Blockchain development - A simple guide on how to get started?

What is blockchain?

Blockchain refers to an expanding collection of records. These records are called blocks, and each block has a cryptographic hash function that connects it with the block that comes before it. Blockchain databases are open, distributed ledgers that are usually managed by a peer-to-peer network. The very first block in a blockchain is called the genesis block.

  • Proof of stake - Here the authority to maintain a distributed ledger is assigned to a participant node based on the number of crypto tokens held by it. For example, both Peercoin and Ethereum cryptocurrency tokens function based on proof of stake.
  • Proof of space - Proof of space functions based on the reserved memory space of the contributing nodes in the network. The authority to manage the shared distributed ledger is given to the contributing node that has allocated the most space. For example, Burstcoin cryptocurrency token works based on this consensus algorithm.
  • Proof of authority - It is used in both private and public blockchain networks. Every transaction initiated between the blocks is validated by means of a validator account. Validation is an automated process and doesn’t require constant monitoring. However, for that to happen the operating computer (authority node) needs to properly maintained. Proof of authority is most commonly used in networks that work based on trust.

How does blockchain work?

Once new data is stored in a block, it is added to the chain of blocks. The data stored in a block cannot be replicated, updated, or deleted. Incorporating blockchain in business improves transparency, ensures accountability and eliminates third-party involvement.

  1. Secondly, the initiated transaction must be a verified one.
  2. Thirdly, the verified transaction needs to be stored in a block.
  3. Fourthly, the block must be given a unique identification code or cryptographic hash.

Why you should adopt blockchain technology in your business?

There are many advantages to implementing blockchain technology. To a large extent, it can help improve operational efficiency and productivity levels. The main benefits associated with this technology are:

  • Immutability: Once data is committed to the blockchain and a sufficient number of participants have agreed on this state, the information is stored permanently and immutably.
  • Security: Blockchain is considered to be a highly secure system due to its digital signature and encryption. The system is specially designed to be secure, convenient, and tamper-proof.
  • Fraud control: A system that is based on data stored in a number of places is immune to hackers; it’s not that easy to get access to it, and if so, any piece of information can be easily recovered
  • Transparency: Banks, as well as the clients, are immediately notified about the completion of transactions, which is both convenient and trustworthy.
  • Speed: Transactions are processed way faster than usual as there is no need to include payment systems, which reduces the cost and increases the processing speed.

Some of the practical applications of blockchain technology

Blockchain is an industry-agnostic technology. The potential use of blockchain technology goes beyond cryptocurrencies. From a transparent food supply chain to decentralized identity management of people, blockchain is simplifying business complexity to gain better trust, traceability, and improved collaboration. New research helps enterprises understand the need for blockchain adoption through a suitable blockchain model or framework that shapes their business use case. Studies by Gartner show that blockchain technology will govern the movement and tracking of $2 trillion goods and services across international borders annually by 2023.

Financial Services
cryptocurrency
healthcare
smart contracts
supply chain
government
media and entertainment
retail
real estate
travel

When to use Blockchain for your Startup or existing Platform?

Blockchain development process

blockchain development process

Requirement evaluation

First, you will need to analyze your business operations and finalize on the requirements for your blockchain solution. Make sure that the blockchain solution will be able to add significant value to your business. Conduct thorough market research to find out more information about the technology and its applications, so that you will be able to zero in on the best approach to take while developing a technology road-map.

Decide on a blockchain platform

There are a number of different blockchain platforms that can be used during the development of your project. While trying to decide on the most suitable platform for your project, you will have to consider factors like developer availability, speed of transactions, granular security, adoption rate, scalability needs, etc. Some of the popular blockchain platforms include Ethereum, Ripple, EOS, Hyperledger, etc.

Visual and technical design

Once you’ve completed the first two steps, it is time to design the solution and outline its functionalities, technical specifications and user stories. This is where you will decide on the technology architecture and the UI/UX design of the application.

Blockchain development & deployment

This is the most important step in the process. A blockchain application is usually built under various versions. Once the developers have the pre-alpha version ready, they need to put it through extensive testing to fix any bugs or errors that may occur.

Costs associated with blockchain development

The cost of a blockchain project can vary depending on your requirements. A complex project will require higher levels of expertise and human resources, leading to greater costs. Other factors that affect costing include the type of blockchain solution, project management tools, the people involved in the project and third-party tool subscription costs.

  • If you want more control over your project, you could go with a more expensive option and onboard an in-house team.
  • Hiring a blockchain development company offers an ideal middle ground between these two options as it doesn’t involve much risk or high expenses.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Accubits Technologies Inc

Accubits Technologies Inc

31 Followers

Accubits Technologies is an enterprise solutions development company focusing on AI and Blockchain technologies, based in Virginia, USA. https://accubits.com/