The total value of the currency depends on the user involvement, and can not be monitored or managed by the federal government. This is what makes them volatile and risky.
The Tech Behind Cryptocurrency
The hype surrounding Bitcoin caused a huge demand for virtual currencies. However, cryptocurrencies are the result of a new form of technology. This technology is called "blockchain", a system based on private or public networks. All data in these networks are recorded and stored in the form of blocks. Each block has information on different aspects such as:
- User Details – This includes the personal information of the user who is entering the transaction. The fields include name, user name, IP address, personal address, etc.
- Transaction details – This field contains all the records relating to the product subject to transaction, the actual value of the transaction, the quantity and the
- Timestamp – The timestamp records the date and the number ; time when the block is created or accessed by the user
This information is contained in each block. You can access each block by accessing any computer connected to the network. Because the information is decentralized and transparent, the Blockchain application development technology is also referred to as the "Distributed Public Ledger".
Creating Virtual Currency
Because it is not regulated by the government, you can create a cryptographic currency of yours without the need for government permits or permits. Some basic knowledge in coding and programming is sure to help, but you can still create a virtual currency without this knowledge.
So how do you create a virtual currency in your name?
Step 1: Define the source code
A source code is also defined as an intelligent contract. An intelligent contract contains all the information on the virtual currency. The source code is similar to the prospectus of a company. The nature of the currency or the purpose behind the issuance of this currency is contained in the source code. If the purpose behind the creation of the crypto-currency is well defined, then it becomes easier to raise funds through the initial supply of coins. For example, there is a cryptographic coin called Dentacoin, which was issued to support dental care. Users can pay for their dentists (who accept Dentacoin) for their services or as a premium payment for future services. In this way, users will not have to spend real money on their treatments.
Some coding substrates will be needed to create source codes and going through the original Satoshi white paper can also be very useful for creating smart contracts
Step 2: Define the Your currency
If you want to replicate a very popular and widespread currency, it is a good idea to make some changes to the tokens. Any deficiencies in the original currency can be replaced by adding new features in the smart contract. To make this exercise fruitful, it is best to study Bitcoin all the way. Bitcoin source code is publicly available and can be downloaded from different websites. You can create a new coin in your name and keep updating it. This is the passage that differentiates your currency from other virtual currencies out there.
Step 3: Initial coin offer
The first step helps to build architecture for virtual currency. The second defines the currency. However, the third step involves raising funds through an initial supply of coins or ICOs.
This passage concerns the marketing of your currency. The ICO process is entirely based on trust between users, because no one will finance your currency if the purpose behind it is not clear. Also, you should know that investors should be offered a coin that meets their interest
Step 4: Promote your currency
Try to attract as many people as possible investors – invest in marketing. Satoshi was able to bring Bitcoin to such lengths mainly thanks to a well prepared and well executed marketing strategy.
The only way your coin will succeed is to get a convincing step. A low risk investment carries a high value. Also, because your currency is better than that of others it should seem obvious to the skeptics, so offering value is the only way to successfully promote a token in the virtual currency space.