Build a Cryptocurrency from Scratch - Blockchain project

Published on 11 May 2021. Written by Dineshkumar E

Cryptocurrency has become a hot topic these days, which was once an academic concept and is now adopted in various industries. In this blockchain project, we will learn to develop a cryptocurrency from scratch. So just assume that you are going to launch a startup or business and you want to adapt your business to the new world by creating your own cryptocurrency. This blockchain tutorial explains all the concepts such as What is blockchain, what a cryptocurrency is, and how to make your own cryptocurrency.

Read more..

SLNOTE


What is Cryptocurrency?

Cryptocurrency is a digital currency that can be exchanged through the internet using cryptographic functions. It is used to conduct financial transactions. Cryptocurrencies use blockchain technology to gain transparency, decentralization, and immutability. Below are some advantages of using Cryptocurrencies:

• No middle man - Cryptocurrencies don’t require any middle man thus transactions will happen quicker, faster, and easier without any additional transaction free. 
• Fraud detection - Since the transactions are made on a blockchain everything is transparent and the data cannot be altered.
• Decentralization - Cryptocurrency uses a decentralized network to equalize financial infrastructure across different boundaries.
• Security - Transaction records are distributed in a network of computers thus it is difficult for hackers to infiltrate. 

SLLATEST
Project Implementation

Cryptocurrencies use blockchain to operate that you need to create a blockchain first. Below are the steps you need to follow to build a blockchain:

1. Know your use case - Decide your business interests whether it focuses on smart contracts or asset verification or data authentication, etc. It is important to decide the objective before starting
2. Decide a Consensus mechanism - Consensus mechanisms are protocols that make blockchain to operate smoothly by making the nodes to accept a legitimate transaction and adding it to a block. 
3. Choose the right blockchain platform based on the Consensus mechanism here are some suggestions Ethereum, NEX, CoinList, IBM blockchain, Waves, NEX, EOS, etc.
4. Design the nodes - Node is an internet-connected device that supports blockchain by storing the data and verifying transactions. Node provides efficiency, support, and security for a blockchain. 
5. Establish the internal architecture of the blockchain - It is better to double-check some parameters as it cannot be changed once the blockchain starts running. 
6. Check whether the chosen blockchain platform provides the pre-built API’s or select a reliable blockchain API provided from the following: GEM, ChromaWay, Bitcore, Colu, BlockCypher, etc.
7. Design the interface such as Web, mail, external databases, FTP servers, and the front end web interface to ensure better communication.
8. Make your cryptocurrency legal - The laws for blockchain are slowly catching up so it is better to look after the cryptocurrency regulations. 

Benefits of having your own cryptocurrency

Having a cryptocurrency for your business will provide many advantages for your business:

• Eliminates frauds - It helps in reducing frauds as no one can reverse the past transactions. 
• Reduces operating costs - Cryptocurrency is free from interest rates and transaction charges.
• Offers quick transactions - holidays, emergency, peak hours - nothing affects the transaction of cryptocurrency
• Security - Since cryptocurrency is decentralized no financial institution can freeze or seize your assets

SLDYK
Kit required to develop Build a Cryptocurrency from Scratch - Blockchain project:

• Python

Technologies you will learn by working on Build a Cryptocurrency from Scratch - Blockchain project:

• Blockchain

Any Questions?