Blockchain application development has been one of the hottest names for quite some time now. Whether in finance or healthcare, blockchain technology has been widely adopted around the world in recent years. Blockchain applications are nothing but one of the prominent outcomes of the growing craze for blockchain technology innovation across various sectors.
According to a recent market report, the global blockchain market is projected to reach $1,431.54 billion by 2030, while the blockchain sector is subject to an increase of $1.76 trillion in global GDP (gross domestic product) by 2030. Not only does this mean a significant impact on the global economy, but also a shift in current application development trends.
To take advantage of this high potential, a significant number of people are considering blockchain application development as a lucrative business idea. You too can take advantage of the current scope of growth and upcoming opportunities through blockchain application development. If you’re wondering where to start, read on. We will guide you through the detailed steps of developing a blockchain application.
What is a blockchain application?
A blockchain application is defined as a decentralized application where the members of the blockchain are the users of the application. One of the unique factors of a blockchain application is that there is no server like a traditional application that sits between user actions and transactions such as money transfers, data exchange, sending and receiving messages and more.
In a blockchain application, the blockchain network shares relevant data among all blockchain members who act as mini-servers as well as users. Here, data is stored chronologically in blocks. Cross-border payment applications, supply chain applications, logistics monitoring applications, and NFT marketplace-related applications are some of the common examples of blockchain applications.
How does a blockchain application work?
Before you start developing a blockchain application, you need to know the basics of how blockchain works. In a blockchain network, all data is stored in blocks and is shared between partners in the blockchain network. As a result, every blockchain user has a record of their actions stored on their devices. This not only helps in easy, fast and reliable data access but also ensures data security and retrieval in case of any disruption.
Blockchains work in a unique way. Here, data is stored in a chain of blocks and once a block of data is added, it cannot be changed, making blockchain technology stand out from other conventional technologies when it comes to secure data storage and retrieval. Because blockchain technology provides high data protection against theft, compromise, or hacking, it is often the first choice for secure data storage in various industries – from finance to healthcare.
There are two types of blockchains – permissioned blockchains and permissionless blockchains. A permissioned blockchain refers to a blockchain that allows only authorized users to perform operations on the blockchain. On the other hand, a permissionless blockchain is a blockchain where any user can perform relevant operations and communicate with others through the blockchain network.
Key industries for blockchain applications
Blockchain applications are no longer limited to the financial sector but are spread across various industries. Some of the most popular industries where blockchain applications are very popular are –
- Health care
- IoT startups
- The music industry
Advantages of blockchain applications
Blockchain applications have countless advantages that make them highly sought after around the world. Below are some of the main benefits of blockchain apps that can help you better understand why you should go into blockchain app development.
One of the main reasons for the high adoption rate of blockchain applications is the high level of security it offers. For example, in a healthcare blockchain application, sensitive information and data related to patients’ vital signs, past medical history, current diagnosis, progress reports, and more can be securely stored. This data is not meant to be changed or lost as this can have serious consequences.
A blockchain healthcare application protects such data from unverified modification or breach. Similarly, blockchain applications offer impenetrable security for such data storage, access, or retrieval in various sectors – banking, gaming and more. As a result, security is a major driver of the growth of the blockchain application market.
As mentioned earlier, blockchain technology is quite versatile and flexible when it comes to developing blockchain applications of various categories. You can create a gaming blockchain application as well as an IoT blockchain application and in both cases, you will be able to take advantage of the unique features that blockchain technology offers. So, undoubtedly, this is one of the main advantages of developing blockchain applications.
If you are well versed in cryptocurrencies and want to avoid the hassle of conventional long transactions, high bank fees and more, then blockchain technology may be your choice. Transactions here do not require any additional fees and can be done through cryptocurrency exchanges without any problems. Also, if you are interested in NFTs, then such transactions are the only option for you.
Easy learning curve
The overall blockchain technology and its applications are easy to learn and understand and you can be using it like a pro in no time. Not only does this technology offer several unique advantages, but it offers a very simple learning curve that makes such applications easy for anyone to use.
Blockchain Application Development: Steps to Follow
Now that you have a clear idea of what blockchain technology is and the benefits of blockchain application development, now is the time for us to guide you further. So we will guide you through the steps to develop a blockchain application as below.
1. Define and clarify your idea
The first step to developing a blockchain application is to define and plan your entire idea. Why you want to build a blockchain application, what blockchain knowledge you have, what your expertise is in relevant blockchain application development, and other information is essential to clarify your idea. Also, you need to be transparent about your sources, funding, the overall outline of the app idea and all the relevant details, rather than just having a vague idea.
2. Analyze your options
Even if you decide on specific blockchain application development initiatives, there are probably better options out there for you. For example, if you have decided to develop a gaming blockchain application, but after initial planning, you find that you are more exposed to IoT, you can choose the second option.
At the same time, you need to thoroughly analyze how blockchain applications are performing in the respective sectors and how your application can help align with your overall business goals and more. The purpose of this step for developing a blockchain application is to go through all the available options and find the one that suits you best.
3. Do competitor research
Competitive research is essential for blockchain application development as it is a highly competitive and dynamic market. Statistics say that almost 24% of companies have invested between 5 and 10 million USD in blockchain since 2021, and this amount is likely to grow further in the coming years. And not only that, from tech giants to new entrants, companies are increasingly emerging as blockchain leaders, making the competition tougher than ever.
4. Choose the right platform
5. Develop the application
This is the most important stage to transform your idea, planning and knowledge through blockchain application development. Some of the important indicators to consider here are –
- Whether you want to hire a developer, a third-party development service provider, or you want to build on your own
- What platform, technology stack, coding or framework do you prefer for developing blockchain applications
- What type of blockchain application development do you prefer – permissionless or permissioned
- What are your preferred strategies for interactions and transactions between node.
6. Launch and maintain
Once your app is ready, you can launch it in your target markets. Even if you are targeting a regional market, it is always recommended to keep this provision to go global or expand your business. You need to do marketing not only during this phase but start much earlier once your product is ready. This will help you create the much-needed hype.