Blockchain has been in the news for quite some time now however, the craze for blockchain development is still not subsided. Blockchain and cryptocurrencies are still one of the most talked topics amongst people. There are various app development companies that have started working on this technology as it is in high demand.
You don’t believe us? See the statistics for yourself. As per a leading report, worldwide spending on blockchain solutions is expected to grow to an estimated 15.9 billion by 2023 from 1.5 billion, which was in the year 2018. Companies in almost every industry vertical are trying to grab the opportunity of the anticipated advantages of the blockchain, and there are many that are trying to adopt their versions of blockchain and cryptocurrency. Also, the financial sector accounts for over 60 percent of the market value of blockchain worldwide in 2018.
Every industry sector from banking to media, healthcare, real estate, travel and tourism, and even the government sector is showing interest in the production of Blockchain app development. So before starting with anything, let us first understand a little more about blockchain.
What is Blockchain?
In layman’s terms, blockchain is a list of digital records that are stored in a form of chain using cryptography. These records are known as blocks, and hence the technology of doing so is known as the blockchain. While making an online transaction you must have heard about cryptocurrency, or Bitcoin, these are part of the blockchain technology.
Blockchain is nothing but a decentralized database where digital records are stored in blocks and are paired to each other with a hash function, such that the current block has the hash code of the previous entry and the next block will have the hash code of the current block.
Since most software development companies are trying to invest in this technology, it would be completely unrealistic for an entrepreneur to go for blockchain development just because others are doing it. If you really want to go for it, you must be aware of all the intricacies involved in this process.
So today, in this ultimate guide of blockchain development we have covered all the technical aspects that are important for you to know, along with the tips and tricks to integrate this technology into your business process. Let’s begin by discussing everything in detail.
Types of Blockchain Solutions
Blockchain solutions are categorized into two categories:
Based on Network
Based on network, blockchains are further divided into two categories:
The best example of permissionless blockchain is Bitcoin. In this, you do not need to have any permission to access any database, and anyone can access the network or initiate an interaction in the network by keeping their identity hidden.
Talking about permissioned blockchain, it is more of a closed ecosystem where only authorized personnel can access the database and that too, following the set guidelines for it.
Based on Cryptocurrency Support
Based on cryptocurrency support, blockchain solutions are further categorized as cryptocurrency-based solutions and Non-cryptocurrency based solutions.
As the name suggests, these types of blockchain solutions are based upon the cryptocurrencies. Some of the most popular types of cryptocurrency-based blockchain solutions are:
- Cryptocurrency wallets: to send or receive cryptocurrencies
- Crypto exchange: also called as Digital Currency Exchange (DCE) systems are used to trade cryptocurrencies
- Initial Coin Offerings (ICO): also known as Initial Currency Offering (ICO) is a system that deals with the generation and selling of cryptocurrencies
- Decentralized app (Daap): Dapp development services deal with apps that can be run by multiple users on a decentralized, P2P network in real-time.
Non-cryptocurrency based Blockchain
These solutions are not dependent on cryptocurrencies. They are based on Distributed Ledger Technology (DLT), which is a database distributed across various nodes and computing devices. And most importantly, these nodes or ledger is not governed by any central authority. Anyone can make changes to them.
How to Choose the right platform for Blockchain Development
There are several blockchain development platforms available in the market which you can choose as per your project’s requirements like IOTA, Hyperledger, Multichain, Quorum, and many more. But here are a few things which you may consider while choosing the right platform for your blockchain development:
Nature of Platform: Depending upon your requirements, you can choose the platform that is perfect for your blockchain solution development. Some platforms are based on cryptocurrency and some are based on smart contracts or using more than one crypto token.
Smart Contracts: A smart contract will help you maintain your digital transactions without the involvement of any third-party. They are a self-executing contract that processes, verifies, and imposes any action stored on the blockchain system.
Cryptocurrency: This is one of the most important things to consider while choosing the platform for your blockchain development. You must be very clear with your project’s requirements and ensure whether or not your project involves the use of cryptocurrencies.
Network: Again, just like the type of project, you must ask yourself about the kind of network you want for your project– whether you want to go for a public network, where anyone can make changes or you want to go for a private network, where only authorized persons can alter or make any changes.
Now when you are done with deciding the type of platform you want for your project, you are all set to start creating your blockchain application.
Blockchain Development: Time Required and Cost Involved
There are a number of factors involved that affect the blockchain app development cost and one of the most important factors is time. So, it is better to discuss your project with a blockchain app development company as they will let you know the exact cost breakdown structure. However, here is a table depicting number of hours that a development company spent on each step of your blockchain app development process.
How to Integrate Blockchain into Your Business Process?
Now that you know in detail about blockchain, you must be curious to know how to integrate blockchain technology into your business. Although blockchain has unparalleled potential and can be integrated into your existing business in a myriad of ways, here are some of the most popular ones:
One of the most common ways of integrating blockchain technology into your business is using digital currencies. These are not only safe and faster but are also a cost-effective option as compared with others. Companies like Abra, Bitwage, and Coinpip are already using this technology for fund transfer.
Blockchain technology can also be used to offer a cloud storage facility to your customers. They are not only fast and convenient but are highly secure too.
As Smart Contracts
Smart contracts are one of the most popular ways of using blockchain solutions. Many businesses employ smart contracts to bypass ordinances and cut down the cost for their various transactions. These contracts are reliable and unbreakable and this is the top reason why businesses prefer using them.
Due to the secure nature of this technology, Blockchain development can also be used for notary creation and validation purposes. Some companies in the market provide notary creation services using either the image or videos shared by the user via blockchain.
For Logistics and Supply
Logistics and supply is a tedious and complex process and involves a lot of elements. If anything goes wrong, a lot of things get affected. To handle all these complexities and ease up the process, the blockchain technology can be used. From payments to data storage, blockchain solutions come really handy. If you are also involved in logistics and supply, you can hire blockchain developers and they can develop a customized solution for your business.
Blockchain is one of the fastest-growing technologies these days and more and more businesses are trying to integrate this technology into their operations. Based on the nature and type of your business you can hire professional IT services and get your customized blockchain solution developed. For businesses looking for digital transformation, this is one of the best technologies to go for. It not only eases up the whole process but also brings in a lot of security to your transactions.
Hope this article helped clear all your doubts and questions related to blockchain development and if you still have any queries, you may contact us anytime and we will be happy to connect with you.