Tokenomics: Find Out How to Issue a Digital Token to Solve Your Business Needs
Fabricius Zatti | maio 05, 2022
Despite the turbulent history they’ve had until 2021, it certainly seems like cryptocurrencies are here to stay. Likewise, a core piece of tech underpinning cryptocurrency, blockchain, is not only sticking around but working its way into a variety of sectors. In this guide, we’re going to cover one of the most practical blockchain applications: blockchain payment systems.
But first, let’s start with the fundamentals.
Blockchain is, in essence, a ledger technology. It keeps a record of, well, whatever you want. And it holds that record using tech that is extremely secure, flexible, transparent, and straightforward.
It can help to visualize a blockchain as a row of wooden blocks lined up in a row. Let’s say that each time you want to add a new wooden block to this row, you also want to preserve the order that the blocks are already in. Each time you add a new block to the row, you take a marker and draw a unique image on the seam where the last block and the new block meet. When you separate the two blocks, half of the image remains on each block.
If each block has part of an overlapping image connecting it to its adjacent blocks, then you won’t be able to remove or replace any of these blocks. You’ll instantly recognize that they’ve been tampered with because the images won’t make sense anymore.
In essence, this is how blockchain works. It’s also where the name comes from. You can use blockchain to keep track of different file versions, people walking into a building, medical records, and financial transactions.
Not only can you not rearrange the data stored in a blockchain (making it immutably chronological), but you can also trust that it is immensely secure. Blockchains are very well encrypted and can be centralized for the private sector or decentralized for the public sector.
That brings us to blockchain payment systems. Blockchain payment systems are just one of the applications of blockchain technology. In this instance, a new block is added to the blockchain every time a transaction takes place.
Since these blocks can’t be rearranged, edited, or removed, you can have nearly total confidence that the record of transactions is accurate. This is one reason that cryptocurrencies like Bitcoin are trusted. While you don’t have physical money to hold onto, the Bitcoin blockchain proves, immutably, that you have the money your account says you do.
You can, of course, use blockchain payment systems to support a cryptocurrency. But you can also use them in other financial sectors. There’s no reason why Venmo, Visa, PayPal, or even your local bank can’t use blockchain to keep a record of transactions. In fact, doing so could be an improvement, reducing the chances of fraud and error.
As you can see from the examples above, blockchain payment platforms are no longer just for “diamond hands” crypto fans or tech savants. There are many uses for blockchain technology, and any business (or motivated individual) can put the tech to use.
Today, there are two routes you can go down if you want to create your own blockchain solution.
The first option that probably comes to mind is creating your own unique cryptocurrency. After all, it’s the route that most have gone down in blockchain’s infancy. Building your own cryptocurrency and blockchain to back it up is the traditional route, primarily because blockchain technology is still finding its footing.
To do this, you need to either create a blockchain and cryptocurrency from scratch or create a new crypto token based on an existing cryptocurrency/currency.
Then, you need to ensure that your crypto/blockchain solution is secure, compliant, and tradable with existing cryptocurrencies (assuming that is your goal). Unsurprisingly, this can be extremely difficult and can require an abundance of serious development talent.
Alternatively, you could just create a blockchain payment system that works with an existing cryptocurrency. It’s no surprise that this is a far easier solution, though it does mean you’ll have less control over the cryptocurrency. And your blockchain will need to conform to the crypto rather than the other way around.
If this is the option you choose, you can compare it to a platform like PayPal or Venmo. Neither created its own currency and for a long time, neither even offered traditional banking services. They were just a means of quickly sending money over the internet.
Blockchain payment systems can work similarly. They can act as a middleman for cryptocurrency, adding unique features that make it easier and more efficient.
The first step in launching your blockchain payment processing system is to plan out your project.
Are you going to create a new blockchain and/or cryptocurrency from scratch? Or are you going to make an overlay/fork of an existing solution?
Is your platform going to be web-based, or will it be launched as a mobile app? Maybe a combination of the two is right for your business?
Once you’ve got an idea of how you want to proceed, you’re going to need a development team. Development teams for blockchain payment systems can be challenging to find, especially reliable ones because the technology is new.
Additionally, the newness of the tech means that you won’t just have a hard time finding knowledgeable talent, but capable talent, too. In total, you’ll need to find:
If you don’t want to go through the trouble of tracking down all of this talent, you could always partner with an existing and trusted team of development experts.
You can find such a team right here at Cheesecake Labs. Our developers and software engineers are highly experienced and educated. This simplifies the process of finding a team substantially and reduces the chance that you’ll run into errors and complications down the line. Reach out to discuss your options!
The third step of building a blockchain payment platform is execution. Here, you’ll work with your team to realize the vision you created during the project planning phase.
Below are a few of the routes your project could end up going down during development.
When building your blockchain payment platform, the first route you could take is to create a new blockchain and cryptocurrency. This requires:
DAPPs are a uniquely Ethereum payment platform model in the world of cryptocurrency. They allow individuals to purchase Ethereum, store it in a wallet, then connect that wallet to a DAPP.
You can see examples of DAPP’s here on Ethereum’s official website. Some examples include investing Ethereum into art, swapping Ethereum tokens with ease, and mobile games based around Ethereum.
Alternatively, you could build an app on top of an existing crypto payment gateway with an API. Coinbase, CoinGate, and Shopify all have APIs that you can use to facilitate the transfer of cryptocurrency.
Building an app on top of these existing APIs is a fast way to get a creative idea out in the world. Just be aware that changes to these existing platforms and APIs could disrupt your service. So this route might be best treated as a starting point and not an ending point for your blockchain payment platform.
If you don’t want to tie yourself to the cryptocurrency world, you can instead use an existing blockchain payment system infrastructure that isn’t exclusively for crypto trading.
Stellar, for example, uses blockchain technology to facilitate decentralized transactions in any currency. Your team could build an app on top of Stellar, adding unique features and selling points without being held to the cryptocurrency market.
Now that you understand what blockchain payment systems are and how to launch one yourself, it’s time to take that first step. Cheesecake Labs can help. Our team of development experts will work with you to bring your vision to life efficiently and effectively.
Vice-Presidente de Engenharia na Cheesecake Labs, entusiasta de IA e IoT. Vá corajosamente onde ninguém nunca foi antes!