At present, while discussing revolutionary technologies, Blockchain remains on the top. From social media platforms to tech leaders to multi-media channels, everyone is adopting Blockchain technology.
They are also going to procure Blockchain development services to implement secure and faster transactions in their business with the help of Blockchain solutions. In this fast-changing world where digitization has widened its roots, trust is the most required aspect.
Whether it is about how we transact, record, or distribute the data, Blockchain technology has completely transformed the ways they were done previously.
Over the years, Blockchain has become a momentum and all credit goes to the cryptocurrency market. In this, the decentralized ledger that builds up the Blockchain is significant for the registration of crypto transactions.
Though there are various people and investors in the industry who don’t know much about the Blockchain and only consider its connection with cryptocurrencies.
To provide them with detailed knowledge of Blockchain technology, we have come up with a complete guide to Blockchain comprising all the essential points such as what it is, how it works why are Blockchain important, features, benefits, and many more. Let’s begin-
What is Blockchain?
Blockchain was firstly introduced in 2009 by Satoshi Nakamoto and in 2014, this technology was revolutionized with the name Blockchain 2.0. This technology comprises various blocks holding timestamped transactions. Whereas, Blocks are consisting of three components including data, a hash of the block, and a hash of the previous block.
Here, every block is associated with the previous one via cryptography and thus, it is called Blockchain. In simple terms, Blockchain is a shared ledger that makes a record of transactions easier and prevents any third party to modify the data. Here blocks are helpful to keep the transactions arranged and secure.
Blockchain is also helpful to track assets across a peer-to-peer computer network. This technology is adopted at a large level by different organizations due to the provided efficient, consistent, and protected transaction system.
Blockchain technology ensures the security and accuracy of a data record while alleviating the requirement for a reliable third party.
This decentralized, distributed, and peer-reviewed technology provides unchangeable transactions. Each transaction is recorded on the Blockchain while the details of senders and receivers will be virtually hidden.
How Blockchain Works?
Now that you have understood what is Blockchain, further, this Blockchain development guide will help you to know how this technology work.
As we know already that a Blockchain system is comprised of two kinds of records, transactions, and blocks.
In this, transactions are known as the actions carried out in a specific time and collected simultaneously in a block. You can get an idea about the transaction process in a Blockchain:
- There is a transaction request from a user, whether it is about data exchange, cryptocurrency exchange, or smart contract initiation.
- This requested transaction is forwarded to a P2P network i.e., a network of nodes. Here the transaction will be called a Block.
- In the P2P network, nodes will validate the transaction’s request and the status of the user. The transaction will be deemed validated if 51% of the nodes get agreed to process it.
- Then, the Block will be added to the chain to create a Blockchain.
- Now, there is an updated single copy of the shared ledger that can be accessed by all network members
In a Blockchain, all the blocks are associated with each other via hashes. Hash can be represented as a unique code defining content related to every block. At the time of a Block creation, it will have its own hash and the hash of the previous block. Hashes are used to prevent any type of alteration in a block.
Blockchain Technology: Market Insights & Growth Worldwide
Looking at the current market reports by Grandview research about the Blockchain technology market, we can say that the Blockchain market is evolving rapidly and its total market size was marked at $5.92 billion in the year 2021. It is predicted to expand at an 85.9% CAGR between the years 2022 to 2030.
The increasing demand for blockchain will also have a huge impact on the Blockchain app development cost while increasing the venture capital funding in the Blockchain development agencies. We can see the expected growth of the Blockchain technology market below in the graph-
Further down, we have provided an accurate representation of the global Blockchain technology market size in 2021 including the forecasted stats for the year 2030.
This market was evaluated at $5.85 billion in 2021 which is predicted to value at least $1,235.71 billion by 2030 depicting a CAGR of 82.8%.
What are the Different Types of Blockchain?
A Blockchain network is not made of only one type of Blockchain as there are various kinds of Blockchains existing in the market. To get full advantages of Blockchain, you must recognize them properly. Let’s discuss them below-
1. Private Blockchain Networks
The private Blockchain networks are mostly used by private organizations and run by a single entity with permission to send, read, write, and receive the data. These are used by businesses for operational purposes because it is easy for them to tailor the accessibility, network characteristics, authorization preferences, and other security-related features in private Blockchain. It is hosted on-premises and placed behind a company firewall.
2. Public Blockchain Networks
Public Blockchain networks are easy-to-access and are used anywhere and by anyone. These are permissionless and not controlled by any single entity. Public Blockchain uses a consensus technique to authenticate the data’s accuracy. Some mostly used consensus approaches are PoW (Proof of Work) and PoS (Proof of Stake).
Public Blockchains have been helpful in the growth of bitcoin and other similar cryptocurrencies, they also provided support for propagating distributed ledger technology. Public Blockchains help alleviate issues like centralization of authority.
3. Permissioned Blockchain Networks (Hybrid)
Permissioned or hybrid blockchain networks are considered private blockchains that allow limited access to authorized individuals. Organizations that go for private Blockchain often create a permissioned blockchain network also to get the best out of it by taking the help of a leading Blockchain development company. It leads to a better structure while deciding who can connect with the network and the transactions to be done.
Consider that public networks can also be a permissioned blockchain with the limitations like who is allowed to connect with the network as applicants must have an invite link or permission to join.
4. Consortium Blockchains
Similar to permissioned blockchains, it contains both public and private elements. The consortium blockchain is controlled by several private entities. It includes control over who can access the data and submit the transactions.
This blockchain is appropriate for a situation where all parties are equally responsible for the Blockchain network. Though you will find it difficult to set up the first, it provides high-level security after getting in action.
What are the Benefits of Blockchain Technology for Businesses?
Want to know about the benefits of Blockchain before getting into the industry? Then, you are at the right place. Various businesses including large-scale organizations, non-profit entities, government agencies, and many more have started to use Blockchain to avail all the advantages provided by it. These are the following-
Decentralization is one of the core elements of Blockchain technology. All the assets are developed based on a consensus algorithm with no single governing body. It allows users to perform transactions with each other directly and hold the asset’s ownership fully.
Alongside this, it also gives the ability to users to share data within a business ecosystem that holds no single in charge. It is why there is a huge demand for Blockchain supply chain management solutions as they solve the dilemma of data sharing between unknown parties.
Immutability refers to not allowing the transactions that are recorded on the Blockchain to be changed, altered, or deleted. Each transaction has its date and time details to be a permanent record. Via Blockchain, any information on transactions can be tracked along with secure data auditing. Every block will be carried out through a hash value or a cryptographic notion.
Blockchain is used to form a trustable bond between diverse entities so that they can get engaged in business operations coupled with transactions or data sharing without the need for an intermediary. In the blockchain, it is easy to cut out any other third party and keep the transaction between two groups only. It is because of the Blockchain distributed network and its nodes. Every node is helpful for transaction verification via Blockchain mining.
An experienced Blockchain app development company always ensures to integrate of advanced security measures into their created solutions, it is the reason why Blockchain solutions tend to have higher security comparatively. With the help of a consensus mechanism, transactions can be recorded within the Blockchain which lets you keep checks on the activities within the system.
Blockchain is preferred because it encrypts all the transactions and connects them by using hashing method. The security provided by Blockchain is so enhanced that every node holds a separate copy of all the transactions performed. For example, if an attacker makes changes to a copy of a transaction, it will not reflect in other copies as they will reject the request.
5. Cost Reduction
Blockchain makes transactions easier and more efficient which leads to reduced costs for organizations. Also, there are lessened manual tasks like data amendment and aggregation along with simplifying the report & audit processes. By removing the third party or middleman, there are automatically reduced costs for businesses compared to traditional financial transactions. International money transfers have also been easy with the Blockchain due to its borderless nature as there are no additional fees included for that.
6. Improved Stability
There is no chance to do changes in the recorded data blocks within the blockchain, in simple terms, they are irreversible. They can’t be changed, modified, or deleted. It increases the Blockchain’s stability and robustness. Therefore, it seems perfect for keeping financial transactions or any other important data. In this, even a single change will be traced, tracked, and recorded so that everyone can view it on the Blockchain ledger after the distribution.
7. Better Speed
The unmatched speed and efficiency are the reasons behind the increase in Blockchain and Defi development services. Blockchain has automated all the time-guzzling procedures while improving the business outputs. Automation has also alleviated the chances of human errors and mistakes. Blockchain enables faster transactions and Defi removes the intermediaries while making the transactions secure.
Tokenization is a process leading to converting an asset’s value into a digital token, which then will be recorded and shared through Blockchain. It is also used to secure both types of assets, traded and non-traded. It includes various benefits such as quick settlement, improved liquidity, reduced costs, and so on.
9. Data Control
Blockchain technology facilitates individuals with a compliant way to have control over their data and available content. The ability to have a verified online identity leads to the security of personal information that is easily available to be distributed followed by the proper permissions.
10. Visibility & Traceability
The Blockchain ledger is easily available, and transparent, and anyone can view it. This technology also enables users to get all the details about a transaction right from its origin, date, and time. This is a lot beneficial when it comes to industries like logistics and supply chains. In such domains, Blockchain allows businesses to manage inventory, respond to issues or problems and readily confirm the purchasing history.
Use Cases: Where Blockchain are Mostly Used?
Before moving on to the popular Blockchain development platforms in this complete guide, here we have provided a list of sectors or domains where Blockchain apps are being used on a large level.
Businesses take assistance from Blockchain experts to develop advanced decentralized apps to automate the Blockchain and to display the real value via tokenized assets. Following are a few industries getting benefits from Blockchain:
1. Banking and Finance Sector
Blockchain technology has also been modernized to advance the financial system. Currently, people are facilitated to access financial services including loaning or accessing a line of credit by sitting at home while being relied on smart contracts. Here these smart contracts act as an unbiased third party between peers to lend the assets.
Individuals who don’t even have a robust banking infrastructure can also participate in the global economy. With the upsurge in decentralized finance and fintech software development solutions, Blockchain and dApps development services have also got increased among ventures.
2. Non-profits & Government Agencies Sector
A few non-profits and government firms are also gaining benefits via smart contact development services and other blockchain-related services. They are using these apps to generate immutable records that impose specified terms.
These solutions are helping to alleviate corruption as they increase transparency in the firm administrative procedure. With this, users are able to access related information in a trust less environment.
3. Healthcare Sector
It is one of the most significant industries where Blockchain is used widely. This technology provides encryption to the healthcare system and patients’ confidential data while enabling them to share the data whenever needed with their permission.
It helps the healthcare industry to keep the records extremely private and provides an advanced level of security. Blockchain solutions are beneficial for prescription verification and executing the supply chain management of pharmaceuticals.
4. Retail & eCommerce Sector
In the retail and eCommerce industry, Blockchain apps are advantageous when it comes to storing the transactions done by customers securely on the database via encryption. These records are also shared over several computer networks such as the digital ledger of online transactions.
Read More: Benefits of Blockchain in Ecommerce
It helps in creating a decentralized online selling and buying platform. In the retail sector, it is used to track, trace, and verify the products, record the transactions and contracts, etc. including supply chain management.
5. Gaming Sector
Games created with the Blockchain include a decentralized model to facilitate users with earning money so that they can use them across other crypto games. NFTs are also used in Blockchain games when it comes to creating unique characters, items, rules, and more.
Read More:- How to Create your Own NFT?
There are several Blockchain games that include the play-to-earn model. Furthermore, game players can purchase and sell in-game items while trading their assets and earnings.
6. Automotive Sector
Those who face a lack of operational transparency on daily basis need to implement automotive Blockchain apps. These can be used for several purposes such as processing payments that tend to generate a cohesive platform to keep records quickly and pay for vehicle parts, manufactured vehicles, and services.
Automotive Blockchain solutions are able to prevent human error or detection, accidental data loss, and others that are not possible with conventional paper-based systems and digital web2 databases.
7. Smart Contracts Sector
Whether it is NFT marketplace development services, cryptocurrency exchange development services, or Blockchain development services, smart contracts are essential to add. These act as regular contracts excluding the rules of contracts imposed in real-time on a Blockchain, it alleviates the need for a middleman while adding accountability for all groups involved. It was clearly not possible with the conventional agreements; therefore, it saves money & time and ensures compliance from all the parties.
8. Supply Chain Sector
It is considered one of the most important use cases of Blockchain. In the logistics sector, it will be easy for newbies to get entry with the help of Blockchain’s permissionless nature. Moreover, there is a huge demand for Blockchain development solutions so that businesses can be facilitated with asset tracking, improved service, product & software licenses, transparency in goods, and other processes from inventory to the end of stock.
9. Voting Sector
Blockchain technology has also entered the voting system and it has completely changed the way the system works. Hence, businesses are obtaining Blockchain app development solutions to resolve the issue of voter fraud accusations. In this, all the votes get recorded on the Blockchain that can’t be altered or removed.
They are safe without any kind of tampering, and each of them will have its unique privacy codes and attached keys. Only the authorities will get access to these records and will verify the voters’ identity. It reduces the chances of foul play.
10. NFT Marketplace Sector
Businesses are going towards having NFT development services as NFTs have been the hottest trend to date related to Blockchain technology. In the year 2021, digital items got rise which is currently benefitting various artists. NFTs include digital assets like art, music, videos, etc. that belong to a specific person who has full rights to them.
Read More: Cost to Develop NFT Marketplace?
These can be sold with the help of Blockchain, and consumers can now affirm their sole ownership of the most desirable digital asset. To get the full benefits out of it, businesses prefer to get assistance from an experienced NFT development company.
What are the top Blockchain Development Platforms?
Blockchain experts always go for using some popular platforms to carry out the efficient and easy development of Blockchain-based apps. Read out these below famous Blockchain development platforms to build and use Blockchain-embedded ecosystems.
This Blockchain platform also called ETH, facilitates users when it comes to creating decentralized markets, financial apps, cryptocurrency wallets, game development, and many more. The addition of Ethereum refers to the elimination of third-party involvement that stores data for further financial instrument tracking. ETH also comprises a broad community of crypto-economic researchers, core protocol experts, cypherpunks, etc.
The benefits of ETH include smart contract functionality, features of tokenization, and fast deployment. This platform uses the proof-to-work-based system while providing support for programming languages such as C++ and Python. Market leaders such as Samsung Group, J.P. Morgan, Microsoft, etc. are using this platform. Also, it is easy for organizations to hire Blockchain developers who have expertise in Ethereum as there are plenty of them in the market.
Corda is mostly used for open-source Blockchain projects specifically designed for businesses. It is an advanced contract platform helpful for developing interconnected Blockchain systems to make transactions more secure and easier. It helps organizations deal with each other swiftly while keeping records of all the transactions in a distributed ledger without the help of a third party. Here participants can re-verify their transactions after interacting with the people.
Primarily, this platform is used in sectors like finance, health, and construction. There are many large-scale organizations including Morgan, MetLife, BNP Paribas, and so on that are adopting it. Corda is popular because it provides better security, flexibility, and many more while allowing open design and development practices.
It is known as the leading Blockchain platform that is advantageous for executing transparent and economical business strategies. With time, it has become a preferable choice for business owners as it deals with controlled and full-stack Blockchain-as-a-service offerings. It enables users to implement their Blockchain elements in a user-selected environment. IBM is a popular platform that will be helpful to build, use, and evolve the Blockchain network of users.
Next to this, this famous Blockchain platform also provides a one-month free trial for its users. IBM is a community-based, open-source platform that offers a permission network. The platform is associated with the free IBM cloud Kubernetes cluster and supports programming languages such as Java and Go. CIGNA Corporation, Aetna Inc., Anthem, Inc., etc. are some organizations that are using the IBM platform.
TRON is a decentralized digital platform based on Blockchain that has its own cryptocurrency as well, called TRX or Tronix. This operating system helps the users in creating dApps and trade media holdings. TRX or Tronix is helpful for users to get accessibility to operate the functionalities of software. The goal of Tron is to support content producers to obtain better pay off for their manual labor. The information stored on this platform is not controlled by any central power authority.
Here, the content providers are paid with the digital assets, it can be TRX or any other currency supported by it. Tron delivers smooth and high performance along with enabling 2000 TPS. Including scalability and multi-level extension, this platform helps remove the need for counterfeit chains.
This open-source Blockchain protocol is designed with the aim of using them in a private Blockchain network in which only a single member has all the rights of available nodes. It can also be used in a consortium Blockchain network where several members separately own a part of the network. Quoram uses Ethereum for handling use cases requiring high-speed and appropriate implementation of confidential transactions with high-level security.
It doesn’t get engaged with the PoW (Proof of Work) consensus mechanism and helps to evolve in tandem with the help of Ethereum. This platform is able to manage several changes in Ethereum simultaneously and swiftly. Various organizations such as HSBC, Ant group, Microsoft, JP morgan chase, etc. are using Quorum recently as working with it is quite easy and faster.
Tezos is considered an essential Blockchain protocol for apps and assets supported by a community of researchers, validators, and builders worldwide. It was launched by Arthur Breitman and Kathleen Breitman who designed it to deliver accurate and safe code when it comes to Blockchain app development. The related computerized token with Tezos is called Tezzie or Tez. It is built to use for dApps and smart contract development services with the use of Michelson languages.
The working of Tezos is similar to its equivalents such as Ethereum, NEO, ICON, and so on. This self-governing and self-amendment Blockchain platform is used by Red Bull Racing Honda, McLaren Racing, Interpop, and many others. It has a unique feature called a self-rectifying cryptographic ledger that can act in advance without getting pronged often.
Stellar is widely known as a payment protocol based on digital currency technology that handles millions of transactions per day. Be it cross-border or within the country, it is able to do the transaction in seconds. Stellar has an open and decentralized database while allowing for smart contracts and multi-signatures. It has 1% of yearly inflation that is permanent and takes 2-3 seconds for transaction verification. This Blockchain network is also being used in creating banking tools, smart devices, and mobile wallets.
It will be good to hire Blockchain developers who use this network as it facilitates the exchange of cryptocurrencies and fiat currencies along with faster transactions. Companies like Yahoo Finance, Deloitte, ICICI Bank, and others are using Stellar efficiently.
Read More: Tips to Hire Blockchain Developer
It has a cryptocurrency called Stellar Lumens represented by XLM go along with the Stellar Consensus protocol. It permits nodes to reach a consensus without the help of a closed system to have a record of financial transactions.
8. Hedera Hashgraph
Hedera Hashgraph is a secure and faster platform that doesn’t need to calculate the complicated PoW algorithm. It introduces a new kind of distributed consensus because it empowers and permits developers to create a whole new & scalable category of decentralized apps. With binding arbitration, an optimal mechanism, Hedera Hashgraph deploys smart contracts including several public keys of arbitrators that are editable to fix bugs and errors while adding new features.
If there is some alteration in the smart contract with the consent of the appointed arbitrator, the transaction with the new bytecode will be approved by the arbitrator’s keys and then, the changes will be applied. Market giants like Google, Boeing, LG electronics, and Tata communications have used this to date. Therefore, businesses must look to hire a Blockchain app development company that can deliver them Blockchain apps built with the help of this platform.
9. Hyperledger Sawtooth
This platform was released by the Linux foundation and was backed by IBM & digital assets. It is popular as an open-source enterprise Blockchain-as-a-service platform allowing one to run personalized smart contacts without knowing the basic core system functioning. Mainly, it is used for creating, launching, and running distributed ledgers while maintaining digital records without the help of a central authority.
IBM, DTCC, Walmart, and others are using this platform because of PoET (Proof of Elapsed Time), its consensus mechanism helpful to combine it with the hardware security solutions named Trusted execution environments. One of its popular apps is the newly introduced Xeon processor by Intel.
10. Hyperledger Fabric
It is one of the projects of Hyperledger to use modular architecture to create efficient solutions or apps with Blockchain technology. It is hosted by the Linux Foundation and has an active community of developers. This platform allows network designers to add their preferred elements like consensus and membership services.
The fabric has permissioned networks letting well-known identities be integrated within a system. The members within the network must be verified and legitimate. This network is used in organizations such as Huawei, Telefonica, Aetna, etc.
It is the most popular Blockchain platform designed to provide secure and proficient Blockchain app development services. It allows the user to smart contract expertise and dApps hosting. While supporting improved usability and governance, it also allows multiprocessing and has a permission schema.
It offers decentralized storage of business solutions that assist users to improve the scalability encountered by Bitcoin or Ethereum. EOS is the most preferable one when it is to measurability, flexibility, and upgradability for all users.
What are the Top Programming Languages Used for Blockchain App Development?
The next point to discuss in this step-by-step guide to Blockchain development is the famous programming languages used to create an efficient Blockchain app. Let’s end the curiosity to know about them by scrolling down-
It is the most popular Blockchain programming language used for writing and deploying smart contracts on the Ethereum virtual machine. It is a recommended language for freshers by developers worldwide.
Basically, it is a statically typed language introduced by Gavin Wood in the year 2014. Solidity is influenced by C++, and Java mainly and Ethereum is developed by Vitalik Buterin, that is PowerShell.
- Stable and Flexible coding
- The user-friendly and high-accuracy rate
- Multiple type-safe functions due to Application Binary Interface
Simplicity was proposed by Rachelle O’Connor and is destined to reduce the lesser understanding of cryptocurrencies. This language is in accordance with the platform of Blockstream’s aspects. It seems like a chance to get close to Liquid Network users including vault, escrow, and other smart contracts.
- Reliable & secure
- Static analysis
It is considered the official language for Blockchain app development for the Android platform. Java originated from C-syntax and currently, it is used for creating advanced smart contracts and dApps on a large scale.
This language provides portability that’s its main benefit. With the help of Java Virtual Machine (JVM), it is not restricted to any device and hence, can manage a lot of users on a Blockchain network simultaneously.
- In-built libraries
- Strong support for object-oriented programming
- Easy memory cleaning
This language enables Blockchain developers to create a solution without writing much code compared to other languages. There are different plug-ins and resources included in this open-source language.
Python also provides the choice of pre-compiling the code which makes working easy for developers. Enterprises must hire a Blockchain development agency with professionals who got expertise in Python as it is proven to be the best programming language for Blockchain development.
- Amazing features with easy bug detection
- Supports object-oriented programming
- Extensive built-in library and short coding
The Hypertext Preprocessor (PHP) was released by Rasmus Lerdorf in 1994, he was a Danish-Canadian programmer. It is known as a platform-independent and open-source programming language strengthened by Zend Engine and supported by multiple operating systems.
It has in-built libraries that facilitate easy working for developers when it comes to Blockchain development solutions. PHP helps in the simple execution of the Blockchain data structure and PoW (proof-of-work) using its programming language. PHP also provides in-built support for Web3, ETH, Net, and shh JSON RPC modules of Ethereum.
- Easy to install and use
- Supported by multiple operators like Windows, Linux, etc.
- less time is taken in web app development
It was founded by Bjarne Stroustrup in 1985 and now, C++ is counted among the top 10 programming languages. Blockchain development companies in the USA prefer to use C++ as it is ample when it comes to aspects like function overloading, polymorphism, and multithreading.
It facilitates developers for data alteration according to the requirements. It is primarily used in Blockchain and cryptocurrency exchange development services.
- Easy-to-use structured programming language
- Faster execution time than Java
Get benefits from one of the famous open-source programming languages launched by Microsoft. Currently, there are 5 to 8 million developers who are using this language worldwide, as per the reports of visual studio magazine.
NEO, Stratis, and IOTA are some famous Blockchain programs that include C#. This language is object-oriented and uses extensible markup language or techniques for an easy development process.
- Rich library with menu functions
- Easy version control due to assembly concept
- Support for distributed system
Ruby is used by a wide community of developers as it comprises amazing memory allocation capabilities. This language was introduced by Yukihiro Matsumoto, here the primary focus will be on the minimalism and productivity that makes Blockchain app developers prioritize this language over others.
It is easy to use and also supports cross-platform Blockchain app development with the help of multi-paradigm, third-party APIs & plugins.
- It comprises a rail framework including a broad community
- Easy to install in both PIOX and Windows.
This language is also known as Golang and is considered to be a statically typed and compiled programming language. Worldwide Blockchain experts believe that it is the most useful language due to its outstanding features.
It is easy to use, developer-friendly, and non-rigid which is advantageous to both tech enthusiasts and newbies. It has been mostly used for Go-Ethereum and Hyperledger fabric.
- Run-time Efficiency
- Garbage collection for a faster development process
- Organized syntax and typing
Rust has always been on the top as there are 87% of developers prefer it for Blockchain development services. The advantages included in Rust are it is type-and memory-safe with utmost security features. Rust is highly utilized for smart contract development services for chains like NEAR and Solana.
- High performance with memory safety
- Supporting Concurrent programming
- Vibrant community
What is the Process of Blockchain Development for Building a Blockchain-Based Solution?
Want to know how a Blockchain development agency works when it comes to creating a high-performing and efficient solution? It is believed that a development process always leads according to the requirements of business owners, innovators, entrepreneurs, and product managers.
The created solutions should be a combination of all the business goals, future vision & mission, target audiences’ requirements, and others.To provide you with an exact idea about it, we have defined a step-by-step guide to the Blockchain development process. Have a look-
Step 1. Goal Identification and Problem Solving
When it comes to creating a suitable Blockchain solution, you must have to look at all sides to define a problem statement and find its solution. Analyze your recognized business goals deeply and then, find out what are the hurdles that might stop you from fulfilling them. Having an overview of the diverse use cases of Blockchain will also be an effective step to ensure that Blockchain is really needed in that sector or not.
Decide if your blockchain solution is actually efficient to solve real-world issues or not. You can also consider migrating your current solution to an upgraded blockchain app or building it from scratch.
Step 2. Choose an Appropriate Blockchain Platform
Here, your chosen Blockchain development agency will help you to choose a suitable platform on which your app will be built. The skill set of your development team will highly impact this decision, so choose carefully. The entire process will consume a bit more time as you must evaluate your problems, developers’ requirements, incurred costs, and timeline before taking a decision. Try to select one of the most popular Blockchain platforms such as Ethereum, Hyperledger Fabric, Corda, Ripple, Multi-chain, IBM, etc.
Step 3. Evaluate the Blockchain Idea
After analyzing all the problems and selecting a suitable Blockchain platform, it is time for Blockchain ideation according to the business needs. In this, you need to evaluate, plan, and focus on the different use cases for experimenting with the Blockchain. Decide on which elements should be included or which should not as off-chain and on-chain business entities.
For the release of the alpha, beta, and ready-to-deploy versions of the Blockchain app, there must be prepared a roadmap for an easy process. The primary deliverables will include the conceptual workflow designing and Blockchain model.
Step 4. Create a Proof-of-Concept
Proof-of-concept refers to a technique of displaying the practical potential integrated with a Blockchain project. It can be represented by a prototype of a theoretical blueprint. It comprises a step-by-step process showcasing the project’s feasibility. The theoretical build-ups are needed by end-users to understand the productivity and viability of the product including the parameters.
On the other hand, a prototype includes sketches, mock-ups, information architecture, designs, and tested products. Here, the approval of the prototype is necessary to lead the project further by starting work on visual and technical app design.
Step 5. Visual and Technical Design
Consider this phase an important one in this whole development guide as it largely impacts the overall cost to develop a Blockchain app. There must be designed user interfaces for each software component. Then, there is a need for API designing so that they can be combined with the UIs to run the app efficiently in the back end.
It is mandatory to record the technical GDPR compliance requirement to recognize in which component it should be implemented. After getting done with the user interfaces and admin console for the blockchain app, you are ready to navigate the development part.
Step 6. Developing the Blockchain Solution
Blockchain app development is the most important part of the entire process. Your chosen Blockchain experts need to configure the key aspects of the app here. They need to ensure the block signatures, permissions, address formats, and key management. In this, APIs will be used to execute auditing functions, store, or retrieve significant data, and generate key pairs. ‘What are the APIs to include’ will be based on the app goals.
It will help you to get desired functionalities through your blockchain application. Here are some of the preferred APIs for Blockchain solutions-
- Smart asset lifecycle management
- Key management
- Key and address generation
- Smart contract management
- Test and Launch the Blockchain App
After the development phase, the app is ready to undergo different types of tests that will make sure the app is working smoothly and flawlessly. Here, testers should try to evaluate the app on as many parameters as they can.
Blockchain apps should be error-free and have fast performance and every function of the app must work properly. If there is anything that needs to be fixed, it should be done as soon as possible so that the app can be deployed on the chosen platform.
Once the app gets error-free, it will be deployed to different resources via provisioning. After it, you can host the blockchain app on the primary chain.
How Much Does It Cost to Build a Blockchain App?
The total Blockchain app development cost depends on various factors comprising app complexity, blockchain type, size of the team, technology stack, app platform, features, etc. Considering all these factors, you must evaluate it properly, let’s understand them in detail-
- App complexity- The complexity of Blockchain apps highly affects their cost. Try to limit the integrated functions to make them less complex.
- Blockchain Type- Whatever type of blockchain you want to build, be it hybrid, native or cross-platform, you must bear the cost accordingly.
- Size of the team- Form the development team with essential members only, otherwise, it will be a very costly matter for you.
- Technology stack- To make the app advanced and efficient, there is a need to integrate modern-edge technology and tools. It can differ your estimated Blockchain app development price.
- App platform- Determine for which platform you want to go. Whether it is the web, Android, or iOS, all have different costs involved, hence choose wisely as per your target audiences.
- Features- Include required features and functionalities only to develop the app with a limited budget.
The cost to develop a blockchain app can be varied based on these above-mentioned factors. To get a cost estimation, if you hire a small to mid-sized company, it will cost you around $20,000 to $70,000.
If you go for a large-scale development firm, the cost will range from $50,000 to $1,50,000. Thus, do proper research and evaluate the budget before hiring Blockchain developers as Blockchain app development needs specialists with vast experience and skills.
What is the Future of Blockchain Technology?
While discussing the future of Blockchain, we can say that Blockchain is much more than just a system that is used to transfer cryptocurrencies securely. Nowadays, blockchain technology is integrated with the solutions largely used in industries such as healthcare, insurance, banking and finance, artist royalties, and many more. Currently, Blockchain is in its primary phase and still has a lot of scopes to improve and use in different sectors.
Supply chain uses, management identification, smart contract auditing, cross-border payments, and data security are some famous functions executed with the help of Blockchain that has made us say that this technology surely will cover a long path in the technological world. Just to say, the full potential of this latest technology likely remains to be revealed.
In this above guide to Blockchain, we have covered most of the essential aspects required to acknowledge for developing a blockchain-based solution. Blockchain technology came into the light via cryptocurrencies but now, it is gaining traction in several industries due to its prominent features. Over the years, it has seen changing the finance sector but in a good way and also, has become a driving force in almost all the sectors to execute their functions.
With time, the more people are learning what is Blockchain, the more they want to invest in this sector. If you are also one of those enthusiasts who are willing to shift or expand their business, SemiDot Infotech is here to assist you and provide you with the right guidance. We have Blockchain experts with the right skills and vast experience that will help you a lot to get a proficient and cost-efficient Blockchain solution. Feel free to contact us anytime.
The below FAQs will help business enthusiasts and individuals to understand the Blockchain concept in-depth.
- What is Blockchain Development?
Blockchain development refers to a procedure of generating a solution with distributed and consistent technology useful in securely storing transactions and tracking assets, whether they are physical assets including real estate or money, or non-physical holdings such as copyrights available in the network. The use of DLT (distributed ledger technology) has made it easy to record transactions across a network of computers so that these records can’t be modified or edited.
- How Does Blockchain Work?
The main work of Blockchain technology is to allow digital data to be stored and shared without being modified. There are three major processes included in Blockchain working that are- Data, Hash, and previous data hash.
The technology works in multiple steps following: a verified user requests a transaction that will be authenticated by the technology. It will proceed to form a block for that specific data or transaction. Then, this block will be shared with each node presented in the network without data alteration.
- What are the 5 Key Components of a Blockchain System?
The 5 key components of a Blockchain system include- The distributed ledger, peer-to-peer network, smart contract, cryptocurrency wallet, and consensus mechanism.
- What Coding Language is Used for Blockchain?
There are various coding or programming languages used for Blockchain development comprising Java, Python, Go, Solidity, C++, PHP, C#, Ruby, Rust, and many more.
- What Algorithms are used in Blockchain?
Consensus algorithms are used in Blockchain comprised of PoS (proof of stake), PoW (proof of work), dPOS (delegated proof of stake), RPCA (Ripple protocol consensus algorithm), POI (proof of importance), and SCP (stellar consensus protocol).
- What are the Different Types of Blockchains?
There are mainly three types of Blockchains –
1. Public Blockchain
2. Permissioned or private Blockchain
3. Consortium Blockchain