Cryptocurrencies and blockchain are all over the news these days thanks to the market performance of bitcoin, and many people are jumping on this bandwagon. Here is a brief overview of what it takes to garner a share of this market.
Have an idea
This is the most important step. The critical beginning of a successful cryptocurrency is to solve a problem. A “neat” or “cool” idea may have garnered attention at the end of 2016, but the market has advanced to the point where a solid business idea that either addresses an unmet need and/or creates significant cost savings is required to stand out from the crowd.
The larger the market covered by the idea or the greater the cost savings that the coin offers means a better chance for success. Cryptocurrencies that target specific industries are increasingly common, so be sure that your coin is either the first in that area or has something unique in its approach that differentiates it from other coins.
Dentacoin is the first cryptocurrency engineered to disrupt the global dental industry, which is a large market worth more than US$440 billion. Out of this, about $400bn is spent on treating dental conditions that could have been prevented. Simultaneously, the costs for patient acquisitions are getting higher, and this is reflected in the end consumer price for dental treatments. This is an example of a great market with significant cost savings. The high level of fragmentation in this industry also makes it an ideal use case for the blockchain technology to be applied.
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[ Bitcoin growing up as futures open floodgates to Wall Street ]
[ Cryptocurrencies' market cap hits record $200 billion ]
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Find smart people
Launching a cryptocurrency involves a large number of tasks in different fields. It simply is not possible for one person to be skilled in all the areas that need attention for a successful digital coin. This means the person with the idea has to find talented and dedicated people to get the coin off the ground.
The first person, or group of people, necessary is the developer. Cryptocurrencies live on distributed data that is connected through the internet, so someone with knowledge in this area is critical. The team will need to include experts in the industry, expert communicators and expert lawyers. It is critical that all of these people believe in the value of the project. Simple hired guns will not get the job done.
The team at Dentacoin includes developers, dentists, dental advisers, designers, project managers, business developers, lawyers and marketers. Each is a professional who is educated, trained and an expert in their field. Each is dedicated to the goal of improving global dental health and reducing unnecessary expenses.
Make good decisions
This is where things start getting tricky. A misstep at this stage of the game can bring about the eventual failure of the cryptocurrency. Critical decisions need to be made regarding the number of coins that will be issued and when this will take place. The overall approach to achieving a long-term value has to be put in place at this stage.
One of the most critical decisions is where to host the blockchain that will support the coin and any transactions where the coin will be used. The most flexible approach is to start from scratch, but this is also complicated and time-consuming. Choosing an existing blockchain with a proven high level of security is more efficient if it meets the key needs of the project.
Dentacoin is nesting in the Ethereum environment because of its proven strength and well-established position in the cryptocurrency world, but most of all because of the supported smart contracts. These transactions play a critical role in the Dentacoin concept, and finding a platform that specialises in this approach significantly enhanced Dentacoin’s ability to develop the network of blockchain-integrated tools, dental clinics and products from the industry.
Launch and pray
An initial coin offering (ICO) is a major step in the life of a cryptocurrency. It may be considered the public introduction of the coin.
There are certainly plenty of steps and growth that have to take place after a successful ICO, but if the ICO fails it will be necessary to go all the way back to the initial idea and reevaluate.
If the ICO meets its targets, the work can get started. Ideas that were outlined before the sale now have to be developed and taken out into the marketplace. There may be some adjustment involved. It is also important that news about these developments is shared with the market.
Dentacoin successfully raised the targeted amount of capital necessary to fund all aspects of its development. This is a significant milestone on the road to improving global dental health. The entire team at Dentacoin is thankful for this achievement and looks forward to fulfilling the goals of its community in the future.
Mariam Nishanian is the online reputation manager for the Dentacoin Foundation in the UK
