A private blockchain network allows companies to take benefits of decentralized services in a centralized way.
Many companies are moving toward creating their networks to get custom blockchain solutions for their businesses.
Companies can get entire control of their network, which can help them get better security and performance to operate their business easily.
You can check in detail about how to create your network. However, it will be best for you to understand how a private network blockchain differs from a public network.
Check the difference between a private and public blockchain:
|Private blockchain||Public blockchain|
|There is a need for an invitation to use a network.||Anyone can use the decentralized public network.|
|Owned by a centralized authority.||Owned by no one.|
|Partially decentralized system||Fully decentralized system.|
|It consists of single nodes.||Copies of the entire network are stored on each node.|
|Allowed reversal and removal of transaction record||There is no possibility to reverse or remove transaction records|
|High transaction speed due to less number of transactions involved||Lower transaction speed due to more number of transactions involved|
|Owner can modify the entire data ledger||Data cannot be altered|
|No rewards for maintaining nodes.||Each participant gets rewarded with their native cryptocurrencies or tokens.|
Check-in detail about how private networks help you improve your business.
These are the ways companies can benefit by creating their network.
Allows organizations to restrict their network to verified users and staff to improve their network security.
Moreover, companies can get exact detail about all the participants involved in their network and take quick action in case they catch any suspicious activities
Since companies use their own network, they don’t need to pay any transaction fees or other charges involved in public networks. Moreover, companies can create apps on their network to get full benefits.
offers better coordination and verification between companies and their members participating in a particular network.
As a company’s network consists of authorized users, companies can ensure that their data are secure and shared only among trusted sources.
It consists of fewer members than a public network resulting in limited activities such as transactions and verification. Moreover, all the transactions are automated with smart contracts, helping companies to get fast performance for business-related transactions.
Less involvement in different activities gives less burden to the network, which can help them improve their performance.
However, to create your network, it is advisable for you to use Ethereum.
Ethereum is an open-source network that is used for creating dApps.However, there are many other reasons you should choose Ethereum for creating your network.
Ethereum is one of the oldest networks developed in 2015. Being the oldest network offers many benefits to their communities, such as
Since many private blockchains are developed with the help of Ethereum, it will be easy for you to tackle any challenges when developing your decentralized network on Ethereum.
Smart contract is one of the major features of Ethereum. With smart contracts, you can automate transactions and other processes on your network that will execute after meeting the conditions you have set.
The popular standards for smart contracts available on the Ethereum blockchain are ERC-721 and ERC-2O.
Since many businesses are using Ethereum to create decentralized apps and smart contracts due to its vast popularity. Its wide adoption can help you quickly get blockchain developers to create private networks on the Ethereum blockchain.
Their experience with creating different projects on Ethereum will enable them to create and offer customized blockchain solutions and networks for your business.
However, if you want to go for another option, you can choose Solana. Check this video to understand which blockchain will suit your project.
So how to create a network for your business? Let’s understand the development steps.
Let’s check the process to understand how to create your blockchain using Ethereum.
Knowing the purpose of creating a network for your business can help you strategize your business plan to achieve your business goals. Identify your target audience and understand what features and functionalities you can add to your network to make it worthwhile for your customers.
If you are targeting a particular niche, you can add features common to that particular network, such as healthcare, fintech solutions, gaming, etc.
Also, you can do research on a particular decentralized network relevant to your targeted industry.
You can hire blockchain developers to build your platform, starting from scratch. Creating a private blockchain requires extreme development skills only skilled blockchain developers can have.
However, there are multiple ways you can hire blockchain developers, such as freelancers, in-house developers, or outsourcing your project to a blockchain development company.
To get the best output on your project, you should outsource your project to experienced blockchain development companies. Those have already created many blockchain-based projects for their clients.
To hire the best blockchain developers, you can check whether they can:
Moreover, it would be best if the team follows the Agile process to create personal networks.
After hiring a perfect blockchain developer team, you can go through the building process to create a private chain for your network.
In this, the team will use the Ethereum blockchain using GO Ethereum (an Ethereum implementation of the Go programming language.)
The team will install Geth to verify if they want to use the Homestead version of Ethereum or other Ethereum improvement proposals(EIP).
The developers can create Genesis files and modify them using the Geth console(command line interface).
A skilled blockchain developer can easily handle this task. Here is the process of building a private chain:
In this process; you will decide the speed of your network. You can set the 0 difficulty level for block generation.
Next, pre-allocate addresses on your chain with fake Ether balances. The reason for calling ether fake is that you cannot transit without using the main Ethereum network.
However, you can assume the process is a dummy transaction for your network.
The user accounts will act like crypto wallets where participants can transact on the network. For example, users can make payments in crypto to access services and products available on the network.
The process involved distributing Ether among participants based on the business model the company has implemented in its network.
The network will immediately start Ether mining, where the node will do all the calculations while adding new blockchain nodes.
You can assume nodes as servers running on networks or EVM (Ethereum virtual machines). There will be a requirement of enough nodes for participants to execute their equal rights over the product.
Moreover, there is the possibility that blockchain developers will offer cloud services for running your network.
Forking Ethereum is another scenario where developers will talk about copying blockchain to create forks.
This approach will offer you more control over how your chain will operate.
For example, you can implement another consensus mechanism you prefer for your network.
If you don’t know the consensus mechanism, it decides how the blockchain will validate its on-chain data to prevent fraudulent transactions.
Proof of work and stake are some of the most popular network consensus mechanisms.
Moreover, when using the Ethereum blockchain, you must remove all the available decentralized apps you don’t need for your network to avoid resource and maintenance costs.
However, this approach will need more resources than geth approach.
It will be better for you to take advice from blockchain developers to select the best approach for building your network.
Creating your own blockchain platform alone will not be enough, and you will need some apps to fulfill your business needs.
On your blockchain platform, you can create apps to enable crypto transactions, store data records, and different purposes.
Two essential components are required for creating dApps on your networks, i.e.,
Instead of directly jumping on creating your network, you can build a prototype to check all your network’s features and UI functionalities.
The prototype can help you understand how your platform will look after its launch. Moreover, creating changes in UI functionality and other blockchain-based components is easier than making modifications on a fully developed network.
In the backend development part, there will be involved in all the features, APIs, and other functionalities that will make your network fully functional. When working on the development part, you can decide on:
There are many other important parts that blockchain developers will guide you with when creating your network.
Once the dApps are ready, you can deploy their smart contracts and the rest of the required app components to your network.
Make sure your partner blockchain developers are properly following Agile methodology to help you stay updated with your project enabling you for apps’ further maintenance and upgrades after its launch.
However, there are a few limitations of networks. Let’s check all these limitations.
Along with benefits, there are a few limitations about the networks you must understand.
Due to the less availability of blockchain members, there is no guarantee that your network will have 100% uptime as compared to other popular public networks.
You have to take care of your network’s chain integrity and security to ensure enough independent nodes to validate on-chain transactions.
Users will not get complete anonymity on your network due to its great transparency feature. However, you can adjust the privacy level on your network to help users feel safe and secure on your network.
For example, if you are a healthcare provider, you can make your patients’ data anonymous from the rest of the network unless they are open to accessing their data.
Limited members in your network will need you to redeploy smart contracts if they have to agree upon some options.
However, you have to manage to access rights to different categories of users using your network. For example, using your network, you can allow more access to your staff members than customers.
What tools and technologies will you need to create your network? Let’s check.
|Go Ethereum (Geth)||For implementing the chain|
|Solidity (programming language)||For creating smart contracts|
|Remix||Creating an environment for smart contracts|
|Truffle suite||For testing blockchain|
|Infura||For deploying nodes|
|Web3.js||For connecting the chain with off-chain software|
|Node.js, React, etc.||For developing off-chain components|
Hiring blockchain developers is the best way to ease the process of creating a decentralized network for your business.
There are multiple ways you can hire blockchain developers, such as in-house, freelancers or outsourcing your project to a blockchain development company.
However, the best way we can suggest to you is to outsource your project to blockchain development companies, as they have experience creating blockchains for different industries.
You can best check the past projects they have made for their clients to help you get an idea about their skills and expertise in blockchain development.
Due to having high demand and less availability of blockchain developers, you can face challenges in starting your blockchain development.
However, you can finish your search for finding good blockchain developers by contacting us regarding creating your network.
Our team is experienced in creating a decentralized network and can offer you help with customized blockchain-based development services such as creating cryptocurrencies, metaverse, dApps, etc.
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A. This blockchain method act as a distributed ledger that operates as a closed database system. The organization can customize its network based on the level of privacy, security, speed, and other business needs.
Individuals with permission can only run full nodes, make transactions or validate and authenticate changes on a network.
A. Follow the steps to create your network:
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