Kasfia Rashid - “Money Matters with Kash the Bookkeeper”
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Hello and welcome to week 7 of our 10 week Build a Business boot camp! Last week we discussed creating crypto businesses, this week we learn how to create our own crypto token! We covered this topic last season as well, check out the replay to catch up!
Creating a cryptocurrency may sound like a great idea, at first. But without some serious coding skills, a rich uncle or two, and a full understanding of legal and government implications it may not be the most feasible idea for this vast majority of us.
The technical creation of a cryptocurrency isn’t even the hardest part of launching a successful crypto project. The real work is in giving your coin or token value, building the infrastructure, maintaining it, and convincing others to buy in, which requires a team of developers and staff.
So; why are we even discussing it?
Because crypto currency is EVERYWHERE and if we don’t get on this band wagon, we will end up regretting it later.
Besides! I am going to show you some FREE ways to dabble in creating your own currency and of course, a couple of innovative ways to start using your new tokens!
Show Objectives - The Why
First, it’s important to understand the difference between coins and tokens. Both are cryptocurrencies, but while a coin—Bitcoin, Litecoin, Dogecoin—operates on its own blockchain, a token lives on top of an existing blockchain infrastructure like Ethereum. Tokens are often released through a crowd sale known as an initial coin offering (ICO) in exchange for existing coins, which in turn fund projects like gaming platforms or digital wallets. You can still get publicly available tokens after an ICO has ended—similar to buying coins—using the underlying currency to make the purchase. Anyone can create a token and run a crowd sale!
Benefits of having your own cryptocurrency:
Eliminating fraud risks — cryptocurrency is impossible to counterfeit and no party can reverse past transactions.
Cutting down operating costs — cryptocurrency is free from the exchange or interest rates, as well as the transaction charges.
Offering immediate transactions — state holidays, business hours or geographic location of the parties don’t affect cryptocurrency.
Ensuring an immediate pool of potential customers — now you can make business with those without an access to traditional exchange resources. No more trade restrictions in any markets.
Providing security for their funds — since cryptocurrency is a decentralized system, there is no Big Brother figure like banks or government institution that can seize or freeze your assets.
The idea behind cryptocurrency is that the underlying code is accessible to everyone—but that doesn’t mean it’s easy to understand.
What You Need to Know
Build your own blockchain—or fork an existing one
Both of these methods require quite a bit of technical knowledge or the help of a savvy developer. Because coins are on their own blockchains, you’ll have to either build a blockchain or modify an existing one for your new coin.
The former takes serious coding skills, and even though tutorials and online courses exist to walk you through the process, they assume a certain knowledge level, and you generally don’t finish the process with a fully functioning coin that’s ready for public exchange.
Alternatively, you can fork an existing blockchain by taking the open-source code found on Github, making a few changes, and launching a new blockchain with a new name. Again, this requires you to understand the code so you know what to modify and why.
Launch a coin or token on an existing blockchain
For the average person who doesn’t know the ins and outs of coding, a creation service that does the technical work and delivers your finished coin or token back to you is one option.
For example, WalletBuilders has a free coin launch tool for those who just want to experiment with the process, as well as a paid package (0.0023 BTC as of this writing) that creates a functional coin.
You can also create a token—what is essentially a smart contract—with or without a public ICO. Because tokens can represent any asset, you can even create a token with no real value or serious purpose other than to exchange among friends.
This is faster, simpler, and cheaper than creating a coin because it doesn’t require the time and effort to build and maintain a new or forked blockchain, and instead relies on the technology already in use for Bitcoin or Ethereum.
This generator on Github, for example, simply requires you to install MetaMask (a blockchain utility for buying, exchanging and storing tokens) and enter a few details about the token you’re launching. There’s a free option if you don’t care much about customization, and plans with more control cost up to 0.75 ETH as of this writing.
If you’re crypto-curious, there’s no penalty to experimenting with token contracts. Start with an ERC-20 token that you can distribute to your friends and then cash in to whoever buys drinks at the bar. There’s no monetary value or commitment attached, but this will help you understand the technical aspect as well as how tokens work. An ICO probably won’t be appropriate for the casual observer because of SEC regulation and steep penalties for misrepresentation.
How to create a Bitcoin fork?
Option 1. Use a fork coin generator.
If you don’t have any programming skills, services like ForkGen might be a perfect solution for you. ForkGen is an automated fork coin generator where anyone can create a unique Bitcoin offshoot by changing some parameters and rules.
Option 2. Do It Yourself.
If you want to take a hardcore way to create a Bitcoin fork and aren’t afraid to get your hands dirty, follow these steps:
Go to Github, find, download and compile Bitcoin code on your computer.
Then, the programming part starts: you’ll have to reconfigure the Bitcoin code, implement your customization.
Publish the code (open source) back to Github.
Provide a website and some kind of documentation (normally a white paper).
Read these amazing articles for more information:
1. Check out Kash’s Youtube Playlist: Bookkeeping basics for small business owners.
Written by Kash the bookkeeper
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