How Hard Is It To Create A Cryptocurrency – 5 Easy Ways (Updated Guide for 2022)

In this guide, we will show you everything you need to know about how hard is it to create a cryptocurrency, so keep reading!

Below you can find out 5 different methods hard is it to create a cryptocurrency,

Method 1 – How To Create Your Own Cryptocurrency In 15 Minutes – Programmer Explains

What is going on guys welcome back to my channel and today we will be creating our own cryptocurrency in. Under 10 or maybe even under 5 minutes the reason i want to do this is to number one show. All of you who invest in cryptocurrencies how easy it is to create one sometimes people think that all of. These creators of tokens and coins are geniuses but they have some kind of special competence and this was the.

Case in the early days when you had to set up your own network when you had to set up. Your own ecosystem that required a lot of skill and a lot of confidence nowadays you just create an ear. Z20 talk in many of these icy oaks you see or just creating a simple heres the 20 token this. Is exactly what were going to do today we will implement the erc 20 interface we will create our own. Token and launch it on the theorem test net now were going to go to either scan and actually see.

That either scan recognizes our cryptocurrency that ether scan can follow our cryptocurrency and so this will give you a. Very good overview of how the creation of cryptocurrencies work when were talking about heres the 20 tokens and this. Will also be extremely interesting for people who are interested in the technology as you will actually see how to. Go from scratch and create a token from scratch and launch a token on the etherium network from scratch so. This is going to be very exciting for me to do i hope you are excited as well if you.

Are make sure to press that like button and lets start our clocks and see how fast we can call. This cryptocurrency lets green sale yet first of all you need to have the meta mask plug-in into your browser. Because we will be using a website called remix in order to code our contracts and this website can then. Deploy contracts onto the etherium network however to do that it needs you to have meta mask installed on your. Browser so this is a plugin so go ahead and install meta mask and then when you open meta mask.

It will look something like this make sure you to the test net and there are several different test nuts. And so what we want to go to do is to go to the rinkeby test net and rinkeby is. A subway station in stockholm and drupes teen as well so i was very surprised when i saw these names. But the security lead on helium is actually from sweden so this is why we have written to be here. And linkable honestly is a very bad neighborhood you do not want to live in rinkeby ice so when you.

Do that now you also need to get some test net ether and this is something you can do using. The the faucet so you need to go to rinky be authenticated posit i will link it in the description. And what you do is that you need to create a post on your social media containing your address so. What you do is that you go here to your account you copy address like this and then you need. To go on facebook or twitter and post that address and then you need to post the url for that.

Social media post here on this website and then you can get either the reason they have this system is. So that people can not just you now take a lot of ether out of the system a lot of. Test not either so once you have done so what you should have is an account with a couple of. Ether so as you can see i have 99.99 – ether currently on my test net account on the rinkeby. Test net moving on the good thing with ear z20 is that it is so extremely popular and so many.

People have already implemented the protocol many times and honestly it is not a hard protocol but for you if. Youre just starting out it is good to have some kind of a boilerplate you can play around with so. That you dont have to build everything from scratch because theres really no reason to reinvent the wheel unless you. Want to learn and then you can just start from scratch but chris sake of this tutorial will go to. Consensus github and we will find their tokens repository here if you go to contracts and then to eap 20.

Youll see they have three solidity contracts so this is where we will now go to remix here and start. Creating these contracts ourselves so first oh lets create our token contract it will be called and by the way. You click on this little plus sign here to create a contract lets call it the best coin so were. Going to create the best token actually not a coin the best token bam so what we need to do. Is that we need to go here and copy this a p20 soul now you paste it here and you.

Need to rename the contract from this let me see if i can zoom in yes i can so first. Of all lets rename the contract name from this to the best token so that the contract name is actually. What our token is called and now there is some there is quite a few comments here but we can. Remove them for now and so first of all youll see some variables here so this variable will hold the. Balance as it is a map from address to unsigned integer basically keeping track of how many coins each user.

Has each address has and this is the allowance map basically keeping track of who is allowed to spend which. Coins so for example i can allow you to spend coins but we dont need to talk about these technicalities. A lot i will just i just want to show you how to alter the small contract a bit and. How you can deploy it and so the second thing you need to do is to rename this function here. To the best token as well from eap 20 because this this function is to match the contract name because.

It is the construct constructor function like this and then what we want to do as well is to go. Back here and you see that this contract imports another contract called eap 20 in face meaning that we need. It we need this file as well so go here and just copy everything in here as well and create. A new file lets see this is the default thing you can delete it but here we want to create. A new file and call it e ip 20 interface and paste this code and it basically defines the interface.

That our token will implement and conform to as you remember from the wikipedia it is total supply a balance. Of allowance transfer approved transfer from and this is exactly what we have here as well we have total supply. Balance of transferred transfer from a proof and zones of work this is just the interface the protocol that the. Coin or token will implement and here we are saying that our token is this protocol basically that our token. Has this functionality outlined in this interface so that being said we are actually almost finished were actually almost finished.

And whenever we create the smart contract whenever we create this token this function will be executed sorry this function. Will be executed first people wonder if i am a chain-smoker no im just sick and thats why im copying. I i do not smoke at all a shape so when we we create the smart contract this function which. Has the name of the smart contract will be executed first and you can see it needs four things it. Means the initial amount how many tokens will be in existence it is the token name it needs how many.

Decimals the token has and the symbol and the function will give the creator of the contract all of the. Coins so when we launch this contract we will get all of the tokens in existence and then it just. Saves the variables we specified so first of all in order to deploy this on the test net because this. Is ready to deploy really we implemented all of the all of the functions here and we can talk more. In depth about what these functions do in fact my friend phillip and i we are creating a course a.

Programming course on this so if you are interested take a look in the description and you can sign up. On our mailing list we will be selling the course in a few months so if youre interested in smart. Contract development on the theorem on liske and on euros well cover these three platforms and maybe we will even. Cover neo as well so if you are serious about racing smart contracts take a look in the description but. For now we will not talk exactly what this everything does here we will just know that in order to.

Deploy the smart contract what you need to do is to go to run here and then in environment you. Need to select injected web 3 so default is just javascript virtual machine meaning that this website will pretend to. Be the etherium virtual machine it will not send the smart contract to the network it will not do that. It will just run it in the website we will not do it instead we want to push the contract. To the ethereal network therefore we choose injected web 3 like this and now that we have done so we.

Can deploy the best token onto the network so lets see how it goes in order to do that we. Need to specify all of these inputs as we mentioned so first of all we need the initial amount lets. Say that we have 110 thousand coins is the is the amount initial amount and this is going to be. The total supply as well because total supply is initial amount next we have the token name we need to. Call it the best token like this and next we need how many decimal units lets have 0 we do.

Not want to have decimal units and the symbol is the best token cbt right now we have specified all. Of these 4 inputs that our contract needs so we click create and as you can see made them shows. Us the pop-up because we need to spend some either in order to get it on the test net and. As you can see we have written kuvira drink it before here selected so now we just wait we have. This pending transaction yes and so now we have created this contract first of all what we can do is.

Check the balance so if i go to my mate mehta mask here and i copy my address and they. Paste the address in quotes in balance of here because you can see balance of it requires an address so. What you see here are actually functions we have in the contract and balance of needs an address so in. Quotes i need to insert my address and if i get balanced up you see i have 10,000 coins because. This is how the contract worked here in the constructor that it gave the owner of the contract the creator.

Of the contract all of the coins all right now lets try transferring some of the tokens to another account. So so just for fun i have my wallet here as well in the cdom wallet application this is all. On test net as well so lets transfer some tokens the best tokens to this address to this account lets. See so i copied this it will give me a warning that this is a test net address and here. I can now transfer in quotes i insert the address and also how many tokens i want to transfer so.

In closed address then comma a thousand so i want to transfer a thousand tokens from my account here to. This account i have entered right and i press transfer and of course now meta mask shows up again i. Press submit and it should now be completed that we have we have this pending transaction but it will soon. Be mined and it was so soon be put in a block and this will complete and now we have. Zero pending transactions meaning that this transaction has been completed now how do we see these transactions moving first of.

All what i can do is i can just check the balance of this account now it is nine thousand. It was ten thousand now its nine thousand and if i go here and i copy this address lets see. Couldnt copy again because it gives me the warning lets see copy and i paste it here again you see. Now it is a thousand but the cool thing is that if we copy the the address of the contract. So this is the contract and we copy the address here we go to ether scan and very important that.

You enter ring-a-ring tb that ether scan that io and then tolkien search i will link in description and you. Search for the contract address well you see that it has found our token which is pretty fun you see. Token a trip is found we have 10,000 coins it is the best token tbt zero decimals okay and you. See that we have one transfer event one minute ago from this address to this address of 1000 tokens and. This is exactly what we did this is exactly what with these guys because you see that the address is.

0.90 and then we have our second address which is this 1 0 x b1 and this is here 0. X b1 and as you can see now we have our token which we created here in the remix compiler. In the remix ide we have deployed it using our meta mask plugin by specifying injected web 3 and then. We can play around we can send to different addresses and everything we do will be recorded on ether scan. So guys i hope you learn something i hope you enjoyed this tutorial i hope you are now smarter and.

You know what ears it means is how it works so thank you so much for watching ill see you. Tomorrow morning for good morning crypto 8 a.m. Central european time be there guys have a great night and ill. See you soon.

Method 2 – How To Start Your Own Cryptocurrency | Cnbc

It seems like everyone is looking for a way to get in on the cryptocurrency craze and developing your own. Coin or token is becoming an increasingly popular way to jump in on the bandwagon which got me thinking just. How hard is it to creat a crypto theres a lot to think about especially since a recent report found. Nearly half of last years initial coin offerings have failed for some help i asked andy bromberg ceo of coin.

List a platform which runs token sales to meet me for a chat lunch nico is a deeply technical process. But at a high level the process looks a lot like starting a start-up first and foremost is defining your. Coin and its more than just a name it could be a replacement for actual cash or assigned a specific. Utility or asset utility tokens can be services that can be purchased or exchanged i decided to name my hypothetical. Token diy coin as for our coins purpose we arent planning on making a money replacement we had to define.

A very specific function of our diy coin to ensure it achieves a certain objective also being marketable to the. Cryptocurrency community i felt it was best to treat this point as purely knowledge-based i eat educating the broader public. On how one launches a cryptocurrency and simplify the ico process which at this point is still quite misunderstood now. Its time to start building it all begins with the source code think of the source code like the blueprints. To a house were going to use if their use blockchain from here you can edit the coins name you.

Can even change the rate at which coins are issued and creating a coin isnt something you can do from. A coffee shop there are a lot of steps in between including getting some investors on board i tell everybody. That approaches me with utility tokens what do i own what actually am i taking real money and giving it. To you for you get knowledge ill say this about the concept of a knowledge-based token if you can sell. This you can sell some real product too many coin offerings use white papers and they can be dozens of.

Pages long some are full of graphics others are packed with mathematical equations which show how a token will exist. On the blockchain its time to make sure what im planning is legal and that means consulting an attorney with. Cryptocurrency experience the investing market and the issuing market needs to be on notice right now the regulators are paying. Attention answering complex legal questions about the long-term viability of the diy coin was challenging but important especially if this. Was going to have a shot at getting a theoretical greenlight from the sec how is it that diy coins.

Once issued would he use having run my hypothetical diy coin through all these steps it should be ready before. Its debut everything signed and wired and raise the money and then youre off to the races and thats it. And there you go i got my own coin theres a lot of many steps in between but that is. That is it hey there thanks for checking out cnbc on youtube be sure to subscribe to stay up-to-date on. All of the days biggest stories you can also click on any of the videos around me to watch the.

Latest from cnbc thanks for watching.

Method 3 – Creating My Own Cryptocurrency From Scratch (And How It Works)

Yo whats good everyone welcome back to another video today were gonna be talking about blockchain and cryptocurrency cryptocurrency is. Really big right now especially with facebooks announcement of the new cryptocurrency called libra so i decided to look more. Into it what i found was that theres literally thousands of different types of cryptocurrencies on the market right now. So i thought theres so many different versions i might be able to make my own so sit back relax.

And lets make our own cryptocurrency to be able to make a new cryptocurrency were gonna have to understand what. It is the most important thing that cryptocurrencies like bitcoin use is blockchain heres a brief explanation so a block. Is just a collection of data and a chain is a chain of these blocks lets take a closer look. A block contains information including whats called a hash a hash is a unique identifier kind of like a persons. Name its important to understand that this hash depends on all the blocks other data so if you change something.

In the block its hash will change too like lets say you have a friend named michael if michaels hella. Skinny you know him as skinny michael but if michael hits the gym and gets super ripped now you know. Him as big michael because the qualities of michael changed so did his name a block also contains the hash. Of the previous block on the chain as well as other information like transaction data so because all the blocks. Contain their own hash and the hash of the previous block theyre connected in a chain you can think of.

This like people standing in a line each person has their own name and lets say each person knows the. Name of the person standing behind them in line as well as other information such as the weight of their. Own left nut because each person knows the name of the person before them and have their own name we. Could gather all these people and form the same line every time once data is added to a blockchain its. Ideally what we call immutable pretty much this means that once we add data its stored and almost impossible to.

Change it but how does it do this to do this blockchain relies on some called decentralization decentralization means that. It doesnt rely on any central service but instead relies on a peer-to-peer network an example of a centralized system. Is a bank its centralized because the bank stores your money as well as all the transactions in its own. Database which they verify independently you trust the bank with your money but with a decentralized system such as a. Peer-to-peer network responsibilities of storing and verifying data is distributed amongst the people regarding blockchain everybody in this peer-to-peer network.

Which is open to anyone has a copy of the blockchain this is what makes it whats called a distributed. Ledger when a new block is added to the blockchain each person verifies that its okay to add it to. The chain and adds it to their own version of the chain if everything checks out and we have a. Majority of the network or over 50 percent that agrees on verifying this new block then we have what is. Called consensus and the accepted blockchain is updated to include this new block and if someone were to change data.

In the chain or add a block that had tampered data that gave them a million dollars their version of. The blockchain would be different than whats accepted by the majority in the network and this person would not be. Able to get this change onto the real accepted blockchain this is like in the line of people if big. Michael decides to lie and say that his left nut weighs 2 pounds instead of what it actually weighs in. A peer-to-peer network such as a network of millions of doctors that have his original left nut weight data they.

All say no its 0.33 pounds this is really important because if it was based on a centralized system like. One single trusted doctor that just kept the list of all the people in the line and the weight of. Their left nut all michael has to do is bribe this one doctor to write that his left nut is. Two pounds and then it would be verified and everybody would accept that his left nut is 2 pounds when. It is actually 0.33 pounds the last really important concept of blockchain is called proof of work say someone changed.

Some data in their own version of the blockchain they could do this but before it even gets to the. Consensus verification it would break their own version of the blockchain as the chain is no longer intact this is. Because when they change the data in the block its hash changes so the block pointing to it no longer. Points to it breaking the chain so to fix the chain this person could go through and change the hash. Value data for every block and using computers and looping through the entire chain this is actually not that difficult.

To do so to protect against this by slowing down the process a blockchain has a proof-of-work algorithm theres technically. An infinite amount of proof-of-work algorithms but the simplest way for me to understand this was to think about it. Like this imagine theres three variables x y and z were given z and dont know y and have to. Find a value for x such that x times y equals z to solve this we should start by guessing. Any value for x say one we multiply one times y and the only feedback we get is if this.

Value is equal or not equal to z if its not then we should try another value like two and. Three and every number until we get that x times y equals z then once we have this value for. X weve solved this specific proof of work algorithm this value for x is stored in our block and affects. Our hash making it the correct one this is just an example thats really basic and wouldnt actually be implemented. Because its too fast to solve but it has the same concept of brute forcing an answer or literally attempting.

Every possible answer until you happen to get the right one so proof of work algorithms make it really hard. To override the entire blockchain because we would have to go through and solve this long proof-of-work algorithm for every. Single block in the chain with this well-implemented blockchain technology behind stuff like bitcoin and ethereum is really secure however. If someone were to gain over 50 percent of the peer-to-peer network in order to verify some kind of corrupted. Data they could crash the entire system but because of properties of blockchain such as the proof-of-work algorithm this is.

Pretty much impossible to do okay so now were finally done with that i hope it made sense but um. Now we can make the cryptocurrency so we can pretty much use any object-oriented programming language but um im gonna. Use python because it starts with a p and thats rick rosss favorite letter shout out to all the pair. Were gonna start by making a blockchain object and this blockchain contains blocks so were gonna make an object for. That and a block contains data including transactions so were gonna have a transaction object as well and for the.

Blockchain object were gonna have to initialize it to have a chain of blocks which were going to store in. An array and for the block object we need the hash the patch of the previous block as well as. A list of the transactions which were also going to store in an array and were also going to be. Storing other information like the time the block was created as well as the index of the block or the. Number of the block for the transaction object were gonna have the basic stuff like a sender a receiver the.

Transaction amount the time the transaction was created as well as its own hash and for the hash of these. Blocks and transactions were going to be using an algorithm called shasha madigalina 256 which is the same algorithm that. Bitcoin uses to store their hashes for their blocks then we need a function to add blocks to our blockchain. And were gonna test what we have so far with the test function that makes a new blockchain add three. Random blocks to it and then print it out so as you can see here it works because we have.

A blockchain that has three blocks and each block has its own hash as well as the hash of the. Previous block making them connected in a chain so technically right now what we have is the most bare-bones version. Of a blockchain okay so now were gonna have to implement a of work algorithm and remember how i said. The blocks hash depends on all the blocks other data so pretty much were gonna store a value in the. Block and this is gonna be like x in our example or the unknown were gonna call this variable nonce.

And were gonna brute force a solution for this variable until it makes the hash such that its first four. Digits are one two three four the process of solving for this value or nonce is called mining and you. Probably heard this with like bitcoin mining and like that and for our cryptocurrency were gonna pretty much do the. Same thing were gonna have a list of pending transactions or transactions that are waiting to be added to the. Blockchain and when someone minds a block theyre gonna be adding a new block with all these transactions onto the.

Blockchain the person mining is gonna be rewarded some value of our cryptocurrency and this is pretty much how our. Whole system stays stable okay so now were gonna test this by adding a new transaction and mining a new. Block when its mining the block its going to be incrementing our value nonce and checking to see if it. Makes the hash start with one two three four right now theres a delay on the output but lets turn. That off so yeah our computer solved the proof of work algorithm and it came up with if the nonce.

Was equal to 61 601 then it would make the hash of the block start with one two three four. And once we solve this it adds a block to the blockchain storing the transaction now were gonna have to. Be able to verify that each of the transactions that we add to the blockchain is valid and were gonna. Do this in the same way that people sign their checks in real life in order to make those checks. Valid to do this were going to give each person their own set of unique keys a public key and.

A private key with these keys each person will be able to sign each transaction they make in order to. Verify that its valid were going to use a python library called crypto dome in order to generate these keys. As well as sign transactions with the key the cryptographic algorithm that were going to be using to generate these. Keys is called revis ask 76 which is widely used for secure data transmission so now when we add a. Transaction were going to be past the key of the sender and were going to be using this key in.

Order to sign the transaction and were going to test this in a test file that generates a new key. For the sender and makes a new transaction lets see what happens so it generated the keys and i printed. Out the public key and we get confirmation that our transaction was signed making it valid so yeah it all. Looks good technically now we have a cryptocurrency thats function.

Conclusion – How Hard Is It To Create A Cryptocurrency

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