+
Marketing Promotion 1 month – 3 months+ $10,000/week
Listing (on Sites that List New Projects) 1 month+ $10,000+

Of course, you can do this all yourself for free. However, if you don’t have the necessary expertise, know that sourcing it may cost you.

Choose a consensus mechanism

For your blockchain to operate smoothly the participating nodes must agree on which transactions should be considered legitimate and added to the block. Consensus mechanisms are the protocols that do just that. There are plenty to choose from for the best fit for your business objectives.

Pick a Blockchain Platform

Your choice of a blockchain platform will depend on the consensus mechanism you’ve selected. To give you a better idea of what is out there, here is a list of the most popular blockchain platforms:

Design the Nodes

If you imagine a blockchain as a wall, nodes are the bricks it consists of. A node is an Internet-connected device supporting a blockchain by performing various tasks, from storing the data to verifying and processing transactions. Blockchains depend on nodes for efficiency, support, and security.

Establish Your Blockchain’s Internal Architecture

Make sure you make the best of your blockchain’s internal architecture because once the platform is launched, you won’t be able to change the parameters.

  • Define who can access, create, and validate new blocks;
  • think about what your blockchain address will look like;
  • choose the format of the keys;
  • provide the rules for asset issuance;
  • create a management system for private key protection and storage;
  • decide on the number of digital signatures your blockchain will require to verify the transactions;
  • plan for atomic swaps that will allow users to exchange different cryptocurrencies without an intermediary;
  • estimate the block reward, block size, transaction limits, etc.;
  • create block signatures.

6. Integrate Blockchain APIs 

Some blockchain platforms don’t provide APIs, so it’s important to make sure that yours does. In case the blockchain of your choice doesn’t have pre-built APIs, you can still use third-party providers to integrate them. The following are the most popular blockchain API providers the development companies use:

7. Design the Admin and User Interfaces

A good intuitive interface enables users to build accurate communication and adds value to your startup. At this stage of your cryptocurrency development, you need to make sure that FTP servers are both secure and compliant, while external databases are of the most recent version (e.g. MySQL, MongoDB).

The back-end side of your project has to be built with security and future updates in mind. Usually, when developing the back-end, coders rely on languages such as Java, Javascript, CSS, C#, Python, or Ruby. As for the front-end, you can use Node JS or Angular JS.

Cryptocurrency regulations help to monitor the emerging digital currencies and provide clearly defined rules for those willing to legalize their new crypto coin. Legalizing your cryptocurrency is necessary for preserving your project and avoiding legal problems.

9. Promote Your Project 

Once you get your startup off the ground, you need to think about ways of how to successfully market your crypto. To maintain and promote the coin, search for popular channels that help marketing enthusiasts present their product to the crypto community. Such channels include Telegram, Reddit, Discord, Twitter, BitcoinTalk, etc. You can also post press releases and use media to attract audiences and boost your ranking.


How to make a Cryptocurrency Token

So in the world of crypto, there are various types of crypto assets. But one distinction people often make is between cryptocurrencies or coins and crypto tokens.

Why are some assets tokens and not cryptocurrencies or coins? Simply put, it’s a lot easier to build on an already built-out platform than it is to build your own. Moreover, what some projects will do is start out on a platform like Ethereum, before migrating to their own blockchain.

This saves a lot of time and money in development costs and also lets a team gauge a project’s potential before investing more into the development of their own blockchain.

1. Deploy a new smart contract

To get started creating your own token on Ethereum, download Mist, an Ethereum wallet that also lets you mine or develops Ethereum software, such as an ERC20 token.

Once you’ve downloaded and opened Mist, fund it with ETH by going to the “WALLETS” tab, click the “CONTRACTS” tab then click “Deploy New Contract”. Where it says “Select Contract to Deploy” click the dropdown menu and select “MyToken.”

Then, enter this code in the Solidity Contract Source Code field that shows up:

contract MyToken {
/* This creates an array with all balances */

mapping (address => uint256) public balanceOf;

}

“Mapping” in this instance links balances to addresses, which are in hexadecimal format (the uint256 part – e.g. 0xab7c74abC0C4d48d1bdad5DCB26153FC8780f83E). “Public” means that anyone will be able to see other address’ token balances.


2. Decide on a token supply

Under the code from above, add this to set a limit on the number of tokens you will create:

function MyToken() {
balanceOf[msg.sender] = 1000000;

}

In the above example, the token supply is 1 million. However, you can of course set this to any number you like.


3. Enable sending of your token

Congratulations! After steps 1-2, you have a smart contract linked to a token. Just one problem – you can’t send the token anywhere!

To fix this, add this code to the bottom of the Solidity Contract Source Code field:

/* Send coins */
function transfer(address _to, uint256 _value) {

/* Check if sender has balance and for overflows */

require(balanceOf[msg.sender] >= _value && balanceOf[_to] + _value >=

balanceOf[_to]);

/* Add and subtract new balances */

balanceOf[msg.sender] -= _value;

balanceOf[_to] += _value;

}

This code allows sending of your token as well as adding tokens (to receiving addresses) and subtracting tokens (from sending addresses) as necessary. To prevent users from sending more tokens than they actually have, we’ve added a line of code that checks the sender’s balance for any overflows (in sendable amount).


4. Setting your token’s name, symbol, and decimal units

For some final touches add this code:

/* Initializes contract with initial supply tokens to the creator of the contract */
function MyToken(uint256 initialSupply, string tokenName, string tokenSymbol, uint8 decimalUnits) {
balanceOf[msg.sender] = initialSupply; // Give the creator all initial tokens

name = tokenName; // Set the name for display purposes

symbol = tokenSymbol; // Set the symbol for display purposes

decimals = decimalUnits; // Amount of decimals for display purposes

}

It should be fairly self-explanatory but change tokenName, tokenSymbol, and decimalUnits to change your token’s name e.g. Bitcoin, token symbol e.g. BTC, and decimal places e.g. Bitcoin has 8 decimal places.


5. Create a token transfer event

Lastly, add this code to turn on a transfer event, which allows ETH wallets to know when transfers of your token take place:

event Transfer(address indexed from, address indexed to, uint256 value);

Also, add this code to the transfer function from step 3:

/* Notify anyone listening that this transfer took place */
Transfer(msg.sender, _to, _value);

Full transfer function including transfer notification code:

/* Send coins */
function transfer(address _to, uint256 _value) {

/* Check if sender has balance and for overflows */

require(balanceOf[msg.sender] >= _value && balanceOf[_to] + _value >= balanceOf[_to]);

/* Add and subtract new balances */

balanceOf[msg.sender] -= _value;

balanceOf[_to] += _value;

/* Notify anyone listening that this transfer took place */

Transfer(msg.sender, _to, _value);

}


6. Release your token to the world!

The big moment you’ve been waiting for – launching your token!

Set a fee to send your token contract transaction (we recommend a fee ~the middle between CHEAPER and FASTER unless you are in an extreme hurry to launch your token). Click Send and enter your wallet password if necessary before launching your ERC20 token!

Once your token is live, you can go to the Send tab of Mist and send your token to whoever you want. The power to create money is cool, isn’t it?

Of course, making your token valuable and adding more functionality to it is another beast altogether. However, the steps we’ve outlined will at least give you the very basics of starting your own Ethereum token.


Agree or disagree with some of the ideas presented in this article – How to Create a Cryptocurrency & How to make a Cryptocurrency token?
Let us know your thoughts below on the comments section

Special Mention: eze.tech & exodus  For this thread

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