Basic things needed to create a cryptocurrency
Here is a really, really, REALLY condensed answer to your question. Just the key bullet points:
I suggest that you be or partner with a good coder.
Then, study Satoshi's original white paper.
Next, decide of you will be creating a Bitcoin fork, or something completely different.
3a. Option A: Bitcoin Fork
If you want to emulate a massively popular currency, perhaps tweaking it to be more efficient, adding features or addressing shortcomings, then download and begin studying the Bitcoin core. It is completely open source and freely available to copy. You can create an “Elijah Coin” in just a day—and then begin adding improvements.
But beware! If you keep any part of your mechanism proprietary (secret), then no one will use your coin. It must be open source and free to copy or modify. For this reason, Bitcoin, itself, may freely fold-in your features and improvements. And they already have achieved a global supply/demand network. This tough truism will force you to assess your motives and goals.
3b. Option B: Not a Bitcoin
If you want to create a unique digital coin, or some type of a voting/contract mechanism,* it is a good bet that you should still base it on a blockchain architecture (distributed, crowd-source ledger, with mining rewards to grow the validation pool).
Why? Because the blockchain is the most transformative development in trust and validation since the emergence of the global Internet—or at least since the advent of RSA public-key encryption. Unless you have the inspiration and chutzpah to eclipse Staoshi’s child, consider building your new coin on a foundation that is pre-qualified, because it has already built a winner.
- Ethereum is not a currency. It addresses a different market than Bitcoin. But still, it is built on blockchain technology.
- Next, decide some basic things about your starting conditions and supply cap…
Do you want to pocket the first 10% of all wealth. (Hint: Don’t do it. Doing this will fail to generate trust and adoption). You must not set yourself up to be any more important or entitled than any other user.
Do you want to tie an initial corpus to existing Bitcoin ownership (Hint: Do this or you will fail. Mastercoin did this, and it is likely the reason that it is a viable contender for representing stored value.
- Promote your new baby.
Satoshi was first, he was brilliant and he was lucky. Market timing was impeccable. You no longer have any of these things going for you. In fact, you must punch open a window of opportunity. So, you will need three things to divert attention to your project:
A pithy, catchy and crystal clear elevator pitch
It must be supremely compelling
Therefore, it must convey high value and low risk
Don’t expect the world to understand your new currency. Pundits are brutal. Viral adoption is long shot. Therefore, a critical component of your pitch is the adoption plan. Throughout the adoption plan, you will be reinforcing your explanation as to the user benefit.
Why does anyone need your cryptocurrency? Differentiate. Make the value seem obvious. Explain barriers to entry.
Speaking of adoption, you will need financial backers (at least USD $2M)—or lots and lots of TV and magazine editors in your back pocket. Start cultivating them during the early phase, but size them up early. Editors who don’t quite get the value
proposition will hurt you more than help you. (Walt Mossberg of the Wall Street Journal almost killed a venture of mine because of a subtle misunderstanding).
That, in a nutshell, is my action plan for launching your new cryptocurrency.
Good luck ✌️