From Idea to DApp: Your Ultimate Blockchain Development Guide
Outlines
Currently, 23% of larger businesses are actively developing blockchain applications. Blockchain development is the newer avenue, applying cryptocurrencies to real estate and spreading to governance. It is already topping the charts as the hottest skill in the U.S. job industry.
Blockchain development is growing, but seeking trustworthy advice is essential before indulging in the process. Consulting a company with good Clutch, Good Firms, and Bark ratings is an excellent step in the right direction, along with looking for experience in developing blockchain applications and looking for skilled developers.
Let’s explore in this guide all the knowledge you need to be equipped with before embarking on the blockchain development journey.
Contents
- 1 What Is Blockchain Technology?
- 2 Overview of Blockchain Development
- 3 A Deep Dive into How Blockchain Operates
- 4 Applications of Blockchain Technology
- 5 Steps to Develop Blockchain Solutions
- 6 Advantages of Blockchain Technology
- 7 Challenges in Blockchain Technology
- 8 Overcoming Challenges with Moon Technolabs
What Is Blockchain Technology?
Blockchain technology is a decentralized, peer-to-peer(P2P) network of computers that uses a digital ledger to track assets and record transactions. Each server connected to the network is known as a node. Nodes contain copies of the ledger transaction records. Any block that adds a new block is rewarded and called a miner.
A blockchain is a decentralized database that several people control, can see, and verify the information shared. It is different from the regular database. Distributed Ledger Technology(DLT) grants a copy of the ledger to each node in the network. Since every node has the ledger copy, it’ll be easy to detect if anybody tries to tamper with the information. When the nodes compare the records, the discrepancy will show. However, blockchain is a secure and transparent network, enabling DLT to make the blockchain networks tamper-proof.
Overview of Blockchain Development
The process of developing and maintaining a blockchain network is blockchain development. It is associated with creating the following:
- Blockchain architecture like public, private, or hybrid.
- Blockchain Applications
- Blockchain-dependent services like digital currency, smart contracts, etc.
Since it makes information transmission possible rapidly, accurately, and securely, it is helpful for a wide range of sectors.
A Deep Dive into How Blockchain Operates
What are Blocks in Blockchain?
The basic building block of the blockchain is a “Block.” It carries
- Data
- Hash value
- Previous block hash value
All the blocks of the chain have these three components except for the genesis block, which is the first block of the blockchain. It consists of Data and Hash value.
The transaction process starts with
- Making the Transaction Possible – A new entry comes into the blockchain network. All the information is passed on about the new transaction in the blockchain.
- Transaction Verification – The transaction is transmitted globally to the peer-to-peer (P2P) network. All the nodes present in the network check for validity. Validity is checked whether there is enough balance for the transaction or not. This is the implementation of the distributed ledger concept.
- New Block Formation – Once the transaction is verified, start adding a new block. In a blockchain network, many nodes exist, and multiple transactions are verified simultaneously.
- Consensus Algorithm – It’s a mechanism to verify and validate the new block from every node member. It ensures the block added is one and only agreed upon by all the nodes in the blockchain network.
- Addition of New Block – Once the newly created block gets its hash value and authentication, it’s ready to be added to the blockchain. The previous block’s hash value stored in the current block helps the blocks link and add a cryptographic layer to it. This is how blockchain is formed.
- Transaction Complete – The transaction is considered complete when the block is added to the blockchain. The details of the transactions are stored in the blockchain.
Why is it secure?
The information stored in the blockchain is encrypted with cryptography in the hash values stored in the blocks, and another concept is Proof-of-Work.
- The hash values stored in the consecutive blocks ensure no tampering with the blockchain. In case of tampering, the hash value of the stored data will change. But the next block already has the hash value stored in the previous block. So, this mismatch of hash values will create confusion, and if the attacker wants, he will have to change all the hash values stored in the network to make it appear legitimate. It is a long and tiresome process.
- The Proof of Work(PoW) algorithm verifies the transaction process. So if someone tampers with the hashes, then again, the PoW has to be checked, and getting the consensus of more than half of the nodes is a complex process.
Applications of Blockchain Technology
- Healthcare Sector – A decentralized system that acts as storage and manages patients’ electronic health records. It securely manages the records, allowing patients to view their records and update them if needed. Another application is in remote patient monitoring.
- Finance Sector – Initially, blockchain was synonymous with Cryptocurrency. Then, everyone understood it as tech; now, even banking systems are utilizing it. It has carved its niche for developing central bank digital currencies(NBDC). Due to its transparency in transactions, banks implement blockchain in regulating compliance.
- Retail Sector – The supply chain management reaps the benefit of transparency and keeps track of everything during the product journey. Traceability is another advantage that helps in supply chain management.
- Real Estate – Using smart contracts in real estate can automate and distribute the payment with real-time reporting. It can simplify property management for large-scale property owners. Asset tokenization platforms built using blockchain create a digital token of ownership for real-world assets.
- Voting in Elections – The next few applications of blockchains are in voting to make the elections more transparent so that nobody can tamper with the votes cast. Another mention is Intellectual Property Rights, as Non-fungible tokens (NFTs) are popular.
Steps to Develop Blockchain Solutions
The various steps of blockchain development include:
- Identifying the goal
Once you comprehend the problem, it is easy to focus on the solution. Ensure the blockchain development solutions are aligned with your business requirements and model. Identify the architecture type, whether the Public, Private, or Hybrid blockchain will suit better to the project.
- Identifying the suitable blockchain platform
The blockchain market has multiple platform options, but you will decide on your project basis which blockchain development platform suits the application best. It is imperative to make your decision on the grounds of proper research.
- Blockchain Ideation
The ideation comes from the understanding of the problem. Determine what elements will be added into the network as off-chain or on-chain. You should be prepared with a roadmap and conceptual workflow for the app to be completed within the deadline. Deciding on the programming languages, servers, and external databases helps outline a clear project picture, saves time, and provides clarity.
- Proof of concept
The practicality of the idea is tested in Proof-of-Concept for any blockchain project. It can be a prototype or a theoretical build-up. The theoretical build-up further converts into a prototype. Client approval of the prototype leads to the next phase of design.
- Design
With a solid application plan, you can start with the design. Creating a UI design for every software component and API that will be integrated with the user interfaces is essential. These help to run the app in the back-end. The tech architecture is decided in this phase. Once the design is completed, the app is ready for the next phase.
- Development and Deployment
The development phase of the application is the execution of the ideation. The blockchain application is developed in multiple stages. The alpha version is the first version created by the developers and is shown to the client. Once it is approved, the beta version comes, where the app is tested outside the development organization to get feedback. Valid feedback responses are implemented in the project.
Once developed and deployed, the app versions are launched on the App Store or Google Play Store.
- Upgrades and Support
Post-launch support and upgrades are essential to remain in the competition. Ask your app development agency for post-launch support and ensure you get revised upgrades on the bug fixes and errors.
Advantages of Blockchain Technology
Transparency – Whenever a transaction occurs, every node validates it and is added to the chain. The distributed ledger enables every node in the P2P network to see the changes made in the transaction, thus creating increased transparency in the chain.
Traceability – Since all the blocks have a previous hash value component that helps in tracing the block. It can be easily detected if anyone tries to tamper with the data.
Enhanced Efficiency and Speed – The fast, secure, and automated transactions reduce the time and increase efficiency. It reduces the need to manage and maintain multiple ledgers since it is a digital decentralized ledger.
Cost Reduction – Blockchain eliminates the need for outside parties and intermediaries, effectively reducing costs. Every network member receives the data as it is distributed, and as each member verifies the legitimacy of each transaction, it takes less time and effort. As it is an automated process, trust and accuracy are not compromised.
Challenges in Blockchain Technology
Decentralization –
The star feature of this technology poses a challenge as well. Due to its decentralized nature, the data is distributed, and the time taken in the consensus and other processes is very high. This makes the whole transaction time higher.
Scalability –
Blockchain is efficient when the chain size is small. But as the chain size grows, the speed is decreased, and time is increased in the processing. A higher volume of transactions in a decentralized network poses a challenge.
Privacy –
Blockchain is transparent, but inherently, privacy is absent. Any node member of the network has information about any node. When dealing with sensitive data like identity information or health records, this becomes a challenge.
Regulatory compliance –
The decentralized nature is often a roadblock to industries with stricter regulatory compliances. Healthcare or finance industries generally have strict regulations to protect customer information, but blockchain must implement upgrades to combat such challenges.
Overcoming Challenges with Moon Technolabs
Moon Technolabs is your trusted partner in overcoming the challenges associated with blockchain development. Our team of skilled blockchain developers understands the intricacies of blockchain technology and can guide you from ideation to deployment. We specialize in creating secure and efficient blockchain solutions tailored to your needs.