Creating your own cryptocurrency especially if your business leans more towards the block-chain related business is a good strategy of incorporating cryptocurrency into your business. Many block-chain related startups are leaning more towards creating their own cryptocurrencies as an option in support of a virtual product or as an option towards monetizing their ideas. Creating your own cryptocurrency has several perks such as reducing fraud associated risks, access to a wider market, faster transactions, as well as efficiency and transparency.
Before embarking on cryptocurrency, it is important to assess the likely impact of crypto on your business and the availability of the resources and infrastructures necessary for the development of a new cryptocurrency. The cryptocurrency creation process can be undertaken in three methods which include forking an existing blockchain, creating a new blockchain, and making use of an existing platform.
This checklist is a step-by-step guide on how to create your own cryptocurrency.
Step 1 – Define your Use-Case
1 Check that your objectives for the crypto are clearly defined
2 Determine whether or not your business lies in the smart contracts area
3 Assess whether your business is in the lines of smart asset management
4 Check that your business has interests in data authentication and verification
Step 2 – Decide on a Consensus Mechanism
5 Check that the design is simplistic
6 Ensure the mechanism can resist a wide variety of cyber attacks
7 Select a mechanism with a reduced energy consumption
8 Check the mechanism’s computation
Step 3 – Choose a Blockchain Platform
9 Check out the structure of information
10 Evaluate the platform’s scalability and throughput
11 Assess the availability of developer tools
12 Evaluate the adoption rate by analyzing the strength of the community
Step 4 – Design the Nodes
13 Select a base operating system (options include Redhat, Ubuntu, CentOS, Fedora)
14 Determine hosting (whether on the cloud or on premise)
15 Determine whether the nodes will be public, hybrid, or private
Step 5 – Design Your Blockchain’s Internal Structure
16 Select your permissions, address formats, and asset issuance
17 Decide on key formats, key management, and atomic swaps
18 Establish your parameters, blockchain signatures, and multisignatures
19 Establish handshake rules
Step 6 – Integrate APIs
20 Select a blockchain platform that comes with in-built APIs
Step 7 – Design the Interface
21 Check that it is user friendly
22 Check that communication between users and the blockchain is seamless
23 Consider the language, external databases, mail, web, and FTP servers
Step 8 – Legalize your Cryptocurrency
24 Analyze the regulations, rules, and trends surrounding cryptocurrencies in your region
25 Continuously grow and develop your cryptocurrency
Notes:
- Popular consensus mechanisms include the Proof of work, Casper of proof of stake, and the Delegated Byzantine Fault Tolerance
- Avoid mechanisms with wasteful computations to minimize wastage of energy
- Popular blockchain platforms include Ethereum, EOS, NEMNxt (NXT),
BlockStarter, CoinList, Waves (WAVES), BitShares 2.0, IBM Blockchain
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