Cryptocurrency development: Coins or Tokens?

In the world of crypto-currency, you can often hear the words of Coin and Token, and it may seem that they are different names of the same, but this is not entirely true.

Coin.

A coin is called a crypto-currency with its own blockchain, which was created from scratch, or developed based on the fork of an already existing crypto currency, for example Bitcoin or Ethereum. This implies having your own nodes to maintain your own protocol, user community and technical team. Also you can find the term Altcoin (alternative coin), so is called any coin except Bitcoin, which until some time was the only crypto currency that uses blockchain technology.

Crypto-coin examples:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Universa (UTN)
  • Waves

Currently, Polygant is developing several coins of varying complexity.

To develop a coin, we take the actual source code, make the necessary changes to it and compile. Usually, the development consists of the following stages:

  • Compilation of the coin + wallet core for Windows and Linux
  • Deploying 2 primary nodes
  • Creating a block explorer and a mining pool
  • Compiling mobile wallets (iOS and Android)

If you do not need significant changes in the core, the coin creation takes approximately one month and costs from $25,000. Separately, integration with web services and a web wallet can be worked out.

Token

The main difference of the Tokens is that they do not have their own blockchain and supporting nodes, but use a blockchain of existing coins. Most often for this, the Ethereum blockchain is used, although such functionality is also provided in some other coins, for example, Omni. Despite this, Tokens can also be listed on the exchange, they can be used inside projects as an internal currency or a certifier. In order to release your token, it is necessary to form a Smart contract and “cement” it in the blockchain.

Token examples:

  • Golem
  • Tether
  • EOS

You should, however, bear in mind the important feature of tokens on Ethereum. The fact is that for any transactions, including the transfer of tokens between wallets, the GAS is spent – the network commission, which costs a certain amount of ETH. Thus, to carry out the transfer from the sender there must be not only Tokens in the wallet, but also some amount of Ether, and this is not always convenient.

The development of a smart contract takes from 1 week and costs from $3,500. Separately, integration with web services and a web wallet can be worked out.

Top 10 tokens by capitalization as of December 2017

As you can see, the capitalization of some tokens is not inferior to coins.

Adding cryptocurrency to the exchange.

After the release of the token or coin, a reasonable question arises – how to provide an opportunity to trade – buy, sell, change? To be able to perform operations it is necessary to add the issued coin to the listing on the exchange. Usually this requires three things:

  1. The coin must have a community, communication channels, such as Telegram, Facebook, Twitter, etc.
  2. Listing on the exchange costs money, and the amount varies greatly depending on the fame of the exchange, starting from $1000 for unknown exchanges and ending with hundreds of thousands of dollars for popular ones. Moreover, the popular exchanges add a coin to the listing only when it has proved its worth, and has large community.
  3. A technical team that will solve all the technical aspects of integration.

Our developers have significant experience in developing both smart contracts for token issue, and in creating coins with own blockchain. Will help you with pleasure!

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