Nowadays, cryptocurrency has become a global phenomenon caught eyes of the market, investors, businesses, startups, and tech peoples. Many of Businesses and Startups thinking to launch their own token in the market to but few of them really know about the meaning of digital currency and blockchain technology.
Let’s remind what is Cryptocurrency?
It is a digital currency designed to work as a medium of exchange e.g. bitcoin, ethereum, and ripple.
“The future of money is the digital currency” – Bill Gates
Blockchain in Cryptocurrency? Is it a base on which it builds?
It is a technology used to jointly manage the database and records cryptocurrency transactions. It is an underlying technology facilitates to transact and eliminate the need for an intermediary.
Yes, blockchain is something which you must require to create your token i.e. cryptocurrency. Not all blockchain allows to create your own token, the only ethereum allows you to create your cryptocurrency on the top of ethereum.
Pros of Launching your own token:
- Cryptocurrency is transparent. All transactions are being recorded as it uses blockchain technology.
- Simple, easy and quick to create your token using ERC20 (ethereum). Still, you require knowing how to program.
- You can launch ICO (Initial coin offering)for your business to raise the fund
- It doesn’t have any identity of the user other than the token address
- You can allow the user to make your token as a medium of exchange in case of you have multi-product business
- Portability: unlike fiat currency, a number of tokens can be transported easily without detection.
- It uses other Cryptocurrency platforms as a base which causes dependency of the price of the base blockchain. Change in ethereum price cause impact on the price of your token as well.
- It requires knowledge of blockchain, and specific programming technologies e.g. solidity, truffle
Well, after considering all the pros and cons for creating new token is totally depending upon the intention and requirement of your business respecting all the facts.