Despite the popularity of cryptocurrency, blockchain is not only about cryptocurrencies. It is being explored for app development and deployment. The apps are known as decentralized apps (dApps).
dApps are being used in different industries, including healthcare, music, real estate, gambling, and finance. As of the end of 2021, there were about 3630 dApps with only 1820 active. This shows that the industry is in its infancy with plenty of room to grow.
With an expected growth of $6.25 billion between 2021-2025, it is no surprise that entrepreneurs want to get in on the party of dApps.
You have come to the right place to get you started on how to develop a blockchain application.
What is Blockchain?
Blockchain is a network based on trust that decentralizes data transfer and storage. Everyone on the network has visibility and a record of transactions and data exchanges.
It is a digital ledger of transactions that cannot be changed. Any member can add a new block to the chain once everyone has authorized and validated it, making it difficult to hack.
Blockchain can be divided into four types. Public, private, hybrid, and consortium blockchains.
Public blockchain
It is also known as the permissionless blockchain. All network members have access to it from any device. The members can perform and verify transactions, interact with other members and access the code while remaining anonymous.
An example of a private blockchain is Bitcoin. It is great for entrepreneurs creating a dApp for a wide audience because it allows any user to join.
Private blockchain
It is also known as a permissioned blockchain and offers limited access only to authorized members. There are rules governing how transactions occur between members.
A permissioned blockchain is most appropriate for organization operations.
Hybrid blockchain
You do not need to choose one or the other in some cases. With a hybrid blockchain, you can have the best of both worlds from a public and private blockchain. Some data on the blockchain is limited to specific network members, while other data is open to all network members.
Federated blockchain
It is also known as a consortium blockchain and has similar characteristics to a private blockchain. Rather than work within one organization, it works across different organizations with two types of nodes, a validator, and member nodes.
The validator node initiates, receives, and validates transactions. The member nodes cannot validate transactions, but they can initiate and receive.
How to develop and deploy a dApp
Once you have a basic understanding of what the blockchain is and the different types, you are ready to learn how to develop a blockchain application. There are a few steps to follow that will guide you to creating your modern web 3.0 blockchain app.
To Blockchain or not to Blockchain?
Blockchain is not a one-size-fits-all. It is not for every business. You need to know whether developing a blockchain app will be best suited to your business or operations.
How will you know? If your business stores large amounts of data needed to track and monitor transaction values security over the speed of transactions, blockchain may be the best way to go.
Since blockchain is based on trust and creates transparency for all members, you can be sure all your data and transactions will be safely stored and easily visible.
What do I get out of Blockchain?
You need to understand the benefits of blockchain before leaping over it. Some of the advantages you can expect include security, traceability, privacy, transparency, speed, and integrity.
What industry?
It would be best to narrow down what industry you want your dApp for. Several dApps have been developed for use in different industries, including finance, insurance, retail, healthcare, and real estate.
You can investigate some notable companies already using apps. These include OpenBazaar and Expedia in retail, HealthVerity, and Hash Health in healthcare.
Narrow Down Your Idea
You chose an industry, but what problem will you be solving? To stand out from the crowd, your blockchain app should solve a specific industry problem.
Your competitors are a great starting point for what is missing in the blockchain app space. By understanding what they offer, you can either do it better or add features they do not provide.
Appropriate Blockchain Development Tech Stack
Without the right tools, you cannot build the blockchain app you want. It would help if you chose the correct tools for your specific application. It would be best if you had tools for each of these layers:
- Application
- Services and optional components
- Protocol
- Network
- Infrastructure
Some of the most popular blockchain app development platforms include Ethereum, EOS, and OpenChain.
Developing the Blockchain App
Building your blockchain application will happen in two stages: the discovery stage and the development stage. The discover stage makes sure all your project requirements are clear, and the development stage is where the code base of the dApp is created.
The discovery stage includes business analysis, software architecture planning, and team review. The development stage includes development, quality assurance, testing, and project management.
Deployment and Release
Once the app is developed, you should release it to the market. If it’s a mobile app, you will submit it to the Google Play store and the Apple store.
Over time, the app will need maintenance which means you will need to provide support to nip out all the bugs and update features.
Getting the Word Out
Marketing will help the target customers get to know about the app and maintain their interest once they are onboarded. You can use email marketing, social media marketing, and influencer marketing to spread beneficial information about your blockchain app.
Conclusion
Blockchain has great opportunities for different industries in app development. Whether it’s healthcare, retail, or finance, there is something in the blockchain for you.
With the correct information on building a blockchain application, such as the right platforms and marketing tools, you can take advantage of an industry that is still budding.