Blockchain development is building a shared, immutable Distributed Ledger Technology (DLT) that safely records transactions and tracks assets inside a network, whether those assets are actual, like money or real estate, or nonphysical, like copyrights. The emergence of blockchain technology has several advantages, but you must first comprehend it to take advantage of its potential. Because it makes information transmission possible rapidly, accurately, and securely, it is helpful for many sectors. A blockchain network offers transparent delivery and storage for authorized members regardless of whether you're tracking orders, accounts, payments, production, or other data.
This confidence in blockchain development is based on the increased security, increased transparency, and immediate traceability of blockchain technology. This process starts with identifying the problem and a feasible goal. Once you have determined the problem, seek a suitable blockchain platform to build your decentralized solution from scratch. After getting on board with a platform, the next step is to ideate. Decide what elements should be included, prepare a roadmap, and formulate more ideas. Next, work on developing a proof-of-concept. This is one of the most critical phases of the blockchain development process. If your PoC works fine, you can move to the deployment stage. Read on to look at these steps of blockchain development in detail and how to become a blockchain developer.
What is Blockchain Development?
Blockchain development is creating a shared, immutable distributed ledger technology (DLT) that safely records transactions and tracks assets inside a network, whether those assets are actual, like money or real estate, or nonphysical, like copyrights. Blockchain technology's emergence has several advantages, but you must first understand it to benefit from its potential.
In a distributed, peer-to-peer computer network, a blockchain is essentially a fixed, digital ledger that employs encryption to record transactions and monitor assets, both physical and digital, across a network of computers. It sounds like a database management system, but it is a very different kind.
Why Use Blockchain?
As blockchain is becoming an emerging technology, learning blockchain development has become essential if you wish to advance your career in digital/IT domain. Blockchain enables AI to expand by managing data usage and model sharing, enabling access to vast volumes of data from inside and outside the enterprise and producing a reliable and open data market. Blockchain is primarily used over other standard databases because they offer a more advanced way to manage and secure digital relationships in a decentralized environment.
Moreover, blockchains can remove intermediaries or gatekeepers, making data storage less expensive and more secure. Using blockchain, companies can directly connect to their clients and make transactions without connecting to any mediator.
Blockchains are also essential when your data is in constant flux or moving, but you still want to keep a record of all past transactions. You benefit from having a record as blockchains instantly update all and ensure that the data cannot be corrupted by anyone or unintentionally erased. To know more about the technology and its use cases, you can out this Blockchain training course.
Advantages of Using Blockchain
There are many advantages of using blockchains and getting into blockchain development. Some of these are:
Immutability, a feature of blockchain, makes it hard to alter or change previously recorded data. The blockchain stops data manipulation on the network. The traditional database utilizes CRUD (create, read, update, and delete) at the primary level. The CRUD model makes it simple to delete and replace data. Blockchains, on the other hand, do not have an update or delete functions.
Due to the decentralized nature of blockchain development solutions, any network user can validate any data entered into the blockchain. As a result, the public can have faith in the network. On the other hand, a typical database is centralized and does not permit transparency. Users cannot independently verify information anytime, and the administration makes a specific data set publicly available.
Blockchain technology is uncensored because it is not under the jurisdiction of a single entity. Therefore, a single authority, including governments, cannot stop the network. On the other hand, traditional databases have centralized authorities that control network behavior and have the power to censor. For example, banks have the power to suspend user accounts.
Blockchain Application Development Process
The blockchain application development process includes many phases. The process begins when you identify a problem that can be solved using blockchain technology and then determine a goal/solution. After identifying the problem, you must look for a suitable blockchain development platform where you will develop your blockchain solution. Once you finalize a particular platform, you will ideate the problem and build a solution. Lastly, for the blockchain problem and solution, you must work on a proof of concept to test and showcase your solution to end users.
Steps to Develop a Blockchain Solution from Scratch
If you are getting started blockchain development process, then go through the following steps.
1. Identify your business problem
First, you should be very clear about what you want to achieve. Examine your overall business requirements and contrast them with the above-described high-level use cases of blockchain development. A problem statement that concisely summarizes all the issues you're trying to address can be helpful. Please ensure a blockchain solution can genuinely address these problems before implementing it.
2. Draft workflow design and business requirements to integrate blockchain
Once you have identified a business problem, you must plan for the following steps. You should establish your company requirements so that each area comes under the light. Think about the technology stack you will need for a complete blockchain ecosystem, both on-chain and off-chain. These details can be used to build a more concrete product roadmap to help you stay on schedule and identify resource needs. This is the stage where you undertake custom blockchain development.
3. Consensus Mechanism: Proof of concept, Proof of Stake, Proof of Elapsed Time
A consensus mechanism is a methodology that ensures trust, security, and agreement in a decentralized network. In this stage, you must identify a consensus mechanism (proof of work, stake, and time). This ensures you showcase the practical potential of your blockchain project associated with your business or use case. It is a prototype or blueprint that discusses the project's feasibility at every stage. It is one of the key stages as the proof of concept conveys your project's viability to the users.
- Choose an Appropriate Blockchain Platform
You must choose the correct platform for your blockchain application because it will affect the skill set your development team will require. Make sure you select the platform that most closely matches your company's requirements because the entire process necessitates extensive research and time for effective development.
4. Choose: private or public blockchain
The next step involves the selection of whether you want to proceed with private blockchain development or public blockchain development. Although public blockchains have significant advantages such as transparency, independence, and trustless environments, they are slow, expensive, and resource-intensive as of now. Secondly, it might be a strategic call not to release private data on a public blockchain.
- Build your APIs and Design the User Interface
Application programming interfaces (APIs) are already created on some systems but not on others. You should create APIs based on your requirements. You will need it for data authentication, data storage, smart contracts, smart-asset lifecycle management and many other purposes. Once you have planned all the necessary APIs, you should start designing the user interface (UI) for each.
- Choose an Accelerator to Optimize Your Blockchain Application
How do you know your blockchain app will be successfully deployed once it has been developed? Blockchain applications that require a lot of computing power need a hardware accelerator to improve performance, give flexibility, and make optimal use of resources. Moreover, accelerators aid in the improvement of specific blockchain elements, including transaction validation, governance, and data storage.
5. Ultimately, start blockchain development
You should begin the blockchain development process after carefully choosing the crucial elements for blockchain solutions. In addition to data storage and retrieval, APIs can generate key pairs and addresses, carry out data authentication, and perform auditing tasks.
Top Blockchain Development Platforms/Frameworks
Blockchain platforms are gaining a lot of attention as a tool to increase financial transactions, trade, and traceability while streamlining supply chains. Some of the top blockchain development platforms are -
- Founded in 2013.
- Decentralization support for smart contracts.
- Owns its cryptocurrency called Ether.
- Started in 2015.
- Private, decentralized, and low-risk.
- Completed more than 18 million transactions for more than 17,000 products.
- Started in 2015.
- Famous for closed blockchain deployments.
- Supports smart contract model and all UTXO models.
- In development since 2014.
- Supports smart contracts, NFTs, etc.
- First launched as an open-source project in 2018.
- Supports smart contracts and dApps.
- Uses a complex consensus mechanism based on PoS.
How to Choose a Blockchain Platform?
Deciding on an appropriate blockchain platform is vital if you are getting started with blockchain development. But to make your research a little bit simpler, we've included a list of factors you should look at before hopping on the blockchain bandwagon.
1. Platform Speed
A network's capacity for TPS (transactions per second) is indicated by the blockchain's scalability rate. The amount of data you want the network to handle will affect your requirement for platform speed. A higher TPS platform will be significantly more effective if your organization is working on producing payment software or, let's say, a high-transaction gaming app.
When getting on with enterprise blockchain development on a platform, you must research the platform's functionality. Even though all blockchains use the same technology, they might have very different features. Since their primary objectives are so dissimilar, their methods for processing data, the length of time it takes them to do so, and the features they can provide differ significantly.
3. Platform Security
Blockchains are designed by default to be a significantly more secure way to store and share data. However, that doesn't imply you should disregard data security concerns or assume that all platforms are equally safe. You want to double-check each platform's security services, mainly if you deal with private or sensitive data.
Cost of Blockchain Development
The cost of developing a blockchain app relies on a number of variables, such as the app's complexity, functionality, blockchain type, blockchain platform, and other technology stacks. We have examined the cost of implementing a blockchain, considering many elements, concrete instances, and precise figures.
|Stepwise Cost Distribution||Share|
Deployment and 3rd Party Cost
Public: $0.01/ transaction-based blockchain + $750 for third party
When to Implement Blockchain Development?
It is challenging to decide when to begin blockchain development for beginners. But don't worry; in this section, we have briefly explained when to implement blockchain development.
- Are you planning to remove intermediaries?
- If yes — then use blockchain.
- If no — then do not.
Blockchain solves the problem of intermediaries and mediators. So, if you have this purpose, you should willingly incur the blockchain development cost.
- Do you have to work with digital assets?
- If yes — then use blockchain.
- If no — then blockchain might not be as helpful.
Blockchain is the best solution to store and record digital assets and their transactions. Besides, there is an easy way to digitize average assets; hence, blockchains are very secure for standard assets like real estate. If you are not working with digital assets, then there may be other technologies lesser extensive than blockchain that might solve the purpose.
- Does your business involve complex and bulk transactions?
- If yes — blockchain might help.
- If no — then do not.
Some organizations require quick systems that manage millions of transactions. Therefore, not all businesses need blockchain. Blockchains at present cannot solve the problem as speed is an issue, but as they are developing by the day, they might solve it.
Blockchain Development Challenges
Several challenges might come your way in utilizing blockchain development technology. Some of these are.
1. The incremental cost of blockchain implementation
Although most current solutions are free, hiring skilled software engineers specializing in blockchain development, paying licensing fees if one wishes to switch to a for-profit software version, general administration, and other costs require a sizeable investment.
Scalability is a critical issue with its implementation. Even advanced blockchain development is not practical for large-scale apps because, even though transaction networks can handle hundreds of transactions per second without experiencing any problems, processing transactions for Bitcoin (about 3–7 transactions per second) and Ethereum (about 15-20 transactions per second) takes a long time. You might seek third-party assistance or participate in a Blockchain professional training course to learn more about these challenges and their solutions.
Blockchain Use Cases/Implementations of Blockchain Technology
For many industries, including BFSI, healthcare, education, real estate, supply chain & logistics, and IoT, to name a few, blockchain technology is posing as a game-changer. Here are some of blockchain technology's most prominent use cases/implementations.
1. Smart Contracts
Smart contracts are real-time, blockchain-based contracts. They are made as agreements between two or more parties without a middleman. This is diversified if you switch to a blockchain network. These days, real estate, healthcare, and even governmental organizations use smart contracts regularly. They are widely used in the healthcare (BurstIQ) and real estate industry (Propy).
2. Internet of Things (IoT)
There are billions of connected devices; hence, the Internet of Things (IoT) business is expanding quickly. According to the most recent predictions, 50 billion devices will be used worldwide by 2030. Blockchain-based IoT devices are primarily used in cybersecurity, like in Xage and HYPR.
3. Money Transfer
Blockchains are significantly useful for money transfers and payment processing as they make real-time transactions possible at good speeds. As a result of the time and money savings, this has permanently changed the BFSI industry.
Benefits of Implementing Blockchain Solutions in Your Business
There are many benefits of implementing blockchain solutions. Some of them are:
Blockchain technology has the potential to alter how your sensitive and essential data is perceived fundamentally. Blockchain reduces the instances of fraud and illegal behavior by creating recording and encrypting end-to-end.
Blockchain establishes an audit trail that records an asset's origins at each stage of its travel. This helps to give proof in industries where customers are concerned about environmental or human rights issues surrounding a product or in industries plagued by fraud and counterfeiting.
Better Efficiency and Speed
Maintaining transactions and records on paper is a very time-consuming process and is also prone to human error and third-party involvement. These records can be recorded more quickly and efficiently by automating the process using blockchain technology. Blockchain securely holds information about transactions and trades without requiring any paper or physical proof.
With "smart contracts," transactions can even be automated, enhancing productivity and accelerating the procedure further. Once pre-specified conditions are met, the next stage of a transaction or process is automatically started. Smart contracts reduce the need for human intervention and rely less on third parties to verify that the terms of a contract have been followed.
How Do You Get Started in Blockchain Development?
There are specific skills and educational backgrounds to get started in blockchain development. A blockchain developer is expected to have a combination of technical and soft skills.
- Knowledge of cryptography,
- Proficiency in programming languages, like Python, for python blockchain development,
- Understanding of data structures and algorithms (DSA),
- knowledge of blockchain architecture.
- Communication skills,
- Problem-solving attitude,
- Time management.
Besides these skills, you can also consider enrolling in blockchain courses and boot camps, like the KnowledgeHut blockchain training course. Once you are aware of the fundamentals, you should try and master cryptonomics. Blockchain is based on the world of cryptocurrencies, and a knack for crypto will surely help you become a blockchain developer.
Moreover, you must be familiar with Ethereum, the most popular blockchain network, and the general idea of DApps (decentralized applications). You can better comprehend the numerous applications that blockchain technology can lead to by learning more about DApps.
Evidently, blockchain is a very beneficial and emerging technology that applies to almost every industry. It forms the basis of several other technologies and domains like artificial intelligence, machine learning, etc. Blockchain is widely used everywhere, from supply chains, the banking and financial sector, real estate, and healthcare to insurance. The technology guarantees traceability and immutability. This is why, to have a stable tech-based career in the future, it would benefit if you started with blockchain development and start from the basics.