When creating a cryptocurrency it is important to choose the best platform to create it on. The platform you choose can really make all the difference. Your custom cryptocurrency’ future depends a lot on which protocol it runs on. This crisp article is just a 2 mins read. Its power packed with valuable insights to help you make an informed decision.
(1) Ethereum ( ERC20 Tokens )
– Ecosystem: Ethereum has an excellent track record and has been in the market longer than most of its competitors. The blockchain platform has been time tested. The native cryptocurrency backing the protocol ie. Ether is considered one of the most valuable crypto asset in the market. Many tools in the market support Ethereum by default ex: Explorers, Wallets, Exchanges, Investment vehicles etc. Creating a cryptocurrency on Ethereum instantly gives your token access to all these goodies.
– Trust: We can safely say the Ethereum blockchain is the most trusted in the market. As mentioned above it has been around for long with a strong foundation and team backing it. Also the majority of the Crypto space embraces this blockchain and is tightly integrated into it.
– Ridiculously high Gas Fees: This is a problem that has been plaguing the Ethereum Blockchain for long. With no foreseen solution. The Gas for just executing a smart contract can easyly cost around $400 to $700. Once your tokens are created, for transferring your tokens you would need to cough up near $5 each time in gas fee. If at all you decide to create a cryptocurrency in ETH, be ready for spending a firtune on gas fee.
– No update for long: Its not funny anymore. Developers and investors have been awaiting the new version of Ethereum for too long now. There have been only announcements every year – and no update. Only a new version of Ethereum blockchain can actually address all the flaws in the system. With no update happening, there is a growing unrest among the community that begs for an alternative in the market. This is one of the primary reason for many to move to other better blockchains.
(2) Binance Smart Chain [BSC] (Bep20 Tokens)
Low Gas Fees: The Binance Smart Chain is now considered the best alternative to Ethereum for creating a cryptocurrency ( for those who eye the gas fee issue ). While it may take a few hundred dollars worth gas fee in ETH chain to execute a smart contract, it is only a few cents on the BSC chain. And when you transfer your custom made tokens from wallet to wallet, the gas fee is negligible when compared to the ETH chain.
Solid Backing: The Binance Smart Chain is operated by Binance ( the biggest exchange in the world ). Which means they have very deep pockets. Aptly, we can see constant and regular updates happening. The chain is lightning fast. Support and response is good. This provides peace of mind that one runs their tokens on a big chain.
Ecosystem: Not as big as the Ethereum ecosystem yet, as the blockchain is relatively new compared to ETH. But for sure the ecosystem is catching up quick with all major tools already available for the BSC chain. Also the BSC chain is a fork of the ethereum chain – with better updates. This means that many of the tools used for Ethereum will readily work for BSC chain as well. This includes Smart Contracts, Blockchain explorer, DEX exchanges etc.
Interoperability: Until the entire ecosystem becomes as big as the Ethereum system, there can be lot of dependency on other chains. And to address this dependency, the BSC chain needs to be made interoperable for ease of operations. For example, its still a issue to fund your MetaMask wallet with BNB for paying various gas fees. Though there are various decentralized bridges created by Binance for converting ETH to BNB, still it is a bit cumbersome.
(3) TRON ( TRC20 Tokens )
Low Gas Fee: Running on the Delegated Proof of Stake ( DPoS ), the TRON blockchain has certain benefits. The low number of validators(27) required to confirm transactions gives high throughput and way for very low gas fees. Similar to the BSC protocol, creating a cryptocurrency token on the Tron blockchain would be appealing to both the owner and the developer for obvious reasons.
Compatibility: Its good that protocols like BSC and Tron are forked from Ethereum. It allows smart contracts and tokens interoperable across the chains. The smart contracts present in the Ethereum ecosystem can quickly be used for projects in the Tron blockchain as well. The DApp ecosystem launched for Tron also provides a way for dApps present in the Ethereum world to be quickly converted. Many token and dApp owners can easily establish their Apps presence across these major chains and reap the benefits.
Gaming: Tron has created a niche for itself in the gaming sector. Since its inception, the foundation has taken steps to attract game developers to use the protocol for developing blockchain and cryptocurrency related games. And this has worked out good. Some how blockchain gaming brings Tron as the first choice of protocol in creators minds. The Tron team has conducted several hackathon’s that has attracted good talent to develop interesting games on the platform. Also since the gas fee is extremely low, the blockchain is apt for high-volume transaction apps ie. games. Since during a game play continues stream of transactions happen on chain.
Trust: Near 50% of the native Tron tokens are owned by like 10 wallets. And no body knows who these holders are. This gives a feel among the community that the platform too centralized. This simply means that the top holders can control the TRX price and growth. There is a general expectancy that this situation may soon change for the better.
Ecosystem: Though there exists an importable dApp ecosystem, still not many originally famous Apps are present on this blockchain. Majority of the dApps present here are copies from the Ethereum App Store. As mentioned before to tackle this situation the team has rightly started concentrating more on one sector ie. gaming.
(3) Bitcoin ( Node Fork)
More power to you: Yes, you read that right. While the tokens created using the above 3 blockchains solve the purpose, still the entire Blockchain is not yours. If you are creating a cryptocurrency by forking the entire Bitcoin node, you decide the entire direction on your project, algorithms etc. You can decide to run it as a public chain or a private chain.
Tokens on your chain: If you are hosting the entire blockchain on your servers, you can create standards to mint tokens on your own Blockchain. This will allow others to create tokens on your own chain. You can also attract developers to run parallel chains or layer 2 chains to build many features on the Bitcoin fork that is not available natively ex: Defi, Cross chain migration etc.
Security: This can be the biggest issue in running your own node. Self hosted nodes need to be protected from hackers and hacking bots that keep constantly sniffing the internet for new nodes. Infact you will need to hire a security agency itself to monitor the node 24/7 and do all the pre-requesties to protect the node.
Cost: A node keeps growing rapidly in size. As more people use your blockchain and as you sync it with other nodes, new blocks keep getting added. This can easily reach several hundred giga bytes in a matter of few days. Which means you will need to have an ever-growing budget for the servers and hosting spaces. Not to mention the cost of maintaining the security round the clock.