How to develop blockchain app? Check the development guide and its working

According to Dot Com Infoway’s report, the global blockchain market is expected to be worth $20 billion in 2024.

Blockchain technology is revolutionizing the digital landscape, fostering a more secure and decentralized future. For businesses seeking to innovate and stay ahead of the curve, blockchain app development presents a thrilling opportunity. Whether you possess deep technical knowledge or are just starting your exploration, this blog serves as your comprehensive guide to crafting a powerful blockchain app.

The term “blockchain” has become synonymous with groundbreaking solutions. From peer-to-peer lending platforms to secure cryptocurrency wallets, the possibilities for blockchain applications are vast and ever-expanding. This burgeoning market offers businesses a chance to streamline processes, enhance security, and create entirely new value propositions.

However, navigating the intricacies of blockchain app development can be daunting. Fear not! This blog delves into the essential steps, from conceptualization to implementation, empowering you to build a customized blockchain app that revolutionizes your industry. Throughout the journey, we’ll also explore valuable resources and expert guidance available to streamline your development process.

So, are you ready to unlock the transformative potential of blockchain technology? Let’s dive in!

What are blockchain apps?

Blockchain applications are decentralized apps built on blockchain networks such as Ethereum, Solana, etc. All the blockchain applications inhibit the properties of decentralization, such as crypto payments, tokenization, etc.

The thing that separates blockchain applications from traditional apps is their property of decentralization, where no single entity has total control over the blockchain application(as typical in centralized apps). 

Also, blockchain apps’ data cannot be altered once stored on a specific blockchain network. But how do these blockchain applications work? Let’s check. 

How does blockchain application work?

These are the sequential working steps of the blockchain applications:

1. New Transactions are broadcasted to all the blockchain nodes
2. Each blockchain nodes collect new transaction records into their node
3. Each node works on finding a proof of work mechanism for its block
4. When finding the proof of work, the node broadcasts itself to the block of all the nodes 
5. All the other nodes will accept that particular block only if it’s unique and verified 
6. After accepting the block, the node will create new blocks in its chain by using the hash function of the previous block

So, how is it profitable to target the audience base of blockchain technology? Understand in detail by checking the blockchain market size.

The market of blockchain technology

Let’s check the latest market trends to know the profitability of the blockchain market:

• According to marketsandmarkets.com, the blockchain market is expected to reach 67.4 billion by 2026 (with a CAGR growth rate of 68.4%.)

• Stateoftheapps.com has noticed that decentralized apps have grown to over 4,037 active dApps from 117 in 2018. 

• Forbes’ latest report states that the blockchain market will grow by around $176 Billion by 2025

• The blockchain market will grow at a CAGR of 68% between 2022 and 2030, as per the Business Wire’s report

These market stats represent how fast the market of blockchain applications is growing and the profitability of upgrading your business with blockchain technology.

Benefits of blockchain apps

There are many benefits that blockchain apps offer over traditional apps that you can check below:

1. Transparency

Businesses can review their entire records on a specific blockchain network, which gives them better transparency in their infrastructure as each blockchain member can easily view all the data of the specific blockchain application.

2. Security

Having app security is another reason for many businesses shifting toward building blockchain applications. 

As we already discussed, once the data stored on the blockchain network cannot be altered, the blockchain becomes resistant to hackers or suspicious individuals trying to manipulate data by making unwanted changes.

3. Easy transactions

Blockchain applications simplify the transaction experience through the help of cryptocurrencies and NFT tokens, as there are no restrictions from government and banking authorities to make transactions between different blockchain networks.

4. Tokenization

With tokenization, businesses can safely store their virtual assets and documents on their preferred blockchain networks. 

Tokenization is the best way for businesses to protect their essential documents against hackers and competitors. Moreover, tokenization gives businesses a higher level of ownership than centralized platforms that store documents.

Now let’s look at common examples of how blockchain technology benefits businesses. 

Examples where businesses are using blockchain

Check how different businesses are implementing blockchain in their infrastructure:

1. Spotify 

The platform uses a decentralized blockchain database to host and connect music tracks, artists, and licensing agreements. 

Recently, Spotify acquired Brooklyn-based blockchain startup Mediachain Labs to empower their music platform to connect to artists and other music rights holders even better.

2. Kodak

The company has created its blockchain platform known as KODAKone. This blockchain platform uses ledger technology to protect its customers’ copyrighted images and videos. 

Implementing blockchain technology helps Kodak improve its digital assets’ ownership on its platform. Also, the company has launched its cryptocurrency known as Kodakcoin, which can be used as a token for licensing and purchasing images. 

3. IBM blockchain

IBM uses a blockchain network to get full transparency over its business records and perform real-time tracking of all parts in terms of location and conditions.

Also, IBM offers its blockchain platform to other businesses, such as Walmart, to help them simplify their supply chain management systems and track the status and condition of every product during the supply process.

4. Ford motors 

Ford has partnered with BMW, General Motors, and Renault to develop an innovative blockchain network in the automobile sector known as “The Mobility Open Blockchain Initiative,” (MOBI).

The MOBI blockchain helps its members develop a digital mobility ecosystem for offering their customers a wide range of services such as safe data sharing, payment processing, and self-driving car securities. 

5. Pfizer

This pharmacy company is looking to create a blockchain platform to ensure the safety and security of its medicines. Pfizer has announced its partnership with Aimedis and Chronicled to develop a proof-of-work system and formal blockchain supply chain to improve its business infrastructure.

Also, let’s check the most common use cases of blockchain apps used in different industries. 

The most common use case of blockchain apps

You can start your new businesses by looking into common industries that actively use blockchain technologies, such as:

1. Games

Many games can implement blockchain technology to enable users to trade in-game virtual assistance, such as characters, weapons, etc., in the form of NFTs.  

Also, games can launch their cryptocurrency and tokens to simplify the purchasing experience of their users. Metaverse is another example, where users can virtually interact with the help of VR and augmented devices. 

2. Exchanges

Crypto exchange businesses are launching their platform where users can purchase a wide range of cryptocurrencies and NFTs. Moreover, many platforms are hosting their business infrastructure or blockchain networks to get a high level of security and control over their business infrastructure.

Exchanges can offer a wide range of services, such as Crypto wallets, crypto trading, crypto staking, etc. 

3. Finance 

Decentralized finance and many other blockchain applications offer banking-related services such as earning interest on crypto savings, applying for loans, enabling crypto transfer, etc., which is more secure and less restricted than centralized banking services.   

4. Real estate

Many real estate industries use blockchain technology to store their important legal properties in the form of NFTs. Also, the industry uses blockchain to set up its supply chain management for effective internal management, setting up smart contracts, verifying ownership, etc. 

5. Healthcare

Blockchain offers a great range of services for healthcare industries, such as storing and securing their patient data from hackers. Also, many laboratories, clinics, and hospitals use blockchain technology to share their patient data reports with other hospitals.

Any health insurance company can use blockchain technology to verify any frauds and scams from their customers when they apply for fake health insurance claims

6. Music Industry

As we all know, blockchain offers a great level of ownership compared to other centralized networks. Therefore many music creators are verifying the ownership of their self-made music in the blockchain network through NFT tokenization. 

Also, many popular music platforms, such as Spotify, use blockchain networks to set up their business infrastructure to connect music creators worldwide to the audience. 

7. IoT startups

Integrating IoT gadgets with blockchain technology is another best-use case where different start-ups create their IoT products and services, such as VR devices, smart hand gloves, smart glasses, and so on, for metaverse and blockchain-related domains.

Now, Let’s understand how to build your blockchain application. 

Steps to develop a blockchain app?

You can follow the given below steps to build your blockchain app on your preferred blockchain network:

Step 1: Analyze the Industry for App Development

The world of blockchain applications is vast and ever-evolving. Before diving into development, it’s crucial to analyze the industry landscape and identify the sector that best aligns with your app’s purpose. This initial step will provide valuable context for your project and guide your development decisions.

Let’s embark on a journey through some of the prominent industries where blockchain technology is making significant strides:

• Gaming: Blockchain is revolutionizing the gaming industry by empowering players with true ownership of in-game assets. Imagine a world where your virtual sword or rare character skin can be securely stored on a blockchain, allowing you to trade or sell them freely. This fosters a more dynamic in-game economy and opens doors for innovative play-to-earn models.
  
• Finance: Blockchain’s transparency and security make it a perfect fit for the financial sector. Decentralized finance (DeFi) applications built on blockchain enable peer-to-peer financial transactions without relying on traditional intermediaries. This translates to faster settlement times, lower fees, and potentially more inclusive financial services.
  
• Healthcare: The healthcare industry stands to benefit greatly from blockchain’s secure and tamper-proof data management capabilities. Blockchain can be used to store and share sensitive medical records efficiently while ensuring patient privacy. Additionally, it can streamline supply chain management for pharmaceuticals and medical equipment.
  
• Security: The inherent security features of blockchain make it a powerful tool for enhancing data security. Blockchain-based applications can be used to create secure and transparent voting systems, protect intellectual property rights, and combat counterfeiting in various industries.
  
• Insurance: While not a revolutionary addition, blockchain can optimize existing insurance software solutions. Integrating blockchain can streamline operations, reduce costs, and expedite product launches, ultimately improving the customer experience.
  
• Real Estate: The real estate sector is plagued by excessive paperwork, fraud risks, and public record inaccuracies. Blockchain can eliminate the need for paper-based records, ensuring the accuracy and credibility of land titles. Imagine a future where land titles are securely recorded, tracked, and transferred on a blockchain. Companies like Propy and Chromaway are already pioneering blockchain solutions in real estate.
  
• Supply Chain Management: Blockchain has secured a prominent role in supply chain management. By tracking every step of the supply chain on a transparent and immutable ledger, businesses can ensure greater efficiency and visibility, regardless of the number of partners involved. For instance, restaurants can leverage blockchain to trace the provenance of ingredients, enhancing menu transparency. Industries like agriculture, transportation, and fashion are also embracing blockchain for improved supply chain visibility. Companies like Provenance, Fluent, and Blockverify are leading the way in this space.

Step 2: Define your app objective

Decide how you are going to use blockchain technology for your business. Next, identify the use case, such as data encryption and validating transactions for your application, to ensure whether you will require blockchain technology or not.

Identifying your business goals through building blockchain applications is the first step you need to take to determine what you want from your blockchain app.

List all the benefits and objectives you want to fulfill by building your blockchain application. Also, identify business challenges that will be solved by developing your blockchain application.

It’s important for you to identify the multiple use cases of the application and understand how you are going to benefit by using blockchain technology in your business.

Step 3: Do competitor research

Figure out how your business competitors have tackled the challenges and what advantages they get after implementing blockchain technology in their business. 

Also, you can explore the areas of improvement in your competitor’s business to determine how you can use blockchain technology to outperform your competitors.

Step 4: Decide how you are going to use blockchain technology

There are different ways by which you can use blockchain technology in your business that we have discussed below:

I. Create a new blockchain network

You can create your own blockchain network starting from scratch, where you can enable multiple features such as validating transactions, data encryption, and so on. 

However, creating your own blockchain can be costly compared to other blockchain options. Creating your own blockchain network can be a good option if you are planning to use cryptocurrency for your business.

II. Clone popular blockchain networks

You can check some open-source blockchain platforms where you can fork their repositories and deploy the code on your own servers. By cloning popular blockchain networks, you can create your own applications by consuming the benefits of decentralization technology. 

You can best select the Ethereum blockchain platform for cloning as it offers a variety of features that are suitable for decentralized application development. 

III. Use tokens on existing blockchain networks

Instead of cloning the entire blockchain network, we can use tokens from existing blockchain networks such as Ethereum and Hyperledger Fabric. 

These platforms offer ready-to-use algorithms, APIs, and mining strategies that can help you quickly implement blockchain technology in your application. 

Step 5: Proto development

Since using blockchain development is costly, it is advisable first to create a prototype of your application that includes only the necessary features that are required to operate your platform.

While developing the prototype, decide which part of your app will be “on-chain” and what part will be “off-chain”

Also, decide which part of your application will be built on a permissionless and permissioned network.

Step 6: Analyze your blockchain options

You can choose from three options to take advantage of blockchain technologies in your business. 

1. Use an open blockchain network for your business, such as Solana, Ethereum,  Blockchain, etc.
2. Select from BaaS (Blockchain as a Service) providers to integrate their cloud-based blockchain services into your business, such as Amazon, Azure, and Microsoft, which all offer BaaS products.
3. Build your blockchain network starting from scratch. 

Step 7: Select your preferred blockchain network

Although numerous blockchain networks are available, we suggest you select from the given blockchain networks, as all these are suitable for building blockchain applications.  

Blockchain network	Description
Ethereum	The blockchain platform is ideal for developing smart contracts with Solidity programming languages.
Hyperledger	Hyperledger is best for creating decentralized apps with familiar programming languages such as GO, Java, and JavaScript.
R3 Corda	Use R3 Corda if you want to create a platform for industries such as commerce, healthcare, trade finance, and supply chain.  The best thing about this platform is that you can easily integrate it with legacy systems.
Ripple	The blockchain platform is for creating a financial tool. Ripple allows you to send money globally and connect with different banks and payment providers. Also, the blockchain is very fast and allows up to five transactions per second.

The selection of your blockchain platform will depend on the skill set available in your development team. 

Developing blockchain applications on specific networks depends on the programming language on which they are built and the list of tools and technologies they need to build an application from scratch.

Step 8: Start the development process 

The development process of the blockchain application may differ which will depend on the following factors:

• Programming language and blockchain platform you choose for your project
• The interaction strategy and transactions among all the nodes
• Your chosen consensus mechanism for setting up blockchain networks
• Selecting from an existing blockchain network, choosing BaaS, or creating your blockchain network. 

The development process for building your blockchain application will include the following stages:

I. Platform design 

After identifying the business needs, you will work on designing the interface of the blockchain application through which your users will interact with your business. 

Partnering with IT companies can help you design the best user interface for your product and help you build your blockchain application from the start.

II. Backend development 

In this stage, your team will work on creating the decided features and functionality for your blockchain application. It includes creating APIs, backend architecture, databases, and other required areas to make your blockchain application fully functional. 

III. Testing and quality assurance

Once your blockchain application is ready to launch, the development team will test it and provide quality assurance to identify any possible bugs and technical issues with your application.

IV. Deployment

Now, your development team will publish your blockchain application on decided platforms, such as mobile devices and websites. 

Ensure your team follows all the guidance provided by app distribution platforms such as Google Play Store or Apple App Store to avoid any difficulties while publishing your app. 

V. Maintenance and support

This stage includes maintaining your app by building and adding new features and eliminating any technical glitches from your blockchain application. 

Constantly maintaining your blockchain application will help you provide the best user experience to your customers. 

Step 9: App marketing 

To get a fruitful result from your blockchain application, promote your application among your targeted audience with the best app marketing practices.

However, partnering with the best IT companies can help you efficiently promote your blockchain application among your targeted audience to get fruitful results for your business.

There are multiple programming languages available, and you can choose to start building your blockchain application.

Types of Blockchain: Understanding the Network Landscape

In the realm of blockchain technology, the type of network a blockchain operates on plays a crucial role. Understanding these network variations is essential when choosing the right blockchain for your specific application. Let’s delve into the four main types of blockchain networks:

1. Public Blockchains (Permissionless): Imagine a vast, open field. Public blockchains operate in a similar fashion, where anyone can join the network and participate in the validation process. This open access facilitates complete transparency, as all participants have the ability to view transactions and the underlying code. Bitcoin and Ethereum are prime examples of public blockchains. While offering transparency and decentralization, public blockchains can experience scalability limitations and slower transaction processing times due to the large number of participants involved.

2. Private Blockchains (Permissioned): In contrast to the open field analogy, private blockchains resemble a gated community. Here, only authorized participants can access the network. This controlled environment allows organizations to establish specific rules and regulations for transactions between approved members. Permissioned blockchains offer increased efficiency and scalability compared to public blockchains, making them ideal for enterprise use cases where privacy and control are paramount.

3. Hybrid Blockchains: As the name suggests, hybrid blockchains blend elements of both public and private blockchains. Think of it as a combination of the open field and the gated community. Hybrid blockchains provide a degree of public accessibility while maintaining a permissioned core for sensitive data. This flexibility allows organizations to leverage the transparency of a public blockchain for specific data while keeping confidential information secure within the private permissioned network.

4. Consortium Blockchains (Federated Blockchains): Consortium blockchains operate similarly to permissioned blockchains, but with a key distinction. Imagine a group of trusted organizations forming their own exclusive network. In a consortium blockchain, a predefined set of organizations govern the network and collectively validate transactions. This collaborative approach fosters efficiency and trust within a specific industry or group, making consortium blockchains suitable for applications requiring collaboration between multiple entities.

Advantages of Blockchain Applications: Unveiling the Power of Distributed Ledgers

Blockchain technology, with its decentralized and secure architecture, is revolutionizing various industries by powering innovative applications. These applications offer a multitude of advantages over traditional methods, making them a compelling choice for businesses and users alike. Let’s delve into some of the key benefits that blockchain applications bring to the table:

Enhanced Transparency and Trust: Blockchain applications operate on a shared ledger, visible to all authorized participants. This distributed nature fosters transparency by eliminating the need for a central authority to control the data. Every transaction is immutably recorded and verifiable, building trust within the network and reducing the risk of fraud or manipulation.

Improved Security and Data Integrity: The cryptographic foundation of blockchain ensures robust security. Each block in the chain is linked to the previous one, creating a tamper-proof record. This makes it virtually impossible to alter or delete data once it’s added to the blockchain, safeguarding sensitive information and reducing the risk of cyberattacks.

Streamlined Processes and Increased Efficiency: Blockchain applications automate manual processes and eliminate the need for intermediaries. This streamlines workflows reduces administrative burdens and accelerates transaction processing times. For instance, a blockchain-based supply chain management system can track goods seamlessly, improving efficiency and visibility for all stakeholders.

Reduced Costs and Operational Overhead: By eliminating intermediaries and automating tasks, blockchain applications can significantly reduce operational costs. Additionally, the inherent security of blockchain eliminates the need for third-party verification services, further contributing to cost savings.

Empowering Users and Fostering Inclusivity: Blockchain applications empower users by giving them greater control over their data. This is particularly relevant in areas like identity management and financial services. Furthermore, blockchain can create more inclusive financial systems by enabling access to financial services for the unbanked population.

Enhanced Traceability and Provenance: Blockchain’s ability to track every step of a process creates a transparent audit trail. This is invaluable in industries like food safety, where consumers can trace the origin of products and ensure authenticity. Similarly, in the art and luxury goods market, blockchain can combat counterfeiting by providing verifiable provenance records.

New Business Models and Opportunities: The decentralized nature of blockchain unlocks new business models that were previously not feasible. For example, blockchain-based platforms can facilitate peer-to-peer transactions without the need for traditional financial institutions. This opens doors for innovative applications in areas like crowdfunding and decentralized marketplaces.

Suitable programming languages for blockchain application development 

The programming language you select for blockchain development will depend on the platform you prefer for building your blockchain application.

However, these are the few common programming languages you can use for creating blockchain apps:

• C#
• Python
• Java
• Solidity
• Go
• C++
• Michelson
• Plutus
• Scilla
• Rholang

Each programming language used for blockchain application development has its suitability as some are preferable for smart contracts while others are for asynchronous code handling (that you can identify by knowing your business needs).

If you want to implement the blockchain solution for your existing business, let’s check the next section to learn how you can easily integrate decentralized apps into your business. 

How do you integrate a blockchain app with your business?

After creating your blockchain application, the next step is to implement it into your business infrastructure. However, partnering with the best IT companies can help you quickly implement blockchain applications in your business.

Now, let’s check out how you can integrate blockchain applications into your business. 

1. Transactions

Simplifying the transaction experience with cryptocurrencies and NFTs can help you offer a better user experience to your customers when purchasing your products and services. 

Moreover, blockchain applications can offer highly safe and secure transaction options with minimal restrictions to your business infrastructure. 

2. Supply chain management

You can connect all the elements of your business infrastructure on a particular blockchain network with supply chain management. 

Setting up supply chain management on a decentralized network is economical, safer, and less restricted compared to centralized networks. 

3. Authentication

You can manage the control access level and execution on your business infrastructure by implementing blockchain technology such as smart contracts in your business. 

Moreover, blockchain applications can simplify internal communication or operational management easily and securely due to their decentralized nature. 

4. Cloud storage

Instead of centralized cloud storage, you can go for decentralized cloud storage and integrate them into your business for economical and secure cloud storage solutions. 

Moreover, you can benefit from blockchain cloud computing, where you can use the computing resources of a particular blockchain network for your business. 

Start your blockchain application development with Idea Usher

There is a wide range of business opportunities in the blockchain domain. However, most blockchain businesses will need your exclusive blockchain application to target customers and make profits. 

To get started building your blockchain application, You can partner with the best IT companies with blockchain domain experience, such as Idea User.

Idea Usher has a team of experienced and talented blockchain developers and project managers that can efficiently handle your business requirements for turning your business ideas into reality and let you make incredible profits in your business. 

Email:

[email protected]

Phone:

(+1)732 962 4560

(+91)859 140 7140

FAQ

Q. What is blockchain application development?

A. Blockchain application development creates a digital platform where users can access decentralized services and technologies such as NFTs, Cryptocurrencies, smart contracts, and so on. Blockchain applications are created as shared and unchangeable distributed ledger technology(DLT) that securely keeps transactional records and digital assets.

Q. What applications can be built on blockchain?

A. Blockchain supports a wide range of application development, such as:

• Games
• Exchanges
• Finance
• Real Estate
• Healthcare
• Music Industry
• IoT start-ups
• Insurance 

Q. How do I create a blockchain-based application?

A. These are the following steps to get started with building your blockchain application:

• Define your app objective with blockchain development
• Research your competitors and audience
• Select different ways to get started with blockchain development
• Choose your preferred blockchain development platform
• Decide the user interface and app features of your blockchain platform
• Partner with the best IT companies to start building your blockchain application
• Perform app marketing to promote your blockchain-related products and services