If you’re very interested in cryptocurrency but you don’t have much experience in coding, you might be wondering if you can realistically create your own. The good news is that you can, although there’s a lot to keep in mind before you get started with your own niche cryptocurrency.
The first thing you need to learn is the difference between a token and a coin. They are both cryptocurrencies, but a coin (such as Bitcoin, Litecoin, Dogecoin) uses its own blockchain, while a token exists on top of a current blockchain infrastructure (like Ethereum). The most simple and easy to understand definition of a blockchain is a record of all the transactions that are made and secured on the network. This means that coins have their own transaction records that are independent, but tokens rely on their blockchain network to verify the transactions and secure them.
Coins are usually used to exchange and transfer wealth whereas tokens represent contracts like physical objects, loyalty points, and event tickets. Tokens will typically be released through crowdsale known as an ICO, short for initial coin offering, as an exchange for existing coins. These will in turn support projects such as digital wallets or gaming platforms. Even after the ICO is over, you can still get tokens that are publicly available by using the underlying currency.
In reality, anyone can make a token and do a crowdsale, but ICOs aren’t as clear cut as they used to be. The Securities and Exchange Commission is focusing more on regulating ICOs and regulating tokens just like stocks. Investors are highly cautioned to research before buying tokens because so many creators are taking the investor money and disappearing.
The idea of cryptocurrency is that the code behind it is accessible to all, even though it’s complicated to understand. You can either build your own blockchain or use an existing one. If you don’t have the technical knowledge, you can team up with a developer….
… Continue Reading at: cryptodaily.co.uk [source]