In this technological world, everyone tends to adopt an easy lifestyle where he can maintain a smooth functioning work-life balance. A continuous hectic routine leads to stress on the minds of workers.
For example, you earn money after exerting your die-heart efforts. When a time for savings comes, you have to integrate a third person, such as a bank. You pay them higher fees to save your money and keep a recorded track of your activities.
Isn’t it frustrating? To get rid of this horrible situation, thanks to Satoshi Nakamoto who develop blockchain technology where you don’t need to be worried about secure transactions and records.
Let’s explore the real magic of blockchain development, like what is it, its types, its benefits, and how can you develop it.
It is a distributed ledger technology controlled by cryptographic symbols. You can secure your digital assets in this networking system.
It is a chain of blocks where unique information is stored on each block. Its immutable nature makes changes in records impossible.
It allows real-time access to all members. With its completely transparent nature and well-documented trustful features, blockchain technology is the right hand in accomplishing various tasks. No one has the stamina to hack this system or edit it.
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Types of Blockchain
Four main types of Blockchain technology exist. The function of each category is slightly different from one another.
- Private: Take the example of Hyperledger to consider a mechanism of private ledger blockchain. It is a centralized network by giving authority to a single entity. If you want to be a part of this ledger, you have to get a permit to become part.
- Public: As the name shows, a public blockchain is a network of computed utilized consensus mechanisms, including proof of stake and proof of work. Anyone is open to doing transactions with their proper validation which leads to earning rewards from the merchants. Ethereum and Bitcoin are examples of it.
- Side Chains: Working with the main network of chains, side chains are the prominent type of blockchain. The escalation of scalability and improved efficiency happens through it. It assists in the transferring of digital assets between two different decentralized technologies.
- Consortium/Hybrid: If you want to acquire some functions of private chains and public chains in one solution, a hybrid blockchain is an example that contains both functionalities. R3 and Dragonchain work which has a base of consortium.
Exciting Benefits of Blockchain
It is an evident fact that blockchain comes into existence to facilitate users instead of creating difficulties. Some of the main benefits of blockchain technology are presented below to give you an idea of its importance in this innovative world.
- Decentralization: For the building and easy accessibility of a particular platform, the decentralization feature of blockchain involves a consensus system to make decisions. It eradicates the role of centralization like banks and helps users to be independent with decentralization.
- Transparency: Unlike traditional systems, blockchain technology prefers transparency. It saves all records of transactions in different places. Users can access this permission to the blockchain where they are able to see the entire information clearly without any hurdle.
- Security: Taking care privacy of the data of users is the priority of blockchain networks. With end-to-end encryption and legal authorization activities, it keeps data on the network of computers that cannot hack or alter.
- Boosted Speed: Traditionally, most functions are accomplished by human beings. As a result, bigger chances of errors are present. Blockchain eliminates this issue. It efficiently does everything without the integration of paperwork and saves information on the blockchain.
- Automation: Automation is the hallmark of blockchain technology. It has included smart contracts which automate every process. For instance, if a company set its conditions to do a transaction, after fulfilling these conditions your transaction automatically completes.
Industries that Get Benefit from Blockchain
It is an admitted reality that blockchain is the right hand in generating 6-figure income streams. But how it is possible? Check the prominent industries which utilize the blockchain to perform different functions that help them to boost their functions, eliminate money-wasting activities and increase revenue.
- Medical: Keeping a record of the history of patients and transactions is the prime goal accomplished with the blockchain solution.
- Insurance: For automating manual work, such as settlement claims and underwriting, blockchain technology boosts the speed of every function.
- Food Chain: To get rid of any rotten smell and ensure food safety, blockchain helps to identify any contamination in foodstuff immediately.
- Government: Distribution of data related to particular projects among the public and agencies happens through blockchain technology used by a government.
- Finance: Releasing paperwork and boosting the efficiency of financial operations is the leading functionality accomplished with the integration of blockchain.
Building of a Blockchain Network
No doubt, the presence of blockchain in any industry gives an opportunity to its owners to grab beneficial results. For this purpose, you need to develop a blockchain. Choosing a blockchain development company is the best decision in this regard.
Further, we have explained the primary step of blockchain development below. Look at them.
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1. Identify Use-Cases
Before developing a blockchain solution, you need to identify what problem you want to solve. To achieve this goal, take a deep analysis of the use cases of blockchain in your niche. Check whether migration on a blockchain network can resolve this issue. If it is not feasible, go for blockchain development from scratch.
2. Select a Consensus Mechanism
The selection of a consensus mechanism for blockchain technology plays a crucial role. Some names of the most important consensus mechanism are presented below.
Proof of Work:
- Proof of stake.
- Byzantine fault tolerant.
- Deposit-based consensus.
- Federated Byzantine Agreement.
- Proof of Elapsed Time.
- Derived PBFT.
- Redundant Byzantine Fault Tolerance.
- Simplified Byzantine Fault Tolerance.
- Federated consensus.
- Round Robin.
- Delegated Proof of Stake.
According to your field, you need to pick up one of the consensus mechanisms that better suits you.
3. Choosing a Blockchain Platform
After choosing a consensus mechanism, the next step is to take a decision regarding the blockchain platform. It will depend upon your requirements like which type of blockchain platform you have to select. Some names of the popular blockchain platform are given below. Check them out below.
- Chain Core.
- Hyperledger Sawtooth Lake.
- Domus Tower Blockchain.
- Elements Blockchain Platform.
- Eris: DB.
- Open chain.
- Hyperledger Fabric.
- Hyperledger Iroha.
- Symbiont Assembly.
4. Nodes Development
In this step, you have to be careful about designing nodes for your blockchain development. First, you have to decide whether your distributed ledger technology will be public, private, hybrid, or consortium.
Select the running platform of nodes on the cloud or on-premises.
Next, set hardware configuration, including disk size, memory, and processors.
Then, decide on operating systems, such as Ubuntu, Fedora, Red Hat, CentOS, Debian, or Windows.
Further, take an overview of these parameters and make a selection.
- Native assets.
- Atomic exchanges.
- Key management.
- Address formats.
- Key formats.
- Block signatures.
- Multi signatures.
- Asset issuance.
- Asset re-issuance.
5. APIs Creation
Completing designing of nodes is a sign of moving forward on API creation. For it, you have to analyze your selected blockchain platform. If it contains pre-made APIs, you can skip this step without any risk.
If it does not, you need to develop it. For APIs development, focus on the prominent categories that are explained below.
- Initially, you have to create key pairs with addresses.
- Then, prepare smart contracts.
- Do data authentication, storage, and retrieval with proper hashes and digital signatures.
6. UI/Admin Designing
At this stage, the designing of the front end begins where you ponder over three main fundamental points.
- External Databases (MySQL, MongoDB).
- Servers (Web servers, FTP servers, mail servers).
When you have completed each step, including the development of the front end and back end, you must deploy it.
After testing all functionalities, you can deploy it either on the cloud or on-premise according to your choice. Make sure to keep an eye on the developed application of blockchain. It will help you to keep your app updated.
For example, you have to integrate excellent technologies, including Artificial Intelligence, Biometrics, Bots, Cloud, Cognitive services, Containers, Data Analytics, the Internet of Things, and Machine Learning.
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Blockchain is constantly accelerating its real-time benefits in every field of life. Since 1991, it has been exerting its impact on different businesses. Whether you are a part of the medical industry or finance, blockchain is present to solve major to minor problems.
No doubt, blockchain is a complex topic and everyone has not the potential to learn and understand it very well. However, in this guide, we have elaborated on this dynamic topic in an easy way. We hope you have understood each concept very efficiently. Then, you can implement blockchain technology into your application.
Are you interested to develop a blockchain for your business? Connect with a blockchain development company that will help you in this regard.
This article is written by Afira. Afira is a Technical Content Writer at Hashlogics. She has expertise in writing blog posts, and lending pages, especially on technical topics. With 3 years of experience working with international clients, she has the art of producing engaging content that is easy to understand for users and drives more traffic. Follow her: Twitter | LinkedIn | Facebook.