Since the appearance of the first cryptocurrency, Bitcoin in 2009, there are many people who show interest in creating a cryptocurrency. Either out of curiosity, or with the firm motive of competing in the ecosystem. In any case, the idea of creating a cryptocurrency is very striking. But initially this was very difficult to do. Especially since this required extensive knowledge of programming and cryptography.
But currently, there are various platforms and projects that allow you to create cryptocurrencies in a very simple way.
The best proof of this can be seen in the enormous number of cryptocurrencies and tokens that exist today. Each of these projects with their own qualities. Some more revolutionary than others, but all based on the same principle, blockchain technology.
Well, in this article we will expose step by step everything you need to be able to create your own cryptocurrency. We will guide you through this process so that you can know the most important points behind large cryptocurrency projects. But above all, so you can create your own and learn more about this wonderful world. So, we invite you to join us on this interesting journey to create your own cryptocurrency.
2.First steps to create your cryptocurrency:
Before starting your project you must take into account a series of important considerations. First of all, you should have a clear idea of what you want to do with your cryptocurrency project. After all, cryptocurrencies seek to revolutionize the world and in that sense, what does your project offer?
In short, be clear about the concept, vision and objectives of your project. This first step will allow you to get your project on track. It will also help you focus your efforts to reach a user base that can benefit from your project. And at the same time create a community around it.
Creating a project with a well-defined purpose and a community that supports it, will allow you to create a base of trust. This is very important, since trust in the world of cryptocurrencies is vital. Think about it, Bitcoin is what it is today, thanks to the trust that millions of people have put in it. Why would your cryptocurrency project be different? Hence, the second thing you should do is transmit and prove to everyone that they can trust your project and what it offers.
Finally you will also need to have knowledge about how cryptocurrencies work or get a team of people who can help you in this task. This last part is essential to make the project evolve at a good pace. Cryptocurrency technology changes by leaps and bounds and relying on third parties to move forward generally results in project abandonment.
So having your own staff and talent will not only help you improve the project. But at the same time, it will allow you to adapt it to new opportunities and needs that arise. This without counting sections such as security and maintenance of systems that are also important.
If you are already clear about all of the above, then you have the basics to start your project. So, let’s continue our journey so that you learn how to create a cryptocurrency.
3.Platforms to create cryptocurrencies:
To start creating your own virtual currency you should know that you have, broadly speaking, three options. The first and the easiest of all is to use a platform. This will allow you to create your own blockchain and the associated cryptocurrency. The use of this type of platform greatly facilitates this work. In fact, in a few minutes you can have your own cryptocurrency working 100%.
Of course, these platforms are quite limited in terms of their options and capabilities. But this does not mean that they are not an interesting option for learning about technology or creating a very specific application. A good example of this type of platform can be seen in Wallet Builders. This is a website that allows you to create a blockchain together with an associated cryptocurrency in a couple of clicks using your web browser.
The second option is to create a token that works on another already established blockchain. It is a technically more complex option but with greater possibilities. By choosing this option you can use a mature blockchain project to support the operation of your token. Options like Colored Coins that work on Bitcoin, or Ethereum, NEO, TRON, EOS or Waves tokens fall into this category. Of course, each case has its particularities and you must choose the one that best suits your needs.
The third and last option is to create your cryptocurrency directly from scratch or based on the code of one already created. Since most cryptocurrencies are free software, this is perfectly possible. You just have to copy the code of the cryptocurrency and modify it according to your needs. It is the most complex option, but also the most powerful of all. This in addition to allowing you to know how to create a cryptocurrency from scratch.
In the case that concerns us in this article, we will use the Wallets Builders platform. This because it is the simplest of all and the one that you can implement without major inconveniences.
4.Start creating your own cryptocurrency with Wallets Builders:
Now, as we have mentioned before, we have chosen Wallets Builders for this experience for various reasons, among which we can detail:
It is easy to use and its access can be done via the web.
The creation of a cryptocurrency does not entail advanced programming of any kind.
Allows you to configure various options. Among them the consensus protocol, logo of our project or pre-completed.
Provides access to the source code. This allows us to further improve our project autonomously. In addition to helping you know how to make a cryptocurrency from 0.
It offers wallets for Windows and GNU / Linux platforms.
Now that we know some of the features of Wallets Builders, it’s time to go to their website and get to know this platform. Once there we will start with the process of creating your own cryptocurrency.
Step # 1: Start your project
The first step that Wallets Builder directs us to create a cryptocurrency is to the basic data of our project. In our particular case, we have selected the Free plan. In addition, we selected the PoW consensus protocol, based on the SHA-256 hash function. The latter is the same option that Bitcoin offers us, a safe start for our cryptocurrency. Starting this process you will begin to understand how to create a virtual currency by following some simple steps.
Step # 2: Details of your cryptocurrency
The next step will ask us to define the name of the cryptocurrency and its symbol. For this example, we have decided to name the cryptocurrency “Coingraph” and as a symbol we have defined “CGH”. In both cases, you can choose the ones that you like the most. However, you should consider giving it an original name and a unique symbol. This in order to avoid that people can confuse your project with an existing one.
In the case of the “Address Letter” we have chosen the letter “C”. This means that the addresses of our cryptocurrencies will all start with the letter C. With this we unequivocally identify that it is a Coingraph address.
Arrived at the option “Coin Unit”, we have decided to put the name of “graph”. This makes mention of the smallest possible unit of the cryptocurrency. In this way, our coingraph coins can be divided up to eight decimal places, where the smallest unit is a graph. This is a default option on all cryptocurrencies. For example, a bitcoin is divided up to a maximum of eight decimal places, and the smallest possible unit is called satoshi.
Finally we come to the “Verbal timestamp” option, an option where we can place the message that the first block of our cryptocurrency will have. You can write the one you like the most and identify with your project.
Step # 3: Define the basic economic variables of your cryptocurrency
At this point, you should define three very important variables. The first of these is the “Block Reward” or block reward. This value refers to the reward that miners will receive for the successful mining of each block of your cryptocurrency. In this case, we have decided to leave it at a value of 50, which means that for each block, miners will receive 100 Coingraph as a reward.
The next field is called “Block Halving” and is of fundamental importance. This value tells us how many blocks the block reward will be divided in half by a process called halving. The reason behind this reduction in reward is to keep the issue controlled. Remember that if our cryptocurrency suffers from high emission, this will make its value decrease. Conversely, if the issue is very small, miners will receive little profit and lose interest. In either case, choosing a good spot for block halving is vital to the economy of our cryptocurrency. Taking this into account, you must choose the value that best suits your needs.
The last value is called “Coin supply” and refers to the total amount of coins that will be issued. In Wallets Builder this value is dynamically controlled by the Block Reward and Block Halving values you have chosen. The reason for this is to ensure that the emission maximum is not too small and allows your cryptocurrency to develop.
Step # 4: Tuning the coinbase and block generation
Now we have reached a critical point within the options to create our cryptocurrency. At this point the first option in view is “Coinbase maturity”. This option is used to indicate the number of confirmations necessary for miners to spend their rewards. Cryptocurrency miners receive their rewards in a special transaction that is called a coinbase transaction (not to be confused with the Coinbase company). This coinbase transaction is generated by the same miners. It serves to receive the reward of the block as well as the fees or commissions of each transaction processed in said block.
Because it is generated by the miners themselves, delaying the claim for these funds helps two things:
Avoid for some reason the miners can generate blocks, collect the coinbase and then reject the block.
Prevent miners from generating an illegal coinbase and collect it.
As you can see, this value is important for safety, so choosing a high value is a good idea. To get a clearer idea, in Bitcoin this value is 100. This means that miners can only claim their profits after mining 100 more blocks.
The next field is called “Numbers of confirmations” and indicates the number of confirmations necessary to consider a transaction as irreversible. In this case, the value of six that the platform gives us is excellent. Next we have the field “Target spacing in minutes”, which indicates the time it will take to mine each block. At this point we will say that every 10 minutes, our Coingraph cryptocurrency should generate a new block. And finally we have “Target timespan in minutes”, with which we will indicate the time in which the mining difficulty will be adjusted. In our example we have indicated that every hour the difficulty will be adjusted.
Step # 5: Finishing the creation process
By choosing the free option, the Wallets Builders platform does not allow us to customize the logo of our project, but to create and test it. To do this you must go to the email you registered in the first step and open the link they have sent you. Once you click on that link you will access a panel like this:
From there you can review all the cryptocurrency options you have created. The next step is to download the wallet for the operating system you are using. In this case, the options provided by the platform by default is a wallet for Windows and GNU / Linux.
Step # 6: Setting up the wallet and mining the first block
Finally the last step to follow is to configure our miner and start using our cryptocurrencies. In order to do this, you must follow these steps:
First run the wallet software, in this case the name is coingraph-qt. Once you run it you will see the miner’s interface.
Then go to the menu where it says Help and select “Debug window”. Once there select the “Console” option. Once you are in the console option, you must write this command:
Once you finish writing the command, press the Enter key. Then run this command
Wait a moment and you will receive a notification after successfully mining the first block of your new cryptocurrency. Congratulations, the cryptocurrency you have created works and is alive.
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