A couple of decades ago, people even among the most technologically aware would have thought that the concept of a currency lying outside the controls of the government and completely decentralized lies somewhere in the near future. Today, it is a reality that people find hard to come to terms with, but it cannot be denied that cryptocurrency is taking the world by storm.
The bitcoin that was valued at barely a 10th of a cent about 10 years ago is now valued at more than $50,000, making it one of the most resounding testimonies for the success, profitability, and dependency of cryptocurrency. The credit for this popularity and versatility has to be given to the underlying technology called the blockchain. Blockchain technology makes it possible to globally transact cryptocurrency without any difficulty and delay, and without the need for intermediaries facilitating the transaction, resulting in almost 0 cost for transferring money from one corner of the world to another.
The success of cryptocurrency has prompted a lot of entrepreneurs to launch their own cryptocurrency. The process of cryptocurrency development is not complicated from a technological perspective but needs a thorough inspection from a business point of view.
The world of crypto is far from monotonous. Before you get into crypto development, let us look at the types and purposes of different types of cryptocurrency.
The Different Manifestations of Crypto
The most prominent and straightforward one is the crypto coin. They can be used as substitutes for the usual currency that we transact in to buy goods and avail services. The best example of this type, of course, is bitcoin.
There was a lot of speculation and uncertainty associated with investing in crypto. The fact that a lot of initial coin offerings turned out to be a scam and it was a cause of concern that questioned the reliability of crypto. This is where the SEC stepped in and regulated certain types of tokens. Such tokens are called security tokens, and rightly so because they represent security that falls under the scrutiny and regulatory framework of the governing body like the SEC.
Utility tokens might not have any value but they can still be traded. They are designed to bestow certain privileges to the owner. The privileges can include access to a special area on a website or a specific feature of a product and even voting rights in the company.
Token-curated registry tokens or TCR tokens,as they are commonly abbreviated, convert the rights of the holders to determine the contents of a particular registry. However, the registry usually involves a minimum stake for new listings to be entered in.
Work tokens stand among the most unique cryptocurrency types. The distributed contributors must stake the native network token to perform some work on the network. If the work of a participant is correct, they are awarded additional tokens in proportion to the number of tokens that they have staked. However, if the work has been found to be wrong, the staked tokens are taken away from them.
Stable coins aim to reduce the magnitude of volatility associated with cryptocurrency. This is achieved by pegging the value of a crypto token to a stable real world like the US dollar or gold. There are some stable clients whose value might be collateralized using other crypto coins all algorithmically by controlling the demand and supply.
The proof of burn consensus mechanism allows users to earn tokens by burning them. The coins are sent to a special address from where they cannot be retrieved or spent and the transaction is recorded in a block as evidence. This mechanism expects the users’ readiness to accept short-term losses for long-term benefits.
Access-based tokens have two token models, one for staking and the other for the payment of fees. The primary token functions like a machine for generating secondary tokens, and the number of secondary tokens generated for every primary token depends on the platform usage.
The Process of Cryptocurrency Development
Creating a cryptocurrency is relatively simple considering the availability of processes like forking. You can simply copy the source code of an existing crypto coin like bitcoin or any other open-source project. You can make small changes to the source code and launch your own cryptocurrency.
The difficulty, however, is in integrating the crypto coin into the business process and making the coin popular enough to recover the costs incurred in developing them. This is the reason why people prefer to partner with cryptocurrency development companies.
Why Cryptocurrency Development Companies?
A cryptocurrency development company brings 360° expertise into the process of creating crypto coins. It is to be noted that the new crypto coin needs a separate blockchain to function, and for this reason, you need the cryptocurrency development company to function as a blockchain consultant. They will also need to understand the concept of decentralized and distributed applications. They will also need to determine the magnitude of interoperability of the crypto coin, and will also need to provide continuous support that you may need during the teething process.
On the legal dimension, the company also needs to establish compliance with GDPR, and also create automated systems for requirements like KYC/AML formalities. Needless to say, they will also need to know the complex technology that goes behind the creation of new crypto coins that will spell the difference between profit and disaster.
In most cases, the cryptocurrency development company also specializes in cryptocurrency marketing. They have strong experience in establishing your presence in crypto-specific forums, search engines, and social media. They can also bring in influencers if needed.
If you would like to capitalize on this crypto wave that is taking over the world and introduce a new crypto coin, all you need to do is get in touch with the company that specializes in the development/creation of cryptocurrency.
They will begin to understand the requirement and present you with proper cryptocurrency development solutions that will help you create, market, and launch your own new crypto coin!