If your wish is to create a token of your own, then this article is definitely for you. Here you are with this great new business idea or getting ready to launch a startup, ready to embrace the fascinating opportunities of the new world and create your own token. But how exactly do you do that, you wonder? The Internet might be full of information but, as it often happens, it’s refuting and spattered all over the place that sometimes it’s simply hard to understand due to the heavy industry jargon.
Cryptocurrency is a word you can’t avoid these days. It’s everywhere. News, blogs and even big-time financial authorities. Everyone is obsessing over it. you gotta admit the world is changing in front of our eyes. Everyone is hopping on it; for various reasons. buy, sell, hodl, and CREATE.
While several cryptocurrencies have been created over the years, with the most popular ones being Bitcoin and Ethereum. So how does a person creates a crypto token and is it different from a crypto coin?
Both coins and tokens are cryptocurrencies. The only difference is that coins like Bitcoin and Ethereum all run on their own blockchain technology. Blockchain is a digital ledger that stores data related to transactions in blocks. Each block is connected to the previous one with a unique hash code.
Read on to find out everything you need to know about creating your own cryptocurrency.
How to Create a Blockchain
It’s a common misconception that creating your own token will be a long, hard and complicating procedure that requires intricate technical knowledge about coding. That’s not exactly true. It’s pretty easy to create your token. Tokens are a digital class asset that run on top of a pre-existing blockchain. Like Ethereum which is blockchain technology with the native token Ether.
- Know your use-case and define your objectives clearly at the very beginning.
- Choose a consensus mechanism.
- Choose a blockchain platform depending on the consensus mechanism you’ve chosen. A few popular ones are:
- Ethereum (market share — 82.70%)
- Waves (WAVES)
- NEMNxt (NXT)
- BitShares 2.0
- Design the Nodes. A node is an Internet-connected device supporting a blockchain by performing various tasks, from storing the data to verifying and processing transactions.
How Crypto tokens Are Released
Tokens can be released through a process known as ICO (Initial Coin Offering). The token will be introduced via crowdsales, and one can buy publicly available tokens once the ICO is done. If people get interested, they will invest in or fund the token using existing coins.