Blockchain is a type of database, which is more powerful and secure than the traditional databases. The reason behind its unbeatable security features is that it replaces the middlemen like banks, businesses and government organizations with its distributed nodes.
Now, what are these distributed nodes?
These nodes refer to the computers in the Blockchain network, which comprise of a copy of Blockchain database. This copy of the database lets these distributed nodes participate in Blockchainâ€™s peer-to-peer network.
Have you ever thought about why it is referred to as â€œBlockchainâ€? Itâ€™s a chain of time-stamped digital records, which are known as â€œblocksâ€. All these blocks are linked to each other cryptographically. Everything that goes into the Blockchain stays there because of its decentralized, transparent, and immutable nature. Any change made in the Blockchain remains as it is until and unless each node agrees to reciprocate it. This makes Blockchain safe and secure.
Because of such secured features, Blockchain has become a hot technology right now. Every Blockchain software development company is receiving a high demand for web applications. Many applications, which were not just a good fit for technology are now performing well when built with the Blockchain technology. Â Similarly, many Blockchain-inspired projects have come into existence. But what gives them a successful completion? Letâ€™s decode the steps that Blockchain developers initiate their projects with and why it is important to hire blockchain developer.
1. Identify an Appropriate Use case
With the increase in hype about the Blockchain technology, it has become essential to identify the appropriate use cases. This will let you develop the applications that make sense for your business. But how do you identify the right use cases? Here, we have got 3 things that will help you in considering the appropriate use cases:
1.1) Data Verification and Authentication: Data can be saved in any format in Blockchain. This is why it is necessary to perform encryption, digital signatures, and immutable storage. Blockchain encompasses these practices by developing public-private key pairs and accomplish the authenticating process.
1.2) Smart Asset Management: Blockchain involves the tokenized form of real- world asset, which leads to smart asset management and encompasses the payments and exchange process in the application.
1.3) Smart Contracts: Â As there are terms of agreement between the buyer and seller so that nothing is misinterpreted, blockchain makes use of smart contracts to accomplish that. This contract is distributed in the decentralized blockchain network.
2. Identify the Most Appropriate Agreement Mechanism
Blockchain makes use of proof of work in order to identify the most appropriate agreement mechanism. There are many consensus mechanisms available for you to choose such as Round Robin and Delegated Proof of Sake, Proof of Elapsed Time, Deposit-based consensus, etc. The right consensus mechanism for your business will depend upon the use cases.
3. Identify the Most Suitable Platform
There is a number of Blockchain platforms available in this digital world. The best thing is that a majority of these platforms are open source and are available free of cost. You need to consider the consensus mechanism for choosing the most suitable platform. A few of the most famous Blockchain platforms are Ethereum, Openchain, Multichain, Symbiont Assembly, etc.
4. Designing the Nodes
While designing the nodes, you need to consider whether you want the nodes to be run on the cloud, on premise, or on both. Figure out the Blockchain solutions the node caters to i.e. permission-less or with permission. Deciding the operating system such as Windows, Red Hat, Fedora, Debian, CentOs, or Ubuntu is one more factor to consider.
5. Design the Blockchain Instance
While designing the Blockchain instance, you need to be very careful as all elements should have a well-planned shape. These elements include Consents, Asset Issuance, Asset Re-Issuance, Atomic Exchanges, Key Supervision, Multi Signatures, Limits, Native Assets, Address Formats, Key Formats, Block Signatures, and Hand-Shaking. You can easily modify a few parameters at run-time while others remain the same, which makes it a very crucial task.
6. Building the APIs
A few APIâ€™s are readymade while others need to be built in the Blockchain platform. As you need to build the APIâ€™s, which are not readily available, you should know the required categories. You would need the APIâ€™s for producing addresses and key pairs, executing audit functions, performing data authentication, storing and recovering the data, and building smart contracts.
7. Design the Admin and User Interface
For designing the admin and user interface, you need to select external databases. These databases encompass MongoDB & MySQL, FTP servers, web servers, etc. The other thing you need to select is the front-end and programming languages. These programming languages include C#, Golang, Ruby, PHP, CSS, PHP, Solidity, HTML5, etc.
Hopefully, you have got an idea of why it has become essential to incorporate blockchain development in your industry. Blockchain is changing the way we do business, so get set to avail the blockchain software development services from one of the best blockchain developers in India. Contact us now!