How to create a blockchain application

How to create a blockchain application

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How to create a blockchain application – Guide

Decentralized exchanges, cryptocurrency wallets and peer-to-peer lending platforms are just the tip of the iceberg in the growing blockchain application market. Who knew you could run a distributed healthcare or fintech application where consumers and providers have an equal opinion on how data is aggregated and shared? Before we talk about blockchain application development, let’s briefly summarize what blockchain (aka DLT) and blockchain applications really are. Finally, this technology is directly related to the most fundamental layer of DApp applications.

If we go back a little and think about why we use apps, we have to admit that every app stores data, processes it and shows it to us. Put the stock app on your phone: stock charts, industry news, indices – these are all data that the app extracts, processes and displays in the most digestible format. Remove this data and the application becomes an empty shell. With a common application (99% of current software), the data resides on centrally controlled servers of a company that developed an application.

For example, Apple’s stock app uses the company’s servers, which pull information from stock exchanges and news websites and make it available to users through the app’s interface. The key here is that Apple alone controls how app data is processed and served to customers.

How to create a blockchain application

develop the idea

You need to identify use cases for your application and make sure if your idea requires blockchain or not. It is important to note that blockchain is a method of data encryption and transaction validation and, if implemented incorrectly, does not guarantee any additional security for transactions.

Once you conclude that blockchain is essential for your project, you should realize that blockchain development is FREE. There are several ways to develop a blockchain application, discussed in the next point, which differ in cost and functionality.

As a valid example of using blockchain, if you are a real estate agent and you want to create a blockchain-based supply chain application that will keep a record on every property you sell, you should understand the various use cases of the application and how it’s done Benefit your business and the consumer.

Identify the right blockchain platform

Once you’ve concluded that your business needs to be blockchain-based, you need to identify the appropriate platform or technology to use. There are two basic ways you can go about.

Create new blockchain

You can choose to build your own blockchain framework, where everything from the algorithms to transaction validation, from the technology stack to the token transaction fee, is decided by you. This is the most comprehensive type of blockchain development, but also the most expensive. They are essentially thinking about creating another bitcoin or ethereum, which, while it looks profitable, can cost hundreds of thousands of dollars. Generally, you would only choose this option if you were creating your own cryptocurrency.

Clone popular blockchain platforms

The other most efficient way to develop a blockchain-based application is to develop it using a popular blockchain platform. These platforms are open source, so you can fork your repositories and deploy the code to your own servers. The most important question to ask is: why would the world adopt a blockchain that you created? Remember that a blockchain platform is only as successful as the number of nodes on the network that can validate transactions.

Some popular platforms are Ethereum, Hyperledger Fabric and Hyperledger SawTooth. Each has certain characteristics that can help you decide. You can read more about these platforms here The most popular blockchain platform is Ethereum, which can hold your coins and tokens (read the next point). A few points about Ethereum –

  • Ethereum is an open-source, public, blockchain-based distributed computing platform with smart contracts functionality.
  • Ethereum uses a proof-of-work algorithm, called “Ethash”, which requires more memory to make mining more difficult.
  • Smart contracts on Ethereum are written in the Solidity programming language, which is a subset of Javascript.
  • Use tokens on existing blockchain platforms

    This one is a little different from the previous point. At the last point, we clone the entire blockchain platform and deploy it on our own servers, as long as we have a sufficient number of network nodes that validate transactions by “mining”.

    But we can also “just create tokens” and deploy them on an existing running blockchain like Ethereum. These platforms provide ready-to-use mining APIs, algorithms and strategies to easily implement blockchain in your application (blockchain as a service). You do not need to create a separate waller for your tokens/transactions as Ethereum tokens are accepted by a variety of existing wallets.

    This is similar to creating your own eCommerce store on Shopify. Shopify has all the ecommerce features ready to join your platform, and users enter only the data they need to create their own store on Shopify. Likewise, you can simply encode your own tokens in the Solidity language and deploy them on Etherreum (or use another language for different blockchain platforms). The existing platform offers out-of-the-box services that you can use to transact with your tokens. Remember that tokens can be coins and just smart contracts.

    prototype development

    As blockchain development is very expensive, it is advisable to first develop a proto-application to ensure that everything works as expected before deploying it to a live server or an existing blockchain platform like Ethereum. During proto-development, you must also decide which part of the application will be on-chain and which part will be off-chain.

    In simple terms, how are you creating a web application or mobile app that uses blockchain, there may be normal functionality that can run on general cloud hosting that does not require blockchain. Then there’s the transaction part of the app, which you would likely put on the blockchain platform. You must also decide whether your application (or parts of it) will be built on a privileged network or an unprivileged network.

  • Allow less networks. Here everyone can participate and start checking. The best-known examples are the Bitcoin and Ethereum networks.
  • Authorized network. In this case, the network owner decides who can join the network and only certain members are allowed to check blocks. Consensus mechanisms can be the same as the permissionless network, or they can be designed entirely uniquely (eg, authority-based).
  • Development

    This is the core element of blockchain application development. For the sake of simplicity, let’s go through the process described in point 2c. above i.e. H. the use of tokens on existing blockchain platforms. It is important to first understand the transaction mechanism. The token is essentially a long alphanumeric string that serves as a unique identifier for your currency/smart contract. Each blockchain wallet user has unique public and private keys (similar to long passwords). These keys are used to identify users to credit/withdraw funds or to refer to the smart contract. This is very similar but much safer compared to adding a new payee to your bank account using bank account number etc.

    You can create your own smart contract/token in Solidity language for Ethereum. You must first create a test token and verify its functionality before deploying it to a real blockchain. follow this official guide to create your first Ethereum token and this blog post to understand the nuances of creating your own token. Once you create the contract/token, you put it “on-chain”, which essentially means deploying your code to a server.

    A transaction begins when a user sends an intent to send a token, which the network validates as valid (if you own the token and haven’t sent it to anyone else). Your token information is then combined with your private key, which emits a digital code that is verified by the network using the sender’s public key. This is possible because a contract signed with a private key can be validated with a public key, but no public-private key correlation can be established, so everything is safe.

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