How do you develop a blockchain application? To answer this question, we need to first understand what blockchain is and why it’s so useful. Blockchain is the technology that powers the digital currency Bitcoin, but it has much broader applications than just cryptocurrency. Any type of information can be stored on the blockchain, and that information can be accessed from anywhere in the world by any person with internet access — as long as they have an access key and a place to put it. For instance, you could put your complete medical history on the blockchain and give your doctor access to it with an encryption key.
Why you should use blockchain
According to an HSBC report, it is forecasted that blockchain technology could save businesses $15–20 billion annually by 2022. If you’re not familiar with blockchain yet, read up on what it means for your business—and why software development companies are scrambling to find out how they can incorporate it into their offerings.
What are the benefits of using blockchain?
As a technology, blockchain is most often associated with cryptocurrencies like Bitcoin and Ethereum. Cryptocurrencies have rapidly gained popularity over their recent years of existence. However, there’s more to blockchain than just digital currency. Developers can use it for software development as well! The decentralized nature of blockchain eliminates various sources of risk and fraud that are common in centralized systems. The technological prowess behind cryptocurrency makes it an ideal choice for creating blockchain applications—but it can be functional for other purposes as well!
When is it time to build an application?
When you’re ready to take your blockchain startup from concept to actuality, software development is paramount. You need a team that knows how to build enterprise-grade blockchain applications, and so do your investors. When you’re trying to raise capital for your startup, it’s critical that you show investors your idea for what it is: an application — one that will run on, and be powered by, blockchain technology.
Should you be building an app or a protocol?
If you’re planning on developing an application on blockchain technology, you first need to decide if you want to build software or develop a protocol. While some applications may be able to run on top of existing protocols, it’s best for most companies that are launching new projects in the development phase with blockchain technology that they focus their efforts on building a protocol rather than creating applications themselves.
Get an idea of what other companies are doing in this space
If you’re trying to build your own blockchain application, getting an idea of what other companies are doing in this space is key. Here are a few things that can help A) Look at existing blockchains (e.g., Bitcoin and Ethereum) and see how they work. Understand their strengths and weaknesses relative to your use case. What features do they offer? How would you design yours differently? Can you incorporate any of these features into your app?
B) Talk with others who have experience building on top of blockchains—or at least read about their experiences online. It is astounding how many people are using blockchains for non-financial applications!
Blockchain developer vs. Blockchain architect vs. Smart contract developer
If you’re looking for a professional blockchain developer, we can help you. However, if you need a more general software developer who will work on your blockchain project as part of her regular workload (not dedicated full-time), then it’s smart to ask what type of background they have and ask them questions about their knowledge. Here are some examples of questions you could ask: What specific blockchain languages do you know? What is your experience with Hyperledger or Ethereum?
How much does it cost to develop a blockchain application?
it depends on many things, including how you plan to monetize it, which programming language you prefer, and your location. In general, an application with basic features can go up to $30,000 and up for the complete building process. More complex projects tend to cost much more; if you want a custom application built with more extensive features, it could easily top six figures. Remember that these are ballpark figures only and they’re far from set in stone. Some applications will be simple while others will require vast amounts of work and specialized talent. Whatever the case may be, creating your own blockchain application is no small feat—and it’s likely not going to be cheap either.
Setting up your development environment for blockchain application development
There are some tools you’ll need before you can build and deploy your blockchain application. When it comes to blockchain, there are really two different types of development environments: (1) those that allow you to interact with blockchain networks that don’t have their own internal programming language, and (2) those that let you write code in an existing programming language on top of an existing blockchain network.
Choosing between Corda, Hyperledger Fabric, and Ethereum when building your blockchain application
While all of these blockchain technologies are viable options for your application, there are distinct differences between them that could have an impact on your business model. Here is how each stack up against one another. For example, let’s say you wanted to create a system that handles payments between employees and their employers (payroll). Each employee receives their paycheck in dollars every two weeks; however, they can also choose to be paid in Bitcoin if they prefer. Using Ethereum as your blockchain platform allows you to write smart contracts (i.e., code) that will handle and execute payroll automatically using predefined rules stored within each smart contract.
Determining which language you should use when developing smart contracts on these platforms
Creating a digital ledger of transactions can help record not just financial transactions but virtually everything of value. The key advantages of blockchain are security, immutability, decentralization, and transparency. Businesses/non-profits worldwide are exploring how they can use blockchain technology in their operations. Here is the ultimate guide on how to develop a blockchain application.