How to create a crypto coin with a new blockchain?

To create a cryptocurrency coin, you need to create a native blockchain. And to create a blockchain, the best way is to discard an existing blockchain.

As of this writing, there are over 21 thousand cryptocurrencies, over 500 exchanges and a market cap of around 1 trillion. And these numbers are growing every day. But how many cryptocurrencies do we know? Off the top of my head I can list maybe 20 of them. It is another way of saying that the market is saturated with cryptocurrencies. And this is good news and bad news.

The good news is that creating a cryptocurrency has never been easier.

Let’s narrow it down. Let’s eliminate the tokens and let’s focus on the crypto coins. Now we have a better pool of cryptocurrencies. Of the 21 thousand cryptocurrencies, we have 9100 coins. And there are over 9000 ways to learn how to make a crypto coin.

Let’s begin the search; to find the perfect method to create a cryptocurrency.

Cryptocurrency coin

A cryptocurrency is the original digital currency of a blockchain. A crypto token is a cryptocurrency built on an existing blockchain along with its original coin. But like everything, there are exceptions. For example, stablecoins such as USDT, USDC and BUSD are also classified as a coin, even though they are not the native currency of a blockchain.

The main factor is stability and value. Coins usually have a fixed access limit. The economics of supply and demand give cryptocurrencies value. The blockchain behind the coins provides a level of stability. And that’s what makes it a crypto coin and not a token, less volatility and value.

Crypto tokens are digital currencies with values ​​created out of thin air. There need be no fixed supply limit as the creator can create any number of tokens in the future. It can be worth anything.

So those are the three criteria a crypto coin needs to satisfy, a native blockchain, stability and value.

Create a cryptocurrency coin for a purpose

Now that you know what a crypto coin means. I want to start by saying that you need to have a clear reason for creating a cryptocurrency coin. I will explain why.

As of January 2021, there were 8,000 cryptocurrencies and around 1,000 coins. In November 2022, the number increased to 21,000 cryptos and 9,000 cryptocoins. Just comparing the cryptocurrencies, that’s a nine-fold increase in 23 months. Soon there will be even more coins, and the supply will outweigh the demand. A crypto coin will not impress anyone.

All these blockchains cannot survive. Most of them will fall out of use. After all, only so many people are interested in cryptocurrencies, and even fewer know how to manage a blockchain. So be very careful and have good reasons before creating a blockchain. It must have real-world applications. People should want to use it for more than just making money. Don’t make one just for the sake of it.

Cryptocurrency White Paper

A white paper is a manuscript that outlines the project, product, service or solution of a company or non-profit organization. Every crypto project must start with a white paper.

Creating a cryptocurrency is not a pet project. At least try not to make it a pet project. Even if the coin you create is a meme, try to build on it. For example, the Shiba Inu is a meme coin; it came out in competition with Dogecoin, another meme coin. It was really a joke with no value. Now ShibaSwap, a DeFi exchange, is built on it. And Shibarium, an upgrade to the blockchain itself, is coming. It has expanded into something more than just a meme coin. Sooner than later it will have a utility in the real world. And that is what you should aim to achieve.

These are the types of plans you must have. And this is what you must articulate in your whitepaper. Why? Because running a blockchain requires people. I’m not talking about developing a blockchain. I’m talking about maintaining it, miners, validators, etc. A blockchain only works under a community of people.

A whitepaper is necessary to outline ideas and build a community. To attract the first users, you need a whitepaper. It is the source of initial trust in your community.

Methods for developing a blockchain

There are two ways to develop a blockchain. You can either create a new blockchain from square one or split an existing blockchain. In both cases, you need some technical support or computer knowledge. Hiring a blockchain developer is essential.

Distributing an existing blockchain is the fastest way to get started. Building a new blockchain will take months, maybe even years. You need technical support staff throughout this period. You need funding to keep the process going. Still, launching a blockchain will not guarantee success. Without a significant community to maintain the chain, a new blockchain will become an easy target for hackers. Capturing the attention of a blockchain-based technology community is no easy feat.

By splitting a blockchain, you split the blockchain in two. And the new blockchain will be the project’s tool to create a crypto coin. For example, Bitcoin Cash was hard-split from the Bitcoin blockchain. Bitcoin Cash (BCH) aimed to remove the constraints of its parent chain. BCH improved its block size, transaction fees and transaction speed.

Bitcoin SV is a hard fork in the BCH network. So a blockchain network can fork many times.

Since blockchain codes are open source, they can be modified and redistributed to launch new blockchains. And there are software tools to perform these forks, such as Forkgen. And those who share these chains can change the parameters of the blockchain to their needs. Ravencoin is another fork in the Bitcoin network. Similarly, Litecoin, although not forked, is also a crypto created from the source code of the Bitcoin Network.

And there are four elements to change in a blockchain.

• Consensus
• Ledger
• Cryptography
• Smart contract

Consensus

If the blockchain you forked has a different consensus mechanism, you can change it to something else. In theory, a hard fork could change the consensus mechanism. For example, Bitcoin uses Proof-of-Work consensus, a very energy-intensive process. And the debate about introducing a Proof-of-Stake has been discussed many times in the Bitcoin community.

Ledger

Any blockchain has a block size, block creation rate, halving period, a limit on the number of coins, etc. And these pre-set requirements in the code, which you can change.

Cryptography

Cryptographic hashing algorithms are another important aspect of blockchains. It is what makes crypto mining possible. For example, when Litecoin forked the Bitcoin network, it replaced the SHA-256 function with the Scrypt hash algorithm. Similarly, when Ravencoin forked the Bitcoin network, it changed SHA-256 with the KAWPOW algorithm.

Smart contract

Like Ethereum with the ERC standard and Solana with the SPL standard, new smart contract standards can be added. These standards are nothing more than a set of rules and instructions to be followed. For example, Polygon was based on the Ethereum chain and has adopted the ERC standard. However, Tron was also built based on the Ethereum blockchain; it uses the TRC smart contract standard.

Therefore, the fastest way to launch a blockchain is to use the code of an existing blockchain and hard fork it to create a new one. Pick a blockchain with a few downsides and fix the bugs with your forked version. Upgrade the software, add new features, improve the block size, change the hashing process, etc.

Blockchain Testnet

Testnet means a test network. A blockchain testnet is a way to beta test a system. It is a duplicate of the original blockchain, but the crypto stored on it has no value. Thus, it cannot be extracted. And the original blockchain is called the mainnet.

Since the test net has all the features of the main net, it is perfect for testing. The software used in blockchains is frequently updated. Smart contracts can be deployed and tested. DApps are usually deployed and tested.

A test grid can continue to run separately from the main grid for years after the main grid is active. Developers use the testnet constantly.

Legal framework

The rules vary depending on the region. While blockchain is simply software on the web, cryptoassets come under regulatory scrutiny. There is still much debate about the nature of cryptoassets. Some argue that cryptocurrencies are securities, while others argue that they are not. Therefore, global regulations vary. And this has created regulation-free zones such as Portugal. Strict regulatory zones such as South Korea and India. A complete crypto ban in China. And a crypto-friendly neutral zone in large parts of the EU and the US.

Crypto scams, hacks and phishing sites are a dime a dozen online. The recent FTX infection is a good example. Almost every major centralized exchange has been the victim of a hack in the past. And 2022 is by far the most expensive year in crypto hacking ever recorded at over $3 billion.

Consult with a law firm or an accounting firm before launching. An important step in blockchain development is hiring a third-party professional audit. Auditing promotes confidence with potential investors about your startup. Investors can feel more confident knowing that your project complies with industry standards.

Build a crypto community

A cryptocurrency’s strength lies in the size of its virtual community. Community support will be essential from the moment an idea is launched. Maybe I should have started with this topic. If you have an idea but not enough capital to implement it, a community is what you need.

Building a community is about more than running a blockchain. There are many programming languages ​​and countless ways to program. A diverse group of members can find bugs and errors in your code that you might have missed. They’ll have ideas you haven’t considered, and they may have solutions you haven’t thought of solving. You need to market your idea to enough people and get their support.

If a blockchain’s source code is vulnerable to external threats, it cannot function for long. And if it doesn’t have enough miners to keep it going, it will fall out of use. For example, there used to be a forked blockchain called Luckycoin. It is a fork of the Litecoin blockchain. The infamous Dogecoin blockchain is a fork of the Luckycoin blockchain. Since the blockchain has been deprecated, it has disappeared entirely.

And that is why it is necessary to keep innovating the project even after you have managed to get enough interest. And that is also why the most successful crypto projects often announce new events. Like the space program, you need to rekindle interest.

Marketing

Now this is often an overlooked topic in crypto projects. Until your blockchain is up and running, the crypto project is an ICO. And marketing is the most important part of an ICO. Before we get into that, I’ll briefly explain the choice between ICO and IEO.

When you want to raise money through an IEO when developing a blockchain: the funds may come with conditions. So for full autonomy I would choose an ICO process over an IEO. Or know IEO thoroughly before partnering with an exchange.

So coming back to the ICO, there are three stages of marketing.

• Pre-ICO (before)
• ICO (below)
• Post-ICO (after)

Now all three are marketing campaigns to raise funds and gather interest. The more people you reach through your marketing campaign, the better response you can expect. And the more diverse your audience is, the better viewpoints you can consider. And marketing campaigns consist of ads, articles, blogs, press releases, airdrops, NFT releases, learn-to-earn programs, etc.

The future of your blockchain and your crypto project depends on this phase. So take your time with this phase.

Conclusion

So, let’s recap what we’ve covered so far. Determine the purpose of your crypto project. Publish a white paper for your project. Choose how you want to develop your blockchain.

Develop your blockchain and launch your testnet before the mainnet for beta testing. Remove all legalities from the project.

Build a community for your blockchain project. And finally, market it. Remember that most of these steps will overlap.

Follow your privileges and share the steps clearly before proceeding towards each milestone. Good luck on your further journey within the crypto space.

Also read >> How to Create a Cryptocurrency Exchange Platform