Blockchain is a tech breakthrough that offers significant potential to businesses for increasing operational efficiency. However, it is impractical to invest in it with the fear of missing out. Indeed, it is elementary to have a precise understanding of how a business can benefit from it. It is crucial to understand whether Ethereum blockchain development services, Hyperledger solutions, or any other platform-based development will benefit them. An experienced blockchain app development company can assist an organization to drive blockchain-based innovation wheels efficiently.
So, with this Blockchain Development Guide, let's explore the technical aspect of the emerging technology and its applicability to a business.
Blockchain, in the language of a layman, is a database that is;
Decentralized:- Distributed across a network of nodes with no centralized governing authority
Transparent:- Shared across permissioned network participants with access to information stored on the database
Immutable:- Once added, nobody can change the encrypted data residing on the network. It requires a consensus to add information to a block in the chain and then to change it.
Auditable: Any authorized individual or organization can access records for authentication or auditing purposes.
Essentially, It stores digital information (transactional information) with a hash function in blocks and chains them to each other. For example, a current block will have a hash code of the previous entry, and the current block hashcode will be in the consecutive one. Therefore, this process ensures that a blockchain solution serves the above-mentioned characteristics.
From a market viewpoint, it is a network for exchanging value across a peer-to-peer network. Also, the process involves the approval of a transaction and, without requiring any intermediary, making it legitimate legally.
Also, read | What is Blockchain Technology and How Does it work
Now, let us explore the technical side of the emerging technology, aspects of blockchain-based app development, and various prerequisites that go into the development of blockchain applications. We will start with types.
There are primarily two types of blockchain; private and public. There are, however, also several variations as well, including Consortium and Hybrid blockchains.
A public blockchain is a distributed ledger network that is non-restrictive, with no permit requirement. Thus, anyone with Internet access can join the network and become an authorized node.
A private blockchain is a blockchain that operates with restrictions or permissions within a closed network. Private blockchains come into use usually within an organization or enterprise where participants of a blockchain network are a few identified members. In this type, the level of security, permissions, permissions, accessibility is in the control of an organization.
A blockchain consortium is a semi-decentralized system, which a group of organizations operates. It is contrary to what we saw in a private ledger, which only one company controls. In this type, more than one organization can act as a node and exchange information or do mining.
Also, read | A Comprehensive Guide To DLTs and Types of Blockchains
There are more than 20 platforms for developing blockchain solutions. However, top blockchain platforms for the development of blockchain / DLT include:-
Hyperledger Projects:- Get new capabilities over traditional business technologies with various tools, frameworks, and libraries
Ethereum Blockchain:- Develop new decentralized economies, token mechanisms, and transactional processes in compliance with predefined business and regulatory requirements
Stellar Blockchain:- Facilitate quick, traceable, and secure cross-border transactions and payment infrastructure for diverse financial institutions
EOS Blockchain:- Develop efficient, high transaction capacity enterprise applications for industries such as gaming, networking, and smart contracts.
NEM Blockchain:- Enhance data protection, secure records, and improve control of decentralized applications with NEM for industries like education and supply chain
Corda Blockchain Development Discover the extensive application of decentralized, scalable, and interoperable solutions across diverse industries such as healthcare and supply chain.
Also, read | Blockchain Platforms for Efficient Blockchain Solutions
Visit this page to know more about other blockchain platforms suitable for business solutions.
Now, have a look at factors one must consider to choose the right platform for developing a blockchain-based application.
Although some blockchain systems focus on cryptocurrency, others rely on smart contracts. Therefore, assessing which model suits ensure the faster and easier creation of Blockchain applications.
Assess whether or not your business requires smart contract solutions. A smart contract is a self-executing protocol that executes, validates, or enforces any trigger-based acts while storing them on the ledger.
Various blockchain technology systems operate on various consensus protocols. They include Proof of Work, Proof of Stake, and more. Experts recommend identifying the right platform based on the consensus protocol.
Assess which type of network your business requires, one in which anyone is free to make a join or one in which only approved users can participate. Pick the platform based on the decision and begin building a blockchain application.
One must consider when planning to build a blockchain-based app, whether or not the business requires the use of cryptocurrencies in the application. It plays a crucial role in finding the right blockchain platform.
There are numerous blockchain programming languages that one can consider when during blockchain application development. They can either continue with traditional ones like C++, Python, Go, and Java, or switch to advanced blockchain-specific ones such as Simplicity and Solidity.
Visit this page to know more about other industries suitable for business solutions
With its unprecedented ability, Blockchain finds applications in different ways in current business processes, like:
Blockchain can provide quicker, more efficient, and safer cloud storage facilities for customers. However, it will require to opt for a trusted BaaS provider such as Oodles for the same.
Since the structure of the supply chain involves the sharing of components across different sources, a single point of failure can impact the entire process.y The blockchain technology tackles this situation by distributing the cop permanent auditable records shared with stakeholders.
Blockchain can give us permanent, unquestionable, and stable digital identities, leading to lesser fraud and streamlined sign-in experience.
Blockchain based- loyalty management systems can assists retailers in cost-effectively engaging their customers with gift cards, rewards, and other incentivization mechanisms.
A business can use a smart contract solution to automate financial transaction execution with security, trust, and immutability.
Blockchain technology in the absence of intermediaries will not only speed up the process but also efficiently facilitate the fund transfer service cost-effectively and securely.
You must have started planning for your blockchain app development with all the mentioned details and examples. At Oodles, we will like to listen to your idea and contribute to it.