Everywhere, from news channels to social media platforms and office group discussions, blockchain has remained the hottest topic for the past few years. And yet, there is no indication that the noise around blockchain and cryptocurrency is going to end anytime soon.
Blockchains, with a lot of fans and critics, are rising to unimaginable heights in popularity with their tools and Blockchain app development. This is becoming a topic of discussion, where even a general company is changing its name and business model according to blockchain promotions, which is leading to higher profits.
On-line PLC, a UK-based organization, gained significant traffic, received high offers from investors and increased share prices by 394% by simply changing its name to On-Line Blockchain PLC. Let’s have a look at some of the following statistics:
- The blockchain market size in 2017 was approximately $ 339.5 billion, while it is projected to cross $ 2.3 billion by 2021.
- According to data from Dot Com Infoway, the global blockchain market is expected to be $ 20 billion in the year 2024.
- According to Grand View Research, the global blockchain technology market size in 2020 was US $ 3.67 billion.It can be expected to expand at a compound annual growth rate (CAGR) of 82.4% or more from 2021 to 2028.
- There will be 42.8% blockchain growth per year by 2022 and the main catalyst behind this rise will be the adoption of blockchain in currency exchange and the growing interest of the world’s top banks in creating cryptocurrencies like Utility Settlement Coin (USC) to ensure better cross-border transactions. .
- According to a report, 71% of business leaders using blockchain believe it will play a key role in advancing technology, resulting in widespread support of industry standards.
With these opinionated statistics, it is clear to you that developing blockchain apps and building blockchain projects is growing as a business focus for many startups and established businesses. Interest is being shown in the production of blockchain application development ranging from manufacturing to media, telecommunications, finance, banking, healthcare, energy, real estate etc. and even government sectors.
Although blockchain is a technological breakthrough megatrend with matchless potential in the future, without a clear understanding of how it can be useful for your business, it would be completely impractical to invest in blockchain development – something that blockchain app builders Can help you get a clear idea of.
Therefore, in this blockchain development guide, we will cover the technical aspect of blockchain technology in this article, plus you can integrate blockchain into your business processes in this article. And if you need something more specific for a business manual, visit our personal blockchain guide for entrepreneurs.
The answer begins with its meaning of how to develop a blockchain application. In layman’s language, blockchain is a decentralized, transparent, immutable and publicly accessible database where digital information (transaction records) is stored in blocks and interconnected with a hash function, Just like the current block has a hash code on the previous entry and the next block will have the hash code of the current block.
On the business side, it is an exchange network to transfer value from peer to peer. It is a mechanism that authorizes a transaction and legitimizes it from a legal point of view without involving middlemen. Now, as you know what blockchain development is, let’s dig into the technical aspects of technology, the meaning of blockchain based application development, and finally the various prerequisites and the time and cost that will go into blockchain application development. It all starts with blockchain types.
Types of Blockchain Systems
To explain how to develop a blockchain application, we need to start with a blockchain solution type classification:
- Cryptocurrency support
Types of Network Based Blockchains
When talking about network-based blockchain development, you can either go for a blockchain solution without permission or a permitted blockchain solution.
In blockchain without permission, all computers and devices in the entire network are publicly accessible. Anyone can use code, start running a public node on local devices, initiate conversations in the network, verify transactions, and that too while remaining anonymous. In short, decentralized, equally accessible and anonymously available blockchains are called permission-less. Like Bitcoin, Ethereum comes under the blockchain without permission.
It refers to a closed ecosystem where only authorized participants can act based on their particular roles. These types of blockchains are founded on a set of rules that govern how a transaction will be implemented to meet the needs of a particular organization (for example: for database management, for auditing, etc.). For example, multichan falls under the permitted blockchain.
However, there are 2 types of network-based blockchains, but when it comes to public and private permissions, the types are categorized as public and permissions, public and permissions, private and permissions, and private and permissions. What enterprises are looking for is a private and licensed blockchain network. Private and licensed blockchains can also be called consortium blockchains.
This type of blockchain system provides core functionality of the blockchain architecture, such as automated data synchronization, immutability, the ability to deal with multiple permissions, process automation, and stringent privacy and security features to name a few, and thus more efficient construction. Paves the way. And have a data-driven business model at a low cost.
Types of Blockchain Based on Cryptocurrency Support
Based on cryptocurrency partnerships, blockchain is broadly classified as cryptocurrency based and non-cryptocurrency based solutions, Which has the following explanation:
- Cryptocurrency based blockchain
As indicated by the name, these types of blockchain solutions run on the basis of cryptocurrency. The following are the popular types of blockchains that fall under this category:
- Wallets: These are secure digital wallets that hold public or private keys, with which anyone can send, store or receive cryptocurrencies. Also known as a cryptocurrency wallet or crypto wallet, this blockchain type is primarily concerned with the conversion and trading of cryptocurrencies in a centralized, decentralized or hybrid landscape.
- Crypto Exchange: These are basically blockchain systems that are used to trade cryptocurrencies or digital currencies. They accept credit card payments, postal money orders and other forms of payment and send the cryptocurrency to your cryptocurrency wallet. They are also known as digital currency exchange (DCE) systems.
- ICO: Initial Coin Offerings (ICO) or Initial Currency Offerings (ICO) is called a crowdfunding system that deals with the generation and sale of cryptocurrency / crypto tokens.
- Dapp: A decentralized app or DAP development service is one that deals with apps that are not controlled by an entity. It can be run by many users on a decentralized, P2P network with the help of reliable protocols in real time. Augur, Golem and Sia are the best examples of what a DAP development company can bring to existence.
- Non-Cryptocurrency based Blockchain:
Non-cryptocurrency based blockchain app development services solutions eventually do not depend on any crypto tokens. Originally considered for inventory management, it is based on blockchain type distributed ledger technology (DLT). Wondering what is distributed laser technology? From a technical point of view, it is a database distributed across various nodes and computing devices.
Here, each node has a replica copy of the laser and can process it independently. And most impressively, bookkeeping is not governed by any central authority. Changes can be made at the individual level and then the node is voted on to obtain maximum approval. This process of voting where consensus is required by majority to update is called consensus. Once the consensus threshold is reached, changes are made directly to the database.
Blockchain Software Development Platform
There are over 25 platforms for building blockchain solutions, the top blockchain platforms commonly conceived for blockchain / DLT development, they are:
- Ethereum: It is an open source and public platform (and operating system) that is taken into account for blockchain DAP development and ICOs with smart-contract functionality. Unlike Bitcoin, it is flexible and adaptable – making it the first choice for every blockchain app development company to build a blockchain app.
- EOS: The EOS platform aims to offer smart contract capability, decentralized application hosting and decentralized storage of enterprise solutions that solve the scalability issues found in blockchains such as Ethereum and bitcoin, as well as eliminating all fees charged by users.
- Multichain: This is a platform that empowers blockchain app builders to create and deploy private blockchain solutions used within or between multiple organizations.
- LiquidApps: The name behind the DAPP network recently launched DSP 2.0 to make the platform more flexible and powerful. They are capable of supporting a range of dApps constructions.
- Hyperledger: It is an open-source platform used to build advanced blockchain solutions. For example, building blockchain solutions based on IoT, building blockchain apps for supply chain management, etc.
- IOTA: It is an open source DLT based solution that is used to provide fast and secure payment services between connected IoT devices. This platform uses Direct Acyclic Graph (DAG) technology and offers unique features, such as free transactions, whatever the size of the transaction, fast confirmation time, handling unlimited transactions at a time, etc. which makes it an ideal platform for construction. payment system.
- Quorum: It is an open-source DLT and smart contract Blockchain Software Development platform based on Ethereum.
Now that you are familiar with various Blockchain Software Development platforms, you will be confused as to how to choose the right platform to develop blockchain systems. To make it easy for you, here are some factors that you need to pay attention to while answering.
Factors to Consider for Blockchain App Development
Following are the factors to consider for blockchain app development:
- Nature of Platform: While some blockchain platforms are cryptocurrency based, others rely on smart contracts or using more than one crypto token. Determining which type is suitable for you will make the process of developing blockchain applications easier.
- Smart Contract: The second thing that you need to pay attention to is to determine whether you need a smart contract or not. A smart contract, as you know, is a self-executing protocol that processes, validates, or implements any trigger-based action stored on a blockchain system.
- Consensus Protocol: Different blockchain development platforms operate on different consensus protocols, including proof of work, proof of stake, time elapsed, proof of burn, etc. Therefore, it is also a favorable situation to identify the right platform based on the consensus protocol.
- Cryptocurrency: The next thing you need to consider while answering is how to develop a blockchain app, whether or not you need to use cryptocurrency in your mobile application also plays an important role in finding the right platform.
- Public & Private Network: Ask yourself what kind of network you want – one where all are free to make changes or one where only authorized users can participate. Depending on the decision, choose the platform and start building your own blockchain application.
- Adoption Rates & Functionality: It is important to look at adoption rates and community support levels for the current blockchain. Adoption rate means the degree of implementation that a specific blockchain innovation has attained. Choosing a technology that has been exceptionally adopted and adopted is a smarter choice than choosing one with a poor adoption level.
- Scalability: People who are hoping to build blockchain platforms from existing innovations should focus on transactional capability and decide if their requirements will be met. Three central points (speed, security and decentralization) are considered when considering blockchain scalability. This is known as the scalability trilemma and points to the fact that any developer can expect to receive two out of three features.
Languages to consider blockchain development
Platforms alike, are different programming languages that can be considered during blockchain application development. You can either start with traditional programming languages such as C ++, Python, Go, and Java, or switch to advanced blockchain-specific languages such as Simplicity and Solidity.
- Simplicity: Simplicity is used for the blockchain development of smart contracts. The language is simple, employs static analysis, and can be seen as an improvement of basic cryptocurrency languages such as the Ethereum virtual machine (EVM) and bitcoin script.
- Solidity: Solidity is a statistically typed blockchain development language specifically used to build smart contracts running on EVMs. With this language, you can easily implement self-regulated business logic in smart contracts, leaving a non-repudiation and official record of transactions.
Time & Cost Required for Blockchain Development
With all this information, you should be curious about the most frequently asked question, that is, the cost of building a blockchain application, but it becomes quite difficult to tell the exact cost directly, provided the blockchain development costs are the necessary efforts. Depends on it. For example, if you want to develop a blockchain wallet, then the average time required for this would be:
- The backend development process requires 150-200 hours.
- Frontend development requires 500–550 hours in the Android process.
- Front-end development requires 470-510 hours in the iOS process.
- Front-end development: 80-100 hours are required in the process of web / desktop app.
- 120-150 hours are required in the design process
- 60-80 hours are required in the process of quality assurance / project management.
Likewise, if you create any other blockchain app / system, the time and effort required will be:
- 250-300 hours required time in the web wallet.
- 450-600 hours required time in crypto exchange.
- 50–70 hours of time required in a token issue with smart contracts.
- 130–180 hours required time in ICO site.
- ICO 6,000-8,000 hours required time in full service.
Thus, it can be easy for you to estimate the amount of money you need. However, do not consider it your last quote. The development cost of a blockchain app varies based on various factors. Therefore, it is better to discuss your app project with blockchain development companies and find out the exact blockchain app development cost breakdown structure.
But before you move on to that discussion, see if blockchain is used in your industry. Here is a list of industries in which blockchain has proved most useful:
- Finance – Fintech is the industry in which blockchain has entered. The power factor transparency and decentralization that comes with technology is something that has adopted blockchain in the finance sector and empowers fintech software development solutions by giving birth to a new DFI and open finance ecosystem.
- Government – From Dubai to Thailand, various cities have realized the role of blockchain in the government sector and adopted its ability to streamline many of their processes, from voting to land demarcation and a range of other political issues.
- Healthcare – Healthcare and blockchain have a very direct relationship. The latter is used not only by the former to decentralize massive amounts of data, but also to prevent multiple instances of hacks and security breaches that occur due to the lack of a decentralized system.
- Supply Chain – One of the most direct effects of blockchain can be seen in the Supply Chain Department of Operations Management. Technology makes it possible for the supply chain industry to ensure that there are no flaws in the system and that there is complete transparency in all supply chains from order procurement to delivery.
- Real estate – Due to the large amount of data and paperwork in the property market, makes real estate an ideal recipient of blockchain technology. Also, the smart contract feature comes in handy in an industry that deals with many contracts.
While these industries are known to be the prevalent adopters of blockchain technology applications, the decentralization medium is not restricted to them. In fact there are many use cases for adopting technology in everyday processes.
Implementation of Blockchain in various Business Processes
Now that you are familiar with the technology world of blockchain, you should be excited to integrate blockchain technology applications into your business. Blockchain, with its unique capability, can be implemented in your existing business processes in various ways, such as:
Being the backbone of bitcoin and other cryptocurrencies, blockchain technology is all set to improve transactions. The absence of middlemen will not only speed up the process, but will also facilitate the transfer of funds securely at very low fees. Firms have few real-life use cases: Bitways, Abra and Coinpipe are using blockchain to handle fund transfers and payroll.
- As a distributed cloud storage
You can also use blockchain to serve your customers with fast, convenient and secure cloud storage facilities like the Storage company did. For the same, you have to choose a reliable BaaS provider.
- In the form of Smart Contract
Smart contracts can be employed to circumvent the rules and cut costs for a subset of many financial transactions. And the best thing is that these contracts are safe and unbreakable. One of the current applications is Slock, an Ethereum-based IoT platform that uses the blockchain to rent anything to customers by unlocking a smart lock when both parties agree to the applicable terms and conditions. Whereas Synaps relies on the blockchain to provide micro loans.
Blockchain development also needs to be taken into consideration for notary creation and authentication purposes. Some real-life examples are as follows: The smartphone provides notary creation services using user-shared image, video, or sound recordings via the blockchain, a multimedia platform, Uproov.
- For Supply Chain Management
Since the supply chain mechanism involves the exchange of components from multiple entities, failure at one end can affect the overall process. To deal with this situation, blockchain technology can be used as a secure and permanent auditable record, where stakeholders can view the entire process. Looking for some real-life use cases? SkuChain and Provenance are two companies that use blockchain to streamline supply chain systems.
- In Digital Identification Process
Blockchain can be put into practice to provide us with irreplaceable, undisputed and secure digital identities, resulting in fewer fraud issues and seamless sign-in experience. One of the real-life use cases is ShoCard which uses the blockchain to verify the identity of individuals on their mobile devices.
- In Rewards & Loyalty Programs
By eliminating middlemen, blockchain helps retailers connect their customers with gift cards, rewards and other loyalty programs in a cost-effective manner. Wonder if there is such an existing company / example, GyftBlock, which is a partnership between bitcoin API developer Chen and Gyft, offers digital cards that can be secured on the public ledger.
Winklix is ready to assimilate changes to your app development idea and is a trusted and reliable company that works with the blockchain development company USA. With all the above information and examples, you may have started creating your own blockchain app development idea. We would love to hear and contribute to your idea. A company that will help you expand your decentralized journey. Let’s meet and discuss.