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Tuesday, August 16, 2016

A Guide to Cryptocurrencies


Types of Coins: 
SHA-256 (Ex: #Bitcoin ) 
Scrypt (Ex: #DOGE ) 
X11 (Ex: Dash ) 
Blake-256 (Ex: Decred ) 
CryptoNight (Ex: Monero ) 
Dagger Hashimoto (Ex: #Ethereum ) 
1CC/2CC/TWN (Ex: Primecoin ) 
ECDSA (Ex: Ripple )  


Many people have heard of Bitcoin, and more and more people are learning about Altcoins, but it’s not always easy to figure out how to make these coins yourself. So this is a guide for anyone who wants to create their own coin, as well as some History of Cryptocurrency. A Cryptocurrency can be created for anything. For example, Bitcoin was launched to get the whole idea out there. Then Litecoin created a new algorithm (Scrypt), then Peercoin created a new form of Mining (POS), then DOGE created a Memeable and long standing coin but it was just a Litecoin Clone. And these coins can be either Cloned or used as a base to create something new for:  

Web Development and Social Media Currencies- STEEM is basically changing the way Social Media, and probably Websites in general, will work in 100 years.   

Fundraising Currencies- As an example, NASA could create a coin, 45% premine, ask people to Mine it to support them, and then create an exchange to trade their coin on and have mining tutorials and everything. Or a Political Campaign could do the same thing.  

Local Currencies- There are tons of Local Currencies like Arizona Dollars or the Ithaca Hour or Berkley Bread, but there are no Local Cryptocurrencies that have ever caught on yet. If someone created, for example, a New York Coin, or a Los Angeles Coin, and distributed flyers and maybe got a few Billboards, and had mining tutorials online somewhere. That would be a successful coin.  

Redeemable Currencies- Small Businesses, Large Businesses and Websites can create Currencies that act as rewards for Public and Consumer interest in their brand. For example, a Sandwich shop could make Sandwich coin (or a coin with their shop’s name) and they can have instructions for how to mine it in their shop and make it where anyone at any time can redeem 100 Sandwich coins for X size Sandwich, or 50 Sandwich coins for X sized Drink, limit 1 or 2 per customer or whatever. And if the price of Sandwich coin skyrockets they can lower the price. This could also be done for Bakeries, or Print Shops, or Market Stalls, or Boutiques, etc, even State Fairs and Cell Phone Companies and things like that.   

Club Currencies- I’m not sure this has been done yet, but maybe it has and no one has mentioned it. But a small group of people, like a Club or a Union or an Organization of some sort, like a Church, could start their own Currency, and just trade it amongst themselves at their own decided value for Fiat or Barter.  

Bounty Currencies- This is similar to Fundraising, but the payment goes directly to Freelancers doing work. A Bounty Currency is a Currency where a Percent goes to the Miners, and a Percent goes to a Bounty share system. So that doing X Bounty provides X shares, which is then divided up at the end of the allotted time, and say 100 people each have 5 shares, then then each of them has 1% of the Bounty for the allotted time. Bounties can be 1 time or permanent.  

Stored Value Currencies- A Stored Value Currency is meant to act like Gold. It is a currency that is hard to get, and that has a stable structure so as to ensure a high value. Maybe even backed by a Commodity, like Gold, Silver, Chocolate, Oil, etc.  

The Bitcoin White Paper  The Bitcoin Whitepaper was something that a lot of people didn’t read, but some people did. And it explains Bitcoins pretty well. But that is 1 Coin. There tons of other Coins besides Bitcoin and you can even make your own. But if you are going to make your own, you should at least take a look at the Bitcoin Whitepaper. 

Bitcoin White Paper 


I decided to start of with POS (Proof-of-Stake) because they are often undermentioned and underutilized. And this was understandable before, as to get involved with a POS Coin before now you either had to buy Bitcoin and use them to Buy POS coins, or mine a coin and Trade it for a POS coin, or mine a POS/POW combo coin. All of which are not really any easier than any other coin. But now there is Steemit, and because there is Steemit (and the coins/websites being created based on it) anyone can now get in to Cryptocurrency via STEEM, and use that STEEM to buy POS coins. So because of STEEM, POS is going to become much more popular.  So, what is POS? POS as mentioned before I Proof-of-Stake, and was first launched in Peercoin (PPC). Proof-of-Stake means that if you are holding coins in your wallet and keeping your wallet connected to the Network, then you are “Minting” coins, which is equal to mining. With POW (Proof-of-Work) you must use Hardware and Copious amounts of electricity to get coins, with POS and minting, all a person has to do is have a computer, download a wallet and get some coins. Which thanks to Steemit is now easier than ever. POS can also be used to offset the cost of mining. Say, for example, you have a bunch of ASICs, and you mine Bitcoin (a POW coin) and get 100 Bitcoins a year, but you have to pay 30 Bitcoins worth for electricity every year. If you were to take a portion of those coins and put them in the right POS, you could get more coins for minting other coins while you mine Bitcoin. 

POW was invented fist, and includes Bitcoin, Litecoin, Feathercoin, DOGE etc. while POS was invented later and includes Peercoin, Bottlecaps, DubaiCoin, Sprouts and Paycon. Peercoin, Bottlecaps and DubaiCoin are all regular POS, which means you earn anywhere from >10%-99% Interest every year by Minting/Staking coins. Paycon and Sprouts are High Rate POS, which means you earn anywhere from 100%-%10000< Interest every year for Minting/Staking coins.   

Regular POS  

(Peercoin was the First POS, and has the most Git Repositories based on it)



High Rate POS  


(Paycon was actually created as a joke coin, but it gained popularity and has been used for over a year now)  

If you create a POS coin, the higher the Stake Rate, the more people will want to use the coin. Paycon and Sprouts are both good models to start with, but you have to add to them or they fall apart. Paycon will last for a while because it still only has 23,000,000 coins, which is only about 2x Bitcoin, and it’s High POS Rate is not extremely high like Sprouts, with Sprouts you can earn 100% coins back on top of your coins (meaning if you put in 1 Million coins, you get back 2 Million coins) in about 40 days, with Paycon it takes a little longer, and with Peercoin, Bottlecaps, etc, it would take years to get 100% back on top of your coins. The Sprouts Developer disappeared a few months after creating the coin, then Cryptsy shut down and that was Sprouts main trade website, and now you can’t even find the Sprouts Wallet anywhere, so no one new can use it. If you want your High Stake POS coin to work, you have to make sure to be able to solve problems like that. Paycon has been much more stable, but both are good coins to use as a model (Source Code) for your own coin. With these coins you can make over 200% profit in 1 year, as long as a community exists around the coin. And with Paycon and Sprouts you can get in with a few hundred or a few thousand Satoshi, the only problem with Sprouts is the community is completely unorganized and you can’t even find the wallet. So it’s really all about the community.  

Paycon Wallet 

Trading Paycon 

You can also make your own Steemit Type Website and STEEM type coin, here is everything you need to do it. Steemit is now Open Source, meaning anyone can make a Steemit type website by just Copying Steemit and renaming it, and changing whatever they want to change. 

Video Guide and a Written Guide for how to make your own Coin 

Video Guide to Making Coins  

Written Guide to making Coins  

Here are a few other coins that have some interesting concepts behind them and can be used to help you create your own coin.  

Bitshares is a coin that works as a platform for users to create assets that can be traded like shares on the OpenLedger website. 

(Delegated-Proof-Of-Work) DPOW/POS A Social Media Based Blockchain

Namecoin is a coin that allows users to create and Host Doman Names in their Wallet 

Auroracoin is a Coint hat used an Public Record of everyone in Iceland in order to distribute Wallets containing coins to everyone in Iceland. 

Devcoin was a coin that offered Lifetime Bounties for Development work as well as Monthly payments for Writers 

Clams are a POK (Proof-of-Key) coin that allow anyone with a Bitcoin, Litecoin or Dogecoin address that existed at the time Clams were created, to redeem a Wallet with some Clams in it 






Cryptocurrency App Creation Archive 

Resources for ASIC Designers and Developers 


Coin Exchanges: 
ExchangeD.I2P  (anonymous. Requires i2p) (p2p) 
mycellium wallet (p2p)