Before we say goodbye to 2019, it wouldn’t trouble to look back at the departing year in order to reflect on the most important thing. History is a very good teacher and by considering the trends of the past couple of years we have a chance to hear about the blockchain all the time, but we don’t hear more much when it comes to details. We know that cryptocurrencies like Bitcoin, Ethereum and others use blockchain technology, but we don’t frequently hear about the other uses.
The blockchain an overview of the main things that reshaped the many industries in 2019, and paved the way for new achievements.
See more: Can you create your own blockchain
Blockchain is a distributed ledger technology that has just evoked to gain traction among many people and itself is a very simple and easy concept and have a simple data structure, cryptocurrencies are complicated when compared to blockchain, the reason cryptocurrencies are complicated is the consensus algorithm, their mining mechanism and the everything that is around but Blockchain in itself is very easy to understand.
Developcoins delivers the blockchain services and custom blockchain development that power real-world business transformations. Create new business tools based on p2p decentralized networks that change your industry forever. Create your own blockchain network and run your business totally distributed and secure.
In this tutorial, I’ll be covering everything there is to know about the blockchain technology itself and how to create your own blockchain for your business or personal purposes? And many more things.
Table of the Content:
- What is Blockchain?
- How does it work?
- Why Create Your Own Blockchain?
- How to Create Blockchain from Scratch?
- What are the best blockchain development tools?
- Which Programming Language is best for Blockchain?
- What is the Blockchain fork?
- How Does Blockchain add values to your specified platforms?
- How to use Blockchain for your Startup or existing Platform?
- What is the Blockchain Development Process?
- How much does it cost to build a blockchain platform?
What is Blockchain & How does it Work?
As the name suggests, blockchain is a chain contains different blocks set together. Each block contains 3 pieces of information:
- Previous block’s hash
Data – Based on the use, the data that is securely stored in a block depends on the type of blockchain. For example, in the Ethereum blockchain, the data stored in the info relating to the transaction: the amount of money transferred and the data of the two people involved in the transaction.
Remember that a blockchain is an immutable, consecutive chain of records called Blocks. They can contain transaction details, data files or any punch of data you like, really. But the important thing is that they’re chained together using hashes.
Hash – You can think of a hash as a digital fingerprint. It is used to identify a block and its data. What’s important about hashes is that it’s a unique alphanumeric code, usually about 64 characters. When a block is developed, so is its hash. When a block is modified, the hash is also modified. In this way, hashes are fundamental if you want to detect any changes made to the block.
Previous block’s hash – By storing the hash of the previous block, you can see how each block is linked to form a blockchain! This is what makes a blockchain so secure.
Why Create Your Own Blockchain?
Basically, a blockchain is simply a log of actions or transactions, which is why it’s appropriate to currency. It’s also decentralized, which means it doesn’t need the main server for a source of authority. Every node in a system has a complete copy of the entire block, so if one node differs from everything else, there’s a comfort to tell which is the “real” log.
There are plenty of existing blockchains that may serve your needs, but building your own blockchain is a great way to truly understand how the technology works.
Creating a custom blockchain gives ultimate flexibility. You get:
- Choice of consensus algorithms and mechanism
- Your own balance of security, scalability, and decentralization to meet your business needs
- Choice of programming language like python, java, solidity and more
- Control of codebase
- Ability to update how and whenever you want
- Ultimate flexibility
How to Create Blockchain from Scratch?
Let us discuss how to build a blockchain in just 8 steps.
Step 1: Classify a Suitable Use-case
Upcoming developers have to be qualified and capable of understanding blockchain technology because this technology will change the way of transactions that are done in the next decade. So before you involve in the blockchain you must identify a use-case that makes business sense.
There are 3 things that blockchains can work very well:
- Info Authentication & Verification
- Smart Asset Management
- Smart Contracts
Info Authentication & Verification: It includes immutable storage, digital signatures, and encryption. Data or Info in almost any format which can be stored in the blockchain network. Blockchains can build a public-private key pair and also be used for developing and verifying digital signatures.
Smart Asset Management: It includes issuance, payment, exchange, escrow, and retirement. A smart/crypto asset is the tokenized version of a real-world asset e.g. gold, silver, oil, land.
Smart Contracts: Smart contract functionality is used in blockchain technology to execute an agreement digitally and reduce the risk of loss.
Step 2: Analyse the Most Suitable Consensus Algorithms & Mechanism
The original blockchain, which powers the bitcoin, used proof of work as a consensus mechanism. But today there are multiple blockchain platforms that offer a group of consensus algorithms and mechanisms such as
- Proof of Work (PoW)
- Proof of Stake (PoS)
- Delegated Proof of Stake (DPoS)
- Proof of Elapsed Time (PoET)
- Proof of Importance (PoI)
- Proof of Capacity (PoC)
- Proof of Weight (PoWeight)
- Proof of Activity (PoA)
- Practical Byzantine Fault Tolerance (PBFT)
- Simplified Byzantine Fault Tolerance (SBFT)
- Directed Acyclic Graphs (DAG)
- Tangle & more.
Explore here – Trending Blockchain Consensus Algorithms & Mechanism
Step 3: Identify the Most Suitable Platform
There are many distributed ledger systems out there today and most of them are free and open source. Depending upon the consensus algorithms and mechanism you chose in step 2, you need to select the most suitable blockchain platform.
Some of the more popular platforms are:
- Chain Core
- Domus Tower Blockchain
- Elements Blockchain Platform
- Hyperledger Fabric
- Hyperledger Iroha
- Hyperledger Sawtooth Lake
- Symbiont Assembly & More
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Step 4: Designing the Nodes
You should also decide whether your blockchain network or application will be built in a Permissioned network or a Permissionless network.
Permissionless networks – Anyone can join and starts to verifying. Most known examples are Bitcoin and Ethereum networks
Permissioned network – In this case, the network owner fix who can join their network and only a few members are allowed to verify the blocks. The consensus mechanisms can be the same as in a permissionless network or can be completely uniquely developed.
Blockchain solutions can be private, public or hybrid.
One more thing to consider at this step is whether the nodes will run on the cloud, on-premise or both. Then comes hardware configuration issues like processors, memory and disk size. You also require to choose the base operating systems.
Step 5: Design the Blockchain Elements
Most blockchain platforms need very carefully planned configuration for the following elements:
- Asset issuance
- Asset re-issuance
- Atomic exchanges
- Key management
- Multi signatures
- Native assets
- Address formats
- Key formats
- Block signatures
Some elements can be changed at run-time but some cannot, so this is a very important step.
Step 6: Building the APIs
Most of the immutable blockchain platforms come with pre-made APIs while some don’t. The most of APIs that you would require for your development project:
- Creating key pairs and addresses
- Acting audit-related functions
- Data verification through hashes & digital signatures
- Data storage and retrieval
- Smart-asset lifecycle management like issuance, payment, exchange, escrow, and retirement
- Smart contracts
Step 7: Layout of the Admin and User Interface
At this step, you would need to choose the front end and programming languages. You would also need to choose external databases as well as servers (including Web servers, FTP servers, mail servers).
Step 8: Adding Future Tech
You can extremely enhance the power of your Blockchain solution by integrating AI, Biometrics, ChatBots, Cloud, Cognitive services, Containers, Data Analytics, IoT and ML.
Without a doubt the blockchain technology used wisely, it can help society with a number of pressing issues. When blockchain tech came along, a lot of over-business people accredit to it as a global remedy. However, most of the areas might really benefit from blockchain technology.
What are the best Blockchain Development Tools?
Many kinds of research and report say that the blockchain looks to be the fastest-growing skill on the platform, leaving behind the skills like Machine Learning and more. It has led to increasing demand for blockchain developers.
Numerous blockchain development tools have been introduced to ease the process of blockchain app development. If you are interested in developing a blockchain project, you should know about the blockchain development tools used by the experienced blockchain developers.
Here are some of the widely used blockchain development tools:
- Remix IDE
- Truffle Framework
- Blockchain as a Service (BaaS)
- Blockchain Testnet
Which Programming Language is best for Blockchain?
The blockchain technology is being used massively in the many industries, the high-level of security it protects the business transactions more safe and secure. From corporate firms to industrial banks, blockchain developers are wanted everywhere equally.
Thousands of blockchain projects are in development or are developed and deployed to the online. Startups, Companies are looking for new blockchain business ideas or trying to improve what other companies created now, and this is just the beginning of how blockchain technology is running the digital world.
In the blockchain development zone, we have listed out a few most popular languages which are used in the blockchain:
What is the Blockchain Fork?
Forking an existing Blockchain or Clone popular blockchain platforms:
The way of developing a blockchain-based application is to develop it using a popular existing blockchain platform. These blockchain platforms are open-source, so you can fork their repositories and deploy the code on your own servers.
Few popular platforms are Ethereum, Hyperledger Fabric, and Hyperledger Sawtooth. Each one has certain characteristics that can help you make the decision.
Industries That Are Ready For Blockchain
Many industries — eCommerce, insurance, medical, education, real estate, logistics, supply chain, finance, quality assurance — are leveraging blockchain to address existing business challenges, security, cost and efficiency among them.
We are still identifying what blockchain technology is fully able to perform off and there is no doubt among those currently in the field that the following of the new technology in business can bring about positive transformation.
50+ Industries That Are Ready For Blockchain:
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3D Printing | Accounting | Agriculture | Art | Aviation | Banking | Cannabis | Cloud Computing | Cloud Storage | Commodity Trading | Compliance | Corporate Governance | Credit Management | Crowdfunding | Cyber Security | Digital Advertising | Digital Rights Management | eCommerce | Education | Energy | Environment & Sustainability | Exchanges | Film | Firearms | Gaming | Government | Healthcare | Human Resources | Identity | Inheritance & Wills | Insurance | Investing | IoT | Law enforcement | Legal | Lending | Logistics | Loyalty Programs | Manufacturing | Marketing | Music | Non-Profit | Online Betting | Payments | Prediction Markets | Public Welfare | Publishing & Content Creation | Real Estate | Remittance | Retail | Science | Smart Cities | Sports Management | Stock Trading | Supply Chain | Transportation | Travel | Venture Capital | Virtual Reality | Voting
How Does Blockchain add values to your Specified Platforms?
The blockchain is a P2P decentralized system, which can be supplemented and updated and consists of blocks frequently linked in a chain. Each and every block contain info about the previous old block. The data of blocks is fully copied and stored on different systems without being bound to one specified server, which makes the substitution of records impossible.
Here we list out some of the value does blockchain technology add to your business platform or application:
- No limits on the volume of data stored
- Increased Speed
- Reduced Costs
How much does it cost to build a Blockchain Platform/ Application?
The cost of blockchain projects differs depending on what you want to need. Usually, there can be two kinds of blockchain projects, as follows:
- Creating a ‘Distributed App’ (DApp) using a public blockchain network;
- Developing an enterprise blockchain for your company.
If you are creating a decentralized business model where you will enable ‘Peer to peer’ (P2P) transactions using cryptocurrencies, you will most likely build a DApp.
The cost of blockchain app development also based on the following factors:
- Type of Blockchain App you require for your business
- The complexity of a Blockchain Project
- People involved in developing an app
- Project Management Tools
- Third-Party Tool Subscription Costs
The cost of a blockchain platform or application varies from industry to industry. For example, you may require an app for Education, supply chain management, healthcare, real estate, education, and many other business domains. The cost of an app will depend on the complexity of the project.
The complexity of a Blockchain Project
The complexity of a blockchain project depends on the issues that an application wants to solve.
Here are some examples of blockchain projects based on the complexity level:
Low Complexity Blockchain Apps: Multi gateway Payment apps, Smart Contracts Development App and more
Medium Complexity Blockchain Apps: Decentralized Apps built on various blockchain platforms, Semi-decentralized apps, Hybrid blockchain applications, Blockchain dApps
High Complexity Blockchain Apps: Development of Blockchain platform from scratch, A complete decentralized network
Blockchain Development Process:
Like every other development process, blockchain platform or application development also need us to define the scope and purpose of the project. Let us take a look at these steps that are a precursor to the actual development
- Blockchain Ideation
- Blockchain Consulting
- POC Development
- User Experience & Technical Design
- Deployment & Maintenance
How Long Blockchain Development Takes?
The period of a blockchain project based on the application’s needs. The project is originated with PoC, which typically takes 2-3 weeks. Once the PoC is done, it takes 4-5 weeks to come up with a minimum workable product with bare minimum features.
Launching a blockchain application on the mainnet takes around 2-3 months based on the business requirements of a client.
Are you are looking for a blockchain development company that can help you develop a blockchain application? You are in the right place!
Developcoins – Custom Blockchain Development Company
Developcoins brings a team of experienced blockchain developers to every project, working with business partners to create custom blockchain solutions for fintech, entertainment, insurance, and other industries.
We work with some of the most popular blockchains for business, including Hyperledger, EOS, BitShares, and Ethereum. Key the power of a custom blockchain network built to your business specifications.
We consult startups, large companies on using blockchain to get the best business outputs, conduct blockchain workshops, offer high-end R&D services, build Dapps, smart contracts, and all kinds of blockchain-based solutions you need to achieve your business success from the crowd.
Have you Created Your Own Blockchain?
Discuss our team of skilled blockchain experts to kickstart your blockchain development journey. Our blockchain experts can convert your new idea into a real-world solution by implementing blockchain technology into your project.
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Create Your Own Blockchain with Developcoins!
This video will teach you how to create a blockchain from scratch in simple steps:-
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