Blockchain is the trendiest topic these days on news channels, social media platforms, and office group discussions. The chances of debate on blockchain and cryptocurrencies are high. Therefore, we’ve created this blockchain app development guide to assist you with all of the technology’s major technical and business aspects.
Let’s have a look at some figures:
- According to Dot Com Infoway statistics, the global blockchain market is expected to be worth $20 billion by 2024.
- From 2021 to 2028, the global blockchain technology market is expected to grow at a compound annual growth rate (CAGR) of 82.4%.
With these mind-boggling statistics, it is clear that developing Blockchain apps and building blockchain projects is a growing business focus for many startups and established businesses. Manufacturing, media, telecommunications, finance, banking, healthcare, energy, real estate, and even the government sector are interested in developing Blockchain applications.
In layman’s terms, a blockchain is a decentralised, transparent, immutable, and publicly accessible database in which digital information is stored in blocks paired with each other using a hash function.
On the business side, it is a network for exchanging value from peer to peer. It is a mechanism that authorises and legalises a transaction without the involvement of a middleman.
Types of blockchain based on Networks
There are two types of blockchain based on networks: permissionless and permissioned blockchain solutions.
- Permissionless Blockchain-
The network is publicly accessible on all computers and devices in permissionless blockchains. Anyone with access to the code can run a public node on their local devices, initiate a network interaction, and verify the transaction while remaining anonymous. A permissionless blockchain is decentralised, equally accessible, and anonymously available. For example, Bitcoin and Ethereum.
- Permissioned Blockchain-
This is a closed ecosystem where only authorised participants can act based on their roles. These blockchains are built on a set of rules that govern how a transaction will be implemented to meet the needs of a specific organisation (for eg: for database management, for auditing, etc.). For instance, Multichain.
There are two types of blockchain, but when it comes to permissions, the types are further classified as public and permissionless, public and permissioned, private and permissionless, and private and permissioned.
Types of Blockchains based on Cryptocurrency Support
Blockchains are commonly classified as cryptocurrency-based or non-cryptocurrency-based solutions based on their cryptocurrency participation.
- Cryptocurrency-based Blockchain:
As the name implies, these blockchain solutions are based on cryptocurrency. The following are the most common forms of blockchains:
- Wallets: These are secure digital wallets that retain the public or private keys used to send, store, or receive cryptocurrency. This blockchain type, often known as a cryptocurrency wallet or crypto wallet, is primarily concerned with converting and trading cryptocurrencies in a centralised, decentralised, or hybrid setting.
- Crypto Exchanges: These are blockchain platforms that trade cryptocurrencies or digital currency. They accept credit cards, postal money orders, and other modes of payment and then deposit the bitcoin into your cryptocurrency wallet.
- ICO: Initial Coin Offering (ICO) or Initial Currency Offering (ICO) is a type of crowdfunding that involves creating and selling cryptocurrencies/crypto tokens.
- Dapp: A decentralised app, also known as a dApp development service, deals with apps that are not controlled by a single entity. Several users can operate it in real time on a decentralised P2P network using trustless protocols. Augur, Golem, and Sia are excellent examples of what a dApp development business can create. You might also be interested in learning how to monetize your dApp.
- Non-cryptocurrency-based Blockchain:
These blockchain app development services do not rely on crypto tokens. This blockchain type is mostly used for inventory management and is based on Distributed Ledger technology (DLT). What exactly is Distributed Ledger Technology? From a technical standpoint, it is a database spread among multiple nodes and computer devices. Each node in this system has a replica of the ledger and may process it independently. The most amazing aspect of the ledger is that any central body does not govern it. Consensus refers to the procedure of voting in which the majority’s approval is required to make an update.
Factors to Consider for Blockchain App Development
A blockchain development firm will look into few factors before developing any blockchain app. The factors are listed below:
- Platform Type:
While some blockchain platforms are cryptocurrency-based, others rely on smart contracts or use multiple crypto tokens. Determining which type is best for you will make creating Blockchain apps easier.
- Smart Contracts:
The second thing to consider is whether or not you require a smart contract. As you may already know, a smart contract is a self-executing protocol that processes, validates, or enforces any trigger-based action stored on the blockchain system.
Blockchain development platforms use different consensus protocols, such as Proof of Work, Proof of Stake, Proof of Elapsed Time, Proof of Burn, and so on. As a result, identifying the appropriate platform based on the consensus protocol is a win-win situation.
The second factor to consider while answering How to Develop a Blockchain App is whether you need to incorporate cryptocurrencies in your mobile application or not. This factor is also important in determining the best platform.
- Public/Private Network:
Consider if you want a network where anybody can make changes or one where only authorised users may participate. Choose a platform and begin developing your own blockchain application based on your decision.
- Adoption Rate And Functionality:
It is critical to investigate the adoption rate and level of community support for a present blockchain. The adoption rate denotes the extent to which a certain blockchain innovation has been implemented. Choosing a technology that has been widely welcomed and adopted is a better option than selecting one with a low degree of adoption.
Those intending to develop blockchain platforms on existing technology should look at transaction capability and determine whether their needs will be met. When considering blockchain scalability, three key factors are considered: speed, security, and decentralisation. This is known as the Scalability Trilema, and it refers to the reality that every developer can only expect for two out of three features.
Blockchain Development languages
Similar to platforms, there are numerous programming languages to consider when developing a blockchain application. You can start with classic programming languages such as C++, Python, Go, and Java or move on to advanced blockchain-specific languages such as Simplicity and Solidity.
- Simplicity: Simplicity is utilised to build smart contracts on the blockchain. The language is simple, leverages static analysis, and can be considered an advance on fundamental cryptocurrency languages such as Ethereum Virtual Machine (EVM) and Bitcoin Script.
- Solidity: It is a statically typed blockchain development language primarily used to create smart contracts that operate on the EVM. You can simply construct self-regulated business logic in smart contracts using this language, leaving a non-repudiable and authoritative record of transactions.
All the above-provided knowledge will be a stepping stone in blockchain development. Whether you are looking for dApp development services or any other blockchain services, contacting professionals will sound efficient and result in successful development.