Cryptocurrency is a word that you cannot avoid nowadays because it is everywhere. It has taken the world by storm and changed the way we complete transactions and invest our money. While the market was volatile a couple of years ago, over the last few years, things seemed to have stabilized. With the global cryptocurrency market skyrocketing in recent years, it is safe to say that cryptocurrency is here to stay, at least for a while. Hence, everywhere from news to financial blogs to social media gets flooded with news related to cryptocurrency every couple of days. The world is literally changing right in front of our lives. Do you want to be a part of this change? Are you interested in building a cryptocurrency website for business? Do you want to cash in on all this buzz and try to make a business out of it? If so, then here’s a look at some of the major problems you need to solve in order to do so. Here are some tips on how to create a cryptocurrency website and side-step the major flaws.
What is a cryptocurrency?
While we normally tend to think of banknotes and coins when someone says currency, cryptocurrency is a truly novel concept. Currency, in essence, can be any kind of storage unit or medium for exchange that has some inherent value due to external factors. In essence, it is a globally accepted standard using which you can trade other goods and services. Cryptocurrency aims to transform commerce by being a digital currency that relies on encryption and mining for its value. It does everything a Euro or a Pound does, but without being physically present. Therefore, instead of banks that hand out notes, we have an encrypted, centralized platform that hands out these coins.
Benefits of Cryptocurrency
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In case your startup or business requires blockchain technology to work, creating a digital currency helps to give some extra incentive to the nodes which power your processing.
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Studies clearly indicate that blockchain has the power to be the next great disruption in the field of technology. Therefore, having your own cryptocurrency can give you a big advantage in the years to come.
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It is an upcoming field and hence, you are still early to the party, meaning it is easier for you to monetize.
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Brings along with a plethora of powerful marketing and analytic tools
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Eliminates the risk of fraudulent transactions and payment portals
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No chance or risk of counterfeiting
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Helps in providing customer’s payment anonymity
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Since there is no exchange rate, it brings down the overall operating costs
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Never need to worry about bank business hours again
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Allows for real-time, 24*7 transactions
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Eliminates trade restrictions
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Better security for funds as everything is decentralized
Major Challenges of Building a Cryptocurrency Website
Security
One of the main reasons people invest in cryptocurrency is because it is a safe and secure option. Therefore, you need to make sure that the website you create is incredibly safe and secure, making things easier for customers. Most users will expect the website to be untraceable and hidden, meaning you will need to encrypt heavily.
Liquidity
Liquidity is the factor that helps cryptocurrency handling websites make money and crypto exchange development companies help them in achieving this, as it is a major revenue-generating factor. It is this property that enables them to have higher trading volumes than more traditional forms of transaction platforms. However, platforms can also face heavy losses due to liquidity, if they are not careful. There has been a significant reduction in liquidity due to the rising number of trading platforms. In 2013, there were only 70 trading sites, whereas the number now lies above 250! Hence, a lack of liquidity increases transaction costs, reduces asset value, and gives rise to delays.
Speed of transactions
Another important challenge is the time taken to complete each transaction. Due to the rising number of trading websites, this speed has reduced dramatically. This essentially slows down the entire industry, as it makes users wait longer to get their transactions done.
Scalability
Scalability is what is preventing this system to reach out to a larger audience. This issue arises due to cryptocurrency platforms having to limit the total number of transactions happening in a given interval of time. While this limit helps in keeping the blockchain from going out of control, it makes it very difficult to scale the operation.
How to Create a Blockchain?
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Do your research and define your objectives first.
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Create or select an appropriate consensus mechanism which allows your nodes to differentiate between a legal and fraudulent transaction
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Select a blockchain platform according to you needed. Some of the most popular ones out there are Ethereum, WAVES, CoinList and MultiChain
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Start building the actual blockchain by designing and creating your nodes
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To do decide on whether you want a private, public or hybrid node. Then choose whether you want to host on a cloud, premise or combination of both.
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Next, buy all the supporting hardware such as processors and disk size.
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Choose an operating system and start creating your nodes.
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Set up an internal architecture for your Blockchain, including decisions regarding permissions, address formats, asset issuance, multi signatures, and parameters.
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Choose a reliable API for your platform from popular ones such as ChromaWay, Neuroware, and GEM.
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Then, move onto designing the interface of your platform and try to make it as intuitive as possible
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Lastly, once you are done, start on the process to make your cryptocurrency legal!