Blockchain is a tech field that will dominate the industry for many years to come according to predictions from experts and those who have predicted the impact and diversity it will have in many industries and sectors.
While people will only know about blockchain and its underlying technology of Bitcoin and other cryptocurrencies, there is more to it than just creating wallets and storing crypto assets. Blockchain has changed the way many businesses work across various industries in carrying out transactions with little or zero errors.
Currently. blockchain is considered a digital or technological transformation that has taken many people by surprise.
Many firms and individuals now search for ways to extend their knowledge about blockchain, this is followed by acquiring a professional certification in blockchain technology, as it won't only improve your understanding but will also make you job-ready in an ever-evolving job market such as the blockchain industry.
Key Takeaways
- According to Statista, Blockchain spending around the world will surpass the previous years in double, and the banking industry will contribute most of that spending.
- Silicon Valley recounts that blockchain is the most vital or important invention after the internet.
- The truth is that blockchain technology can be implemented in different industries which can supersede other areas like Machine Learning and Artificial Intelligence.
- Blockchain technology can be used in both financial and non-financial applications. However, the most exciting trend is the development of applications using blockchain. Since it comes with decentralized settings, it helps in getting over numerous shortcomings in mobile applications and custom software development.
in this article we explore the terminology behind blockchain, its benefits, the role of blockchain app development, how to develop or create blockchain apps, and the cost associated with building decentralized blockchain applications.
What is Blockchain Technology
Blockchain Technology refers to a distributed ledger in a digital format that stores information and data. This includes the ability to carry out transactions without the need for a middleman or intermediary.
It is transparent between the users on a blockchain network and keeps transactions completely anonymous. The core reason for using Blockchain is that it makes it easy to store data without fear or carelessness.
It was initially seen as the best way to store data and information, which is why it was implemented in higher blockchain wallet app development and banking institutions. However, blockchain technology is now being used in various industries including real estate, insurance, and healthcare.
Types of Blockchain Applications
Categorically, there are four types of blockchain applications:
1. Public Blockchain
This is the most popular type of blockchain application that allows anyone to sign into a network and personalize transactions. It is non-restrictive, and with just an internet connection, you can access the features of the application. The distributed ledger technology (DLT) of the blockchain has become popular because of the transparency involved.
2. Private Blockchain
This works like a restrictive network and is controlled by a single entity. The operating network is still the same as that of public blockchain in terms of decentralization and peer-to-peer connections but operates on an extremely smaller server. Not anyone is allowed to sign into a private network since most of them are controlled by companies or organizations.
3. Hybrid Blockchain
A hybrid network is the conjunction of both public and private networks. An organization can decide to create a private permission-based server and merge them together to form a single network. Although they have the ability to control who can add or share data, and which data will be available on the blockchain. In a hybrid blockchain, the transaction records are not displayed to the public, but access can be granted when requested through smart contracts.
4. Consortium Blockchain
A consortium is also known as federated blockchain, which acts like a hybrid and has its own public and private blockchain features. Although the blockchain uses multiple organization members to manage and collaborate on a decentralized network. It stands as a private blockchain but access is granted to a particular group. Thus, it mitigates vulnerabilities that come with just a single entity controlling the server on a private network.
Working Process of Blockchain Technology
It is crucial to understand how the blockchain app development works before starting the process. For instance, the data and transactions being processed in a blockchain are stored in a chronological format in the form of a block, and since so many chains can be formed in an extremely short period, it is now referred to as blockchain technology.
If any activity happens in the blockchain, the record is shown to other people. This makes it very transparent that nobody can tamper with sensitive data and transactions, not even the creator.
Cryptography methods are used to highly secure the network and to give users control over the data and transactions on the blockchain. So when a transaction is processed, a new block is formed or created. After the block is created, the transaction is transmitted through a peer-to-peer network where it will be validated.
Remember once it is validated, the block can now be added to the chain, which can be seen by all parties. Transactions can be related to any activity, which includes contracts, data, records, crypto, etc.
Adoption of Blockchain Technology
There are over 80 million wallets that have been created by different people around the world and the figure is expected to increase as people discover ways to use blockchain technology. There were only 20 million wallets in 2017. This has revealed the adoption rate of blockchain globally. The healthcare sector is another industry that has adopted blockchain on a large scale, processing and storing data of patients has made it easy for hospitals and clinics. It is expected that around 55% of healthcare applications will use blockchain for various clinical and confidential reasons.
Currently, there are over 5000+ decentralized applications (Dapps) that are processing nearly 10 million transactions every day. Research also reveals that the number of blockchain applications will keep rising. Research by MarketsandMarkets discloses that the blockchain market around the world will grow at a massive CAGR of 67.3%, reaching $39.7 billion by the year 2025.
This figure was just $3 million in 2020. The increase in the adoption of blockchain technology is fueled by the simplicity of making businesses easy between people from different locations and the management of supply chains in various industries.
Popular Programming Languages for Blockchain App Development
Some common question people often ask when it comes to blockchain app development is which of the programming languages is used in developing these applications since there are wealth of programming languages out there.
However keep in mind you can use any programming language, which will depend on various factors including the purpose of the app, skills, and background experience. For instance, developing an app like the Pi Network mining app will require the individual to be skilled in programming languages like Python, C++, etc, which also necessitates extensive knowledge and research in case you want to develop a cloud-based mining app.
Here are some of the most common programming languages for blockchain development:
Python
Go
Java
C++
Solidity
Scillia
Plutus
Rholang
C# etc.
The language you intend to use for your project depends on many factors and requirements. For instance, some programming languages are preferred for apps with smart contracts, while some are preferred for apps with asynchronous applications. The number of developers in the market also contributes to the type of apps to create.
Benefits of Blockchain for Mobile App Development
Before you start a blockchain-based app, there are certain advantages or benefits to why you should start the project in the first place. Here are some benefits of developing blockchain apps:
1. Data Security
Putting security first should be a major concern for app developers, as almost all mobile apps today have the capacity to access users' personal data and device folders. These include contacts, phones, galleries, cameras, social media apps, and even other confidential apps like banking and transactional apps.
The high rate of data breaches has made many users stop installing apps on their devices. They fear that these apps have the potential to access devices which can pose serious risks to their privacy.
However, developing a blockchain app can help limit these dangers. With blockchain, the security of data can be boosted with advanced encryption, which also can encode data using a cryptographic hash. Also, a decentralized app has the capacity to block third-party apps from causing security breaches. If an app is for transactional purposes, the blockchain adds a timestamp to all the transactions, which prevents tampering and manipulation.
2. Transparency
Every transaction that happens in a blockchain is stored in a public ledger, which allows everyone to see and interact with them according to how they want. With this type of transparency, the risk of data or transactions being modified or removed, preserving complete transparency while making sure no fraudulent activity takes place on the network.
Yet another reason to choose blockchain applications is that if the number of mobile app users increases, developers can improve efficiency and scale up accordingly.
3. Resolves In-App Purchase Issues
Common issues with mobile apps that offer in-app purchases include the submission of confidential information like credit cards by users to process transactions, which can impact many factors for example, the final cost which involves the pricing of in-app purchases, gateway fees, app store fees, and even bank fees. Most times all these details can be compromised in the app.
By doing so, the developer gets paid a small amount which will help in keeping costs low considering other transaction fees in the app.
The use of blockchain in mobile app development can help limit this current model, allowing users to instead pay with app coins known as cryptos. It will also remove or eliminate any other additional charges, which will help a developer to make more money for their work.
4. Reliability
The architecture behind blockchain is highly reliable with a robust foundation. It gives users control over their property. For instance, if a data or transaction is processed on a blockchain, the nodes in the network sync with each other automatically. This means that the same copy of data is processed across the entire network of devices, no matter where it is processed.
Also, the network on which the blockchain is used cannot crash or have downtime issues, which makes it a highly reliable platform for mobile app development.
5. Access to Tools and Gadgets
Another benefit of using blockchain to develop apps is that it comes with pre-made tools, gadgets, and systems that can be used or implemented using open-source software. Even though it is not actually open-source, there are no centrals, government agencies, or organization controlling it.
This makes it easier for app developers and also lowers the cost on the side of the users. Besides all the tools and gadgets are available at sometimes with no additional costs.
How to Develop Blockchain Based App
Now that we have covered the benefits of developing blockchain apps. Now let's talk about the process or steps for building high-quality apps. These steps will cover six stages, which start from identifying the business goals to deploying the project to the end user which is the market.
1. Find your purpose
The first step is finding out why you want to develop a blockchain app. Your purpose and vision should be clear on what you intend to achieve with the app and how you plan to solve a problem, which industry to target, which regions, and where the app will be available. If you have an app but want to upgrade it to a blockchain-based app, then figure out how it will be of value to the audience.
For instance, if you want to develop a cloud-based mining app like Pi Notwork, identify how it will solve problems that other mining apps haven't addressed.
Remember to always know the markets, regions, or countries, where the app can be accessed. If it will be available to specific people, research your competitors in your target markets and figure out ways to improve in areas that need improvement.
2. Pick a Blockchain app development platform
Remember developing an app from scratch requires extensive knowledge and research and the strategy will take several months to finish. To make the process short, a blockchain app development company will build the app on reliable blockchain platforms.
The platform you pick will depend on several factors like the app's needs and the functions it will have. These factors must be considered before taking a look at other areas. For instance, if you intend to build a financial app, platforms like Steller, Ripple, and R3 Corda are some of the best in the market.
3. Ideation
Now that you have figured out what type of app to build and the platform, it's time for more brainstorming work by identifying the business needs of the app. Choose a Tech or Stack required to complete the ecosystem of the application.
Create a roadmap that will help you understand what is expected from the app as it goes into the development stage. This is called an app development roadmap. Also, in this stage, you can decide whether to build the app on a permissionless or permissioned network. Based on the network, the programming language and other technical functions that will be on the app will vary.
4. Proof of Concept (PoC) of Blockchain App Development
The reason why doing proof of concept is to check whether your ideal is practical, feasible, and can be executed. This is the stage that will let you if the app or final product can solve the problems that other apps haven't or if it can meet the expected requirements.
The stage will help overcome some crucial issues or unnecessary risks. PoC is very important if you want to convince investors or seek funding for the project. It will be difficult to attract investors if you can't show if your idea will work or offer real-life value to the end user.
Remember, during the PoC, you also work on the app prototype to find feedback, which will include designing, information architecture, mockups, etc, for the app.
5. UI/UX Design
A very important part of app development that requires expertise and professionals, the UI/UX design in app development is the process of changing the looks of the apps' components, especially the user interface. Now that your app has passed the ideal and PoC stages, you can start planning on the design.
6. App Development
Developing the front end of the app is the most important part of the process and this process comes through API integrations for specific reasons, while the majority of the app will need to be developed from scratch. The app will not be completely developed on the go when it comes to mission-critical projects. First, the main version of the app will be developed. In this stage, all the features, functions, and components might not be developed.
Cost of Blockchain App Development
How much is required to build a fully functional blockchain application? The cost can vary depending on various factors including the experience of the developers, the platform, the operating system (Android, iOS, or both), the tech stack, and the level of complexity and maintenance.
For example, if the app takes only one month to finish, the cost will be low. If it requires complex needs and takes more than one month to complete, the cost will be high. The approximate amount of developing a blockchain app should be in the region of 5,000 US dollars.
In Nigeria, the price can be lower. The general factors that can influence the development are the type of app you want to build, the platform, UI/UX design, ICO launch, proof of concept, and many others.
Factors To Consider in Blockchain App Development
It is important to consider all factors involved in developing a blockchain app. Some of these factors we be discussed to evaluate things required before the development starts.
1. Type of Platform
Remember there are blockchain platforms that are purely based on cryptocurrency, while others are based on smart contracts and crypto wallets. This is the first step to take in considering which platform is right for you in building the app.
2. Smart Contracts
It is imperative to consider whether you need a smart contract or not. If the imperative is a yes, you will need a professional smart contract firm. A smart contact is a self-executing protocol that can process, verify, and carry out any triggered-based action stored in a blockchain.
3. Cryptocurrency
Crypto is one of the major reasons why people would want to develop a blockchain application. You need adequate research and a thorough understanding of whether or not your application will support cryptocurrencies. This idea is critical when choosing the right platform.
4. Public/Private Type
Remember public and private blockchains which we just explained are the two types of blockchain. Thus, they are part of the factors to consider before proceeding. If you want a network where anyone can interact then go for public. Alternatively, you can choose a private blockchain if you want only authorized users to interact with the network.
5. Adoption Rate and Scalability
Consider the adoption rate and scalability of the current blockchain and also community support. The adoption rate is to examine the extent to which the blockchain has been implemented. Remember to choose a technology that is widely used, instead of one with a low number of users.
Conclusion
Blockchain technology is one of the many fields in this technological advancement that thorough understanding and adequate knowledge are required. considering the amount of time users spend on using these apps every day. For example, the majority of the apps on my phone are blockchain-based. I used them almost every hour in one way or another spanning across various objectives including crypto trading and transactions, mining, etc.
You must know what you are doing to avoid setbacks and losses because it will be a heavy burden on you once you start the process. However, it is one of the lucrative ways to jump into the ever-growing tech sector. Consider not just the benefits but every other factor involved. It will help a lot.
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