Why Are Cryptocurrencies Gaining High Momentum And How To Create Your Own?
Unquestionably, the newest and perhaps the most promising addition to the digital payment landscape is cryptocurrency – a virtual currency that uses cryptography for security. It’s a decentralized digital public ledger containing transactions. It has the ability to replace established systems of transacting assets and data. Though it’s still in its infancy, it has already started creating an array of opportunities for programmers.
Before we delve deeper into the programming languages required to develop your own cryptocurrency, let’s have a quick look at some of its other aspects.
Reasons behind high popularity
Here’re some key reasons behind digital currency gaining rapid public attention.
- Instant settlement: Ease of use is one of the key reasons behind cryptocurrencies’ high demand. All you need to have is an internet connection, a smart device and you can make money transfers and payments instantly.
- Identity theft proof: All transactions are validated to ensure that the coins utilized belong to the current spender. The technology ensures encryption of digital transactions coupled with “smart contracts” to make the entity virtually unhackable.
- Fraud proof: All confirmed transactions using cryptocurrencies are stored in a public ledger. Encryption of coin owners’ identities ensures the legitimacy of this record keeping.
Scams and security issues with cryptocurrencies
In recent times, cryptocurrencies have started gaining a bad reputation because of some unscrupulous activities. Much of the problem with these digital currencies is that regulations are still undecided on how best to deal with them. This lack of consistency in cryptocurrencies is the key reason that attracts criminals to the system. For instance, in 2017, AUD $21 million was attributed to cryptocurrency fraud in Australia. In 2014, the exchange of Canadian Bitcoins was hacked and at least $100,000 worth of Bitcoins were stolen.
Cryptocurrencies can be highly risky for the unprepared. If you want to jump on the bandwagon, you’ve to understand what it’s for, how it’s used, and how to avoid common security issues. Cryptocurrencies have already suffered various high-profile failures since their inception. You’ve to stay vigilant and be agile to overcome nefarious activities in this mobile, virtual and hyper-connected landscape. You need to prepare and protect yourself against both direct and indirect vulnerabilities by understanding cyber risks associated with cryptocurrencies. Then only you’ll be able to mitigate cryptocurrency risks effectively in this decentralized digital world. If you want to learn more about keeping yourself safe from pitfalls of virtual currencies, you can see it here.
Cryptocurrencies: The knowledge you need to have to create your own
If you’re fascinated by the incredible world of cryptocurrencies and want to dive in, here’re some of the most common programming languages that will give you the edge.
Like JS, Python is another easy to learn and common entry point for programmers looking to step into the world of cryptocurrency. In particular, this language is extremely good at crunching numbers – gathering large data sets and cleaning, analyzing, processing and visualizing them. Apart from these capabilities, Python is a wonderful general-purpose language that you can use for building cryptocurrencies.
This general-purpose programming language comes with features that are object-oriented, imperative. It also facilitates low-level memory manipulation. It has already proved to suit an array of contexts, servicer, desktop applications, ecommerce and web search. Bitcoin is completely written in C++ and enjoys an informative and active development community that offers you the power to develop a fully functioning blockchain application. Though there’re lots of new and feature-filled languages available today, people usually stick to C++ because of its superior memory control, good threading ability etc.
Challenges with developing your own cryptocurrency
Creating and maintaining a cryptocurrency isn’t simple. There’re some important things that you need to keep in mind before you begin. Here’re some of the common challenges that a cryptocurrency developer faces.
You’ve to ensure that your cryptocurrency performs at its highest possible level and for that, the language chosen has to be extremely versatile. There’re certain tasks that are parallelizable whilst there’re some that can’t be done in parallel. Digital signature verification, for example, can be considered as a parallelizable task. On the other hand, multiple transactions can’t be done in parallel. It has to be done one at a time to avert errors like double spends. Some programming languages are good in non-parallel operations while some others are at parallel operations.
Here, the code is open and public. So, anyone can see the code and check for vulnerabilities and bugs. The downside is that unlike other open code resources, if someone can hack in, the consequences will be massive. So, you’ve to assess this with utmost importance
The technical part of creating your own cryptocurrency isn’t actually the hardest part. The real work lies in building your infrastructure, maintaining it, and convincing people to buy in.