A Complete Guide to Blockchain Technology and Development — Top 10 Software Development Companies in Vietnam
This guide will give you details about blockchain technology and development and how to pick the most suitable blockchain outsourcing development services.
With its decentralized nature, blockchain has become a mainstream technology that powers applications in contemporary times. People’s faith in blockchain technology has grown as its popularity and potential intrinsic features have grown, resulting in widespread adoption across many industries throughout the world. However, there is a disconnect between rising demand and actual blockchain implementation, which is driven by a lack of knowledge and understanding of blockchain development.
In this article, the introduction of blockchain development will be thoroughly explained to help you embrace the implementation progress of the technology.
1. What is Blockchain Technology?
Blockchain is an immutable sequence of records called blocks that assists with transactions, asset tracking, and data and file recording. Hashes link all of the information-containing blocks together.
A blockchain is a distributed, peer-to-peer computer network that employs encryption to record transactions and monitor assets, both tangible and intangible, using a fixed, digital ledger. These transactions, known as blocks, are subsequently recorded, duplicated, and stored on each network-connected server, or node.
Unlike traditional databases, which store records in a single location, a blockchain is basically a decentralized database that various people control; its distributed ledger technology (DLT) gives each node in the network its own copy of the ledger. (Anyone can offer their server as a network node.) If a record has an inconsistency, the technology can detect it by comparing it to the other participants’ copies of the record. This feature makes blockchain records completely tamperproof. The real-time changes on the blockchain create a single source of truth for all users, ensuring that every detail is exact and dependable.
Blockchain development is the process of establishing distributed ledger technology (DLT) that securely records transactions and monitors assets within a network, whether they are tangible assets such as money or real estate or nonphysical assets such as copyrights. Creating and implementing a blockchain application from the ground up takes a lot of work and study. Finding and selecting the correct blockchain protocol and programming language to meet your needs is the first step in the development process. We’ve compiled a list of the most important elements to consider while building a blockchain application.
It’s useful in a multitude of businesses since it allows information to be shared rapidly, correctly, and securely. Whether you’re monitoring orders, accounts, payments, production, or other data, a blockchain network provides permitted network members with transparent delivery and storage.
2. Blockchain programming languages
When developing a blockchain application, there are several programming languages to consider. You can start with classic programming languages such as C++, Python, Go, and Java, or go on to more complex blockchain-specific languages such as Simplicity and Solidity.
- Simplicity: is employed in the construction of smart contracts on the blockchain. The language is simple, leverages static analysis, and may be thought of as a step up from basic cryptocurrency languages such as Ethereum Virtual Machine (EVM) and Bitcoin Script.
- Solidity: is a statically typed blockchain programming language that is primarily used to create EVM-based smart contracts. With this language, self-regulating business logic may be simply implemented in smart contracts, leaving a non-repudiable and authoritative record of transactions.
3. Why is Blockchain a disruptive technology?
Blockchain, the ground-breaking technology that underpins Bitcoin, has been sluggish to gain traction. Blockchain technology, hailed as one of the most revolutionary technologies in decades, lies at the center of the transition from a centralized server-based internet architecture to a cryptographic transparent network. Blockchain has enormous promise.
Trust is fostered through blockchain technology
In essence, blockchain is “an open, distributed ledger that may efficiently and permanently record transactions between the two parties.” Instead of a central server, blocks of information are stored on a decentralized peer-to-peer network on a blockchain. Each block of data is available to everyone and cannot be changed retrospectively without affecting all following blocks and without network collaboration. In reality, the most amazing qualities of blockchain technology that generate confidence are transparency and decentralization, which provide a paperless approach to verify ownership of information or even money!
Third-party intermediaries are replaced by cryptography — Have you ever considered what happens when you send money over the internet? What looks to be a simple procedure is actually a time-consuming one in which accountants and bookkeepers on both sides keep different documents to guarantee the transfer is accomplished correctly. For users, this means significant wait times, transaction costs, and the possibility of human mistakes.
However, blockchain technology has the ability to eliminate the need for middlemen entirely. Peer-to-peer consensus algorithms will openly record and validate transactions if blockchain technology is used, eliminating the need for manual bank verifications. This will cut financial transaction costs, delays, and overall complexity.
To put it another way, blockchain “replaces third-party intermediaries as the custodian of trust, with all players executing complicated algorithms to validate the integrity of the system… When parties transfer assets directly with each other or swiftly confirm ownership or authorship of information, the usage of blockchain can cut overhead expenses — a process that is now unachievable without either a central authority or an impartial intermediary.”
Blockchain offers a new approach to managing trust and may help organizations become more transparent, decentralized, efficient, and secure. According to IDC, $2.1 billion was spent globally on blockchain technologies in 2018. According to Netscribe, the blockchain area will grow by 42.8 percent every year until 2022.
Large banks, such as Barclays, are striving to integrate blockchain, the technology that underpins Bitcoin, to make their operations faster, more efficient, and secure. The technology is especially useful in supply chain management since it allows for transparent and decentralized permanent documentation of transactions.
The technology’s potential is unlimited, from authenticating data in insurance contracts to constructing decentralized versions of peer-to-peer ridesharing apps or a decentralized network of IoT gadgets that can interact internally to eradicate faults or update software. On a bigger scale, Dubai plans to place all of its papers on blockchain by 2020 in order to increase government security and efficiency.
Automated Business Operations
Every company strives for operational efficiency, which leads to increased revenue. Introducing blockchain into an organization’s processes has various benefits, including:
- Cloud storage is easier to use, transparent, and secure, allowing users to instantly access information as needed.
- Financial transactions that are quick and secure and are saved on the network to speed up future transactions. Furthermore, data saved on the network may be readily and correctly accessed at any moment for an audit. It enables the implementation of smart contracts, which automate the process of entering into and administering contracts between two parties.
- Improving an organization’s performance requires optimizing business operations. Blockchain can bring transparency and eliminate the need for a centralized authority, allowing businesses to rewire their processes for increased efficiency.
4. Pros and Cons of Blockchain Application in Business
4.1. Advantages of Blockchain
Blockchain is being used to alter business models in a variety of industries, including financial services, supply chains, government, healthcare, retail, and many more. Businesses benefit from blockchain because it provides:
With the use of blockchain, the history of transactions becomes more visible. Because blockchain is a distributed ledger, all network members have access to the most recent version of the ledger. The ledger is validated by the network’s consensus, which means that everyone must agree on it.
All future records would be modified if a single record was changed. As a result, data stored on the blockchain is more secure, more transparent, and only visible to those with permitted access.
If your organization controls items that are exchanged through a complex supply chain, you know how difficult it can be to trace an item back to its source. When you record the supply of products from one location to another on the blockchain, you obtain a comprehensive audit trail that shows where an item came from and follows each stop along the way.
Previous blockchain records can be used to verify product authenticity and protect them from fraud.
- Enhanced Speed
The conventional methods are as follows: paper-based, time-consuming, and prone to mistakes when employing third-party intermediaries to verify authenticity. By automating and streamlining business operations, you may complete transactions quickly and safely. You don’t need to manage several ledgers since a single digital ledger shared with network members may be utilized for record-keeping. Everyone in the network has constant access to the same information, resulting in a speedy resolution.
- Cost Savings
Most firms prioritize cost reduction. You don’t need middlemen or third parties to create trust with blockchain since all network members confirm everything through consensus. To complete the transaction, you will not need to evaluate documentation because everyone will have access to an immutable version.
4.2. Disadvantages of blockchain
As the blockchain ecosystem matures and new use cases arise, blockchain developers will confront three major challenges: security, scalability, and decentralization. Developers are entrusted with addressing these difficulties without jeopardizing trade-offs, a situation known as “the blockchain trilemma.”
One of the key reasons why industries utilize blockchain is for decentralization. Blockchain technologies, for example, allow clients to store and acquire bitcoin without having to hand up complete control of their assets to banks. Transactions are instead validated by consensus (a group of notes instead of one individual node). These transactions cannot be changed once they have been validated.
The time it takes for several confirmations to achieve a consensus is a trade-off of decentralization. The issue for blockchain engineers is to find a means to speed up this process.
The capacity of blockchain to handle an increasing number of transactions as demand grows depends on its ability to operate as intended while also defending itself from intrusions. Speed is a trade-off once again, especially as block sizes expand.
Bitcoin’s blocks were initially limited to 1 megabyte in order to lessen the danger of cyberattacks. Each currency, on the other hand, may record an endless number of transactions, with each transaction increasing the block size. As a result, blocks may gradually outgrow any size restrictions put on them, slowing down processing.
Although Bitcoin started the block-size discussion, developers will have an impact on other blockchain applications as they determine whether to raise block size without compromising performance.
Although one of the advantages of blockchain development is security, it is also a difficulty for developers. Blockchain is a target for cybercriminals since it is perceived as a safe technology. Anything that compromises blockchain security will have a knock-on impact, threatening decentralization and scalability. In the case of a security breach, there is no centralized party to intervene without regulatory supervision.
Although security breaches in blockchain are uncommon, some have exploited acknowledged flaws in its architecture. Developers must be able to build blockchain networks that provide both business benefits and comprehensive security.
While designing a blockchain solution has its hurdles, it’s vital to remember that the technology is still in its infancy. Because technology is always evolving, blockchain development has a bright future.
5. Used Cases of Blockchain Technology
With its limitless potential, blockchain may be integrated into your existing business operations in a variety of ways, including:
- For Business Transactions
Blockchain technology, which powers Bitcoin and other cryptocurrencies, is poised to revolutionize trade. The lack of intermediaries will not only speed up the procedure, but will also make it easier to transfer funds safely at a reasonable cost. The following are some examples of real-world applications in businesses: The blockchain is being used by Bitwage, Abra, and Coinpip for financial transfers and payroll processing.
- As a Cloud Storage Distributed
You may also leverage blockchain to provide quicker, more convenient, and secure cloud storage to your clients, as the Storj firm did. You’ll need to go with a reputable BaaS supplier for this.
- As Smart contracts
Smart contracts can be used to get around restrictions and reduce the cost of a subset of a large number of financial transactions. The best aspect is that these agreements are safe and inviolable.
Slock, an Ethereum-based IoT platform that leverages blockchain to allow consumers to rent anything by opening a smart lock after both end parties agree to the terms and conditions applied, is one of the present applications. Synaps, on the other hand, uses blockchain to issue microloans.
- Notary Public Use
The development of the blockchain might potentially be considered for notary formation and authentication. The following are some real-life examples: Uproov, a smartphone multimedia platform, offers notary services based on the picture, video, or voice recording uploaded through blockchain by the user.
- Management of the supply chain
Because the supply chain mechanism involves the interchange of components from different entities, a failure at one end might have an impact on the entire operation. To address this issue, blockchain technology may be used to create safe and permanent auditable records that allow all parties to observe the whole process. Looking for some real-world examples? SkuChain and Provenance are two firms that use blockchain to improve supply chain efficiency.
- In Digital Identification Process
Blockchain may be used in the digital identification process to offer us immutable, irrefutable, and secure digital IDs, resulting in fewer fraud concerns and a more smooth sign-in experience.
One of the real-world applications is the ShoCard, which utilizes blockchain to validate an individual’s identification on their mobile device.
- In Loyalty and Rewards Programs
The blockchain helps businesses connect their consumers with gift cards, incentives, and other loyalty programs in a cost-effective manner by removing intermediaries.
Are you looking for a similar firm or example? GyftBlock, a collaboration between bitcoin API developer Chain and Gyft, offers secure digital cards that can be traded on the public ledger.
You must be enthusiastic to adopt blockchain technology applications into your organization now that you are familiar with the blockchain’s tech realm. Do you have a strategy or are you still unsure how to make money with blockchain? Many different industries can benefit from blockchain development in terms of operational efficiency and competitive advantage.
Real estate: Accurate land and property ownership records
Finance: Lowering global payment, tax, and intermediate costs; preventing money laundering
Supply chain: Accurate asset tracking from suppliers to customers
6. Cost of Blockchain Development
Consider the following situations when assessing the cost of developing a blockchain-based platform or application:
- Creating a blockchain application with an internal team
- Using freelancers to create blockchain apps
- Using blockchain development businesses to create blockchain apps
Working with an in-house development team is costly, but it gives you greater control over blockchain development. If software development is your main business, you should pursue this route. Hiring freelance blockchain engineers, on the other side, may be less expensive but more hazardous. While using freelancers for short projects is suggested, risk considerations may increase as the scope of the project develops.
If your project is large, working with a third-party firm may be a realistic choice. Blockchain firms have extensive knowledge and can assist you throughout the development process. Blockchain firms are less expensive than an in-house development team.
The following factors influence the price of blockchain app development:
- What kind of Blockchain App do you require?
- A Blockchain Project’s Complexity
- People who work on app development
- Tools for Project Management
- Third-Party Software Costs of Subscription
7. How to choose Blockchain Outsourcing Development Services?
7.1. When to Implement Blockchain Development is the first question.
While blockchain has numerous advantages, it’s important to remember that technology isn’t a panacea for every company or platform. Before deciding whether blockchain development is the best match for you, you should constantly ask the following questions:
- Do you require a storage location for your information?
If that’s the case, you might not need to rush toward blockchain adoption. To begin, determine how much data you need to keep. If you operate a tiny firm, for example, it’s unlikely that the cost is worthwhile, and you can get away with only keeping data locally. If you have a large-scale organization that requires a lot of data storage, several databases, and a lot of users, blockchain can provide you with a completely transparent, up-to-date ledger that everyone can use.
- Is your company experiencing transactional delays?
While blockchain can remove obstacles that can slow down some operations, without an accelerator, it does not often offer high transactional speed. A blockchain solution is a better match if transactional speed isn’t a goal and you’re more concerned about application security.
- Do you require third-party approval?
For data control and verification, certain firms require an intermediate. Blockchain will be irrelevant to them. Blockchain, on the other hand, may enable complete transparency and consensus validation for organizations that do not need a third-party solution. It also eliminates the fees and delays associated with engaging an intermediary to complete transactions.
7.2. Why Hire a Blockchain Outsourcing Company?
You undoubtedly came to this page because you’re interested in software development, however, the tech sector encompasses more than just mobile and web apps. For example, if you’re a startup on the verge of launching an online store, you might not have given financial management any attention.
It’s simple enough to ask for credit card information, but how will you ensure that no one can access a user’s personal information, or worse, hijack your entire system? Blockchain is a practical solution for your payment processing and money transfer requirements.
However, blockchain isn’t simply another program on the market. It’s a whole system and approach, and experts in the blockchain industry have spent considerable time understanding it.
Dapp (decentralized application) developers can help you build a decentralized app like Bitcoin to service other businesses and, hopefully, top the markets. Core blockchain developers can help you build a blockchain system for your technology to use, and core blockchain developers can help you build a blockchain system for your technology to use.
7.3. How to hire a Blockchain developer
Hiring a developer on your own is a highly concentrated and hands-on procedure that necessitates a fair amount of software development experience.
Finally, you don’t want to entrust your recruiting procedure to someone who lacks technical expertise. If you’re a non-technical manager wishing to learn more about the recruiting process, we have a terrific resource for you. Otherwise, we advise you to contact Newwave Solutions for developer allocation and advising.
7.4. What qualities should you seek in a Blockchain development firm?
Core Blockchain Developers
- Developers who can build consensus and blockchain protocols, as well as security patterns and network architecture.
- Be able to manage a whole network
- Knowledge of how to develop in blockchain-friendly languages like Rust, Go, C++, or Java
Blockchain Software Developers
- Front-end programming expertise for designing interactive dapp designs
- Blockchain software developers with development experience utilizing blockchain technology for smart contracts and online or mobile apps
- Expertise in backend programming for blockchain management
7.5. Why is Blockchain Development Outsourced to Vietnam?
If you’re trying to employ competent blockchain engineers, here are three facts regarding blockchain developers in Vietnam that you should keep in mind while evaluating the Vietnam tech talent market. There are more qualified blockchain developers in Vietnam than you might think.
Vietnam is a potential location for recruiting software engineers with blockchain knowledge, with roughly 400.000 IT workers on the market.
The most common programming languages among software developers in Vietnam are Java, Python, C#, and C++. These are also known as important blockchain programming languages.
Vietnam’s developing blockchain business has provided practical experience.
According to bitcoin analytics source Chainalysis, Vietnam placed 13th in terms of Bitcoin investment gains in 2020, with $351 million. Furthermore, according to Statista’s study from 2021, Vietnam had the second-highest rate of bitcoin adoption among the 74 economies surveyed.
Vietnam’s future smart city based on blockchain: The government began the smart city initiative in 2017 with the goal of leveraging digital technology, including blockchain development.
Vietnam’s increasing cryptocurrency popularity and thriving startup ecosystem make it a perfect setting for the country’s blockchain engineers to practice and obtain valuable job experience. With remote blockchain developers in Vietnam, you may save 30% on each hire.
A blockchain engineer with less than two years of experience costs around 4,330 SGD per month in Singapore (salaryexplorer.com, October 2021). You may hire a professional remote blockchain engineer in Vietnam for as little as 3,000 SGD.
Blockchain software developers have a thriving community in Vietnam
A vibrant network of BLOCKCHAIN experts and fans exists in Vietnam. Annual BLOCKCHAIN events in Vietnam include worldwide conferences with participation from numerous digital powerhouses, such as Vietnam Blockchain Day, Vietnam Blockchain Week, Vietnam Mobile Day, and Vietnam Web Summit, among others.
Local organizations and communities, such as Blockstack Vietnam and Blockchain Vietnam Meet-Up, conduct frequent meet-ups (through meetup.com) and workshops for blockchain and crypto enthusiasts.
By joining these events, you are likely to find your full-time employee, matching your needs in both technical abilities and English.
Trustworthy software development firms are readily available
A simple review of LinkedIn search results reveals that Vietnam is home to hundreds of software development businesses and more than 10,000 software developers. In addition, Vietnam and other Asian nations have a large number of reputable blockchain software development firms.
Many firms have profited from outsourcing their software development projects (including Blockchain projects) to software providers in Vietnam. Aside from blockchain competence, Newwave Solutions has a long track record of successful projects in different fields like Game, Entertainment, Education, Business Intelligence, Fintech, etc.
8. Final Thoughts
We hope our blockchain app development tutorial was helpful!
With all of the knowledge and examples provided above, you might have begun developing your own blockchain app development concept. Have you? We’d love to hear about your idea and contribute to it. Let’s get together and talk!
Add more value to your app development ideas by contacting Newwave Solutions, a reputable and dependable Blockchain development firm that can assist you in furthering your decentralized adventure. Don’t dream for success, put it into action by contacting us now!
Phone: +84 98 531 0203
Originally published at https://newwave.vn on May 26, 2022.