The world is rapidly pacing from a paper to a paperless society with the evolution of cryptocurrencies. Cryptocurrencies are becoming more and more popular by the day and are becoming the most common and preferred medium for buying and selling goods or availing services on the internet. The advent of cryptocurrencies have transformed international trades into a much easier process. Any entrepreneur from any part of the world can conduct speedy transactions using cryptocurrencies with just an internet connection.
As the adoption of cryptocurrencies of cryptocurrencies are constantly on the rise, and they are being widely embraced by people all around the world, businesses; both startups, and large enterprises must look into how a cryptocurrency is developed, and how beneficial it would be to acquire cryptocurrency creation services for their business. This blog is going to guide you through all of it, starting from a quick peek at the concept of cryptocurrencies for beginners.
What are cryptocurrencies? A brief Introduction
Simply put, cryptocurrencies are nothing but digital forms of currencies. It is used as a medium of exchange just like fiat money, but digitally through an online cryptocurrency exchange platform across the globe. Cryptocurrencies are decentralized in nature, and are created and stored online.
Cryptocurrencies are backed by the ingenious blockchain technology that helps record, verify and secure every transaction that takes place using the cryptos. To purchase and sell cryptocurrencies and store them safely, you need to have an online digital crypto wallet that supports multiple cryptocurrencies storage. The wallet must be end-to-end encrypted with strong security codes to prevent hacks or loss of data. Some forms of cryptos can also be stored offline via hardware wallets. Every cryptocurrency once created, has to undergo the process of mining through which it is verified and added to the digital ledger. This is the basic concept of cryptocurrencies. Cryptocurrencies have evolved into different forms over the years. Let’s take a look at what they are.
Different forms of cryptocurrencies
The first cryptocurrency to ever emerge and the most popular one to date is Bitcoin, which came into existence in the year 2009. It is the most commonly known cryptocurrency and the most accepted one by business and entrepreneurs across the world.
Then comes the altcoins. An altcoin is nothing but an “alternative coin”. It was first introduced as an idea of bringing in an alternative to Bitcoin, simply, a modified version of Bitcoin in terms of Bitcoin’s rules and other slightly unhandy aspects. Every other cryptocurrency other than Bitcoin is in fact an altcoin. The most popular ones are Ethereum, Ripple, Litecoin, Tether, Libra etc. The evolution of cryptocurrencies today have reached new heights, and there are about 5000 cryptocurrencies revolving around the market.
Why should you create a cryptocurrency for your business? Key Benefits:
- Instant, Efficient Payments
Traditional payment methods such as credit card payments can take days, or even weeks to get through. But comparatively, payments via cryptocurrencies are much more convenient and almost instantaneous.
- No geographical barriers
As discussed earlier, cryptocurrencies make international trades more easy and accessible. There are no specific geographical restrictions, and any entrepreneur can trade with a cryptocurrency at any time, from any part of the world.
- Reduced Transaction Fees
Traditional payment methods, especially credit card payments, always come with added taxes/ bank charges. But a cryptocurrency does not involve such charges, and enables low cost transactions all over the world.
- Elimination of middlemen
Unlike traditional payment systems, cryptocurrencies eliminate the need for middlemen, and enable direct peer-to-peer global transactions among users.
- Sole Ownership
In a traditional banking or credit card transaction system, you have to handover the stewardship of your funds to a third party. This involves chances of risks such as your account being closed without proper intimation. But unless and until, you decide to entrust a third party service to manage your wallet, you are solely responsible for your crypto funds, your private and public keys etc.
These are some of the basic advantages and there are many more to it. Now, let’s find out how to create your own cryptocurrency for your business.
How to create a solid and secure cryptocurrency?
- Legal Framework
The first and the most essential step is to take care of the legalization of your cryptocurrency. Although cryptocurrencies are widely being accepted and adopted, some countries are not still crypto friendly. And, there are a set of regulations to follow, to commence a crypto business and it differs from country to country. Therefore, it is important that you carefully analyze and adhere to every regulatory framework for smooth operations of your cryptocurrency.
- Determining a consensus mechanism
A Consensus mechanism is a crucial tool for creating your cryptocurrency. It is a collection of computer protocols that verifies transactions and adds them to the block. You need to choose a proper consensus mechanism for your crypto to achieve authentic, legitimate transactions.
- Choosing the right blockchain platform
Next step is choosing the right blockchain platform that is appropriate and feasible to be linked with your cryptocurrency. This depends upon the consensus mechanism that you choose.
- Determining Functionality and Designing Nodes
You have to determine the functionality of your blockchain and design your nodes accordingly. The factors to be determined include permissions; whether they are private or public, hosting services, and other details required. You also have to take care of aspects like your blockchain architecture, address format etc.
- Integration of API
You have to integrate API into your platform, or connect it with an authentic third-party API for smooth and instant interactions.
- Designing the Interface of your crypto
The interface of your cryptocurrency is a very important factor for ensuring smooth performance. Even if you have created a top-notch cryptocurrency, but do not focus on the interface, it is likely that your crypto will fail to perform in the market. Therefore, give sheer importance to your web, FTP servers, front-end and back-end programming, and other databases and the flexibility to alter them in the future according to changing preferences and trends.
Above all this, the most important step that will make all the above procedures super efficient, effective and cost-effective for you is hiring an existing, experienced cryptocurrency development company. Such companies would possess a broad team of market experts, developers, programmers, and different departments to give individual attention to each part of your development to make it more reliable, robust, and secure. You can also relish a quick launch for your crypto at an affordable price, and you can focus more on your customization part, while the whole development process is taken care of.
Therefore, choose your crypto development company, avail of stable and secure cryptocurrency development services, launch quickly, and become viral among your potential investors.