The evolution of money happens as we move into the future. We stopped using pure gold by replacing it with physical coins made of gold. After that, the coins were replaced with paper money, and, later still, with plastic cards. Nowadays, the world is full of non-physical means of payment – online and cryptocurrencies, and this tendency determines the direction of money evolution that will likely happen soon. That’s why it’s not surprising that cryptocurrency development services, along with blockchain consulting services, have become so popular in the past decade.
Today, when blockchain wallets have solidly occupied their niche in everyday usage and payments, it’s probably the best time to join the ranks and create your own cryptocurrency. But how to do that correctly? And is it actually worth considering the opportunity of entering the DeFi world in 2022?
Let’s take a closer look at those questions and dot the I’s before diving entirely into the crypto industry.
Why is it worth developing your own crypto?
To be true, a cryptocurrency is still in its infancy. Although Bitcoin has created a real buzz over the past few years in the crypto market, and it seems that everyone is mining, that’s not quite right. The crypto adoption index worldwide is still pretty low. Currency is still not used across the global geographic spectrum, so developing a cryptocurrency in 2022 definitely makes sense. However, in addition to being a pioneer in your market niche, here’s what else you can achieve with the help of crypto:
- Business branding. Even Microsoft launched its own cryptocurrency. The reason for that is marketing. Today, owning crypto is a trend that gives companies a competitive advantage in addition to other benefits. Having your own cryptocurrency definitely adds value to your brand. As soon as you say you own crypto, you immediately seem more forward-thinking and modern, like you know what you’re doing, and that’s what makes end customers and investors trust you.
- Savings and guarantees. Remember that cryptocurrencies don’t require any extra fees to complete a transaction. If your business depends on transactions, especially international ones, you can also save on taxes. However, in addition to the savings, blockchain offers the guarantee that the coins or tokens sent will be delivered without any loss or error. This assurance also helps while handling business and striking deals.
- Project crowdfunding. ICOs are the new trend for raising money for a startup or growing business. Instead of spending days on paperwork, you can create a token and sell it to raise money without a paper trail or hassle. In this case, cryptocurrency can work wonders, as it did with the famous Ethereum, because ICOs don’t guarantee investors any rights to company stocks or a say in its development – everything you do is sell the token and collect the investment.
- Currency popularization. Yes, this is the true reason to get into crypto right now. While global adoption is low, more and more companies are starting to accept cryptocurrency payments – restaurants like PizzaHut or Starbucks, travel companies like Expedia or CheapAir, most video games like Minecraft, etc. Nowadays, even crypto cards are emerging in the market. In this case, the earlier you get started, the more experience you can get and the more opportunities you’ll be able to realize.
How do crypto and blockchain development services help you while creating your own one?
The answer to this question is pretty straightforward – crypto and blockchain development services will help you to create a robust and technically superior blockchain infrastructure for your cryptocurrency, considering all the key details that impact the final result considerably. This allows you to focus on the business and marketing aspects of the venture while a blockchain development platform takes care of the technical side of things.
How to create crypto in 7 simple steps
Finally, let’s have a look at the process of developing your own cryptocurrency – just follow each step accurately, and your crypto will be definitely created successfully.
1. Come up with an original idea
First of all, make sure you know why you’re creating a new cryptocurrency, who will use it, and how you’re going to expand the user flow. So just think about your initial idea and develop it into a ready-made marketing strategy.
2. Choose a consensus algorithm
Besides the two main consensus algorithm options you can consider – Proof-of-Work (PoW) and Proof-of-Stake (PoS) – you can use the Proof-of-Capacity (PoC) mechanism as well. It’s actually similar to PoS in decision making: the more free space a node has, the higher its chances of adding a block to the chain. Proof of Activity (PoA) uses the best of what the PoW and PoS mechanisms have to offer. Think about the consensus algorithm that works best for your model, and choose one for your particular project.
3. Decide on a blockchain platform
Consensus algorithms determine how a blockchain works. As a result, they also affect how a particular blockchain platform will operate. Thus, your choice of blockchain platform depends on the consensus mechanism selected before, so take your time and choose wisely to avoid all the unpleasant consequences in the future.
4. Design the nodes
Regarding the choice of nodes’ design, think about the following characteristics:
- Permissions for public or private nodes,
- Cloud or on-premises hosting,
- Minimum and acceptable system requirements (OS, processor type, memory, etc.).
5. Create internal structure
In this case, it’s pretty essential to think about all the internal rules for transactions, node participation and identification, currency exchange and movement, access regulations, and so on.
6. Integrate the APIs
You need APIs to deliver user responses to your blockchain and then send the system response back. Some blockchains have their own APIs, but not all of them. So, at this point, just make sure you have the right APIs. If the built-in option isn’t available, use third-party services such as Coinbase, Neuroware, Colu, or ChromaWay.
7. Design the UI
Create with the future in mind. Make sure your interface is simple and intuitive, otherwise your cryptocurrency will never become popular with the masses. In addition, don’t forget about the differences between the admin and the rest of your users by designing different interfaces for them. That’s it!