In short
- A blockchain app stores and modifies data on a decentralized network. Once it is deployed, the code is public and cannot be quietly changed.
- Most of the risk sits before the first line of code: whether the idea needs a blockchain at all, and which network you commit to.
- Network choice is a set of trade-offs, not a preference. Transaction cost, throughput, security model, Layer 1 versus Layer 2, and whether the protocols you need already exist there.
- The hard parts in production are rarely the contracts. They are wallet onboarding, KYC where the law requires it, error handling, and private key management with multi-sig at deployment.
Building one rather than reading about it? See how our blockchain app development company approaches these decisions.
Blockchain App Development
Blockchain technology has brought about a new era of software development that offers unique advantages to businesses looking to build decentralized applications. In this article, we will explore what blockchain apps are, how they differ from traditional apps, and the challenges of building them. We will also discuss choosing the right blockchain network, the importance of a skilled development team, and best practices for onboarding users and deploying blockchain apps.
What’s blockchain?
Blockchain is a distributed ledger that enables the creation of applications that can store and modify data in a decentralized environment. The key benefits of blockchain technology are its immutability and the ability to operate programs that store data. Blockchain can be either public or private, but in this article, we will focus mainly on developing apps for a public blockchain.
What’s a blockchain app?
A blockchain app is an application that runs on a decentralized network, utilizing all the benefits of blockchain technology. The app can store and modify data that is also stored in the blockchain. Because of the unique perks of blockchain technology, blockchain apps offer several advantages over traditional apps, which we will explore in the next section.
How are blockchain apps different from “non-blockchain” apps?
Blockchain apps differ from traditional apps in several ways:
- Blockchain apps are immutable, meaning the deployed version cannot be changed. Everything you will deploy will stay there and will be visible to anyone. Even if in the future you will update the version of your app - this fact will also be stored in the blockchain, and the original version will still be there
- In the public blockchain, data, and programs are publicly available, with no way to hide them.
- Blockchain apps have an asynchronous nature, which means that data can be transmitted and processed independently of time constraints or a centralized authority and there is only one deployment to the whole network.
Key Components of a Blockchain Application
Nodes: These are the participants in a blockchain network, ensuring all transactions are valid.
Ledger: A chronological record of all transactions that have taken place.
Consensus Mechanism: This is how transactions are verified, ensuring that all nodes agree on the validity of a transaction.
Smart Contracts: These are self-executing contracts where the terms are directly written into lines of code.
Introduction to dApps (Decentralized Applications)
dApps, or decentralized applications, represent a new paradigm in software architecture. Unlike traditional applications that run on centralized servers, dApps operate on a blockchain or a peer-to-peer (P2P) network of computers. This decentralized nature ensures that they are not controlled by any single entity or organization.
They operate autonomously, with decisions being made based on consensus mechanisms rather than a central authority. Furthermore, all data associated with dApps is stored on a blockchain, ensuring transparency, immutability, and enhanced security. This combination of features positions dApps as a transformative force in the digital world, offering a more open, resilient, and user-centric alternative to conventional applications.
How Blockchain Apps (dApps) Differ from Non-Blockchain Apps
There are several aspects that make blockchain applications different than classic, centralized applications:
Decentralization: Unlike traditional apps, dApps don't rely on a central authority or intermediary.
Transparency: Every transaction on a dApp is visible to participants, ensuring full transparency.
Immutability: Once data is added to a blockchain, it's nearly impossible to alter, ensuring data integrity.
Token Economics: dApps often use tokens to incentivize users or facilitate operations within the app.
Interoperability: dApps can share data and trigger actions across different blockchains, allowing for more integrated systems.
All the above make a blockchain the perfect place for all innovators and companies who want to lead the future of business in their industry.
Blockchain app development: before you start
Before you start developing your blockchain app, it is essential to verify that your idea is implementable in a blockchain environment. Ensure you have a CTO who understands blockchain technology and builds clear documentation or a whitepaper to guide your development team on expected results. Check if the network you have chosen is right for you, and if you have a team skilled in the language you choose.
Blockchain app development: the network
Choosing the right network is crucial to the success of your blockchain app. Factors to consider include the cost of transactions, maximum throughput, network security and safety, centralized vs. decentralized, and Layer 1 vs. Layer 2. Verify the existence of the protocols and tools you need to integrate with and check if there is a good TestNet in the context of the protocols you want to integrate. Finally, verify the roadmap and maturity of the network.
Choosing the right dev team
Choosing the right development team is critical to the success of your blockchain app. Ensure that your team knows the language you chose to develop your app and has experience implementing apps on the blockchain you chose. Ensure your team has a strong leader with a solid understanding of how blockchain works.
Users onboarding
Onboarding users to your blockchain app requires careful consideration of appropriate approaches to establish user wallets, ensuring the KYC process when necessary, making sure users are mature enough to understand the usage of third-party wallet providers, and staying eligible with the law.
Applications security
Security is a crucial aspect of blockchain app development. In a decentralized environment, security and safety must be built into the app's design and protocol itself, rather than relying on external measures such as firewalls or access control lists. To ensure the security and safety of your blockchain app, it's essential to follow the network specifications you choose and be aware of any new EPI that may affect your code.
Additionally, reviewing your code against newly discovered language weaknesses and maintaining up-to-date documentation of the libraries and protocols you depend on is important. Structuring your data in smart contracts can also be challenging for blockchain app development, as it can be limited and expensive. Careful consideration should be given to structuring your data to balance efficiency and security.
Finally, deploying your blockchain app requires proper private key management and a multi-sig approach. This approach can help ensure that multiple parties are required to sign off on a transaction, reducing the risk of unauthorized access or theft. By following best practices for blockchain app security, your business can provide your customers with a secure, transparent, and decentralized solution to their needs.
Potential Business Use Cases for Blockchain Apps
Blockchain at the moment is usually known for cryptocurrencies, but businesses already use it in many industries. The most prominent of them is:
Supply Chain Management: With blockchain, businesses can ensure product authenticity and trace every product back to its origin.
Financial Services: Blockchain can streamline payments, and remittances, and significantly reduce fraud.
Real Estate: Property transactions can be simplified, reducing the need for extensive paperwork and intermediaries.
Healthcare: Patient data can be securely and transparently managed, ensuring privacy and accuracy.
If you would like to know in detail how they utilize blockchain technology - I invite you to our article about Blockchain Technology in Business Operations.
Challenges in Blockchain App Development
With all its unique perks, blockchain technology also has its own challenges that have to be mentioned.
Scalability Issues: As the number of transactions increases, so does the need for more computational power.
Integration with Existing Systems: Integrating blockchain with current systems can be complex.
Regulatory and Compliance Concerns: The legal landscape for blockchain is still evolving, posing challenges for businesses.
Skill Shortage: There's a growing demand for specialized blockchain developers, leading to a skill gap in the industry. Fortunately, with this aspect Neti can help.
On the market, there is a growing number of solutions that allow you to deal with these problems, but with every new technology, also blockchain has it’s own challenges, that still need to be addressed.
In conclusion, blockchain technology offers a unique approach to software development, providing businesses with secure, transparent, and decentralized solutions for a wide range of use cases. As explored in this article, building blockchain apps has unique advantages and challenges, such as immutability, limited TPS, complex error management, and expanded security and safety models. To ensure success, choosing the right network and development team, following best practices for onboarding users, and deploying your blockchain app is crucial. By leveraging the benefits of blockchain technology and carefully planning and executing your blockchain app development, your business can stay ahead of the curve and provide innovative solutions for your customers.
Thinking about building one?
Neti has been doing Web3 engineering since 2019. That includes upgrading a live Substrate chain to EVM compatibility without a relaunch, and rebuilding an EVM-compatible Layer 1 that could not hold consensus, with a working testnet in three months.
The first conversation is about architecture, not scope: whether blockchain is the right answer here, which network your constraints point to, and what has to be settled before anyone writes code. If blockchain is not the right answer, we will say so. See what our blockchain app development company delivers →
