Getting Started With Blockchain Development: The Complete Guide

The word “Blockchain” has been popping up a lot lately, and for good reason. This automation is revolutionizing the way we do business by providing a secure way to store data and conduct transactions. It is such a powerful technology that world governments are taking notice of, and it is becoming more integrated into our day-to-day life. It is predicted that by the year 2025, blockchain technology will be integrated into every business in the world.

You must have been reading about the havoc that blockchain already is or is potentially capable to cause in multiple sectors. There are countless potential use cases for this refreshingly technology. This blog is designed for young innovators to learn how they can use blockchain to revolutionize the industry.

🔶What Is Blockchain?

Today, Blockchain is often referred to as a distributed ledger, meaning it does not require a central authority to verify or approve transactions. In simple words, a blockchain is a record of transactions that anyone can view and verify. It is the underlying technology behind digital currencies like Bitcoin.

The Bitcoin blockchain, for example, keeps track of every time a bitcoin is sent or received. Cryptocurrencies and the blockchain technology that enables them enable value to be transferred online without the use of an intermediary such as a bank or credit card provider.

Instead, transactions are verified by the network of nodes that make up the blockchain. The nodes/validators together arrive at a consensus on whether to validate the transaction. The criteria they use to arrive at a consensus are pre-decided. This decentralization of data makes blockchains secure and resistant to fraud.

🔶What Is A Consensus Mechanism?

A consensus mechanism is a set of rules used to determine how a group of individuals can agree on a course of action. Consensus mechanisms are commonly applied in decision-making processes, both within businesses and organizations and wider society. A variety of different consensus mechanisms can be used, each with its own advantages and disadvantages.

🔶Popular Consensus Mechanism

1. Proof Of Work

In a proof of work blockchain, each block contains a cryptographic hash of the previous block and a timestamp and transaction data. The computers in the network compete to validate transactions by solving complex mathematical problems.

The first computer to solve the problem gets to add the next block to the blockchain and is rewarded with a transaction fee. This type of blockchain is often used to secure cryptocurrency networks, as it is resistant to 51% attacks.

2. Proof Of Stake

A proof of stake blockchain is a distributed ledger that uses a consensus algorithm to validate transactions and ensure the network’s security. Unlike a proof of work blockchain, which requires miners to invest significant computing power to validate transactions.

An explanation of stake blockchain allows users to validate transactions by holding a definite number of the network’s native tokens. This makes the proof-of-stake consensus algorithm much more energy-efficient than its proof-of-work counterpart.

One of the key advantages of a proof-of-stake blockchain is that it is more decentralized than a proof-of-work blockchain. Since anyone can validate transactions on a proof of stake blockchain by holding the native token, there is no need for a centralized group of miners. This allows for a more democratic and decentralized network.

Another advantage of a proof of stake blockchain is that it is more secure than a proof of work blockchain. Since the consensus algorithm is based on stake, it is difficult for a single user or group of users to control the network. This makes a proof-of-stake blockchain much less susceptible to 51% attacks and other forms of fraud.

3. Delegated Proof-Of-Stake

The delegated proof of stake (DPoS) mechanism is a consensus algorithm used to achieve consensus in a distributed ledger or blockchain. Under this algorithm, the agreement is reached through voting and delegation.

Each network member who holds a stake in the catalog (i.e., has a balance of tokens) is entitled to vote for a delegate. The delegates are then responsible for validating transactions and maintaining the ledger. 

The key advantage of the DPoS mechanism is that it is much more efficient than other consensus algorithms, such as the proof of work (PoW) algorithm. This is because there is no need for all members of the network to participate in the consensus process.

Only the delegates need to be online and available to validate transactions. This makes the DPoS mechanism much more scalable than other algorithms. 

Another advantage of the DPoS mechanism is that it is more secure than other algorithms. This is because the network members choose the delegates, who can be replaced if they are not doing their job properly. In addition, this means that the network is less vulnerable to attacks, as there is no single point of failure. 

A disadvantage of the DPoS mechanism is that it is not as decentralized as other algorithms. This is because only a small group of people (the delegates) have the power to validate transactions. 

Overall, the DPoS mechanism is a very efficient and secure way of achieving consensus in a distributed ledger or blockchain. However, it is not without flaws, and it is wise to be aware of its limitations.

🔶Structure Of A Blockchain

Blockchain is a dataset stored in multiple divided blocks in its rawest form. The blocks are connected serially so that each block contains the address pointing to the previous block. 

The size of the block is predefined. With time, whenever a piece of data is added, it is stored in a new block. This new block is wisely attached serially to the end of the blockchain.

The blockchain mechanism is designed so that each component comes together and helps achieve the three core concepts of Transparency, Immutability, and Decentralization. 

This is the reason why this technology is baffling Industry Leaders. However, blockchain is a boon for businesses as it can help create trust among stakeholders and transparency. Therefore, all companies can take advantage of blockchain technology and reap the benefits.

🔶What Is The Structure Of A Blockchain?

A blockchain is a digital ledger that contains a record of all cryptocurrency transactions. It is constantly expanding as new “finished” blocks with fresh records are added to it. Each block contains the previous block’s cryptographic hash, a timestamp, and transaction data.

Blocks are chained together through the cryptographic hash, which creates a secure and tamper-proof record of all transactions. The first block in a chain is known as the genesis block, and each subsequent block is generated based on the previous block’s hash.

For a block to be added to the chain, it must be validated by all nodes in the network. Each block represents an event in time, which is then recorded in the blockchain. Once a block is added to the chain, it cannot be modified or removed.

Bitcoin nodes use the blockchain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

The blockchain is an immutable, tamper-proof record of all transactions that have taken place on the network. In addition, because it is distributed across the entire network, it is virtually impossible to hack or tamper with.

This makes it an ideal platform for storing sensitive data or conducting transactions that need to be secure and transparent.

🔶What Is A Blockchain Developer?

A blockchain developer is someone who creates as well as maintains blockchain applications. They are responsible for designing and implementing enhanced features and functionality over blockchains.

They also test, troubleshoot and resolve issues. Blockchain developers must also have a thorough understanding of the business application of the technology.

They specialize in developing and maintaining decentralized applications (dApps) on a blockchain platform. A blockchain developer is responsible for creating and implementing smart contracts, automating transactions and storing data on a blockchain.

In addition to their technical skills, blockchain developers must understand game theory and economic incentives strongly. This will enable them to design apps that are secure while being as efficient as possible.

When it comes to Blockchain development, there are two types of it

  1. A Core Blockchain Developer
  2. A Blockchain Software Developer

1. Core Blockchain Developer

A Core Blockchain Developer is responsible for developing and maintaining a blockchain platform’s core software. This includes the underlying consensus protocol, the peer-to-peer networking layer, and the blockchain data structure.

They must have a strong understanding of distributed ledger technology and how it works. A core blockchain developer must have a strong sense of cryptography and computer science, as well as a deep knowledge of the inner workings of a blockchain platform. They must also be able to support the network and help resolve any issues that may arise.

2. Software Blockchain Developer

A blockchain software developer is responsible for developing and maintaining software that runs on a blockchain platform. This may include developing smart contracts, creating applications that use the blockchain, or developing tools to help others use the blockchain.

This would consist of creating enhanced features and ensuring that the software is secure and efficient. In addition to development, you would also be responsible for providing support to users and helping to troubleshoot any issues that may arise. A blockchain software developer must understand the blockchain platform they are working on and its ecosystem.

As a Blockchain Developer, you would be responsible for developing and maintaining the software that powers these digital currencies. As blockchain technology evolves, you must keep up with the latest changes and trends. This ensures that the software you develop is always at the forefront of the industry.

🔶Why Use Blockchain?

There are several reasons why blockchain technology is gaining popularity. 

First, a database is not controlled by any single entity. This decentralized nature makes it resistant to tampering and corruption. It is a distributed database that is more secure and resistant to hacks and data breaches.

Second, blockchain is transparent and immutable, meaning that all transactions are visible to everyone on the network and cannot be altered or deleted. This transparency and immutability create a trustless environment where users can transact without needing a third party.

The other reason is that it is a secure and efficient way to store data. As a result, it has the potential to streamline many business processes and reduce costs.

Finally, blockchain is fast and efficient, confirming transactions in seconds. This makes it ideal for use in various applications, from financial services to supply chain management.

Blockchain is a new way to use the internet. It makes it possible to create a public ledger of transactions that cannot be tampered with. Anyone can see the to, from, and amount of every transaction on the blockchain. This makes it possible to track the origin of funds and their use.

Related Read: How Blockchain Is Changing The Healthcare Industry?

Looking For A Revolutionary Solution With Blockchain?

🔶What Are The Advantages Of Blockchain?

Since the blockchain is divided into small blocks which are not needed to be together, the division makes it easy for the blockchain to be stored in different machines.

The blocks can be stored in any number of computers and utilized from anywhere as long as it is connected to a network. The experts call this Decentralization.

When one wants to add new data to the dataset, it creates a new block and connects the node of the last block with this newly created block. Even if you want to edit a piece of information stored previously, blockchain is designed not to edit the data itself held previously.

Rather it creates a new block that keeps the further information. This ensures that all the records of the report are stored. When a program’s current state of data is required, it will fetch the updated information. Contrarily, when the old records and edits are needed for an audit, the old data will always be stored in it. This blocking mechanism enables the blockchain to be Immutable

Each data stored in the blockchain is cryptographically secured, and the resultant hash value is a part of the address. If one forces edit to the data of that block, the resulting encrypted value changes, thus changing the address of the league.

Since all the blocks are serially connected through their talks, a single change in the address of one block will break the series, breaking the blockchain itself. The block also stores the timestamp of when the block was created. The encrypted value and the block’s timestamp together form the block’s address. Therefore anyone can fetch or store the data inside the blocks without fearing modifying or losing data. This is called Transparency.

Blockchain technology is secure by design. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger. There are a few key reasons why blockchain technology is so secure. 

First, every transaction is verified by network nodes before it is recorded on the blockchain. This verification process ensures that no fraudulent transactions are recorded on the blockchain.

Second, The decentralized structure makes it difficult for hackers to target the blockchain. This means that there is no central point of control. Rather, the blockchain is maintained by a network of computers worldwide. 

Third, blockchain technology uses cryptography to secure transactions. Transactions are encoded and stored on the blockchain securely, making it difficult for hackers to tamper with them. The combination of verification, decentralization, and encryption makes it a very Secure technology against the traditional ones.

Blockchain is an efficient technology because it does not require a central authority to verify or approve transactions. Instead, each transaction is confirmed by the network of nodes, or computers, that make up the blockchain.

This means that transactions can be processed much faster and with far less overhead than traditional methods. This makes it ideal for a wide range of applications.

🔶Blockchain Applications

Recently, we have seen a lot of buzz around blockchain technology. We have seen a lot of transactions being processed through blockchain technology. However, many people do not know how this technology works. Therefore, people still restrict blockchain as a tech that makes it easy for fast, transparent, and secure transactions. 

There are many potential applications for blockchain technology. For example, it could be used to create a secure, decentralized registry of medical data or streamline voting. In addition, it could be used to create a decentralized registry for identity verification. This would be particularly useful in countries where the government does not have a reliable way to verify people’s identities. 

Blockchain could also create a peer-to-peer system for managing land titles. This also would be beneficial in countries where the government is not efficient in keeping track of who owns what land. Finally, blockchain could create a secure, decentralized system for managing supply chains. This would be beneficial in industries where it is important to track the provenance of goods.

But Yes, one of the most compelling use cases for blockchain is in the area of payments. Because blockchain records transactions in a secure, tamper-proof way, it has the potential to revolutionize the way we make and receive payments.

Blockchain-based payments could be faster, more secure, and more efficient than traditional payments. They could also help to reduce fraud, as blockchain’s tamper-proof ledger could make it difficult for criminals to alter transaction data.

Moreover, blockchain payments could potentially be made without needing a third-party processor, which would further reduce costs.

Related Read : Introduction To Ethereum

🔶Companies That Are Currently Leveraging Blockchain Technology

Blockchain is an often-misunderstood technology. However, it is gaining traction as more companies recognize the potential it brings. The best part about blockchain technology is its potential to improve the world. It has the power to change the way we live and do business. Let’s take a look at the 5 existing companies that are developing their new business around blockchain.

🔹Kodak

Kodak, the 130-year-old camera former photography giant, is making heads turn by announcing the KodakCoin. KodakCoin is a currency that will run on KodakOne, a secure digital ledger on a blockchain platform.

Once a photographer uploads their product, a unique id will be attached to that product. That photographer’s products will be stored in their name in a digital ledger.

The platform will make it effortless for photographers to register their work, thus helping them showcase, market, and license it hassle-free. In the future, They plan to develop an image recognition algorithm that will scour the web for potential copyright infringement.

🔹TikTok

TikTok has also announced its partnership with Audius, a streaming music platform. Of course, Audius was not the first choice for TikTok in exchange for the streaming giants like Spotify, Apple, and YouTube. But Audius was different because it was a platform built on blockchain.

Audius runs on a ‘user-centric’ model in contrast to the ‘pro rata’ model used by Spotify and Apple. In the ‘pro rata’ model, the total revenue collected from a single user is equally divided into the number of the different tracks played by the individual.

The downside to this model is that even if the user plays a song from their local creator frequently and plays music from a famous artist once, both artists get an equal amount of revenue. In the ‘user-centric’ model, the artist will get a share of the payment based on the number of plays. 

Both of these innovations will empower individual artists to have a secure and stable source of revenue by leveraging their work. And it will also help them to reduce the theft of their intellectual property.

🔹Walmart

There are two particular use cases of Blockchain in Supply-chain. One is to leverage its swift and tamper-proof advantages to manage the inventory and logistics. The other is its transparency in dealing with the product’s authenticity.

Problems in the supply chain include managing information from multiple channels and real-time systems monitoring to identify the bottlenecks created due to human errors. However, these issues can be reduced with the help of smart contracts and the transparent nature of blockchain.

Walmart is a retail behemoth known as an industry leader in supply chain management. It has now employed a blockchain solution to tackle some of the long-standing problems of Supply-chain.

Walmart is already leveraging the potential of Blockchain in Canada. Their new platform is used to share data among the parties involved. From the real-time location of the package to automatically updating the status of each item applied, the system’s efficiency is increased.

A unique token id is assigned to every product. The Token ids are stored on-chain, and their positions are updated with the passage of each checkpoint. Everyone has access to a copy of the chain and an audit trail that can’t be tampered with. Regarding the blockchain, every participant has a digital signature to authenticate the tokens moving through the chain.

🔹Amazon

Amazon has patented a new system that would help to ensure that the consumer goods sold on its site are authentic. Achieving trust in the supply chain is only possible when there is transparency between co-stakeholders and their processes. Data accessible through a decentralized ledger system like blockchain provides clarity throughout the supply chain.

The system, called “distributed ledger certification,” would use a distributed ledger to track the provenance of products sold on the site. This would help Amazon to ensure that the products sold on its site are genuine and not counterfeit.

Blockchain has the potential to transform supply chains by making them more transparent, resilient, and efficient. By decentralizing data and automating processes, blockchain can help reduce costs, improve visibility, and speed up supplier onboarding.

🔹Lloyds

In a surprise move, Lloyds of London is planning to use blockchain technology to manage and reduce insurance claims costs. The insurance giant is working with software firm ConsenSys to implement a blockchain platform to automate insurance claims.

Anybody who has ever filed an insurance claim knows how painful it is. First, you have to call the insurance company to report your claim. This may take a while because there are often long wait times. You then have to provide the insurance company with a list of all the items that have been damaged or stolen.

The insurance company will then contact the third-party appraiser, who will estimate the damaged or lost items. If you are lucky, the insurance company will agree to pay for your claim. If not, you will have to file a dispute.

Blockchain technology has resulted in a faster and more efficient business. Blockchain technology has wider applications in the insurance sector, such as smart contracts, and has been touted to reduce settlement times, increase transparency, and cut costs.

For all these reasons, blockchain technology is something that businesses and consumers should keep an eye on. It can revolutionize how we make and receive payments and could have a major impact on a wide range of industries.

🔶Why Hire A Blockchain Developer?

There are many reasons to hire a blockchain developer. First, blockchain is a relatively new technology, so there is a shortage of developers with experience in this area.

Second, blockchain is a complex technology, so it is important to hire someone familiar with the various aspects of blockchain development. 

Third, blockchain projects tend to be large and complex, so it is important to have a developer on hand who can help manage the project and ensure that it is completed on time and within budget. Finally, blockchain projects often require a high degree of security, so it is important to hire a developer familiar with blockchain development’s various security aspects.

Blockchain developers are often involved in cutting-edge projects, so they can bring a lot of excitement and energy to a project. Blockchain developers can potentially make a big impact on a project, so they are worth the investment.

🔶What To Look For In A Blockchain Developer?

If you’re looking to hire a blockchain developer, there are a few things you’ll want to keep in mind. First, finding someone with the technical skills and experience necessary to build a blockchain solution is important. Second, blockchain developers are in high demand and can be difficult to find. You may want to consider using a recruitment agency to help you find the right candidate. 

When assessing candidates, it is important to find someone familiar with the specific needs of your project. Be sure to ask about their experience with blockchain technology and particular platforms. You’ll also want to ask about their coding skills and whether they’re familiar with smart contracts.

Finally, be sure to negotiate a fair salary with your chosen candidate. Finally, it is important to find someone willing to work with you to ensure the success of your project. With the right developer on your team, you’ll be well on your way to success in the blockchain space.

🔶What Are The Hourly Rate Of Blockchain Developers/ How Much Do Blockchain Developers Cost?

There is no one-size-fits-all answer to this question, as the hourly rate of a Blockchain Developer can vary depending on their exposer, skillset, and the specific project they are working on.

However, according to a recent report by Upwork, the average hourly rate for Blockchain Developers is $61.73. This rate can fluctuate depending on the project, with some developers charging as much as $100 per hour, and others charging as little as $20 per hour. 

Rates also vary depending on the place of the developer, developers in high-demand locations such as Silicon Valley or New York City may charge a premium for their services. Ultimately, the best way to determine the hourly rate of a Blockchain Developer is to discuss the project in detail with the developer themselves.

Developers in North America and Western Europe typically charge more than those in other parts of the world.

  • The average wage of a blockchain developer in the US is over $96K
  • The average wage of a blockchain developer in the UK is over £68,000
  • The average wage of a blockchain developer in Singapore is around S$95,865
  • The average wage of a blockchain developer in Canada is CAD 95,000
  • The average wage of a blockchain developer in Germany ranges from $60K to $150K 
  • The average wage of a blockchain developer in Switzerland is USD 180,000
  • The average wage of a blockchain developer in Canada is C$136,500. Additionally, an entry-level position averages C$78,500
  • The average wage of a blockchain developer in China ranges from Standard ¥45k to ¥60k, according to the Blockchain Council. Directors and managers earn approximately ¥60k to ¥120k.

🔶How To Find Blockchain Developers?

There are several ways to find and hire blockchain developers that are a good fit for your company.

👉 A location where it is almost a guarantee that every person you connect with will either be a developer or will know some developers themselves is Community Conferences. These conferences are a must-visit if you want to find a suitable candidate for your venture.

Try to attend and network with as many individuals as you can. You will find plenty of experienced as well as hardworking enthusiasts who are looking for an opportunity. Your only job is to inform these individuals of what you are offering and what role they are required to fulfill. 

👉 The best way to find a blockchain developer is to use a reputable online platform that connects developers with employers. Such a platform will allow you to view potential candidates’ profiles and contact them directly.

In addition, it is important to use a platform that offers escrow services to protect your investment. There are a few different places that you can go to hire blockchain developers. One option is to use a freelancing platform like Upwork or Fiverr. Another option is to use a dedicated blockchain development platform like Blocklancer. 

👉 You could also reach out to blockchain development company like MindBowser. Inc. Using a development firm has its advantages. Blockchain development company usually have a team of experts who can develop high-quality applications.

This means they can provide their clients with the best possible highest quality service. Blockchain development company usually have a lot of resources and infrastructure to support their clients. This means that clients can be sure they will access the latest technology and resources.

👉 MindBowser is a blockchain development company. We provide professional services to help you build decentralized applications for various business use cases. Our blockchain experts have worked on projects in multiple industries, including supply chain, healthcare, retail, and financial technology. 

Blockchain technology is one of the most exciting technologies in years. It has exploded onto the scene in recent years and has the potential to transform how our society works. Blockchain can be used in many different industries.

Ultimately, blockchain technology has the potential to change the way we interact with several different systems and institutions. For example, it could make transactions faster, cheaper, and more secure, and it could help increase transparency and accountability in many different areas. 

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Conclusion

This blog was designed to help you get acquainted with the basics of blockchain development so that you can develop your applications as soon as possible. Whichever route you choose, make sure to do your research in advance so that you can find the best likely developers for your project.

Content Team

This blog is from Mindbowser‘s content team – a group of individuals coming together to create pieces that you may like. If you have feedback, please drop us a message on contact@mindbowser.com

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