With the rising cases of cyber attacks and online data breaches, startups have started preferring Blockchain development to keep their data safe. According to the reports, global spending on blockchain solutions will reach approximately $19 billion by 2024.
Considering this growing demand for Blockchain app development, we brought to you a detailed guide to Blockchain development for startups. Reading this blog, you will get to know about the Blockchain, its working, the role of Blockchain developers, the Blockchain development process, and more.
So without any further delay, let’s begin with the conversation.
What Is Blockchain? Important Things You Need to Know
In simple words, a Blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in a digital format.
It’s a chain of cryptographically linked timestamped digital documents referred to as “Blocks”. The best thing about the Blockchain is that anything you put into it stays there. Furthermore, no one can tamper with the Blockchain once the Blockchain has been constructed.
How Does Blockchain Work?
Blockchain is a decentralized, secure, and transparent digital ledger that records transactions across a network of computers. There are entries or Blocks in the ledger that are linked with each other in chronological order, forming the chain. Here is how the technology is named Blockchain.
What sets Blockchain apart is its consensus mechanism – a verification process used to achieve agreement, trust, and security across a decentralized computer network. To add a new block, the majority of the network must agree that the information is valid. Once added, the block is immutable, meaning it cannot be altered.
This decentralized and tamper-resistant nature makes blockchain a robust technology for various applications, from cryptocurrencies like Bitcoin to supply chain management and smart contracts. Therefore, Blockchain ensures trust and security in a peer-to-peer network without the need for a central authority.
The Blockchain has three main components explained below:
1. Blocks
Blocks are the fundamental units of data, that have a list of transactions, a timestamp, and a reference to the previous block, forming a chain.
2. Nodes
Nodes are the individual computers in a blockchain network that maintain a copy of the entire blockchain. These computers communicate with each other to validate transactions and participate in the consensus process.
3. Miners
Miners are the participants in a Blockchain network, especially in proof-of-work systems, who compete to validate transactions and add new blocks to the blockchain.
Now that you understand the workings of Blockchain, let’s explore why should leverage the technology in your business.
Why Use Blockchain Technology For Your Business?
Blockchain is known to be incredibly secure, and there have been many developments in its current versions. Blockchain is almost impossible to hack technology, thus it is a reliable technology used for storing data.
The reason Blockchain is highly secured is that there must be a consensus among the majority of the network to validate the transaction. Because of this, any harmful action in the Blockchain can be detected immediately, making it a secure and trusted platform. For companies that have to deal with unreputable customers, having a security system in place can be very useful if not necessary.
Blockchain Technology Benefits For Your Startup Business
You may also know that most people associate blockchain with Bitcoin, and you just need to understand that there are many benefits to using blockchain for your organization.
Blockchain enhances the trust, security, transparency, and traceability of data shared across business networks – and provides cost savings with new capabilities.
- Decentralization Of Your Data
A decentralized blockchain eliminates the need for a middleman. The main advantage of a decentralized blockchain is that there will be no government funding and no third-party verification as a result.
Furthermore, transactions are spread across thousands, if not millions, of machines, with only your blockchain network having access to them.
Lastly, because of this decentralization, no data is ever destroyed.
- Immutability of Blockchain
Now if we talk about it, immutable blockchain only benefits the data structure based on append format. Unknowingly people cannot edit or delete already captured data. Of course, this provides another degree of security for your startup business.
- Safety and Security of Data
Blockchain uses cryptography to encrypt the data stored within the block to keep everything secure. Blocks can be added to the chain only after a verification process that requires agreement between ledger participants.
- Transparency in Network
The Blockchain is a distributed ledger; everyone in the network connected to it has access to the same information. Therefore, you don’t have a dozen different copies of sensitive data because all these digital copies are tied to the same digital information.
- Efficiency in Technology
As you may know, the cost-effectiveness principle underlies Blockchain technology. For example, when you do business using traditional methods, you slow down your business activity. But by using Blockchain, you can streamline digital transactions because digital transactions are much faster and far more efficient.
Simultaneously, digital data facilitates the storage and tracking of essential organizational assets, thereby ensuring traceability.
Therefore, these are the benefits of Blockchain technology for a startup business. Now, let’s proceed and learn about the Blockchain development process.
How to Develop a Blockchain For a Startup Business?
Follow the below steps to build a Blockchain for your startup business:
- Define Your Requirements
Before starting to develop a Blockchain for your startup, clearly define your business requirements to ensure the further development process goes smoothly.
- Choose the Right Blockchain Platform
After defining your requirements, you need to choose the right Blockchain platform that aligns with your business goals, use case, and technical requirements.
Various Blockchain platforms are well-known for specific use cases. For instance, Ethereum is commonly used for smart contracts development, while Hyperledger Fabric is suitable for enterprise solutions.
- Design the Blockchain Architecture
Once you are done with choosing the right platform for Blockchain development, you can proceed with planning the architecture of your Blockchain network, including nodes, consensus mechanism, and data storage.
Also, you can decide whether to design and develop a public or a private Blockchain.
- Begin with Creating Blockchain Nodes
With the designing of the Blockchain architecture, set up the nodes that will participate in your Blockchain network. These nodes can play various roles, such as mining nodes, validator nodes, or other specialized nodes depending on the Blockchain platform.
- Develop Smart Contracts
If you need Smart Contracts – the self-executing contracts with the terms of the agreement directly written into code, begin developing them using the platform’s programming language, such as Solidity language for Ethereum Blockchain.
- Implement the Consensus Mechanism
Based on your chosen Blockchain platform, configure the consensus mechanism. This is crucial for reaching an agreement among nodes on the validity of transactions in a Blockchain network.
- Integrate APIs and External Services
After implementing the Consensus Mechanism in your Blockchain, start integrating the necessary APIs and external services, such as payment gateways, data feeds, identity verification services, and more, to connect your Blockchain network with the real world.
- Implement Advanced Security Measures
Although Blockchain is a secured network that is difficult to hack, implementing security measures to protect your blockchain network from vulnerabilities and attacks will be a great approach.
Consider implementing various advanced security mechanisms, such as identity management, encryption, and secure key management.
- Testing and Quality Assurance
Before deploying your Blockchain developed for startup, test it vigorously to ensure it is functioning properly. Additionally, test for security performance and transaction functionalities to identify and fix bugs.
- Deploy Your Blockchain
Once testing is completed and you have fixed the issues, deploy your Blockchain network to the production environment and you can start using it for your startup business.
Therefore, this is the Blockchain development process for startups, that you can use for developing your custom Blockchain network for your business. But remember that your Blockchain project complies with relevant legal regulations. Thus, we recommend you consult with legal experts to navigate any legal challenges related to Blockchain technology.
On the other hand, if you do not have technical expertise in Blockchain development, you can hire Blockchain app developers from a leading Blockchain development company.
What Does a Blockchain Developer Do for Your Business?
When you hire Blockchain developers to develop a Blockchain for your startup, they will perform the following duties:
blockchain developer is considered to have a strong mix of skills in areas such as data structures, cryptography, computer networking, and algorithms.
They are responsible for the development and optimization of blockchain protocols, designing the architecture of blockchain systems, and developing smart contracts and web apps using blockchain technology.
Moreover, a Blockchain developer is also expected to have experience with a specific type of blockchain such as Ethereum or Bitcoin.
According to industry experts, there are two categories of blockchain developers:
- Core Blockchain Developers
Know that the architecture of the blockchain system is the responsibility of the core blockchain engineers. It involves high-level decisions such as the design of the blockchain and the consensus protocol. Handling security norms is a part of such a process.
- Blockchain Software Developers
Most blockchain application developers build blockchain software. Because they build decentralized apps or D-Apps, they are also known as decentralized application developers. This position is similar to that of a software developer.
Therefore, Blockchain developers need to be able to build smart contracts with tools like Truffle and Solidity. Dapp developers can also employ the React Native or Java languages, which are often used in mobile and web app development.
What Qualities Should a Blockchain Developer Possess?
According to Market Research, high-level blockchain developers need the following skills:
Core Blockchain Developers’ Expertise
- Capable of creating consensus and blockchain protocols and network architecture and security patterns.
- Knowledge of developing in blockchain-friendly languages such as Go, Rust, C++, or Java.
Blockchain Software Developers’ Expertise
- Experience developing smart contracts and online or mobile apps leveraging Blockchain technology.
- Expertise in front-end programming for creating interactive Dapp designs.
- Expertise in backend programming for blockchain management.
Best Tools For Building Your Blockchain App?
The following are some of the most influential blockchain development tools according to industry experts:
- Solium
- Geth
- Embark
- Remix IDE
- EtherScripter
- Solium
When it comes to developing a blockchain application, Solium Security is crucial. First, you must ensure that the Solidity code is free of security flaws. Solium is a tool designed to format Solidity code and repair security vulnerabilities.
- Geth
Geth, an Ethereum client, written in the Go programming language, runs Ethereum nodes. Users can mine Ethers, write smart contracts and run them on the Ethereum Virtual Machine (EVM), browse the block history, and transmit tokens between addresses via Geth.
Geth is available for Linux, Windows, and Mac users to download and install. Scripted and Binary installations are both supported. You can either create your blockchain using the available settings or connect to an existing blockchain once you start using Geth. If no default values are selected, it will automatically link you to Ethereum’s main net.
- Embark
Embark, a development platform for Ethereum-based dApps is used to create smart contracts written in the Javascript programming language and build and deploy dApps.
Embark can also manage intelligent contract migration if an application has many contracts. The Embark platform allows developers to execute contracts on several blockchains, including the live network, test net, and private net.
- Remix IDE
The Remix IDE is a tiny contract compiler. It’s a web-based application for creating and deploying smart contracts. For example, the Solidity programming language may be written, debugged, tested, and deployed using Remix IDE. In addition, Metamask allows Remix to connect to the Ethereum blockchain.
- EtherScripter
EtherScripter features a user-friendly interface for writing simple, smart contracts. Developers can connect different components as jigsaw puzzle pieces for constructing a contract using a simple drag-and-drop interface. Only the Serpent programming language is supported.
So, these are the best tools to develop the Blockchain for your startup.
Why Choose Us to Outsource Blockchain Development Project?
I hope you find this tutorial on developing blockchain apps to be helpful. With all of the knowledge and examples provided above, you should be well on your way to creating your Blockchain app.
Moreover, if you need professional assistance from the top Blockchain app development company, feel free to reach out to experts and share your requirements. We will be glad to help you in every way possible.