Create own Cryptocurrency: A Step By Step Guide

In this article, I am going to serve you a detailed information about how to create own Cryptocurrency like Bitcoin and Ethereum. And provide you a step by step guide to set it up on a Live Server as well.

What is Cryptocurrency?

Cryptocurrency is a kind of digital asset or virtual currency that uses cryptography techniques to secure its transactions.

Bitcoin, Litecoin, Ripple & Ethereum etc. are the best cryptocurrencies in the world. These are frequently called altcoins, as they all are alternative currencies.

There is one more name blockchain technology is very popular in cryptocurrencies network.

What is Blockchain?

Blockchain is simply a decentralized ledger that keeps records of all transactions that take place across peer-to-peer network.

All the transaction’s details are stored in multiple blocks, and each blocks are connected with each other so that they create a chain of blocks that’s why it is called Blockchain.

There is a video by Simply Explained – Savjee which let you understand easily what actually a blockchain technology is.

How To Create Own Cryptocurrency?

1. Creating Block-chain

There are plenty of full featured Open Source Blockchain available out there. Even anyone can fork the existing Bitcoin’s or Litecoin’s blockchain from Github as well.

Actually we are also going to use an open source technology for our block-chain. Because developing a block-chain from scratch is obviously a big deal and it would definitely cost you a huge amount of money.

We are going to use Multichain to create our cryptocurrency. Multichain is an open source blockchain platform provider. You can learn more about Multichain at their official website.

So lets get started :-

Downloading & Installing Multichain Blockchain on our Live Server

As we are going to install our block-chain directly on a live server, so access your server using SSH via putty as administrator (root access) and run following commands one by one.

cd /tmp

wget https://www.multichain.com/download/multichain-1.0.4.tar.gz

tar -xvzf multichain-1.0.4.tar.gz

cd multichain-1.0.4

mv multichaind multichain-cli multichain-util /usr/local/bin

Full instructions for installing multichain’s block-chain are given at their official page here.

Great! we have installed multichain on our server, now its time to create a block-chain. To create it run below command.

multichain-util create ourchain

ourchain is our blockchain’s name you can name your chain whatever you want.

2. making changes in chain

Okay! now our blockchain has been created and we just need to start it. But I recommend you to make changes as per your need in chain before starting it, because blockchain doesn’t allow any amendments when  it gets started.

I know you all are wondering what changes can we make in our blockchain? So I’m listing down some of major parameters you should change as per your need. Although you can always check all the parameters provided by multichain at their blockchain parameters page.

So access your server using SSH via putty as administrator and run below command

nano ~/.multichain/ourchain/params.dat

Following are the parameters you need to work on.

• chain-description
• chain-is-testnet
• first-block-reward (this would be your total coins in your cryptocurrency economy)
• anyone-can-connect (set it to true)
• anyone-can-send (set it to true)
• anyone-can-receive (set it to true)

after making all the required changes you just need to save the params.dat file.

3. starting the blockchain

One you have made changes you are ready to go. So access you server as root (administrator) and run below command to start your chain.

multichaind ourchain -daemon

This command would generate your First Block which is called The Genesis Block.

4. Testing our cryptocurrency.

Access server using SSH via putty as administrator and run below command

multichain-cli ourchain

This command let we enter into interactive mode. For checking chain’s information run getinfo command.

In next article we will learn Blockchain’s operations i.e. to create new wallet address, send coins to other wallets etc. Subscribe us and don’t forget to share this article with your friends.