When you look at the complexities that go into making a physical dollar bill its plain to see why most people dont start trying to print a new form of currency every day, but making a new digital currency is surprisingly easy for someone with even basic coding skills. But coding isnt the only step to getting your digital currency off the ground. Here are the five steps you should follow according to the makers of three cryptocurrencies.
When you think about creating a new digital currency its easy to assume the first step would be to begin coding your coin, but thats the wrong place to start, according to Chris Ellis, a London entrepreneur and a community activist at Feathercoin.
The first step is to find a community and build a currency around them rather than building a currency and expecting everyone to show up, Ellis says. It has to be sensitive to their needs and be relevant to their cultural heritage and background.
Feathercoin was created by Peter Bushnell in April 2013. Bushnell left his job as head of IT at Oxford Universitys Brasenose College because he wanted to start his own currency that put people at the center. This was in response to what he saw as a lack of community involvement and inclusiveness by the existing cryptocurrencies, such as Bitcoin, on the popular cryptocurrency site bitcointalk.org.
Though he had not met Bushnell at the time, Ellis, who had been actively promoting and educating people on cryptocurrencies since last March, shared the sense of alienation and seclusion found on Bitcoin forums.
These forums were very tech focused and not very welcoming to newcomers or minority groups which are often served better by smaller teams, Ellis says. The forums did not make it easy for people to get involved in the development of the coin. Many people on these forums take a backseat and speculate on the price rather than actively getting involved.
Ellis found the cryptocurrency community activism he was looking for in Feathercoin, whose technical development he says benefits greatly from its community activism approach.
For Feathercoin we were a group of crypto enthusiasts, some of whom were new to the scene but who felt shut out from the rest of the space, Ellis says. Everyone at Feathercoin feels its important to demonstrate how a devoted group of people can establish a stable currency, he says. By working together a community of dedicated crypto enthusiasts are much better able to find and address vulnerabilities and security threats, like the 51% attack, which the community of coders at Feathercoin have successfully built protections against.
Building such protections and nurturing the development of your currency give your coin legitimacy and trust in the eyes of the public, something that is hard to do if those involved in the currency are passive spectators looking out for their own interests.
Surprisingly, every single currency developer I spoke with said the same thing: Coding your cryptocurrency is usually the least time-intensive part of the process. Thats because virtually every cryptocurrency on the market today is based on the open source code of Bitcoin or Litecoin that is available on GitHub.
The creation itself does not take long. It is maybe only a day, says Peter Otterbach, one of the creators of Coino, which bills itself as the fastest cryptocurrency on the market with a maximum transaction time of only 50 seconds. To start coding you just need to know about C++ to build your own features in it.
The length of time could be a little longer than a day, however, according to Kolin Evans, developer of the Quark cryptocurrency. In coding the most complex steps may be related to how complex you plan to have the individual parameters of the blockchain, Evans says. For example, many currencies just use the Litecoin code and copy it, but with Quark there was a whole new Hash algorithmthat is to say, its separate from both Bitcoin and Litecoinso this aspect if you were to change it would certainly be the most difficult. And time consuming. In this case coding a cryptocurrency could take months. However, Evans notes that if a developer is just reusing code from GitHub and changing some simple parameters, thats something a competent coder could do in literally 30 minutes.
But just because anyone with some C++ skills can make their own cryptocurrency doesnt mean that there will be as many currencies as, say, iOS apps one day. Feathercoin is in fact a fork of Litecoin, says Ellis. It began with the minimum number of parameter changes because we felt the most important feature of a currency was survivability.
However, the Feathcoin team noticed that a few of the currencies that came before didnt last very long because they included a novel feature set which would gain short-term speculative hype but then the team often werent able to follow through on the stewardship of the project longer term and the project would fail. In other words, the developers of those coins that failed probably wanted to make some cheddar on some quick coin creation and didnt want to work at developing the currency for the long runsomething which doomed them from the start.
You have a duty of care at the development end in terms of bug fixing and ensuring the promise made at launch but you also have a duty to educate people of the risks and give them what they need to secure their wealth, Ellis says. If you cant do that, no one is going to stick around to use your coin, and the mining of it will drop off as quickly as downloads did of the first Doodle Jump knockoffs.
Once youve developed your coin you need to spread the word so people start mining it, which raises awareness of its existence and hopefully begins to gain some value in the eyes of its miners and users. This is where makers of cryptocurrencies need to stop thinking like coders and instead look into how human beings put trust (and value) in things.
A good start is half the way there and so this involves building trust, expressing your vision and intentions to miners, who have the hardware you need, and getting them on board with the opportunity ahead, Feathercoins Ellis explains. You have to be honest and respect peoples expectations and their tolerance of risk, which many people overestimate.
Overselling your coin will backfire. Including novel feature sets just to try and stand out will not work either. The market is there to test your grit and determination. You need a group of loyal miners committed to the cause who will process your payments even during slumps in price because they believe in the eventual outcome. Its about good communication and team building.
Many coins have failed because they undervalue the soft stuff. They think that throwing technology at a problem will make it disappear. Central banks think throwing money at problems does the same; the world has never worked this way. You have to be good at knowing what work needs to be done and be prepared to do the jobs nobody else wants to do.
Lets says youve made it this far. Youve conceptualized a good cryptocurrency and brought the right team together to code and nurture it along its way. Youve spread the news around the cryptocurrency forums and theres a healthy dose of miners actively working to grow your currency. The next step is marketing your currency so all the people mining it have a place to spend it. This is no small feat. After all, you need to convince individuals and merchants that these digital bits youve created hold value and can be traded for things, just like traditional, trusted money.
Its a process of confidence building, Ellis says. It takes good stewardship and time to work out what you really believe and stand for. People will buy in to your motives more than your actions, so once you feel confident you then have to start talking about your currency to friends, merchants, on Internet forums and on social media.
The people behind Coino agree. To start the marketing you need to find the exact target group, Peter Otterbach says. At first you can just start at the cryptocurrency market itself because the people there know about coins and you see the first reactions. After that it gets more difficult. You need to convince people who mostly dont even know what a cryptocurrency is, so you have to get the currency accepted as a payment solution in online shops to get their attention.
I would add its not just about educating them with facts, Ellis notes, its about inspiring them to learn and discover the advantages for themselves. Money is a ledger, it is a tool that people will use as a way of achieving their goals and satisfying their needs. Understanding that will take you a long way in your marketing efforts.
Ellis says that merchant adoption is similar to miner adoption, its just a matter of understanding their different outlooks. Different stakeholder, same rules. The difference is that miners have a speculative sentiment and merchants are conservative. He notes that merchants have three principal aims: to make money, to save money, and to increase their awareness. If you can bring them customers and increase their sales while reducing their payment fees, the rest is a matter of persistence and making it as easy as possible to get them started.
The last step in your cryptocurrency journey is, according to pundits and conventional wisdom, world domination by your coin. But given that in over 5,000 years no single currency has dominated the globe, its very unlikelyno matter what Silicon Valley Bitcoin enthusiasts saythat any one cryptocurrency ever will.
Besides, global cryptocurrency domination doesnt have to be the goal, Ellis says. Currencies can be local, indeed we think of Feathercoin as a local currency that can serve a global market.
And therein may lie the true market for the burgeoning field of cryptocurrency: hyper-local currencies for certain neighborhoods, cities, events, venues, and groups of people that are built around a community of like-minded consumers allowing them to trade freely, quickly, and securely for goods and services that are important in their lives instead of having to rely on the central banks and larger markets to tell them what arbitrary item, be it a copper coin or a plastic dollar, holds value.
Indeed, in a market where cryptocurrency use is defined by neighborhood boundaries or group memberships there is no need for any one cryptocurrency to win. Theres room for them allexcept maybe the ones with memes.
Read this article:
How To Create Your Own Cryptocurrency - fastcompany.com
- Research: Ether Was the Cryptocurrency Most Correlated to Other Coins in 2019 - Cointelegraph - January 27th, 2020
- Regulating Bitcoin: WEF2020 Announced A Global Consortium For Cryptocurrency Governance - CryptoPotato - January 27th, 2020
- This Top Cryptocurrency Got 51% Attacked. Yet, Its Up 19% And Its a Problem - newsBTC - January 27th, 2020
- It's tax season and the IRS wants to know about your crypto. How to prepare - CNBC - January 27th, 2020
- Cryptocurrency Market Update: Bitcoin, Ripple and Ethereum dive into the rabbit holes - FXStreet - January 27th, 2020
- Coinbase Set to Pass $8,400,000,000 Bitcoin Milestone, Outperforming All Cryptocurrency Exchanges With Highest Amount of BTC - The Daily Hodl - January 27th, 2020
- Cryptocurrency mining in Iran to boost economic conditions - Cryptopolitan - January 27th, 2020
- Creator of Cryptocurrency Price Tracking App Wins India PM Award - Altcoin Buzz - January 27th, 2020
- Alleged BTC-e boss will be extradited to France over cryptocurrency fraud - The Next Web - January 27th, 2020
- Price Analysis: Discovering the Top Cryptocurrency Market Performers This Week - The Cryptocurrency Analytics - January 27th, 2020
- Trend Micro creates honeypot to analyse security threats, gets subjected to ransomware & cryptocurrency mining - Economic Times - January 27th, 2020
- Cryptocurrency Hackers Were More Active in 2019, but Were Less Successful - CryptoGlobe - January 27th, 2020
- Bank of England to consider adopting cryptocurrency - The Guardian - January 22nd, 2020
- Crypto Tidbits: Bitcoin Hits $9,000, Institutional Cryptocurrency Investment Spikes, NBA Team Uses Ethereum - newsBTC - January 22nd, 2020
- How Cybercriminals Are Converting Cryptocurrency to Cash - BankInfoSecurity.com - January 22nd, 2020
- UK offers $130K for software that can trace Bitcoin, Ethereum, and (hopefully) Monero - The Next Web - January 22nd, 2020
- Hackers have got their hands on $11 billion in stolen cryptocurrency since 2011 - SmartCompany.com.au - January 22nd, 2020
- Thailand launches probe into $2.46M cryptocurrency pyramid scam - The Next Web - January 22nd, 2020
- Moonday Mornings: Its 2020 and the OneCoin scam is still alive - The Next Web - January 22nd, 2020
- $140,600,000 in Bitcoin (BTC) Exits Cryptocurrency Exchange As Whale Moves $6,320,422 in XRP - The Daily Hodl - January 22nd, 2020
- Cryptocurrency No longer banned in India? - The Coin Republic - January 22nd, 2020
- Akons AKOIN Cryptocurrency City White Paper to be Live by February 2020 - The Cryptocurrency Analytics - January 22nd, 2020
- BTC/USD: Will 2020 Bring Clear Vision to the Oldest Cryptocurrency? - FXStreet - January 16th, 2020
- Cryptocurrency Market Update: Two-day recovery on the rocks as Bitcoin, Ethereum and Ripple trim gains - FXStreet - January 16th, 2020
- Cryptocurrency Market Update: Bitcoin bulls hit the pause button, altcoins follow the lead - FXStreet - January 16th, 2020
- Cryptocurrency billionaire funds SF-wide web of cameras to help fight crime - KRON4 - January 16th, 2020
- North Korea is Holding a Secretive Cryptocurrency Conference, and Experts Warn it's a Very Bad Idea to Attend - Newsweek - January 16th, 2020
- Ripple Price Analysis: XRP/USD capitalizes on the global cryptocurrency bulls' run - FXStreet - January 16th, 2020
- Bitcoin rises as cryptocurrency has its best January since 2012 - SiliconANGLE News - January 16th, 2020
- Cryptocurrency and Remittance: The Case of Mexico - Crypto Education - Altcoin Buzz - January 16th, 2020
- Ethereum (ETH) - Based Cryptocurrency Tested By The Reserve Bank of Australia as Payment Tool - U.Today - January 16th, 2020
- $1.4B in illicit Bitcoin was laundered via Binance and Huobi last year, report says - The Next Web - January 16th, 2020
- How to minimize the cryptocurrency tax burden this tax season - Canadian Lawyer Magazine - January 16th, 2020
- The future of cryptocurrency - Lexology - January 13th, 2020
- Analyst: Bitcoin Will Skyrocket to $100,000 in 24 Months and Theres Nothing You Can Do About It - CCN.com - January 13th, 2020
- Cryptocurrency Slowly Recovers as Buyers Fail to Emerge - Coin Idol - January 13th, 2020
- Cryptocurrency Has Earned Its Place as a Safe Haven - Investorplace.com - January 13th, 2020
- eToro CEO On Bitcoin Dominance in the Cryptocurrency Market - The Coin Republic - January 13th, 2020
- Moonday Mornings: Ethereum dev released on $1M bail over North Korea case - The Next Web - January 13th, 2020
- As Bitcoin Struggles, This Minor Cryptocurrency Is Up Almost 500% Over The Past 12 Months - Forbes - January 12th, 2020
- What to expect from cryptocurrency legislation in 2020 - Yahoo Finance - January 12th, 2020
- South Korea Moves Toward Institutional Acceptance of Cryptocurrency - Nasdaq - January 12th, 2020
- Cryptocurrency Market Cap May Surge 37%. But There's One 'If' - U.Today - January 12th, 2020
- Financial Services Agency to limit leverage in cryptocurrency margin trading to twice the deposits made by traders - The Japan Times - January 12th, 2020
- Naive IoT botnet wastes its time mining cryptocurrency - ZDNet - January 12th, 2020
- Directors of bogus Ugandan cryptocurrency startup charged after 4,000 investor complaints - The Next Web - January 12th, 2020
- Can digital gold Bitcoin ever be mined in India? - ETCIO.com - January 12th, 2020
- 321 Cryptocurrency Whales Control Staggering Amounts of Bitcoin, Ethereum And Litecoin - The Daily Hodl - January 12th, 2020
- Why the Worlds Most Used Cryptocurrency isnt Bitcoin - NewsLogical - January 12th, 2020
- South Korea Works to Bring Cryptocurrency Into the Mainstream - The Diplomat - January 5th, 2020
- Most Significant Hacks of 2019 New Record of Twelve in One Year - Cointelegraph - January 5th, 2020
- Why a Technical Analyst Believes Bitcoin Cash (BCH) Will Surge by 80% - newsBTC - January 5th, 2020
- Why Analysts Are Bullish On Cryptocurrency As Bitcoin Turns 11 - Ethereum World News - January 5th, 2020
- Bitcoin is on the Cusp of a Major Price Movement - Crypto Briefing - January 5th, 2020
- 7 Big Bitcoin and Cryptocurrency Predictions for 2020 - The Daily Hodl - January 5th, 2020
- China and Russia begin testing cryptocurrency - Born2Invest - January 5th, 2020
- Ethereum Foundation is an opaque Swiss foundation related to cryptocurrency - AMBCrypto - January 5th, 2020
- Cryptocurrency in Arab World: Clock is Ticking, But Pace is Slow - Finance Magnates - January 5th, 2020
- National Governments Around The Globe Look To Embrace Blockchain - Forbes - January 5th, 2020
- Chinas Dichotomy Between Cryptocurrency And Blockchain - Forbes - December 31st, 2019
- What Is a Cryptocurrency? We Need Clearer Definitions - Coindesk - December 31st, 2019
- Ian Balina, The Controversial Face Of Cryptocurrency - Nasdaq - December 31st, 2019
- Cryptocurrency This Week: YouTube Removes Crypto Videos; Russia Bomb Threats Over A Bitcoin Fraud And More - Inc42 Media - December 31st, 2019
- How To Really Help Free North Koreans Through Crypto - Forbes - December 31st, 2019
- The Dividing of Bitcoin to shake markets of cryptocurrency - Market Research Sheets - December 28th, 2019
- The $3 Bilion Bitcoin Dump Isnt Going to Happen - newsBTC - December 27th, 2019
- Googles YouTube Goes To War With Bitcoin And Crypto - Forbes - December 26th, 2019
- Top five cryptocurrency guides of 2019 - Yahoo Finance - December 26th, 2019
- Cryptocurrency is a tool for speculation not an investment - The Globe and Mail - December 26th, 2019
- Rakuten Wallet Will Allow Users to Convert Their Loyalty Points to Cryptocurrency - CryptoVibes - December 26th, 2019
- Top China Cryptocurrency and Blockchain Headlines of 2019 - Crowdfund Insider - December 26th, 2019
- How to Make Money with Cryptocurrency: Beginner's Guide 2019 - December 24th, 2019
- Cryptocurrency Market News - Bitcoin and Altcoins News - December 24th, 2019
- Cryptocurrency For Beginners - CryptoCurrency Facts - December 24th, 2019
- Crypto Legislation 2020: Analysis Of 21 Cryptocurrency And Blockchain Bills In Congress - Forbes - December 24th, 2019
- This Trader Sees No Value in Ripple and Its Cryptocurrency XRP - newsBTC - December 24th, 2019
- Why XRP Isnt Surging in Tandem With Rest of the Cryptocurrency Market - newsBTC - December 24th, 2019
- Hackers steal $480,000 worth of NULS cryptocurrency from its dev team - The Next Web - December 24th, 2019
- How VeChain Cryptocurrency Was Able to Track and Freeze $6.1M of Stolen Funds - newsBTC - December 24th, 2019
- This bizarre anime cryptocurrency is now ranked 12 in the world - Decrypt - December 24th, 2019