How to Build a Blockchain App: All-in-One Tech and Business Guide
Though
the hype around cryptocurrency has subsided, the interest in blockchain remains
the same.
Blockchain
market size is projected to grow from
2.01 billion in 2019 to 69.04 billion in 2027, showing a CAGR of over 56%.
Blockchain is a digital ledger
of transactions with copies distributed across the entire network of computers
connected to the blockchain. Each block in the chain contents a number of
transactions. Every time a new transaction is added, a record of information
about that transaction is added to every participant’s blockchain.
Blockchain is an innovative
system of recording information in a way that makes it difficult to impossible
to hack or compromise the system.
4 KEY TYPES OF BLOCKCHAIN
When it comes to blockchain, there 4 two types of networks that you can
utilize for your project:
- Permissionless
blockchain (public) – accessible to all members of the networks
and on any device. Any user can become a part of the blockchain, make
transactions, verify them and stay anonymous. The main example of
permissionless blockchain is Bitcoin. This type of blockchain is great if
you want to create an app that will be available for a wide audience.
- Permissioned
blockchain (private) – accessible to authorized participants only.
This type of blockchain has certain rules that regulate transactions
between network participants (nodes). Permissioned blockchain is mostly
used by organizations for internal purposes with all the transactions
validators belonging to the same company.
- Hybrid blockchain – in some cases,
organizations will benefit by taking the best from the two worlds. Hybrid
blockchain allows to create a private system alongside a public system.
This way, they can control who can access specific data stored in the
blockchain and what data is open to all network participants.
- Consortium
blockchain – this type of blockchain is also known as
a federated blockchain. It is similar to the previous type as it’s a
private blockchain with limited access to a particular group. Consortium
blockchain has a validator node that can initiate, receive and validate
transactions. Member nodes can only receive and initiate transactions, but
they cannot validate them.
THE INDUSTRY FOR DAPP DEVELOPMENT
According
to State of the dApps,
there are over 3,5459 active decentralized applications. Such apps are
distributed through different industries, such as gaming, finance, health,
security, and so on.
Let’s
review some of the industries that blockchain is disrupting and get some
inspiration for your future project.
The technology can be used for all key services provided by banks, such as
payments, clearance and settlement systems. One day, blockchain promises to put
crime and fraud to rest in the financial industry. The benefits of implementing
a decentralized ledger include:
- Real-time and
multi-party tracking and management of bank guarantees
- Faster and more
accurate automated reporting that draws information from immutable records
- Faster transfer
of funds between financial institutions with accelerated settlement
Numerous companies in the finance industry are already using blockchain in
their daily operations. Examples include Credit Suisse, which uses
blockchain to settle US stock trades. JPMorgan Chase uses
decentralized technology to facilitate transactions between institutional
accounts. Ripple and R3 are among the most popular blockchains used in this
industry.
Implementations: Credit Suisse, JP Morgan Chase, Western Union, Santander
1. 1. Insurance
3. Healthcare
3. Real estate
4. Retail
5.
Supply chain
6.
Copyright
& intellectual property
7.
Internet of
things (iot)
8.
Internet
identity and dns
TOP-7 MOST POPULAR BLOCKCHAIN DEVELOPMENT PLATFORMS
If you are wondering how
to build a blockchain app, you first need to learn about the most popular
blockchain platforms. There are quite a few solutions that you can use as the
basis for your application.
- Ethereum – one of
the most popular open-source blockchain platforms that gained popularity
thanks to flexibility. Ethereum can be used for creating decentralized
apps (dApps), smart contracts, and ICOs. Building Ethereum is only
possible with its own programming language Solidify, but thanks to HTTP
API, it’s possible to create dApps in any programming language.
- Hyperledger
Fabric – this blockchain platform is especially popular
among companies dealing with supply chain management and connected
devices. This is an advanced platform for permissioned networks, thus
requiring the user’s authorization. If you choose this platform, you will
need to hire Go, Java, and JavaScript developers for the task.
- EOS – the platform
is designed for building dApps that rely on the use of smart contracts.
The solution offers decentralized application hosting, decentralized
storage of enterprise solutions, and smart contracts capability.
- R3 Corda – the platform
is mostly used for creating permissioned blockchain and can be easily
integrated with an already existing system. The main spheres of use are
eCommerce, healthcare, supply chain and trade finance.
- OpenChain – an open-source
distributed ledger platform that uses a single authority for transaction
validation. The platform is mostly used by companies to securely manage
digital assets. There is no transaction fee and only one administrator
needed for their validation.
- NEO – a platform is
designed for decentralized solutions that require high performance and
scalability. NEO uses NEO token for paying transaction fees and uses
Delegated Byzantine Fault Tolerance since it offers the higher performance
needed for high-load dApps.
- Ripple – a blockchain
platform designed for financial services. Ripple connects payment
providers, digital assets exchanges, banks and corporations with their
blockchain network RippleNet. Ripple allows building fast and scalable
solutions, which is ideal for the financial industry.
BLOCKCHAIN APPLICATION DEVELOPMENT
In most companies, the software development
process is divided into two major stages.
DISCOVERY STAGE
Discovery stage (also known as
the pre-development stage) – during this stage, the blockchain development
vendor will identify your needs and business requirements. The main goal of
this stage is to create an overall understanding of your project and all
requirements that you have.
The discovery
stage offers a number of benefits, such as:
- Time and money saving
- Business and technical
requirements validation
- Documentation of project
functionality
- Evaluation of potential
risks and their addressing
- Tasks prioritization and
allocation of a development team
- Full understanding of the
client’s needs
Key deliverables of
the Discovery stage include:
- Finalized project concept
- Product backlog
- UX/UI design
- Project architecture plan
- Market and competitor
analysis (optional)
DEVELOPMENT STAGE
During this stage, the code
base of an application is created. Development usually involved the work of
different experts, such as front-end and back-end developers, QA engineers,
Software Architects, and Project Managers.
In most cases, you start small
with the simplest version of your app. This way, you can safely test your app
idea without heavily investing in the development process. The main goal of MVP
(Minimum Viable Product) development is to reduce risks, especially if you are
working with blockchain and some unique features that no one has built before.
After you’ve successfully
tested your idea, you can move to full product development.
HOW MUCH DOES IT COST TO BUILD A BLOCKCHAIN
APP?
Usually, blockchain app development cost starts at
around $20,00-$60,000 and can reach up to $200,000 and
even go beyond this number. Usually, if you work with US blockchain app developers, hourly
development prices start at $100 and can reach $250 in some cases. Off-shore
app development outsourcing makes sense if you want to get the best talent on
the market at affordable prices.
Companies from Europe and Asia are of great interest to startups and
companies from all around the world, as you can get the same quality services
for twice as low prices as compared to the US market.
Read more about How to Build a Blockchain App.
Comments
Post a Comment