How many blockchain platforms are there? And which one serves the best for your project implementation? Those are the main questions crossing blockchain entrepreneurs’ minds.
The need for forking in blockchain growing along with technology adaptation to the various business industries. That is why we want to turn your attention to the question of how to create your own cryptocurrency by forking an existing blockchain. We will analyze a few current successful solutions to help you understand where to start your own cryptocurrency.
See more: Fork blockchain
In the previous article, we made a review concentrating on defining a type of blockchain-based project and selecting the right blockchain frameworks for dApp development. Read this article to get more information about projects that can implement blockchain forking for the current business solution.
What is Blockchain forking?
Blockchain fork is essentially a split of any existing blockchain. Basically, there are two types of forks we can define: soft and hard forks.
The soft forks are those that are aimed to insert functional changes within the network so that the system will remain the same, yet all current nodes should be updated to the new rules.
The hard fork usually results in the creation of new, customized cryptocurrency. An example of such a fork may be BitcoinCash, Dash, EthereumClassic.
As far as the blockchain codes are open-sourced, anyone can clone git repository and build a similar blockchain environment. This approach is very common for custom blockchain development which is aimed to empower the current business solution.
Yet before we start describing the fundamental criteria for choosing a blockchain platform to fork, let’s define why you need to fork in the first place?
When do you need a fork?
Answering the question, making a fork of an existing solution is a good choice if you want to get the power of an already existing blockchain but make it more simple or adjust just a couple of your own custom features.
In addition, blockchain forking is a popular decision if you want to get access to Ethereum EVM technology. To make such, one needs to fork Geth or Parity nodes and then further adjust it according to requirements.
Also making a fork of an existing blockchain fairly saves development costs, as far as the process is not that time-consuming in comparison to starting your own custom cryptocurrency from scratch.
When thinking of any crypto payments adoption there is another important question that occurs: how to choose a blockchain platform to fork?
Which is the best Blockchain platform to make a fork?
In Blaize we often use Bitcoin or Bitcoin-based as well as Ethereum-based blockchain technologies in order to create a custom cryptocurrency.
Bitcoin technology has the biggest amount of forks simply because it was the first sample of crypto payments. So everyone who wants to create cryptocurrency has at least taken a look at this code.
We suggest implementing Bitcoin technology in case your business case requires simple payments and ordinary system’s tasks. For the more complex solutions, we recommend considering other Bitcoin or Ethereum-based cryptocurrencies as a foundation to start your own cryptocurrency.
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Dash is a direct fork of Bitcoin but it has implemented numerous advantages to the initial technology. One of such is an enhancement to the Bitcoin consensus such as usage of X11 hashing algorithms for a low energy consuming PoW and adjustment of masterodes. The use of last allows for a wider list of operational features, for instance, DAO creation for protocol governing.
Also, masternodes are seen as a much secure solution. As far as one should deposit a considerable amount of native cryptocurrency to be able to process a node. This prevents the network from the attacks of potential malicious members.
Dash uses InstantSend and PivateSend services to ensure secure and fast transactions. The protocol is easy upgradable and adaptable to the node software updates due to usage of SPORKs mechanism.
PIVX (Private Instant Verified Transactions) is a younger blockchain and represents a fork of Dash with a mix of additional adjustments taken from other solutions.
PIVIX has taken Bitcoin wallet technology and format along with Dash masternode models. Yet, unlike traditional Bitcoin forks, PIVX uses a proof-of-stake consensus model to enhance transaction speed and blockchain operability.
Thanks to the usage of SwiftX service PIVX also allows for instant and secure transactions along with adoption of SPORKs mechanism for the better upgradability of nodes.
Qtum is a Bitcoin fork which supports Ethereum EVM and therefore enables smart contract creation. The DGP management integrated into Qtum system allows for adjusting of new blockchain settings with the help of smart contracts reducing the amount of hard forks.
Unlike previous examples, Qtum uses neither masternodes nor DAO governing for protocol operation. It is based on PoS consensus which allows any user to stake and process a node. Furthermore, Qtum has a very large community that maintains the network, it takes third place after Bitcoin and Ethereum.
Ethereum blockchain is considered as another best technology to fork to start your own cryptocurrency. Mainly due to the possibility of Solidity smart contracts support.
In terms of Ethereum blockchain forking, the best and commonly used practice is to fork Geth or Parity nodes. Then, to start your own cryptocurrency, you can customize it as you wish, add required features like custom wallet cryptography and implement the needed consensus model.
Consensys Quorum is the Ethereum-based blockchain fork of the Geth node. The main aim of Quorum creation is to enable successful blockchain adoption for businesses.
Unlike traditional Ethereum, Quorum blockchain does not base on PoW. It allows for several consensus models that are more suitable for permissioned consortium chains. It adopted PoA, Raft-based, and Istanbul BTF consensus models running.
In advance, Quorum also runs its own services for additional transaction encryption. Tessera and Constellation are in-built systems that allow for generating, encryption, decryption, and distribution of private transactions with additional self-management of all discovered nodes.
In the case of Quorum you can see how the Ethereum blockchain fork can be changed and customized to the unique requirements like adjustment of a few consensus models while eliminating PoW. We can define Avalanche case as the other example of a successful Ethereum fork implementation with further adoption to the network ecosystem.
Avalanche is one of the most prominent Ethereum forks while creating not just a single blockchain, but a heterogeneous blockchain protocol for hosting multiple blockchains.
The Avalanche network is aiming to deal with the biggest Ethereum problem – scalability. The issue is solved due to stepping by the casual Ethereum PoW and using a new version of Proof-of-Stake consensus. The new model allows for an incredible level of finality (around 3 sec per transaction) and an unlimited amount of validators taking part in the consensus.
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In the case of Avalanche, the project adopted the full EVM toolkit from Ethereum Geth node, so such tools as MetaMask or Truffle are easily accessible. The PoS adoption enables a high-speeded smart contract creation and enormous throughput.
Main points when choosing the best blockchain for forking
While choosing which blockchain to fork to start your own cryptocurrency, there are a few crucial points to pay attention to. Answering them will help to define which blockchain platform to choose for your custom cryptocurrency integration.
- Consensus model
- Smart contracts
- Private transaction services
Let’s take a look at each of them and define the network which fits the best to each of those requirements.
Previously described blockchain used two types of consensus: PoW (Bitcoin, Dash) and PoS (PIVX, Qtum, Avalanche). This is one of the fundamental things you should choose while making a fork. PoS is considered being a faster and less costly solution as well as providing more energy efficiency.
Though, you can spend additional efforts on development and adjust consensus to your needs. For example – change Ethereum PoW in Parity node to PoA(proof-of-authority) or PoS to speed up your system.
The creation of DAO is crucial in terms of protocol governing. This is also time-consuming and costly if you decide to integrate it into the already existing solution. That is why, if you feel like your project will need a governing layer, it is better to keep an eye on the solutions that have this in-built feature (PIVX, Dash).
Masternodes empower protocol security and provide additional operational features. Moreover, it helps to create a greater incentive mechanism for network members.
While making a fork, there is a possibility of adjusting masternodes to the client’s requirement and set all needed features (for instance establishing or eliminating masternode fees). So if your business model requires masternodes running consider PIVX or Dash fork implementation.
When you need to run smart contracts for your project it is better to utilize Qtum or make an Ethereum fork. You will get a reliable and verified solution within a short period of time.
As you can see on the Avalanche example, forking and integration of EVM is fully possible as well as its adaptation to other programming languages. The same is applicable to WASM, x86 or similar virtual machines.
Private transaction services
The PrivateSend service from Dash allows for coin mixing which helps to make them untraceable and anonymous. The service mixes user’s coins with Dash coins in such a way that the real receiver address will never meet the authentic sender address. The maximum times of mixing is eight; the more rounds it does the more security your transaction gets.
You can check for PIVX SwiftX and Quorum Tessera services as an alternative to PrivateSend. Thus, if you need to enable such a feature for your project, consider one of those forks implementations.
We have reviewed some of the well-known examples which can help you to start your own cryptocurrency. Yet it is worth mentioning that you can take any open-sourced blockchain node, fork it, adjust features for your needs, and launch your own network. So you are not limited to the mentioned above ledgers and can fork any blockchain code: EOS, Polkadot, Tron, etc.
See how Blaize did a fork of EOS in Remme use case.
While considering how to make your own blockchain or how to develop a new cryptocurrency Blaize experts recommend paying attention to the consensus type, availability of running smart contracts or masternodes and DAO.
Ready to make your own cryptocurrency? Contact Blaize experts for further discussion!
We are sure those recommendations will be a handful on the way to empowering your current business case with blockchain implementation. Start your cost-effective solution with Blaize!