The Ultimate Guide to Blockchain Development

Believe it or not, Blockchain is the future. For quite some time now, this emerging technology has been making great strides and is in the news for all good reasons. Ever since Blockchain has become the mainstream technology, companies are trying to cash in on the opportunity of the potential of Blockchain in their business. Today, every industry from banking and finance to healthcare, travel, media, education, and in fact the government is showing great interest in Blockchain development. According to a report, the global spending on Blockchain solutions is predicted to increase by 188% and reach 19 billion USD by 2024. So, why not grab your share of the pie by investing in this emerging technology. But before, let’s go through this detailed guide on Blockchain development.

What is Blockchain?

Blockchain is a distributed digital ledger system that is extensively used to record transactions across a peer-to-peer (P2P) network-transactions here could mean medical information, cryptocurrencies, voting, home records, DeFi Smart Contracts, NFT ownership, or data of any other kind. In other words, Blockchain is a decentralized database system that records data in a discrete and secure manner. These digital records are called blocks that are linked together in the form of a chain using cryptography. The best part of using Blockchain is that the data stored in this network is transparent, decentralized, and immutable. Owing to its transparency and immutability, many big players in the industry are investing heavily in Blockchain development technology.

Types of Blockchain

There are mainly 3 types of Blockchain- Public, Private, and Permissioned. Let’s take a quick look at each of them:

Public Blockchain

It is a non-restrictive, permission-less Blockchain network that allows anyone to participate and join the decentralized network without any restrictions. Anyone having an internet connection can be a part of the blockchain network. Public Blockchains are mostly used for mining and exchanging cryptocurrencies. Bitcoin, Ethereum, and Litecoin are the perfect example of a Public Blockchain network.

Private Blockchain

A Private Blockchain is a restrictive or permissioned Blockchain network that is controlled by a single entity. In this Blockchain network, the administrator plays a critical role since it allows users to join the network. Only users who are authorized by the administrator can access Blockchain data. Since public access is restricted and authorizations, accessibility, and permissions are in the hands of a single company or organization, this Blockchain network can be used for securing sensitive information. Private Blockchain networks can be deployed for asset ownership, digital identity, supply chain management, voting, etc. Corda, Hyperledger Fabric, and Multichain are some of the popular examples of a Private Blockchain.

Consortium Blockchain

It is also a permissioned Blockchain network that is governed by a group of stakeholders, unlike a Private Blockchain that is managed by a single organization. However, setting up consortiums can be a challenging task since it requires mutual cooperation between different stakeholders. R3 and Energy Web Foundation are some of the popular examples of a Consortium Blockchain.

3 Tools You Should Consider for Blockchain Development

Developing a Blockchain solution from scratch requires selecting the right tech stack and framework. You can choose from a plethora of options such as Quorum, R3 Corda, Stellar, Hyperledger Fabric, Ethereum, Exonum, Tezos, EOSIO, and more. Once you’ve decided the best framework and technology stack tailored to your requirements, it’s time to decide on the Blockchain development tools to reduce build time and overhead costs. Listed below are the top Blockchain development tools that will help you get started with developing Blockchain solutions and keep pace with the latest advancements.

1. Solidity

Influenced by JavaScript, Python, and C++, Solidity is an object-oriented programming language used for Blockchain development, particularly, Ethereum-based applications. Many Blockchain developers prefer Solidity over other tools for writing Smart Contracts for Ethereum dApps.

2. Geth

It is an Ethereum node implementation that is available primarily in three different interfaces such as command-line, JSON-RPC server, and an interactive console. Developed using the Go programming language, Geth is used for developing Blockchain solutions on all major operations systems (OS) including Mac, Windows, and Linux. Besides Blockchain development, Geth can also be used for the token transfer, mining ether tokens, exploring block history, and the creation of Smart Contracts.

3. Remix

It is a browser-based Blockchain tool that allows developers to create Smart Contracts. Written in Javascript, Remix IDE can be used for compiling, testing, debugging, and deploying Smart Contracts from a single interface. Since this compiler is open-source, anyone can use it for free.

How Much Does it Cost to Develop a Blockchain-driven Solution?

The cost of developing a Blockchain solution depends on various factors such as hiring freelancers, developing it in-house, or partnering with an agency. For instance, if you are considering beginners for developing Blockchain solutions, you may have to spend $500,000 for in-house development, $30,000-$50,000 when hiring freelancers, and $250,000-$500,000 when you choose an agency. On the other hand, if you consider seasoned professionals, you may have to spend $2,000,000 for in-house development, $50,000-$90,000 when hiring freelancers, and $500,000 to $1,000,000 when choosing an agency.

Benefits of Using Blockchain

With Blockchain development, you can overcome a host of business challenges. Let’s look at some key benefits offered by this emerging technology:

1. Transparency

Lack of transparency is one of the common business challenges in recent times. However, this problem can be easily addressed using Blockchain since it is a distributed ledger, wherein, all the participants in a network share the same documentation, which in turn, provides better transparency. Furthermore, all the transactions recorded in a Blockchain network are not only immutable but are also time- and date-stamped. This enables participants to access the complete history of any transaction carried out in the network and eliminates all the possibilities of fraud. In a nutshell, data recorded on a Blockchain network is more transparent, consistent, and accurate as compared to data stored through paper-heavy processes.

2. Security

When it comes to security, Blockchain is far better than a traditional record-keeping system. Each transaction recorded in a Blockchain network is not only encrypted but also linked to the previous transaction using a hashing method called cryptography. Furthermore, all the transactions in a Blockchain network are stored across a wide network of computers, which in turn, prevents any unauthorized access or fraudulent activity. Besides security, privacy issues can also be addressed in a Blockchain network by using permissions to prevent unauthorized access and anonymizing personal data. Another interesting thing about Blockchain networks is that they are immutable, which means that data, once written, cannot be can’t be altered or reverted with ease.

3. Better Speed and Efficiency

With traditional paperwork processes, trading anything is not only time-consuming and exhausting but also prone to human error since it requires a third-party mediation. On the other hand, you can automate and streamline these time-intensive processes using Blockchain technology, which in turn, eliminates the risk of errors and transactions can be completed much faster with better efficiency. In many cases, Blockchain can process a transaction within a few seconds, unlike traditional bank transactions that take from a couple of hours to a few days. It is important to note that in a Blockchain-based system, the transaction speed depends on varied factors such as network traffic or the size of each block of data.

4. Cost Reduction

Since Blockchain eliminates the need for hiring a middleman or a third-party intermediate, businesses can save a substantial amount of money.

Disadvantages of Blockchain Technology

Listed below are some drawbacks associated with Blockchain technology:

• Scalability
• Immaturity
• Regulations
• Lack of expertise and knowledge
• Cost and Implementation Struggle

Leading Companies Using The Blockchain Technology

• Walmart
• Ford
• Visa
• HSBC
• DHL
• Siemens
• Unilever
• Etihad Airways

Summing Up

From the above, it is clear that Blockchain holds immense potential to disrupt any industry. This may be one of the reasons why this technology is showing no signs of slowing down. If you also want to unlock the potential of this emerging technology in your business, you should consider partnering with a professional Blockchain development agency. When you associate with an expert, they will develop a bespoke solution that will help you make the most of Blockchain.