Developing a Cryptocurrency
Deciding on the right specifications
Where to research
What is GitHub?
Our chosen Source Code (Reden)
Transcript

00:00    Hello everyone. Let's start the process of developing our own cryptocurrency. The first thing you want to do when choosing the right source code, is to know what specifications you need for your new cryptocurrency.  Searching on bitcointalk.org for altcoins is the best way. The advantages are;  You may find a similar coin to your specs such as masternodes, coin supply and algorithms. You can see if the chain is performing well.  For example if the blockchain is still running then the source code is stable.  You can also look back at previous posts and see whether the blockchain had any issues.  Lastly, you are given all the links to GitHub wallets, websites and social media.  Which gives you more insight into the development of this coin.

01:06    GitHub is an open-source platform that developers of cryptocurrencies use to share code.  The intention is to allow others to assist in the development of their coin.  One of the greatest advantages is that, being open source, another developer can clone their source code and alter it for their own purposes.  If we were to start from scratch we would be coding for years and likely fail.  Having the foundation's already in place, makes it easier to start our own cryptocurrency.

01:41     The process of creating your own cryptocurrency is not an easy one.  You spend countless days editing code, compiling, building block explorers, and more.  The last thing you want is to find out that the source code you were working from has issues.  Errors later down the line are a nightmare for developers. These errors often kill coins.  You should always research first.  The source code contains thousands of lines of code, which is almost impossible to check everything thoroughly.  Look for stable code in a cryptocurrency that has been performing well.

02:22   For this tutorial we will be using the source code from the cryptocurrency called Reden.  It has been chosen as its current specs fulfill our needs.  Reden is a cryptocurrency or altcoin running on a proof of work network with masternodes.  It's mining algorithm is X16S.  This Algo is good because it is ASIC resistant.  Meaning all the small minors with GPU's will be able to mine without fear of large ASIC's.  We will get into this more later. We will be altering the specs of Reden as we go.

02:59   But currently as they stand, the specs are;  algorithms X16S.  This means that the mining algorithm contains 16 different algos combined.  They're used in a random order.  This provides additional security to the network and is possibly the most secure to date.

03:21   Block time 120 seconds.  This means that every 120 seconds the network will release one block.

03:31   Block reward, 50 Reden.  60% proof of work mining 40% masternode rewards.  The block reward is split between the miners and the masternode holders.  For every block valued at 50 Reden, miners will receive 60% or 30 Reden. And masternodes holders will receive 40% or 20 Reden.

04:00   Max Supply; 14 million.  This is the total supply of Reden based on the calculation of the last rewarding block.  H

04:10   Halving; 25% every 60,000 blocks.  Halving is a stage when the block rewards are reduced.  In this case they're halved every 60,000 blocks.  This is to control Supply and most developers assume their coin will be of more value then.  Bitcoin is a good example of this.

04:31   90% Supply; 24 months.  This means that within two years 90% of the max supply will be in circulation.

04:43   100% Supply; 5.7 years.  Within 5.7 years, all the supply of Reden will be in circulation.  The only way to get Reden after this point would be the purchase or trade.

05:00   Masternode collateral; required 5,000 Reden.  The masternode collateral determines whether someone can build a masternode.  Masternodes are a great way to earn coins without mining.  Holders of the required masternodes collateral can lock in their coins.  Once locked in their wallet, they can build a node.  The node runs via VPS or virtual server and it can earn Reden on a daily basis.  The amount earned is based on how many other nodes are online.  But this is a great way to earn without spending the cost of electricity on mining.  We will look at masternodes more later.

05:42   In our next video, we will look closer at the Reden source code on GitHub.  We will then download the code and start on the changes needed to make it our own.