How to emit own cryptocurrency?
How does cryptocurrency emission differ from token creation and what advantages does it give?
A private blockchain deployment allows you to issue your own cryptocurrency. The easiest way to do this is hard fork of one of the existing cryptocurrencies. Hard fork must be executed from the very beginning of the blockchain in order not to charge a new cryptocurrency to the holders of a real cryptocurrency, based on which the hard fork takes place. Own cryptocurrency in frames of private blockchain is a very convenient tool for many businesses.
Private cryptocurrency advantages vs tokens
– Independence from third-party blockchains, the most common of which is the Ethereum blockchain. When issuing Ethereum tokens, no matter security or utility, the project totally dependent on the Ethereum network. In case of network load, transactions delayed. And for the transactions themselves, users must have Ethereum (ETH) currency to pay gas fee. That is not convenient and implies the mandatory buying of Ethereum to send transactions.
– Fees in the Ethereum network go to miners, while in a private blockchain, the transaction fee is the income of the system holder. The holder also sets the fee margin and can adjust it as he wants.
– Within own blockchain, it is much more convenient to implement control over the entire emitted cryptocurrency mass. You always know the current location of every coin issued and you can track the entire transaction history from the very beginning. Wallet addresses can be linked to the certain users within a specific business model.
– Blockchain transactions are irreversible. The data stored in the blockchain will boost the level of user’s confidence. It is relevant for any business sphere, where the degree of customer involvement directly depends on objective indicators (gambling, product and equipment life cycle, voting results, etc.) – Safety. Funds on users’ wallets are protected from 51% attack, when miners controlling 51% of the network hash rate can manipulate user payments (double spending).