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Blockchain Development Guide: Step By Step Process Explained

Blockchain Development

Having worked with various blockchain development process for different kinds of industries, we feel like it is about time we provide you with a detailed guide on blockchain development process. So, whether you want to invest in blockchain, want to know how blockchain works, or the process of blockchain application development. Here we are going to uncover all of the aspects of blockchain. Over the years, blockchain popularity has grown and it has certainly revolutionized every sphere of the industry. With more enterprises adopting blockchain, the popularity and use cases have significantly increased. In fact, with an annual development pace of 56.3%, the blockchain business will be valued at $163.83 billion by 2029. Thus, there is more curiosity among beginners to learn about blockchain app development step by step, and how it really works.  To help you have a better understanding of blockchain and its every aspect, we have created this comprehensive tutorial on blockchain development.

Introduction to Blockchain Development Process

In simple words, blockchain is a decentralized distributed ledger. The peer-to-peer network stores information and data in blocks in a chain, without any need for a centralized authority, third parties or middlemen. The chain blocks are immutable and transparent, where each block is cryptographically links together. While the blocks on the networks are digital pieces that store information like the transaction, time, date, amount, and so on. Initially, the blockchain was designed to record the transactions for Bitcoin within the public ledger. However, with time over the years, blockchain has evolved and revolutionized different industries, and businesses of all kinds from smart contracts to decentralized applications to decentralized exchanges and much more. That is why, the worldwide spending on blockchain services is expected to reach $10.2 billion of every 2022 and $19 billion by 2024.

Blockchain Development – Quick Overview

A blockchain is simply a chain of blocks that keeps the data stored in it, and all of the blocks are interconnected with each other. Similarly, every new block on the network is linked to the previous block. And each block has its hash, the hash code is a unique identity for each block. The hash code recognizes every block and the information stored in it, which is never the same. So, in case there are any changes done to the block, the hash code will change, which makes all of the block’s invalid.  Typically, here are three things that you need to know to understand blockchain better:

  • The Data or the Information

    It is based upon the type of blockchain network you are using. For instance, if we take an example of the Bitcoin blockchain, the blocks consist of the buyer, the seller, and the amount that needs to exchange.

  • Hash

    This is what provides a unique fingerprint to each block on the network. The hash code separates every block from the other.

  • The Hash of the Preceding Block

    The new block consists of the hash code of the preceding block, and this is how a digitally distributed ledger chain is built. For example block 3 will have its data and hash of block 2, similarly, block 2 will have its data and hash of block 1. So, this is how a chain of blocks forms and is called a blockchain.

The two main highlights and major differences between blockchain and centralized networks are:

  • Blockchain is a Distributed Ledger process: Previously, the ledgers were stored in one location only. However, a blockchain is a distributed public ledger that is shared across different devices around the globe. Every node is transparent and completely visible to anyone using the network. Similarly, no modifications is possible to the blockchain without verifying the nodes. As soon as a transaction confirms, and a new block adds up.
  • Blockchain is Immutable: Immediately when a block adds, it is nearly impossible to alter or modify the information stores in the blocks. With blockchain you cannot alter or rewrite the information that is once adds, rather a new block adds up with every transaction or an event.

Blockchain Development History:

Blockchain has been the biggest revolution so far, given the number of businesses and industries it has revolutionized. However, not many know that the start of blockchain dates back to the 1990s. And ever since the advent of the several applications have made their way into the market and have been successful projects. In 1991, Stair Haber and W. Scott Stornetta introduced what many people now know as blockchain. Together they started to work upon a cryptographically secured chain of blocks that were tamper-proof and immutable. Later in 1992, Merkel formed a legal corporation using the it along with some more features. Thereby the blockchain became more structured to store multiple information collected in the blocks.  Then in 2004, Hal Finney introduced digital cash known as reusable Proof of Work, which was a breakthrough so far. This helped in fixing the double-spending problem by keeping the ownership of the tokens registered and on a trusted server. Later, in 2008 Satoshi Nakamoto conceived the concept of the ‘Distributed Ledger Blockchain’ network in his white paper which elaborate on the ‘Peer-to-Peer Electronic Cash System’. He worked on the Merkel model and created a system that was more secure and efficient. The ecosystem consisted of a secure tamper-proof history of the data exchange.  Ever since this evolution, blockchain continues to evolve and revolutionize various sectors and fields.

Importance of Blockchain App Development in Our Lives

Blockchain is not merely a technology, it is a postulate concept that aims to completely revolutionize the industries. And one of the best things is that one can use it anywhere where humans need to share or interchange information. Here are some of the fields and industries that blockchain aims to completely transform.

  • Daily Finance: Don’t Require Bank Accounts

    Cryptocurrency is transformational for the financial system in many ways and possibly in many other ways that are yet to be known. The financial revolution has already started. Cryptocurrency will make it possible for billions of people across the world to get loans, and make fast international transactions, with no centralized authority. Direct peer-to-peer transfers will eliminate the need to have bank accounts, or at least for some occasions. All you require is the wallet address of the receiver to send the payments. All of the money is safely stored in tamper-proof encryption.

  • Smart Contracts – No Need for Lawyers

    A smart contract is a code that executes once the predefined conditions are met between the two parties. It verifies the conditions and executes the contract automatically. In simple words, a smart contract is something like a digital contract, instead of an off-duty contract. With smart contracts, you do not require any third party or middlemen or escrow service. Once the conditions is set, the contract does not execute until all of the conditions are met. Smart contracts development is a major part of blockchain app development.

  • Voting System – The End of Election Scams

    One of the best features of blockchain is its transparency and immutability. Thus, once the data or information transfers to the blockchain it is nearly impossible to alter or modify. This means once the vote is cast, it is impossible to change or alter this information. Besides, it can also eliminate manual errors. Moreover, you can cast a vote from anywhere in the world, and at any time, thus, completely keeping away from polling absenteeism issues.

  • Property and Land Transfers – No Need for Intermediaries

    Blockchain has transformed the real estate business in so many ways, including providing different means for buyers and sellers to connect. In addition, it eliminates the intermediaries and third-party interference lowering the cost to a great extent. Moreover, the introduction of smart contracts allows for tokenizing the real estate assets which trades through cryptocurrencies.

  • Food Supply Chains – Safer Food Products

    Blockchain offers laudable features that are smarter, safer, and at the same time also provide a sustainable ecosystem. This means that you can provide traceability, security, and decentralization while handling the data based on the food. Blockchain is also immutable, which means the transactions can’t change or modify or eve be hidden. As every modification is tracked, recorded and visible to the entire network of users. So, every participant has access to the information on the blockchain network. Big names like Walmart and Nestle are already using blockchain to trace the supply chain.

Advantages of Blockchain Development Over Traditional Finance

If blockchain is simply a new way of storing records, why is it a breakthrough? Why has it revolutionized almost every business sphere and industrial sector? Well, there are numerous benefits that you can get from blockchain applications. Below I have listed some of the major benefits of blockchain applications so you can get to know better. And whether you should opt for blockchain app development or not.

  • Highly Secure

    One of the main reasons for the acquisition of distributed ledger in numerous industries is due to its highly secure network. This is mainly because the data and the information transfers onto the encrypted  network, and offers a much more secure system. In addition, the decentralized information stored in the network made it very difficult to hack or modify, typically no single point of failure can happen. So, a blockchain application protects the data from data thefts or unauthorized alterations. In similar ways, the blockchain applications offer fool-proof security for data storage, access and recovery in different sectors like – finance, gaming, healthcare, and more. Therefore, security is one of the major reasons for the growth of blockchain in the market.

  • Decentralized Smart Contracts

    The decentralized network is not governed by any centralized authority or intermediaries but through smart contracts. At present, smart contracts are one of the most powerful blockchain applications development. Smart contracts facilitate digital contracts for utilization of all kinds of applications, something which is not possible without the involvement of the intermediaries. Typically, digital contracts utilize blockchain to automate the transaction and payment process once the set conditions meet. Since the information transfers across the entire network, third parties or organizations can’t have control over it.

  • Varied Applications

    As mentioned earlier, it has several applications and is quite flexible when it comes to the implementation of blockchain app development in different categories. It is mainly beneficial for the gaming blockchain applications, Internet of Things (IoT), DeFi platforms, DEX, and much more. So certainly it is one of the breakthrough advantages.

  • Speed and Efficient

    One of the benefits is super fast and very effective. Typically, manual data entry is prone to errors and mistakes. Most organizations need to maintain several record systems for maintaining different tasks. Blockchain networks  verify things or conditions at lightning speed. A Blockchain network does not require third-party verification. The blockchain helps in surpassing the hassle of long transactions, and high bank fees, and can be done through exchanges.

  • Easy Learning Curve

    The overall blockchain app development and its implementation is easy to understand and learn. It adopts through blockchain developers. Learning curve is a bit steep but it becomes very smooth once you get to know what you are doing.

Blockchain Development Advanced Use Cases

In this section, we are going to discuss the possible use cases of blockchain that have transformed various industries. Many big names like Walmart, IBM, and many others are already using the technology thanks to the innumerable benefits it offers – security, transparency, and traceability are some of them.  There are several use cases of the decentralized, however, here we are only going to discuss some of the breakthroughs.

  • Banking & Finance

    Banking requires transfer fees, which are not just time-consuming but very expensive too. Besides, sending money overseas becomes even more costly because of hidden charges and exchange fees. To combat this problem with the financial technology introduction of the blockchain development process in the financial network can prove to be very useful. How? Since blockchain eliminates the need to have middlemen and third parties. Blockchain is transforming the banking system, by providing a peer-to-peer network for transactions and payments with high security and minimal fees. Moreover, blockchain allows fast payment overseas, without the need for any third parties. Bitcoin records all the transactions in the public ledger which is accessible to everyone in the network. You can read impact of blockchain technology on economy.

  • Cyber Security

    Earlier cyber attacks were one of the major problems and threats to the security system. That is why, it was very important to build a system that is fool-proof, and secure from unauthorized access and breaches. The blockchain network quickly identifies any kind of malicious attack because of the P2P network where the data is encrypts and cannot change. All information stores in the blockchain network is confirms and cryptographically encrypts using an algorithm. By eliminating the use of centralized authorities, blockchain offers a transparent and secure way to track all of the transactions, without passing your private information.

  • Healthcare

    Blockchain aims are transforming the current healthcare system. At present, there is no way a medical professional can look at a single version of the report of the patient. However, with blockchain now patients keep their medical reports safely in the blockchain network, which is easy to access and recover at any time. Blockchain app development removes the central authority, which allows the patients to immediately avail their reports at any time. Since each blockchain is interlinked with one another and distributed across the computer through nodes.

  • Supply Chain Management

    At present, the supply chain management system undergoes many problems. The biggest issue is the lack of transparency. Moreover, supply chain management often comes across discrepancies like redundancy, lack of responsibility, and lack of collaboration. Blockchain development process can change the food supply chain system as it helps in easily tracking the products, and facilitate traceability across the entire supply chain. The blockchain network allows to confirm and audit the transactions through multiple supply chain partners which engages all the users in the supply chain management system. The public ledger records the transactions through the decentralization of the network. Every transaction records are stored as the blocks. Anyone using the blockchain network can check the authenticity or status of the product that is to be delivered.

  • Real Estate

    Currently, the real estate business is prone to many scams and risks, primarily because of the intermediaries and middlemen involved in the process. One more reason why this particular industry is facing trouble is due to the lack of efficiency of the entire system. However, blockchain development process can immensely benefit the real estate industry by leveraging safer and smoother transaction processes. All of this occurs through self-executing smart contracts for buying and selling the property. It can also be useful in providing rightful ownership verification of the property without any hassle and at a nominal fee.

Blockchain Application Development

Ok, so we have talked about the importance and benefits of blockchain so far. Now let us discuss in detail the applications of blockchain here.  Blockchain is easy to understand.  Blockchain development has many use cases beyond Bitcoin, which is just the tip of the iceberg. Below I have described some of the most crucial applications of blockchain development.

  • International Payments

    Let’s just get this straight, cryptocurrency is undoubtedly one of the revolutionizing that uses blockchain. Blockchain offers a safe and secure way to carry out payments seamlessly. The blockchain automates the entire payment process and lowers the number of intermediaries needed to complete the payment and complete the transaction process.

  • Capital Markets

    Blockchain-based apps are also a breakthrough when it comes to improving the capital markets. It seems to revolutionize the capital market through: – Faster and smoother clearance and settlement – Improvements in the operational functions – Integrated audit trail

  • Trading and Finance

    Traditional financial methods have been the major issue for businesses as the slower process often breaks in the system, and is the main reason why liquidity is difficult to manage. However, the introduction of blockchain development process has resulted in faster verification time, lowering the exchange fees, and elimination of manual errors, which will make trading a lot more convenient.

  • Online Identity Verification

    It is impossible to complete any transactions online without completing the identity verification process. And whether it is for finances or banking, the user must undergo an identity verification process. However, the blockchain apps can centralize the verification process. So the users need to verify their identity only once using the blockchain and they can share this information with any service provider. Besides, the users can also select the identity verification method depending on their convenience.

  • Copyright and Royalties

    Copyright and royalties are a serious problem in the world of entertainment businesses like music, movies, etc. However, blockchain development process can resolve this issue by offering security and transparency in the creative industries. There are many incidents where music, art, movies, etc. are leaked and copyrighted, and the original creator or artist never receives the due credit. Blockchain development can resolve this specific issue. As this provides the artist with the right to ownership and protects from any copyright issue. Blockchain is a transparent ledger that provides a secure way to keep the records of your piece of work and adds royalties to the work of the user. Cryptocurrencies can manage  payment of the royalties for the artists and content creators.

  • Internet of Things (IoT)

    The Internet of Things is a network of devices that are connected and gather data that can be used to automate devices. Any device that becomes IoT is once connected, these devices are usually referred to as smart appliances. But how does blockchain transform this field? Well, it provides the much-needed security for the distributed system as well. Thus blockchain  makes sure that the data obtained from the blockchain by the IoT devices are secure and only available to the authorized users.

How Does Blockchain Development Work?

Before starting with the technical details about the working of blockchain. Think of blockchain as a factual record of the transactions. Each block connects in the form of chains that links to the previous block. Cryptographically through a peer-to-peer network. The entire cryptographic ecosystem is trustworthy and provides the owner with a unique digital fingerprint for every transaction.  The blockchain network is built on trust, security, and transparency. Thus blockchain development enables many businesses and trading investors to share their information and be a part of this phenomenal mechanism.  To learn more about blockchain development process, you need to learn about its works. The entire blockchain network works on this model:

  • Decentralized Ecosystem

    One of the main reasons behind the unexceptional growth of blockchain is the decentralization of the network. Since there is no centralization of the authority, it provides security, trust, and transparency along with lower transaction fees.

  • Blocks

    As the name says, blockchain consists of multiple blocks which stores the data and information that comes to the blockchain. Each block interlinks with the previous block and this forms a chain. The blockchain network only allows you to add a new block to the chain. Therefore the previously added blocks cannot be modified or even deleted.

  • Consensus Algorithm

    The consensus algorithms are what sets the conditions for the blockchain ecosystem. Once the blockchain conditions sets up, the consensus algorithm makes sure that these conditions matches properly.

  • Nodes

    The blockchain has nodes which is the infrastructure that forms the blockchain. The nodes are the storage units that keep the data in sync and updated. Any node can identify in case anyone tries to modify  or alter the blocks, after it was added to the chain. When a new block adds up to the node, it downloads and copies the entire blocks on the chain. Once the new node has all of the previously added blocks that are storing the information it can further add new nodes to the chain.

  • Miners

    The miners verify the new transactions and keep a track of them on the blockchain. The process that leads to the creation of new blocks is known as mining. The process of mining results in the verification of the new transactions. This is done using cryptographic hash puzzles to verify the blocks of transactions that are added to the decentralized ledger.

Types of Blockchain used in Development

There are different types of blockchain that you can implement. Typically there are four types of blockchains, but each can be categorized as permissioned, permissionless and sometimes both.  Significantly, permissioned blockchains limit access to the network and specific nodes and may also restrict the rights to these nodes. The identities of the users on the blockchain are known to participants of the permissioned network only.  On the other hand, the permissionless network allows the users to pseudo anonymously participate in the blockchain network and does not limit the number of nodes on the blockchain network. Talking about security, permissionless blockchains are more secure as compared to permission networks. This is because the permissioned network contains multiple nodes to confirm the transactions. The identities of the users are known to other users in the network. Also, permissionless transactions are known to have a longer transaction processing time as the size of the nodes and transaction is large. Also, permissioned blockchains are proven to be more efficient.  Here we have explained four types of blockchain structures in detail:

  • Public Blockchain

    As the name suggests the public blockchain allows anyone to participate in the network and is hence permissionless. Every transaction that occurs in the public blockchain is completely transparent. On a public blockchain, every node has equal rights to access the network, create new blocks of data, and also verify the data. Significantly the public blockchain is mainly for cryptocurrencies which run on a public blockchain which is governed by conditions and consensus algorithms i.e. Proof of Work (PoW) and Proof of Stake (PoW).

  • Private Blockchain

    The private blockchain is a permissioned network that allows setting who can access the blockchain system. So, only users who have permission can access certain data. The central authority defines who can use the node. Again the central authority may not give equal rights to every participant of the node. Usually, private blockchains are small and mostly used on business and enterprise levels. Since the size has a limit, the transactions are faster and can process more quickly.

  • Consortium Blockchain

    It refers to the blockchain network where the consensus or mining process governs through a group of organizations, instead of a single entity, similar to a private blockchain. However, the consortium blockchain offers more decentralization than the private blockchain, which results in better security. In the case of consortium blockchain, the by preset nodes confirm the process. In a consortium blockchain, the validator node starts to receive and verifies the transactions. A consortium blockchain is more secure, scalable, and efficient than a public blockchain network.

  • Hybrid Blockchain

    The hybrid blockchains governs only by one organization, but with elements from both public and private blockchains. It allows the organization to set up a private, permissioned system, along with a public permissionless system. This allows them to have better control over who can access the certain type of data blockchain stores. Significantly, the transactions and records in the hybrid blockchain are not made available for public access but can verify using smart contracts.

Types of Blockchain Development Programming:

Architecture Programming

Before launching a blockchain, all of the features that are there in the architecture and in the protocol need to settle. These features are to be written in code. This can be done using development programming languages like Java and C languages. For instance, before the bitcoin blockchain was released back in 2009, the principles and guidelines overseeing the blockchain were coded in c++.

DApp and Smart Contracts

If you develop an application on the centralized network then the backend code runs on a centralized server. However, for decentralized app development, the backend code runs on a decentralized P2P network. So the decentralized applications (dApp) frontend code can be written in any language.

Blockchain Development Programming Languages:

1. Solidity

Solidity is one of the most popular programming languages for blockchain application development. It is an Object-Oriented domain-specific and high-level programming language mostly used to develop decentralized applications on the Ethereum platform and Ethereum Virtual Machine (EVM). The Solidity language has been adopted from C++, Python, and JavaScript.

Pros:
  • Easy learning curve
  • Static programming language
  • Offers inheritance properties in smart contracts
  • Static language
Cons:
  • Is mainly for the Ethereum network
  • There is no standard library available

Since the language is new, it has a limited community

2. GO

GoLang is a domain-general programming language developed by Google in 2007, and is available to the public since 2012. It is a static type language with syntax similar to the C programming language. It is a user-friendly, powerful, secure, high-performance language that has multiple use cases. The language contains a rich library, so it offers great flexibility in working on the language, especially if the project has multiple parts.

Pros:
  • The compilation is very rapid
  • Simple, secure and compact programs
  • Highly scalable, and powerful language
  • Good garbage collection efficacy
Cons:
  • Can be difficult to learn
  • Small community
  • The Go language does not offer multiple packages

Beginners may find the syntax unclear

3. JavaScript

JavaScript is one of the most popular programming language these days. The language has different frameworks like Angular, Node, React, and JQuery that are the main force behind web development. Besides, HTML and CSS it is used to further enhance the functionality of web pages. Mainly JavaScript creates interactive web pages.  One of the main reasons why JavaScript is perfect for blockchain development is because the language is very good at handling asynchronous functions. As the number of users on the blockchain increases, all of them performing the same action at the same time, JavaScript can handle all of the communications between all of these nodes more smoothly.

Pros:
  • Prototype-based language
  • Assists functional programming
Cons:
  • Its interpretation depends upon the browser
  • There is no privacy code

 4. Python

Python is one of the most favoured programming languages especially among the new programmers primarily because it has a simple syntax somewhat similar to the English language. It is mostly used in modern-day programming language used on a server to create web-based applications. The language also connects to database systems, handle massive data and perform difficult mathematical tasks. One of the most underlying features of Python is that it utilizes new lines to finish a command, as compared to other languages that make use of either semicolons or parentheses.  We can certainly not rule out Python from this list because every blockchain development system has one and even more tools written in Python. That is why Python is quickly becoming a more popular language than it was earlier.

Pros:
  • The easy syntax allows the programmer to write few lines of code as compared to other languages
  • Works on different platforms (Windows, Linux, Mac, Raspberry, and more)
  • Faster prototyping
Cons:
  • Mostly used as the server-based language
  • Usually, libraries do not have enough documentation
  • Does not have a smart context

5. C++

It is one of the oldest and most favored programming languages so far used for web app development. It is an extension of the C language. In C++ language, a package of data, functions, and objects is built which can easily be used again in other programs which reduces the time and cost of programming.  C++ has some very engaging features. Think about blockchain development apps, they have to interact with multiple unknown nodes while giving a rapid response. This particular feature is very crucial for the success of a crypto project. Another major attribute of the C++ language is its move semantics. The Move semantics offer a method of moving the content between objects instead of copying them. This allows copying the specific data only when you require it, drastically improving the performance and reducing the redundancy in the code.

Pros:
  • Object-Oriented language
  • Multi-paradigm
  • Low-level manipulation
  • Larger community
Cons:
  • Does not have a garbage collector
  • Can be difficult to learn
  • Absent built-in threads
  • Security issues

Popular Blockchain Platforms

Many blockchain platforms have been built to provide users with unmatchable performance, scalability, traceability, trading, and boost financial transactions. Here I am are going to discuss in detail some of the most popular blockchain platforms that have completely revolutionized every sphere of the industry.

  • Ethereum

    Ethereum is one of the most popular blockchain platforms so far. It is an open-source platform for the development of blockchain applications which develops on public ledger. The platform provides a wide range of features for its participants. The Ethereum platform facilitates the scripting and execution of smart contracts that run through nodes on the network. Ethereum provides different programming options like Go, C++, Python, Java etc. However, smart contracts develops using Solidity.

  • Hyperledger

    Hyperledger is an open-source blockchain which uses the blockchain as it acts as a principal and offers related tools, training programs, and events to support the collaborative development of blockchain-based applications. It is highly secure and makes sure that only the parties that want to transact participate in the transactions Thus Hyperledger offers impeccable features like the privacy of the data, immutability, sharing information, and much more.

  • TRON

    If you want to opt for an operating system-based blockchain then TRON is surely the best solution for you. It is the fastest growing blockchain platform, and great for those who handle the content. Especially for content creators,  whose major credits and earnings is in hands of  big production houses.  However, TRON aims to revolutionize and make things better in many ways. As a content creator, you get the opportunity to be a maverick and get ownership of your content,

  • MultiChain

    MultiChain is certainly one of the most developer-friendly blockchain platforms. With MultiChain a developer can easily customise the blockchain platform for various business and project requirements. It is comparatively easier to start a blockchain project with MultiChain as it is  best for data streaming. Moreover, when it comes to security MultiChain offers private keys, multi-signatures, and multiple asset transactions which are very secure and safe. As a content creator, you make the best use of its high scalability and multi-language extension functionality.

  • Stellar

    This blockchain platform helps in building smart devices, wallets, and many other blockchain applications. This distributed ledger platform has made it very easy to cross-border payments and even lowered the transaction cost. Many businesses and enterprises that depend upon international payments use this platform to build apps.

Proof of Work (PoW) vs. Proof of Stake (PoS) in Development of Blockchain

Now that we have discussed blockchain it is impossible to not discuss Proof of Work (PoW) and Proof of Stake (PoS). These public mechanism functions through consensus algorithms (that we mentioned earlier). This  confirms a transaction without interference from third parties or intermediaries.  Both PoW and PoS are two mechanisms with their aim to reach an agreement that the transaction is valid. Although both consensus algorithms have the same goal, their working is different from one another.

Proof of Work (PoW)

Proof of Work (PoW) also known as mining is the earliest consensus algorithm. It is typically used in Bitcoin and Ethereum. However, by Ethereum, it will merge with PoS in the second quarter of 2022. The PoW is cryptography-based and uses mathematical equations that only computers can use.  Typically this can be explained through how blocks are added to the Bitcoin system.  However, the major issue with PoW is that it consumes a lot of processing power thus electricity and can process only a few transactions. The transaction takes minutes to complete, with this time increasing if the network is very congested.

Proof of Stake (PoS)

Proof of Stake is also a consensus algorithm for confirming the transactions. However, the chosen validator confirms these transactions depending upon how many coins they hold, which also refers to the stake.  So technically the users are not mining, and there are no block rewards. Instead, the each block copies. And the users that are participating may lock a certain number of coins on the network. Moreover, the bigger the user’s stake is, the higher the mining power they have, and the more chances they will be chosen as a validator for the next block. Again to make sure every time the one with the highest coins is not chosen, other selection methods are also used.

What is the Difference Between Bitcoin and Ethereum Blockchain?

Bitcoin and Ethereum are the two biggest names in blockchain development. And that’s why we simply cannot miss them here.  Let’s Talk About Bitcoin Bitcoin is an open-source P2P network which allows the participants to send and receive Bitcoin without the involvement of any centralized authority. BTC is a cryptocurrency or token for trading on Bitcoin.  The digital ledger keeps a track of the transactions, while the nodes keeps up with the functioning of the PoW consensus mechanism (basically for mining).  Initially, Bitcoin may seem a bit complicated, however, it is simple if you look at it in three phases:

  • A peer-to-peer decentralized system. You can send BTC tokens without needing a bank. Thus sending money is way more transparent, faster, and secure. Moreover, the transaction fee is also lower.
  •  No third parties or intermediaries control the system, so it cannot stop at any given time.
  • It is more like digital gold. But unlike gold, it is easier to transfer.

Now, Let’s Talk About Ethereum Ethereum is a public Peer-to-Peer network. Similar to Bitcoin, even Ethereum uses nodes, through which the users can send and receive cryptocurrency in the form of Ether tokens.  Initially, the Ethereum network was created to deploy smart contracts and build decentralized applications (DApps) and is more than simply a payment system.  The DApps are simply decentralized applications that interact with Ethereum networks. And smart contracts are preset codes that automatically execute once the conditions meet, without the need for intermediaries.

Bitcoin vs. Ethereum: What’s the Difference?

In short, Bitcoin and Ethereum are both Peer-to-Peer networks that have their tokens – Bitcoin and Ether respectively. Both are dependent on cryptography and use the public ledger.  But the major difference lies in the capability and purpose each develops for. Bitcoin is a decentralized payment system that stores value. The blockchain mainly works as a database for all of the Bitcoin-based transactions and keeps the record of the ownership. While there is more to Ethereum than just a payment system. As it allows dapps and smart contracts, Ethereum Virtual Machine (EVM) to be build on it.

What is the Blockchain Development Process to Build Apps?

Now that you are aware of every bit of blockchain, it is about time we discuss the development of blockchain apps. So, we are going to discuss in detail the steps that you must follow for the blockchain development process. So if you are fresher in blockchain app development do not worry,  here is the entire process of blockchain application development so you can have a clear idea.

  • Define and Start with the Ideation

    The first step in the process of blockchain application development is to define and plan to create a new and innovative idea. It is important to know what the issue is, and how your defined solution can fix the problem. You need to make sure the blockchain solution can fix the outlined problems. You must understand why you need to build the blockchain application, what is your expertise for the specific blockchain development solution, and related important information so you can build a powerful solution.

  • Analyze your Options

    Even if you have previously decided on a blockchain platform, you must look into more options. There are chances of having better options. Again you need to fully analyze how the blockchain applications in the particular industry are doing, and how your blockchain application development can line up with your current business goals and future. The reason for this process is to analyze and understand possible options and see what fits best for your business.

  • Deep Competitor Research

    Blockchain is a breakthrough that has immensely grown over the years, which is the main reason why the market is extremely competitive and potent. Even newbies in the industry are emerging as market leaders in blockchain.  No matter what type of blockchain app development you are undergoing, it is very important to do proper competitive research.

  • Select the Right Blockchain Platform

    There are many blockchain app development platforms to launch the blockchain applications. Therefore, it is important to do proper research and look for a blockchain app platform that fits in with your business requirements. An easy and quick way of finding the right blockchain platform is to look into the consensus mechanism of the blockchain and the issues you want to fix with the blockchain app.

  • Technical Design

    Once you are ready with the complete plan of the complete application, it is about time to bring about the designing part. You need to start building the UI for each component of the app development. At this stage, you also need to design the APIs for integration of the UI to run an application in the backend. The visual design provides a look and feels to the application, whereas the designs visually show the structure of the application. Once the admin consoles and UI is complete, the app is ready for development.

  • Development of the Blockchain App

    Development is the most crucial phase of the blockchain development process, as in this stage your idea or visualization is going to turn into a real thing. Here are a few noteworthy points you need to look into while blockchain development.  Make sure whether you hire blockchain developers or third-party blockchain development companies, you want them to build the app on their own.  You need to do proper research while choosing the right blockchain, stack, coding, and framework for the blockchain development process. Also, do proper research on whether the platform is permission or permissionless.  Besides, make sure to focus on other non-functional features like performance, security, safety protocols, and others. Also, know about the suitable programming language that the blockchain developer would use for the app development process. We have already discussed the major programming languages earlier in this article.

    • Launch and Maintenance

      As soon as the app is ready for launch it is important to first analyze the global business. Also, understand that you need to do marketing for your business.  Again, launching the final product is not the end but just the start. You must keep releasing updates to make the product better, and keep up with the market trends. You will also need support and assistance after the launch of the blockchain app.

Blockchain Development Process

What is a Blockchain Developer?

Blockchain developers are basically in charge of developing blockchain-based applications. There are mainly two types of blockchain developers that can help you develop the application based on your desired blockchain process.

  • Core Blockchain Developers

    The core blockchain developers build the architecture of the blockchain system. This mainly requires coming up with the design of the blockchain and deciding on the consensus protocol. Part of the task is to handle the security conventions.

  • Blockchain Software Developers

    Blockchain software developers are the ones who build blockchain applications. These developers can also be refer to as DApp developers as they build decentralized blockchain-based apps. These developers are not like the basic developers as the dapp developers must know to build smart contracts using Solidity or some other language. They must have a clear understanding of the functioning of blockchain and programming languages. The dapp developer may also use mobile or web app development tech stacks like React Native and others.

Why Do You Need to Hire a Blockchain Developer?

The idea of app development is probably what brought you to this page, but blockchain development is beyond mobile or web app development. Blockchain app development provides a fool-proof solution especially when it comes to handling transactions and financial payments. Moreover, it is one of the best solutions to gain ownership of your piece of work (Non-Fungible Tokens), NFTs are the best examples of this. Blockchain developers can help you build a unique scalable blockchain ecosystem with app development. The Dapp developers can help you build decentralized solutions and get higher profits.

What is the Cost of Blockchain Development?

Several factors defer to figure out the development cost for blockchain applications. Typically this includes the blockchain app features, the stacks, the type of blockchain, and so on. Roughly here is the cost, however, it may differ based on the above-given factors.

  • In-house Developers – $45,000 for beginners – 110,000- for experienced
  • Freelancers – $25,000 – $30,000 for beginners – $100,000 – $130,000 for experienced
  • Outsource Company – $65,000 – $80,000 for beginners – $100,000 – $1,70,000 for experienced

How to Hire a Blockchain Developer?

Hiring a blockchain developer can be a complex process and may take days, weeks to months if you are unclear. Unlike C++ and JavaScript, blockchain is not just a programming language. It aims to completely revolutionize almost every industry, along with high scalability and security.  Hiring a blockchain developer requires you to know about software development, programming languages, and blockchain.

Things to Look for in a Blockchain Developer

Core Blockchain Developer:
  • Able to design consensus algorithms and blockchain protocols, security patterns, and network architecture
  • Can manage the entire work
  • Must be familiar with other languages like C++, Java, and GO
Blockchain Software Developers:
  • Experience in developing blockchain apps, smart contracts, and mobile apps
  • Front-end programming experience in building interactive decentralized application design
  • Backend programming experience for blockchain management

Future of Blockchain Development: Is It Worth the Hype?

This brings us to the end of the discussion and the question – is blockchain worth the hype? Blockchain is certainly one of the most breakthrough technologies that have completely transformed many industries and business spheres. Thus, many businesses are adopting to bring about changes in different industries. So it is safe to say that blockchain certainly holds a lot and is certainly here to stay in the upcoming years too. Although as a blockchain developer you need to master and learn a lot, it is definitely worth the time and effort.  There has been a rise in blockchain app development and is likely to become the most prominent part of the development. With a myriad of businesses, big names in the industry, and individuals choosing blockchain app development, it is likely to become a crucial part of the development around the world. However, before jumping in it is important to be familiar with blockchain app development and most importantly hire blockchain developers who can help you achieve your business goals.  I have tried my best to explain every bit of the blockchain app development here in this guide. So, what is your take on the blockchain? Are you now familiar with blockchain app development? Do you think decentralized has a future? In case you want to know more or want to have a discussion let me know in the comment section below.

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