Can You Have Your Token or Coin?
Blockchain technology has shown the tech and business world the
different and easier ways of doing things. Transparency and speed have been
introduced. Middlemen are being bypassed. International exchanges are now
easier to facilitate without governmental intervention. I’m sure you’re
benefiting in one way or the other from what has been made possible by this
Over the past few years, investing in blockchain technology has
been dominating public debates. Contrary to what most people thought, there are
many ways to invest in blockchain technology other than cryptocurrencies.
Blockchain technology also involves companies offering cryptocurrency-related
services (such as exchanges where you trade currencies) and companies building
their blockchains for other purposes relating to their business or industry.
Therefore, you can invest also in either of those companies.
But what really is blockchain technology? How can you invest
in it? What else can you do with blockchain technology other than buying and
selling coins? What is the difference between a token and a coin? Are you one
of those looking to investing in this technology but are scared because you’re
not sure you have the expertise?
What Is Blockchain
Now, let’s remind you about what blockchain technology means.
A blockchain is a database usually operated by a distributed and public (and
recently private) network of participants. A blockchain built by individual
companies is known as "permissioned" blockchain. Building blockchain
entails the creation of public digital records of transactions (more often),
certificates, or contracts that cannot be changed or deleted but can only be
The whole idea is about using a "consensus
mechanism" that will see multiple participants using cryptography to
validate every new entry. By the way, cryptography is the science of encrypting
or coding data. Participants don’t have to rely on a single entity to enter new
For that reason, no third party is needed. There’s no room or
role for banks, regulators in blockchain technology since it’s a shared process
secured by cryptography. That's why we say middlemen and intermediaries have
been removed from the process. For that reason, it has created a framework that
facilitates efficiency, transparency, and trust across participants and
Why Should You Invest
in Blockchain Technology?
When you think about how blockchain technology has improved
efficiency, transparency, and trust, you’ll see that that the technology has
become a more attractive investment opportunity which you can’t afford to miss.
Its applications are spread across a wide range of industries. Companies
implementing blockchain tech in those industries will soon (or are already)
gaining competitive advantages over their rivals.
Corroborating this, Hadyn Jones, an experienced blockchain
market specialist says: "Using blockchain, organizations can build greater
trust and transparency in areas such as the provenance of pharmaceuticals, food
ingredients, or parts. Solutions can also be created that support commercial
transactions, the issuance and trading of securities, and cross-border
Another professional report gave an economic estimation of
blockchain tech as having the potential to boost the global GDP by something
close to $2 trillion over the next decade. Understanding this, investors are
keying into the leading companies with the capacity to deliver most in those services
related to blockchain. Also, remember that the absence of regulators and
intermediaries has reduced costs and increased profits. So it can earn your
business more revenue to raise your stock shares and the portfolios of
Remember also that investing in blockchain may simply mean
investing in companies that deal specifically with cryptocurrency and those
that have invested in it. Since the performance of such companies revolves
around the performance of cryptocurrencies in the market, there's a greater
likelihood of an increase in worth in correlation with prices and values of
coins and tokens.
Token and Coin
Some investors are getting more confused and probably
intimidated by the properties of coins and tokens. This is because the two
terms are often used interchangeably even though they are hardly the same. Well,
crypto, like any other field, has its own vocabulary. Thus, uncertainty is
arising from the technical nature of crypto. For that reason, it's difficult to
fully understand blockchain operability without a fairly decent amount of
technical knowledge. But it can be broken down.
Summarily speaking, the main difference between tokens and
coins is their construction. Note at this point that crypto coins have their
blockchain independent of none other. That blockchain undergirding a coin
functions independently. This is what actually keeps transactions verified and keeps
the coin secure and subsequently gives it its value.
A crypto token, on the other hand, doesn’t have its own
blockchain. Tokens are built on already existing blockchains. The goal is usually
that a token should transform into a coin eventually. At this point, as the
owner of the coin, you will have to develop your own blockchain on which your
coin will be built and operate. Until then, however, your coin must dwell on an
To break it down further, consider building construction. The
house must have a foundation. That’s essentially what the blockchain is. A coin
built on it needs a foundation to rely on but it doesn’t rely on another
building. The blockchain is what holds the currency structure.
A token, on the other hand, is like an addition to an already
existing building. You don’t need to pour a new foundation before adding another
floor to the building. Its strength and stability depend on those of the coin
serving as its base. However, some cryptocurrencies are powered by applications
running on the Ethereum blockchain.
Perhaps the uses of the two can explain better the difference
between coins and tokens. The value of crypto coins is inherent in their
blockchain. This implies their exchangeability and tradability. This also means
crypto coins are divisible into smaller units while maintaining their
consistent value at a given time.
Consequently, crypto coins can be traded and converted into
fiat currencies easily in fairly straightforward exchanges. Additionally, you
can buy products and pay for services using those coins since they have
corresponding fiat currency value.
As for the crypto tokens, the primary use is in initial coin
offerings (ICOs). Therefore, it’s a way to crowdfund your new business's
startup capital. You need blockchain like ETC, BTC, or BNB to create and launch
your token. You can now invite investors to purchase and hold your tokens for
future uses or trading when fully developed.
Some companies are using the funds raised in the ICO to
kickstart their business operations. Holders of such token are in effect
shareholders in those companies. When the company transitions its token into a
coin, the token holders will subsequently convert their tokens into coins that
take on all characteristics of coins in the regular crypto landscape.
How Can You Build Your Own
Did you know that you can create your token or coin? Don’t
get scared! It doesn’t take an astronomic science. At any rate, that’s why we
at Mikevicone Innovation are here for you. But before offering to go through
the process for you, we would love to
go all the way with you so that you
can understand what it means to build your blockchain network from the ground,
create your own forked-coin crypto, and use Ethereum, to create your
Building your blockchain from the
Building your blockchain network from the ground up is not
easy at all. It’s the toughest way to create your cryptocurrency. Remember that
a blockchain network engages a complex system of unrelated computers that work in
consensus to perform a task. You need to come up with a code that powers your
blockchain in order to perform that task before you can convince a community of
miners to support it.
You also need to see blockchains as distributed ledgers to be
used for tracking values which are recorded and then transferred using native tokens.
There must be users of your cryptocurrency for it to have any value. If your
coin has no value, no miner will be interested in it. Your network will simply
fall apart and will not be the best choice for businesses and individuals.
As developers are studying the challenges of the pioneer
cryptocurrency, Bitcoin, with scaling, security, and consensus, they have tried
to improve on the concept. Don’t get confused, you may not need to create your
own from the scratch. You need to do so only if your blockchain network is
going to be for your business, if you are a developer, or you intend creating a
blockchain that will be on top of them all. At any rate, we can support you regardless
of your status or goal.
Creating your own forked-coin
This is a slightly simpler method. It requires that you use
an existing blockchain in creating a new but nearly identical blockchain.
Examples of forked-coin cryptocurrencies are Litecoin and Bitcoin Cash. LTC began
as a copy of the BTC protocol but with increase transaction times because it
has “lightened.” As soon as the code was ready, the developers launched the
protocol. With that, Bitcoin miners could begin mining Litecoin as well.
Bitcoin Cash, on the other hand, began as a difference of
opinion between miners of Bitcoin. At some point in mining when a certain block
was reached, some miners in the blockchain decided to do things another way
while the rest miners decided for a different way. This led to the development
of another coin known as Bitcoin Cash.
Use Ethereum to create a
Ethereum is proof of how you can use a cryptocurrency to
create another using a decentralized app, dApp, or smart contract. Ethereum is
a second-generation blockchain and the native cryptocurrency is Ether. Most of
the cryptocurrencies based on Ethereum follow the erc20 standard.
Making an erc20 token requires that you the creators form a
“smart-contract” that determines how the new token will function and what it’s
meant to do. Those instructions must conform to Ethereum’s best practices. The
value of the new tokens created by the smart contract is determined in a number
of different ways, but all linked to the new token's purpose.
Examples of Successful
Builders of Blockchains
The cofounders of Ethereum are 8 namely Vitalik Buterin, Hoskinson, Gavin
Wood, Anthony Di Iorio, Amir Chetrit, Jeffrey Wilcke, Mihai Alisie, and Joeseph Lubin. Of all
these, only Vitalik Buterin is still actively working on the blockchain
platform. Others have shifted their attention to something else on the
blockchain or somewhere else.
The 8 cofounders in a meeting on June 7, 2014, in a rented
house in the woods, decided to build what was to become the second-biggest
blockchain in the world without signing any document.
Vitalik Buterin: The Russian-Canadian 19-year-old
Vitalik Buterin was a computer scientist and Bitcoin Magazine writer.
Alisie: The Cybernetic Economics graduate was earning a modest
living coaching and playing poker in Romania his home country when he heard
about Bitcoin. He contacted Buterin in 2011 and the rest is history.
Iorio: The Toronto-born had family money he invested in marketing
and ventures, precisely the geothermal drill business before Bitcoin grabbed
his attention. In November 2012, he met Buterin and he was asked to become a
Chetrit: The Israeli-American Amir Chetrit, was pursuing a degree in
computer science when he attended a Bitcoin business conference in Amsterdam in
Hoskinson: The Hawaii-born Charles Hoskinson had his eye on becoming a
mathematician before becoming disillusioned with the career. His experience
while being raised in Colorado has taught him how to raise money for a
decentralized exchange. He quickly grabbed the opportunity to pursue the
Ethereum dream and became one of the original co-founders. He was named the CEO
in December 2013.
Amir Taaki and Johnny Bitcoin, the Bitcoin evangelist introduced Gavin
Wood, the British computer programmer, to Bitcoin before he got in touch with
Buterin with whom he struck the deal to write an implementation of Ethereum.
Today, he considers himself the real founder of Ethereum.
Jeffrey Wilcke: This Netherlands-based computer
programmer heard about Ethereum while working on Mastercoin, the first ICO. He
wrote it first in Google’s Go language before renaming it Go Ethereum.
Joeseph Lubin: This is the
most experienced of the cofounders. A 1987 graduate of electrical engineering
with a diverse career in software engineering, business, and music became
interested in crypto and contacted fellow partners to become Ethereum's
Hoskinson: After his brief stint with Ethereum, Hoskinson started
experimenting with Ethereum Classic as a rival blockchain which was born out of
2016 Ethereum’s controversial hard fork. After launching Cardano which rose to
become the sixth-biggest cryptocurrency by market cap, he keeps rolling out new
The two renowned crypto gurus, Jed McCaleb and Chris Larsen
were the brains behind Ripple and its XRP token. McCaleb owned a part of the
ill-fated Bitcoin exchange Mt. Gox while Larsen had been a Silicon Valley entrepreneur
who founded e-Loan, an online mortgage platform in 1996. Investors in Ripple
now included Accenture, Andreessen Horowitz, Santander, and Standard Chartered
Palmer: With the help of Billy Markus, Palmer founded Dogecoin like a
joke on Twitter. The idea was to make cryptocurrencies more fun and
You can see that these founders and cofounders are from
common backgrounds. You don’t need to be special to build your token and coin.
If those folks can successfully do it, you too can do it.
Talk to us about your idea, goals, and challenges along the
line. We shall be willing to assist you in building your own blockchain.