Cryptocurrency is a digital currency that focuses on encryption to confirm transactions and produce new units. The most prominent characteristic of crypto is that it is not centralized like conventional centralized money. To make cryptocurrency, there are three ways you can use it, namely through tokens, making coins, and bitcoin forks.
a. Creating coins:
To make coins, we have to create a new blockchain. This manufacturing phase is quite long and complicated, but making your own coins can provide a number of advantages such as eliminating the risk of fraud, reducing operating costs, safety of customer funds, and so on. The manufacturing methods are:
- Determining the purpose of making: is the goal for smart contracts, verification, or smart asset management?
- Define a consensus mechanism: this refers to the protocol which nodes must follow to determine which legitimate transactions to add to the block
- Building a blockchain platform: this is determined by the consensus mechanism we chose earlier. There are many blockchain platforms out there that can be used as a reference, for example Ethereum, BlockStarter, CoinList, and others.
- Designing Nodes: nodes are supporters of the blockchain because they are responsible for storing and verifying data. Because it is so important, creating nodes must consider many things such as permissions, hardware details, operating systems, and others.
- Creating the internal architecture of the blockchain: creators must be careful about determining the internal architecture because some parts cannot be changed.
- Blockchain API: make sure the blockchain platform we create already has an API.
b. Using the Bitcoin fork:
Bitcoin Forks is an alternative way to create a blockchain because it is simpler. Bitcoin fork is a protocol update in the bitcoin blockchain network. So we just need to add a feature that doesn't exist at the moment by creating a kind of branch (fork). There are two ways you can do crypto using a fork, namely:
- Using a coin generator: this method can be used for people who do not have programming skills. We only need to use a coin generator service, for example ForkGen.
- Create your own fork: this method is a little tricky, because we need to download a compiled Bitcoin code and then reconfigure the code according to our needs.
c. Creating a token:
token is a cryptocurrency that hitch a ride on another blockchain network. The blockchain network that is boarded the most is the Ethereum (ETH) blockchain. Making tokens is much easier than building our own blockchain, because we just have to hitch a ride.
a. Creating a smart contract: we must create a smart contract with the blockchain system that we want to board. For example, if you want to use Ethereum, you need to download Mist to create a smart contract.
b. Determining the number of tokens available: we have to determine how many tokens will be circulating on the smart contract.
c. Enabling token sending: the goal is that tokens can be sent to one crypto wallet to another.
d. Determining the name of the token, symbol, and unit: if we specify this according to our wishes.
e. Token transfer minutes: this process is required so that the crypto wallet can know when receiving or sending tokens.
f. The token is ready to be launched: we just have to publish it and let others start mining and using the tokens we create.
What are the conditions needed to create cryptocurrency?
There are only two requirements for creating cryptocurrency, namely:
a. Programing ability:
If this is mandatory, yes, if we want to build our own blockchain but we don't know anything about programming, then it's impossible. Because making crypto money really requires skill. For example, if we don't have one, we can indeed use a coin generator, but still we need a minimum knowledge of programming.
b. Have non-programming skills, such as marketing, managerial, and others:
Making crypto money is not only technical, but also the concept and how to market it. The reason is even though crypto has been made but if no one uses it it is also useless. That is why wajin crypto makers have non-programming abilities such as compiling white papers, marketing cryptos, conducting ICOs (initial coin offerings), and so on.