Blockchain technology first came in 2009 as a cryptocurrency platform and after a while, it became pretty viral and everyone was talking about it. Even though it was associated with Bitcoin and other cryptocurrencies, blockchain technology was later known to have a great potential for banking and financial systems.
Bitcoin was a lesser-known thing a decade ago and not many people believed in it at first, but as of December 2020, Bitcoin has reached 63 million wallet users. Although only a few financial institutions and banks accept cryptocurrency. But the number of Bitcoin users and its popularity is growing steadily as there are plenty of businesses that are launching their own cryptocurrency.
More than cryptocurrency, blockchain technology is also gaining popularity and becoming a well-known and researched technology these days. Presently, we know a blockchain technology that is more lucrative, secured, efficient, and stable and this is the reason why blockchain development companies are incorporating this technology as well.
In this article, we are going to talk about Blockchain Development and how it is becoming an important part of our lives these days.
What is Blockchain?
Blockchain is a shared, transparent, decentralized, replicated, and immutable technology that records and tracks assets in a business network.
In simpler words, blockchain technology is defined as Distributed Ledger Technology (DLT) which makes any data transparent and unalterable with the use of decentralization and cryptographic hashing. To understand more, we can take an example of Google doc where the document is being distributed among the people rather than copied. If anyone makes any change to the document it will be tracked in real-time so everything will be transparent.
Some of the qualities of Blockchain technology are as follows:
Shared: Whenever a blockchain node is being shared or the transaction is performed, it will receive and store a copy of the complete transaction.
Transparent: Any participant can join the transaction and they can get access to all the transaction data in the network. The privacy of the participant will be protected as it only records a wallet address but doesn’t identify it.
Decentralized: There is no admin or head here who can have the power to stop the transaction. The transaction is decided by the blockchain nodes themselves when there are more than 51% votes. If any participant withdraws from the transaction, it will be continued and remain unaffected.
Replicated: All the data will be updated and synchronized with nodes automatically.
Immutable: No data will be deleted or changed on the documented transactions.
What are the 3 Pillars of Blockchain Development?
The fundamental characteristics of Blockchain are determined by the 3 basic pillars. These three components are kept in mind while creating a new Blockchain software. Let’s know more about these three Pillars of Blockchain Development:
The scalability of the Blockchain software is determined by how well a blockchain can increase and function smoothly. So even if the blockchain is increasing in size and load, it should stay stable and maintain a high performance.
Decentralization in blockchain Development refers to that no main node will be responsible for making any decisions in the system. So the blockchain users should be independent. It also removes the 3rd party from performing transactions. So there will be no need for any bank or any other institution’s approval before any transactions. This results in high trust among the users of Blockchain technology.
Since every user should feel secure while participating in any transaction, security becomes a key component of Blockchain Development. This is why Bitcoin uses digital addresses and crypto wallets to maintain the privacy of the users. So anyone can sell or buy a cryptocurrency without revealing their identity.
Another one of the security features of Blockchain technology is that every change in the transaction will be recorded and stored and will be transparent to all.
Is Blockchain Development Different from General App Development?
Generally, the apps that are built using blockchain technology are Decentralized applications (dApps).
The front-end blockchain app development is quite similar to the general application development but the back end needs a different structure. Software engineers will use a special type of database which is cryptographically secure, has a peer-to-peer connection, and also has Smart Contracts while developing the back end of the Blockchain application architecture. They will also need to know a back-end programming language and testing and debugging techniques, all these take more time to develop a blockchain project.
There are three major approaches to develop a blockchain application or project and these are:
Platform development refers to when software engineers develop a platform for others to base their products upon. Etheruem is an example of Platform Development.
Ethereum provides a platform where users can use its internet browser, payment system, and coding language. This never goes offline and is currently used by thousands of users across the world.
If you want to create your own blockchain platform you need to have a unique idea and a team of experts that have a deep knowledge of blockchain technology and the whole cryptocurrency matter.
Blockchain application development means the creation of distribution applications or dApps that run on blockchain platforms. Bitcoin, Hyperledger Fabric, or Ethereum are some examples of Software Development. This will also help to solve specific problems like data analysis or data aggregations.
A Blockchain Development company with the latest software tools and expertise that are relevant to current development would be necessary to create Blockchain software.
Specialized software development
Specialized Software development requires mainly the creation of dApps, development of applications, plug-ins, or protocols integrated with Blockchain protocols. For example, you will find numerous open-source projects that integrate with the Bitcoin platform.
The business that has any specific Blockchain community projects can build apps and benefit from the blockchain-based services.
In conclusion, we have come very far from the time when Blockchain technology was only associated with cryptocurrency. First software engineers across the world recognized the potential and benefits of blockchain technology in the business world and global economy, later they started experimenting with blockchain. After the introduction of Smart Contracts, Blockchain technology started expanding into other industries as well.
Presently, we know a lot about how to use blockchain technology in different sectors and for different usages such as data protection in various industries and sectors. So we have a clear vision for blockchain development, experts say blockchain will grow 13 times more by 2025. This means the blockchain will reach $39.7 billion in just four years, so if you are thinking of building your own blockchain platform this would be the right moment.