Creating a New Cryptocurrency Based on Idea Submissions ー Blockchain

The buzz around blockchain and cryptocurrency might be something that doesn’t let you sleep at night, annoys you, makes you excited or desperate to engage with the new technology. But one thing is certain: cryptocurrency doesn’t leave you indifferent.

To understand how you could benefit from blockchain technology, let’s discuss how cryptocurrencies are created and what do they mean for the global society in the first place.

What is cryptocurrency?

Although the phenomenon of cryptocurrencies is still not fully understood by many people and called the “unicorn of the 21st century,” the global market of cryptocurrencies is strengthening very quickly.

The first cryptocurrency was Bitcoin introduced in 2008 as the open-source transparent digital currency not vulnerable to any manipulation during the exchange. Basically, the creation of cryptocurrencies means building a cash system with no central entity, based on the decentralized network. Thus, the basic cryptocurrency definition can be the following: the currency with no physical form used for transactions that can be controlled by all users of a decentralized network.

What is blockchain technology?

Blockchain ledgers and decentralized transactions build the blockchain technology that is the underlying mechanism of creating cryptocurrencies. Blockchain comprises all transaction records conducted within the network in the specific data blocks that use cryptographic validation. Since the ledgers aren’t stored in any centralized location, the system is based on a database of transactions sustained on different computers, which accounts for high security and transparence.

Reasons for creating your own cryptocurrency

Now let’s talk about the “whys.” Why should people bother creating their own cryptocurrencies? Check out these essential benefits behind blockchain activities:

• Avoiding the risk of fraud. The use of cryptocurrencies allows people to purchase any goods and services without any risk of their money being somehow manipulated.
• The privilege of anonymity. With cryptocurrencies, it’s possible to sustain any transactions anonymously, without the risk that governmental institutions can track your financial activities.
• Staying ahead of competition. For those businesses dealing with payment systems, the availability of their own cryptocurrency can provide a cutting-edge advantage in terms of letting clients be more flexible in terms of transaction processing.
• Attracting talents. Digital awareness is an important asset of both large businesses and startups. By setting up cryptocurrency creation contests, new ambitious teams of professionals can be discovered.

The process of creating a new cryptocurrency based on idea submissions – Blockchain

Even with the basic coding skills, it’s possible to understand how to make a cryptocurrency. The major challenge is getting the most out of the blockchain activities based on ideas submission. Here are the essential steps you should take to build a smart blockchain strategy:

• Create a relevant concept and attract community. To start a new cryptocurrency, it’s not enough getting some random people together and forwarding a task to them. Cryptocurrencies have to be aligned with the actual real-life issues to serve certain purposes. Think of the problem that a new cryptocurrency can solve and find a team of people, who think they can benefit from the solution. Only this way are meaningful ideas born.

• Focus on the long-term perspectives. It’s not the coding part which is so difficult. Catering for the prevention of possible breaches and bugs, as well as building the long-term value takes the lead here.

• Conceptualize your cryptocurrency. To get the miners onboard and ensure that the created cryptocurrency will be useful for some organization or business, you have to conceptualize it. Underline the unique assets of the new currency, build trust with the clients, and get it going!

Tips for creating a new cryptocurrency

The best solution for cryptocurrency creation is launching a contest with distinct rules that would be set on demonstrating the value of the new coins. Running a blockchain competition can help you make an investment into the promising projects and startups or find the team of professionals. We’ve collected some tips to help you get started with creative cryptocurrency creation:

• Run a startup pitching with the task to create a new cryptocurrency. If your aim is rewarding the digital competencies of young professionals and finding the ambitious team to invest in, creating a new cryptocurrency is a great idea. You can set the creative task or encourage people to follow the specific set of requirements for the new currency – it’s up to you. The main goal is gaining a valuable solution.

• Reward the best digital cryptocurrency portfolio. As it’s been mentioned before, the greatest value of any cryptocurrency it the effects it can produce in the long run. To demonstrate the sustainability of blockchain technology, you can set up the competition on digital coin creation, complemented by the task to build a portfolio for the new currency. This means people will have to predict how the currency can be used after being stored for 5 years.
• Organize a smart contract contest. To start with the problems that have to be addressed and not with cryptocurrency itself, present participants with some legal or financial issues that they have to be solved by creating the new blockchain cryptocurrency.

The best examples of cryptocurrency

Apart from the father of cryptocurrency, Bitcoin, there’s a huge range of alternatives, some of them offering very smart transaction benefits, the others impressing you with creativity:

#1. Litecoin (LTC). Although it has a lower value than Bitcoin, Litecoin offers much faster rate of block generation and transaction confirmation.

#2. Ethereum (ETH). The great solution for building Distributed Applications and Smart Contracts on the basis of a secure network system.

#3. Dogecoin. A peer-to-peer currency recognized due to the popular Japanese meme label depicting the Shiba Inu. Vibrant community and relatively high market value turn this currency into a strong Bitcoin competitor.

To start a cryptocurrency, you need a powerful contest idea and an automated awards system to accelerate the process. Whether your end goal is investing into a team or showcasing the expertise of a new startup, creative contests are the best solutions for spicing up cryptocurrency launch.
If you want to experience the power of online contest management, get started with Judgify.