How To Build a Blockchain Application:

Detail Guide on Blockchain App

Development

Blockchain is currently making waves, and for good reasons. This cutting-edge technology has
the potential to revolutionize how businesses operate across various sectors. While it's widely
recognized for providing a secure and transparent means of storing or transferring data,
blockchain is also making its mark in the realm of application development. We'll dive into the
world of blockchain application development, shedding light on how blockchain app’s function
and the steps involved in creating one.

Decentralized Applications (Dapps): These are applications built on blockchain technology.

Infrastructure: Unlike traditional apps that rely on central servers for data storage, decentralized
apps leverage blockchain technology as their backend infrastructure.

Considerations for Success: Developing a successful blockchain-based application involves

careful deliberation on factors such as consensus protocols, scalability, and the appropriate tech
stack for your product.

Development Process: The process of building blockchain apps includes identifying a problem,
refining your idea, selecting a suitable blockchain platform, developing, building, testing your
product, and finally deploying it.

What Are Blockchain Apps / DApps?

Blockchain applications, often referred to as decentralized apps (dapps), are built on blockchain
technology. These apps operate using a distributed ledger system, which stores data in
interconnected blocks across multiple nodes and processes transactions through smart contracts.
This structure makes decentralized apps exceptionally secure, transparent, and resistant to
censorship.

The versatility of blockchain technology allows for the creation of a wide range of applications,
opening up numerous possibilities across different industries. While blockchain can be utilized to
develop virtually any type of app, it is particularly favored for applications demanding high
security levels. This includes sectors such as financial services, supply chain management,
online marketplaces, identity verification systems, and healthcare. However, blockchain is not
limited to serious applications; it can also be used to develop games, social networking sites, and
other types of less critical apps.
How Do Blockchain Applications Work?

Before we start building a blockchain application, it's important to understand how these apps
actually work. To do that, let's first look at how regular web applications function.

In a regular web app, users visit a webpage that has a front-end made with HTML, CSS, and
JavaScript. This front-end is hosted on web server. The app also communicates with a backend
and a database, both located on a central server.

Blockchain applications, or decentralized apps (dapps), are similar but have a key difference in
how they store and access data. Instead of using a central server for the backend, blockchain
apps store all backend information on the blockchain. This means the app's code and data are
spread out across a network of computers (called nodes).

These nodes are individual computers in the blockchain network, each holding a copy of the
blockchain. They work together to create new blocks and verify transactions, keeping the
blockchain up-to-date.

In blockchain apps, transactions are managed with smart contracts. Smart contracts are pieces of
code on the blockchain that automatically do certain tasks when specific conditions are met.
Because of smart contracts, there's no need for intermediaries or a central authority.

Another important part of blockchain apps is the consensus mechanism. This is the algorithm
used by the blockchain network to verify transactions and add new blocks. Blockchain apps can
use proof-of-work or proof-of-stake methods to ensure all nodes agree on the validity of
transactions before adding them to the blockchain.

What to Consider While Creating a Blockchain Application?

Blockchain-based application development is a complex process (perhaps even more complex
than traditional app development).As such, there are several factors to consider and different
decisions to make as the development process begins. Let’s explore some of the most important
factors to consider in blockchain software development.

Blockchain Platform

The blockchain platform is the main underlying infrastructure on which you build a blockchain
app. Your choice of platform will influence the complexity of the development process, app
speed and efficiency, transaction fees, security, and scalability of your app.
For instance, Ethereum is one of the most popular platforms for blockchain app development
mainly due to its smart contract system and the robust ecosystem of blockchain development
tools that help simplify the process of building decentralized applications. However, the
Ethereum smart contracts platform has limitations in terms of security and high transaction fees.

Bitcoin on the other hand is known for its high security and robustness, but with limited smart
contract functionality, it is not traditionally considered for app development. This example
demonstrates how the attributes of different platforms and the components of blockchain
networks can influence your choice of app development platform.

Smart Contracts / Consensus Protocols

As defined earlier, a smart contract is a self-executing protocol that determines how trigger-
based actions are processed and verified by the blockchain application. Different blockchain
systems have varying consensus protocols for verifying smart contracts. The most common types
are proof of work, proof of stake, or proof of elapsed time.

In blockchain software development, you need to determine which of these smart contract
consensus protocols would be the most suitable for you. Your choice of consensus protocol will
determine the efficiency and scalability of your application. For instance, platforms with a proof-
of-work consensus system tend to have slower transaction processing times compared to
platforms designed with proof-of-stake systems.

Private or Public Network?

You also have to determine if you want to build your app on a private or public cryptocurrency
network. With a public blockchain, anyone can participate in how transactions are managed and
validated on the blockchain. The source code is also public which means users can suggest
improvements to the underlying source code of the blockchain system.

Private networks are a lot more closed off. It is typically a permissioned system, which means
only authorized users can participate. There’s also the option to use a consortium blockchain
system or a hybrid solution. Your choice of network depends on factors like your security needs,
desired level of control, and regulatory compliance.

Blockchain Scalability

In developing blockchain applications, you also have to pay attention to the processing
capabilities of the blockchain platform and how it holds up, especially in the long term. The three
biggest factors to consider in blockchain implementation regard are the transaction speed,
security, and decentralization of your choice of blockchain platform. In most cases, the
blockchain development platform will only meet two of these three requirements, which means
you have to determine what is most important to you and compromise on what the platform
lacks.
Consider the Tech Stack

A typical blockchain app is built with a combination of backend frameworks, front-end

frameworks, APIs, and SDKs. The backend framework determines how the blockchain will
interact with the application’s interface.

Some of the most popular options for building the backend of blockchain apps include Node.js,
Django, and Ruby on Rails. You may also need APIs and SDKs like Web3.js, Bitcore, and
Hyperledger Fabric SDK especially if you intend to build custom functionalities into your
application.

A Step-by-step Guide on Blockchain Application

Development
The process of building blockchain platforms is similar to conventional app development. It
follows the same pattern of coming up with an idea, defining the application’s scope or purpose,
designing, and eventually building the app. Here’s a step-by-step guide to blockchain
development.

Market Research

Blockchain application development is a strategic process. Beyond the technicalities of app

development, there’s a need to understand market dynamics and the specific preferences of the
potential users of the blockchain application you intend to build.

Before you start building, you need to gather essential requirements by scrutinizing what the
market is saying and exploring the strengths and weaknesses of other blockchain solutions in the
niche you intend to build for.

Also, since blockchain is a relatively new technology, you may have to examine the regulatory
frameworks surrounding blockchain development for various industries. All of this research and
valuable insights will help steer the rest of your development efforts.

Identify the Problem

The problem your app is meant to solve is the foundation of any development process. This is
true for blockchain apps too. Identifying the goal of your app development helps to define the
scope of the project and how to make a blockchain application to solve the identified problem.

For instance, an app meant for supply chain management will be built differently compared to
one that’s meant for secure financial transactions. By identifying the problem and setting clear
goals for solving it, you can create a clear roadmap and set realistic milestones for your
development project.
Develop and Refine Your Idea

Before you start building, you may need to develop an idea and refine or modify it to near
perfection. Building an app may require lots of brainstorming sessions with your development
team to develop a solution that best solves the intended use case of the application.

Refining your app development ideas before developing a blockchain solution will also help you
determine if the concept needs to be built on the blockchain in the first place. During your
brainstorming sessions, you should focus on the major needs of the target audience and consider
the technical feasibility of meeting these needs. Your decisions should also be based on the
blockchain market analysis and backed by concrete research data.

Compare Blockchain Platforms

As you conclude the planning and draw closer to the development phase of the project, one of
the crucial decisions to make is your choice of a blockchain platform. Blockchain technology has
developed a lot in recent years, so much so that we have numerous blockchain development
platforms with many distinct features.

Different blockchain development platforms vary in terms of their smart contracts capabilities,
consensus mechanism, transaction speed, and security. Choosing a suitable platform isn’t about
selecting from the most popular blockchain platforms available. Instead, you have to compare
what each of these platforms has to offer in line with your development goals.

For instance, if you’re building an app that will likely be handling high transaction volumes, the
transaction processing efficiency and gas fees have to be one of the most important factors to
consider.

Aside from the option of choosing a blockchain platform of your selection, you may also choose
to build your own blockchain framework from scratch. This gives you full control over vital
decisions such as the smart contract algorithm and the transaction validation mechanism, among
other things. Although it’ll cost a fortune to deploy private blockchain solutions, it is one of the
most efficient methods of building blockchain solutions.

Design your Blockchain App

The next step is to determine how your app will look and behave. This is known as UI/UX
design. This step is where your app comes alive visually. You should work with professional
designers to create intuitive user interfaces, regardless of the technical complexity of the app
you’re building.

UX designers do this by mapping out the user’s journey and coming up with the simplest and
most effective app interface that takes them to the end goal the fastest. Good app designs will
contribute significantly towards user adoption and satisfaction with your blockchain app.

Create a Proof of Concept

Although this is not a compulsory step, creating a proof of concept for your app idea can help
demonstrate the feasibility of the project. This step also helps evaluate its practical potential and
address any potential issues before you start developing the final product. The proof of concept
only demonstrates the core functionality of your app and confirms that it can solve the identified
problem.

Development

The development stage is where you start building your blockchain based app into an actual
product. The process involves multiple steps including coding the application backend, building
the front-end, and integrating the blockchain with other necessary frameworks or technologies.
For this phase, you work with a team of in-house blockchain app developers with the required
proficiencies to build your decentralized app or hire a development company to build for you.

Test and Refine your Product

Blockchain apps are typically complex with stringent development requirements. Consequently,
you have to pay a lot of attention to refining your final product to meet the highest standard
possible. Before deploying the finished product, QA engineers run comprehensive tests to ensure
everything works perfectly. The best approach to testing blockchain apps is to incorporate
continuous integration and deployment practices. This method allows you to test in real-time,
identify bugs, and fix them instantly instead of waiting till the entire product is built.

Deployment

Finally, when your app development is complete, you can proceed to launch the app. To ensure
smooth deployment, you must ensure that the app has been fully tested and all the components
are working as expected before releasing it to the public. You should also establish plans for
maintenance and long-term scaling of your app. Monitoring frameworks should be put in place
to track both the technical and non-technical performance of your application and address issues
promptly.
Pros and Cons of Blockchain Apps
Advantages

 Blockchain apps are secure and decentralized

 All transactions on a decentralized system are recorded on publicly visible and trackable
ledger
 Blockchain by its very nature is resistant to censorship
 Improved efficiency and speed

Disadvantages

 Most of the best blockchain technologies today still struggle with scalability
 Smart contracts on their platform make them susceptible to bugs and vulnerabilities

Real-life Examples of Using Blockchain Apps in Business

Blockchain is quite versatile, with the potential to revolutionize several industries and
businesses. Building blockchain solutions can introduce innovative ways of handling
transactions, app security, and data management. Here are some real-life examples that
demonstrate the applications of blockchain app development across various industries.

Finance and Banking

The finance industry has been one of the leading adopters of blockchain. By creating crypto
exchange platforms, wallets, and other financial instruments, businesses in the finance sector can
streamline transactions and enhance security. An example of this in action is JP Morgan’s
Quorum created to facilitate interbank transfer and streamline settling of security transactions.
This private blockchain platform features enterprise-friendly functionalities like permissioned
access, transaction privacy, and higher transaction throughout.

Healthcare Industry

The open, but secure nature of blockchain makes medical record-keeping easier for players in the
industry. It makes it easier to share patient data securely between stakeholders. MedicalChain is
an example of decentralized blockchain platforms built with this purpose in mind. The platform
uses blockchain for storing and sharing medical data.

Real Estate

Propy is a real estate platform powered by blockchain that allows buyers and sellers to securely
exchange property titles and payments without intermediaries. The immutable nature of
blockchain ensures security and transparency in real estate record-keeping. Blockchain also has
the potential to reduce the cost of real estate transactions.
Gaming and Entertainment

Many of the latest games now incorporate blockchain to facilitate true ownership of in-game
assets. By combining metaverse app development and blockchain, blockchain games allow
gamers to own virtual goods such as game characters, weapons, avatars, and other in-game assets
that can be sold, exchanged, or even used across other metaverse games. For example, the Enjin
platform is a purpose-built blockchain wallet that creates an effective and transparent virtual
asset trading environment for games and apps.

Start the Blockchain Application Development Process with

CrustLab!
As blockchain becomes increasingly popular, more businesses are starting to realize the need to
build innovative applications that leverage the many benefits of the technology. Building apps
with this technology is just as intensive as conventional app development (perhaps even more
intensive). To achieve your own blockchain application development goals, you have to hire a
development team or work with a reliable development agency like CrustLab.

As a software development company that provides product design and development, one of the
services we offer is to help organizations figure out how to create a blockchain network for their
business. We provide complex blockchain solutions for businesses of all sizes across various
industries. Get in touch with us to hire a product team of blockchain development experts to
create a successful product for your organization.