In recent years, Blockchain has become a most sought-after topic in various industries, be it social media, real estate, or healthcare. With Web 3.0 transitioning, cryptocurrencies and Blockchain are not going anywhere anytime soon.
Consequently, it is high time to embrace the changes in the app development landscape and leverage the power of blockchain technology.
Do you know that global spending on blockchain solutions is multiplying and is expected to reach 19 billion U.S. dollars by 2024? Hence, you can leverage this technology’s potential for your business.
Read this blockchain development guide to understand this technology’s significant technical aspects.
What is Blockchain?
Blockchain refers to a digital ledger that is decentralized, shared, and immutable. It stores the information and tracks assets virtually within the network. A Blockchain network is ideal for storing, delivering, and processing information since it is completely transparent, cannot manipulate data, and is accessed only by permissioned network members.
Blockchain solutions are the software that works on the blockchain platform. Applications built on Blockchain ensure that data cannot be changed and can be traced back to its source. Also, it enables businesses and companies to have decentralized applications with quick, accurate, and secure information sharing.
Benefits of Developing Blockchain Solutions
The information stored and shared on a blockchain cannot be manipulated and is available to access by every authorized personnel. Also, no third-party individual or party is involved in transferring information and decision-making, creating a decentralized and distributed network.
2. Enhanced Transparency
Since the information stored on a blockchain is available to view by authorized personnel, everyone can access the network simultaneously. Moreover, Blockchain makes it possible to track the complete history of past transactions within the network.
3. Build Trust
Blockchain is a members-only network and provides proof of ownership. You can rest assured that every transaction recorded on Blockchain will be confidential. This information will only be shared with members that have access to it.
4. Better Security
The immutability feature of Blockchain ensures that stored information cannot be changed or deleted. This will provide data accuracy in the Blockchain. Additionally, consensus eliminates the need for slower human verification and auditing to distribute the ledger’s state.
5. Improved Efficiency
Using a shared ledger among network members eliminates the need for time-consuming records reconciliations. Additionally, to make transactions faster, a set of predefined rules, known as a smart contract, can be stored on the Blockchain and executed automatically.
Types of Blockchain Development Solutions
1. Public Blockchain
This Blockchain is open for everyone, eliminating the problems that come with centralization. Since anyone can participate, validate transactions, and manage this Blockchain, it is entirely independent of central authority and transparent. Consensus algorithms verify the authenticity of data, improving security.
- Examples: Bitcoin and Ethereum
- Use Cases: Digital identity, Crowdfunding, IoT, Ownership (Land, Real Estate, etc.), Public Records, etc.
2. Private or Permissioned Blockchain
Unlike public Blockchain, which is open to everyone, a private blockchain is restricted to a closed network, a specific group of participants. The entities working on this Blockchain require permission to join and interact with the network. Often used by organizations, it maintains privacy and control over the Blockchain.
- Examples: Hyperledger, R3 Corda, Ethereum Enterprise, etc.
- Use Cases: Enterprise transactions, Enterprise records, etc.
3. Hybrid Blockchain
As the name suggests, this type of Blockchain is a hybrid between public and private Blockchains. If you want the capabilities of both private and public blockchains, an enterprise blockchain development company should implement hybrid blockchain solutions.
- Example: Dragonchain
- Use Case: Crypto wallet
Steps to Develop a Blockchain Solution from Scratch
1. In-Depth Study of Blockchain Development Project
To implement effective blockchain development solutions that cater to your audience’s demand, study the specific blockchain development project you are undertaking. In this phase of blockchain development, define the project goals, target audience, and functional requirements.
Additionally, conduct competitor analysis in this phase to identify strengths and weaknesses of the existing blockchain solutions in the market.
2. Build a Solid Blockchain Technology Foundation
Next, you need to select the appropriate blockchain platform, technology, and framework as per the requirements of your blockchain development solutions. This includes selecting the type of Blockchain, consensus mechanism, platform choice, programming languages, and other third-party integrations. Ensure that your blockchain development agency chooses the blockchain development platform as per your project.
3. Design the User Interface of Blockchain Application
Your blockchain app development services should include designing an intuitive and user-friendly interface. The blockchain development company should ensure a seamless user experience to simplify interactions with Blockchain, including transactions, accessing data, or managing digital assets. With attention to usability, accessibility, and visual aesthetics, you can enhance the user interface.
4. Begin the Development of Blockchain Solution
Now that you know the complete requirements of your blockchain development solutions, begin with developing and integrating core components. Implement smart contracts, consensus algorithms, and data storage mechanisms to build a secure and efficient blockchain app.
5. Quality Analysis and Deployment
Hire blockchain development services that also test and evaluate your blockchain software. With functional testing, stress testing, and security audits, you can identify and address any vulnerabilities to ensure the blockchain app’s reliability, security, and performance.
Once you develop the blockchain application, you can deploy it to the desired network or platform, making it accessible to users.
The Technological Foundation of Blockchain Development
Top Blockchain Development Platforms
|Blockchain Development Platforms||Ethereum, Binance Smart Chain, Stellar, Polygon, Tron, Hyperledger Fabric, Hyperledger Besu, Cardano|
|Distributed Ledger Technology (DLT)||IPFS (InterPlanetary File System), BigchainDB|
|Consensus Mechanism||Proof of Work (PoW), Proof of Stake (PoS)|
|Smart Contracts||Solidity, Chaincode (Go), Rust|
|Database and Storage||Distributed File Systems (IPFS, Swarm), Traditional Databases (PostgreSQL, MongoDB), In-memory Databases (Redis, Apache Ignite)|
|APIs and Middleware||Web3.js, Hyperledger Composer, Chainlink|
Technology Stack for Developing Applications for Blockchain
|Front-end Development Languages and Frameworks||ReactJS, React Native, Flutter|
|Back-end Development Languages||PHP, Java, NodeJS, Python|
|Database||AWS, PostgreSQL, MongoDB|
|Online Payment||Stripe, Square, PayPal|
|Testing and QA||Hardhat, Truffle Suite, Ganache|
|Cross-Platform Framework||React Native, Flutter|
|Crypto Wallet||Coinbase, Metamask, Trust Wallet|
Real-World Blockchain Use Cases and Applications
1. DeFi Platforms
Decentralized finance (DeFi) platforms are emerging models for financial transactions with cryptocurrency and blockchain technology. With DeFi, you can democratize financial services with a peer-to-peer (P2P) approach and no central authority, leading to optimized and transparent banking, loans and mortgages, and asset trading.
Also Read: Complete Guide On DeFi App Development
2. Blockchain for Healthcare
Blockchain is transforming healthcare services by improving access to information and streamlining business processes. With the secure and advanced model, you can hire blockchain developers to address real-world healthcare challenges.
3. Blockchain for Supply Chain
Blockchain app development services streamline the complex networks of the supply chain in logistics operations. It is one of the best blockchain use cases, enhancing communication and transparency in the supply chain.
4. Blockchain for Insurance
Blockchain can facilitate swift data auditing, full-proof security, tracking insurance claims, and transparent information on insurance. It can elevate the customer experience of the insurance industry by implementing automation using smart contracts.
5. NFT Marketplaces
NFT marketplace development companies can create a transparent, fast, and safe NFT marketplace, enabling smooth trading of digital assets. NFT marketplace blockchain use cases can be implemented in various industries like music, art, real estate, etc.
6. Blockchain for Media and Entertainment
With smart contracts in Blockchain, you can provide a customized and more relevant experience for the audience. Blockchain is revolutionizing the entertainment industry with more accessible and transparent platforms.
7. Cryptocurrency Exchange Platform
One of the premier uses of Blockchain is building an innovative cryptocurrency exchange platform and wallet. You can hire a cryptocurrency exchange development company to build a user-friendly cryptocurrency trading platform.
Total Cost of Developing Blockchain Solutions
Blockchain app development costs primarily depend on the application’s requirements. A simple application with minimum integrations will cost significantly less than a complex one with extensive integrations and functionalities.
However, several other factors contribute to the cost of developing blockchain solutions, which is essential to understand.
- Cost of blockchain development platforms.
- Cost of hiring skilled blockchain developers.
- The complexity and number of smart contracts.
- Implementing security protocols and regular security audits.
- Integration and interoperability of external systems, such as databases or APIs.
- The cost of designing and developing a user-friendly blockchain interface.
- Ongoing maintenance, bug fixing, and future upgrades.
The cost of developing blockchain software also changes as per the app type, such as the DeFi app, cryptocurrency wallet, NFT marketplace, etc. To know cost estimation as per Blockchain app type, read our comprehensive guide on blockchain app development cost in 2023.
Blockchain App Development Costs Region-Wise
|Development Team Region||Total Cost|
|United States||$50,000 to $300,000.|
|South America||$30,000 to $100,000|
|Ukraine / Eastern Europe||$76,000 to $200,000|
Note: This is an average cost estimation of blockchain app development. To know the total Blockchain app development costs, it is essential to consider all the mentioned factors. Moreover, define your blockchain app requirements more clearly, or contact a blockchain development company to kickstart your project from scratch.
SparxIT: Your Trusted Blockchain Development Company
At SparxIT, we have skilled and experienced blockchain developers that you can hire at a reasonable cost for your blockchain app development. With over 15+ years of industry experience, we have witnessed the evolution from Web 2.0 to the emerging era of Web 3.0. Hence, you can trust the credibility of SparxIT to turn your blockchain app idea into reality.
We provide blockchain developers for hire that study your project from the inside out to develop a blockchain app that caters to your audience’s demand.
We hope this blockchain development guide has given you valuable insights and information to kickstart your blockchain project. You can embark on this exciting journey by exploring the various aspects of blockchain development.
We encourage you to start shaping your blockchain app development idea based on the concepts and examples shared in this guide. SparxIT is a reliable blockchain development company ready to assist you in expanding your decentralized journey.
If you have any questions, need further guidance, or wish to discuss your project in detail, we are eager to listen and contribute to your vision.
Frequently Asked Questions
Ques 1) How do I start the development of my blockchain project?
To start with the development of blockchain software, define your blockchain project and its development requirements. Understand whether you want to develop the blockchain project from scratch or already have some documentation or wireframing done. Accordingly, reach out to the blockchain development companies within your budget and explain your project idea and requirements.
Ques 2) How does blockchain work step by step?
This is what the step-by-step working of blockchain looks like:
- Data Exchange: In a blockchain network, two nodes exchange data or information.
- Transaction Verification: The blockchain network verifies the transaction’s authenticity, ensuring its validity and integrity.
- Consensus Mechanism: The blockchain network relies on a set of rules that govern how nodes agree on the validity of a block.
- Block Addition: Once the block is created, nodes in the network compete to add this new block to the main blockchain.
- Consensus Validation: The network reaches a consensus for the verification. Once validated, the block is added to the existing blockchain, becoming a permanent part of the ledger.
- Distributed Ledger: The newly added block, along with all previous blocks, forms a distributed ledger replicated and stored across multiple nodes in the network.
Ques 3) What are the different types of blockchain development?
There are primarily three types of blockchain that you can develop as per your project requirements. These three blockchain types are public, private, and hybrid. We have explained all these blockchain platforms in detail with examples.
Ques 4) What is the cost of developing a blockchain app?
Blockchain app development costs depend on various factors explained in this blog, such as app complexity, tech stack, a blockchain platform, etc. However, blockchain development’s total cost estimation can fall between $30,000 to $300,000.