Blockchain app Development: Guide
If you haven't spent the last few years in a cave, you know blockchain. This technology has blown up so many markets, and while some think it's a bubble, I think blockchains will soon be as widespread as the network.
What are DApps?
DApps are decentralized applications. Blockchain does not have a server that acts as an intermediary between users exchanging messages, money or data.
All members of the blockchain network are both users and mini-servers responsible for checking and sending data. Let's explain in more detail how blockchain works.
That's How Blockchain Apps Works
Before we get into how DApps works, we need to find out how blockchain works.
Blockchain is a network that divides all data between its peer devices and stores them chronologically in blocks. This means that after a blockchain network (such as a transaction or data exchange), all network operations are released and each user registers this action on their devices.
These data blocks are stored in the chain. Once added to the chain, they cannot be changed. This makes it extremely difficult to injure blockchain and steal data from it.
Basic principles of blockchain work logic
To configure blockchain, you need several gigabytes per terabyte of memory. Because mobile devices do not have enough storage space, DApps usually only works on part of the chain.
Depending on the type of network, there are two types of blockchains.
An invalid blockchain is available to all network members and available on every device. Each user can access the code, view transactions, interact with others and remain anonymous. For example, Bitcoin is not allowed.
Allowed blockchain allows only authorized subscribers. All users have roles and permissions. Blockchain with permissions contains rules that govern transactions between network members. This type of blockchain is great for managing operations in organizations.
This article explains how to create blockchain applications and best practices for creating blockchain applications.
Blockchain App Development Advantages
Why are blockchain applications becoming more and more popular? I have already mentioned that they are secure and anonymous, but there are many more.
- Public scanning - any user can check if the system is working properly. Each transaction is confirmed by verifiers who are equivalent users of the blockchain.
- Transparency - all data and transaction updates must be verified by other network users. Although not all participants have access to data, a copy is stored on every device on the network at all times.
- Privacy - Although blockchain is a decentralized system with a high degree of transparency, all transactions and interactions between network members are anonymous.
- Integrity - Blockchain guarantees that no data will be changed.
Here are the advantages of Blockchain. Let's take a closer look at DApps.
Benefits of DApps
- Simple transactions. Many banks try to provide mobile services, but in some cases the transaction process is still not perfect due to rejected transactions, commissions and exchange rates. This is not the case with DApps: setting up a blockchain wallet only takes five minutes, and users can buy cryptocurrency items for free.
- Extensive experience in cryptocurrency exchange. It is more convenient to buy and sell cryptocurrencies through a mobile application because the reaction to price changes should be quick. The cryptocurrency market is very volatile but has great growth potential. This makes cryptocurrency exchange applications popular.
- High security. Popular banking applications and secret chat rooms often have security issues. Mobile applications are vulnerable, and hackers can steal money during a man-in-the-middle (MITM) attack during a transaction. This is not possible, for example with Bitcoin, because all the data is decentralized and each member of the network has a copy of all the chains.
Key industries for DApps
According to State of the DApps, these are the five most popular categories of blockchain-based applications:
Blockchain and cryptocurrency-based games are currently the most popular types of blockchain applications
Blockchains are also rapidly being introduced in healthcare: YourTechDiet predicts that by 2025, 55% of all healthcare applications will contain a blockchain.
Applications with the cryptocurrency wallet are becoming more and more popular day by day
See also: BitFreezer case study
Blockchain App Market
The blockchain application market is far from saturated: most mobile users still don't use blockchains and have a vague idea of what they are. This is in line with the trend of every important new technology - and after a few years, you can't imagine a world without it.
The same can happen to Blockchain: its benefits will not go unnoticed. Many companies are already trying to build a blockchain application to their advantage and integrate it with the existing system.
According to DApps, there are currently over 2,600 active DApps on the market with around 37,000 users per day. There does not seem to be a lot of them, but it only means that there is great potential. In December 2018, 117 new DApps were released. The number of mobile blockchain applications is growing rapidly.
There are already many applications based on cryptocurrencies and blockchain, but the market is far from saturated
The entire blockchain market is also growing: according to YourTechDiet, the blockchain market will have a value of USD 60 billion by 2020, with 60 percent of funding being the largest contribution.
Create a Blockchain App
1. Explain your idea
As with any business or product, an idea is the first thing you need to think about before you start designing the Blockchain application. Although Blockchain is currently a fashionable word, many companies can live without it, and some tasks can be done without Blockchain.
First, check if you really need a blockchain. Think about the problems you want to solve with DApp and start formalizing your idea.
2. Research for competitors
Look at the existing market and analyze existing solutions. Because the market is far from saturated, you'll definitely find your niche or learn how to do the same job better than with another application.
3. Analyze Your Options
There are four ways to build a DApp from a technical point of view:
- Use an open blockchain for your own application. For example, you can integrate Ethereum or Bitcoin with a mobile solution.
- Create a private network using Blockchain software.
- Select a BaaS (Blockchain as a service) provider and integrate its cloud service with the application. Amazon, Azure, and Microsoft offer BaaS products.
- Build your own Blockchain network on the most suitable platform for you.
4. Choose a Platform
If you need to choose a platform for your blockchain project, look at this:
- Ethereum - the most popular platform for creating Blockchain applications and creating your own Solidity language ecosystem. You can also create smart contracts with Ethereum.
- R3 Corda - a platform focused mainly on trade, healthcare, trade financing, and the supply chain. Corda is a platform for creating blockchains with permissions. The best part is that you can easily integrate it with older systems.
- Ripple - This is a great platform for anyone who wants to create a financial instrument. With Ripple, you can easily send money to anywhere in the world and connect with banks and payment providers. The ripple is extremely fast and allows up to five transactions per second.
This means that you may have difficulty using the application or that your team may need time to learn a new language and how to create Blockchain applications. To be honest, reliability and simplicity are very similar to popular languages, so this should not be a problem.
5. Begin the programming process
The development process for your DApp looks different depending on several aspects:
- What language and platform do you choose for your project?
- The strategy of interaction and transactions between all nodes;
- Your consensus mechanism.
The programming process also depends on whether you connect to an existing blockchain, use BaaS, or create your own blockchain.
In both cases, the development consists of the following phases:
- Business analysis - at this point, the business analyst extracts the requirements, expectations and business goals during the interview and creates a technical specification. This document describes all the details of the programming process, from programming and communication to frameworks, libraries and operating systems. In both cases, the development consists of the following phases:
- Design - depending on the complexity, the project can represent from 8% to 20% of the total development budget.
- The preparation phase - consists of configuring the development environment, APIs, back-up facilities and architecture.
- Development and quality assurance - These steps take place simultaneously as a continuous process. Before implementation, the quality control engineer performs a full regression test to check that everything is working properly.
- Deployment - to be successful, the application must comply with all the terms of the App Store and/or Google Play Store. After implementation, you need to analyze both performance data and user analysis.
- Maintenance and support - includes updates to libraries, platforms, and operating systems, as well as the implementation of new functions and changes in the application to meet current business needs.
5. Prepare Your DApp and Wait for It
Implementation is the last phase of DApp development. After completing the product and completing all final tests, your application will be made available to the world via Google Play Store, Apple App Store or other application markets. Now you can collect data in your DApp and check how people react to it.
Support is crucial for any application, and DApps are no exception. To maintain functionality and security, you must update the application to support new versions of operating systems and libraries.
How to Integrate DApp in Your Company
So far, we've discussed the benefits of decentralized blockchain applications and have developed a comprehensive DApp development plan. But how exactly can you use such software?
Let's talk about how to accurately use blockchain to improve your digital business, increase sales and improve security after creating your own blockchain application.
- Traditional payment gateways are great, but if your target group is accustomed to cryptocurrency, you can add blockchain to your application to enable quick, secure and easy cryptocurrency transactions.
- Supply chain management. Supply chains involve many exchanges between different units. Blockchain can be a great tool to track all these phases.
- Authentication. If you need a secure tool for internal communication or operations management, blockchain can be a good solution. Blockchain provides unparalleled security and provides access only to authorized users. You can control access levels in your own blockchain using permissions.
- Cloud storage. Blockchain applications can also play a role in decentralized cloud storage. Instead of integrating cloud storage with the application, you can integrate blockchain technologies and provide users with quick and convenient storage.
Blockchain can help organize the delivery process and bring all stakeholders closer to a secure and fast system that checks every step
Blockchain App Development: Conclusion
Blockchain is a powerful technology and although it is on everyone's lips, few companies have included blockchain in their products. You have the opportunity to enter this insatiable niche with your own blockchain product or simply integrate blockchain to support an existing product.
Remote applications are more secure than any other type of application, offer fast international transactions, transparent storage, and ensure that data cannot be changed.
Blockchain technology is still under development and can be used in various ways in new and existing companies.
If you want to create your own Blockchain application, don't hesitate to contact us. At EightDevs we can help you create DApp and discuss your business strategy.