Steps to Build a Blockchain Solution

Steps to Build a Blockchain Solution

A Complete Guide to Blockchain Development

Blockchain technology is well known in today’s world. It is proposed for different business applications besides financial transactions. It improves security and speeds up the exchange of information while ensuring transparency.

Here, we have created a complete guide, which will help you build a blockchain-based application. Let’s learn everything you would need to understand about?Blockchain Development.

Creating a custom blockchain gives ultimate flexibility. You get:

  • Choice of consensus algorithms and mechanism
  • Your own balance of security, scalability, and decentralization to meet your business needs
  • Choice of programming language like python, java, solidity, and more
  • Control of codebase
  • Ability to update how and whenever you want
  • Ultimate flexibility

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Whatsapp?Telegram?Contact Us?9915006369 ~ SCO 64–65, 2nd Floor, Sector 34A, Chandigarh.

Step 1: Identify a Suitable Use-case

There’s a ton of hype around blockchain. I’ve read that blockchains can erase global hunger, make the world corruption-free, end poverty and do a lot more without breaking a sweat. Unfortunately, that’s not true. So, step 1 is to identify a use case that makes business sense.

  1. Data Authentication & Verification:?this includes immutable storage, digital signatures and encryption. Data in almost any format can be stored in the blockchain. Blockchains can create public-private key pairs and also be used for generating and verifying digital signatures.
  2. Smart Asset Management:?this includes issuance, payment, exchange, escrow and retirement. A smart / crypto asset is the tokenized version of a real-world asset e.g. gold, silver, oil, land.
  3. Smart Contracts:?This?is a term most often misunderstood, but that’s something for another day.

Step 2: Identify the Most Suitable Consensus Mechanism

The original blockchain, which powers the bitcoin crypto-currency, used proof of work as a consensus mechanism.

Depending upon your use case, you need to choose the consensus mechanism that makes the most sense. But today there are multiple blockchain platforms that offer a group of consensus algorithms and mechanisms such as?

  • Proof of Work (PoW)
  • Proof of Stake (PoS)?
  • Delegated Proof of Stake (DPoS)
  • Proof of Elapsed Time (PoET)
  • Proof of Importance (PoI)
  • Proof of Capacity (PoC)
  • Proof of Weight (PoWeight)
  • Proof of Activity (PoA)
  • Practical Byzantine Fault Tolerance (PBFT)
  • Simplified Byzantine Fault Tolerance (SBFT)
  • Directed Acyclic Graphs (DAG)
  • ?Tangle & more.

Step 3: Identify the Most Suitable Platform

There are many blockchain platforms out there today and most of them are free and open source. Depending upon the consensus mechanism you chose in step 2, you?need to select the most suitable blockchain platform.

Some of the more popular platforms are:

  • BigChainDB
  • Chain Core
  • Corda
  • Credits
  • Domus Tower Blockchain
  • Elements Blockchain Platform
  • Eris:db
  • Ethereum
  • HydraChain
  • Hyperledger Fabric
  • Hyperledger Iroha
  • Hyperledger Sawtooth Lake
  • Multichain
  • Openchain
  • Quorum
  • Stellar
  • Symbiont Assembly & More

Step 4: Designing the Nodes

Blockchain solutions can be permissioned (e.g. a Government-run land registry) or permission-less (e.g. Bitcoin, where anyone can become a miner). Blockchain solutions can be private (e.g. a contract management system implemented in a pharmaceutical company), public (e.g. an asset-backed cryptocurrency) or hybrid (e.g. a group of banks running a shared KYC platform).

Permissionless networks -?Anyone can join and starts to verifying. Most known examples are Bitcoin and Ethereum networks

Permissioned network -?In this case, the network owner fix who can join their network and only a few members are allowed to verify the blocks. The consensus mechanisms can be the same as in a permissionless network or can be completely uniquely developed.

Blockchain solutions can be private, public, or hybrid.

One more thing to consider at this step is whether the nodes will run on the cloud, on-premise or both. Then comes hardware configuration issues like processors, memory, and disk size. You are also required to choose the base operating systems.

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Step 5: Design the Blockchain Elements

Most blockchain platforms need very carefully planned configuration for the following elements:

  • Permissions
  • Asset issuance
  • Asset re-issuance
  • Atomic exchanges
  • Key management
  • Multi signatures
  • Parameters
  • Native assets
  • Address formats
  • Key formats
  • Block signatures

Some elements can be changed at run-time but some cannot, so this is a very important step.

Step 6: Building the APIs

Most of the immutable blockchain platforms come with pre-made APIs while some don’t. The most of APIs that you would require for your development project:

  • Creating key pairs and addresses
  • Acting audit-related functions
  • Data verification through hashes & digital signatures?
  • Data storage and retrieval
  • Smart-asset lifecycle management like issuance, payment, exchange, escrow, and retirement
  • Smart contracts

Step 7: Layout of the Admin and User Interface

At this step, you would need to choose the front end and programming languages. You would also need to choose external databases as well as servers (including Web servers, FTP servers, mail servers).

Step 8: Adding Future Tech

You can greatly enhance the power of your Blockchain solution by integrating Artificial Intelligence, Biometrics, Bots, Cloud, Cognitive services, Containers, Data Analytics, Internet of Things and Machine Learning.

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Grow Your Business with Our Expertise

Get your project estimations for well-informed business decisions and top-notch digital outcomes.

Whatsapp?Telegram?Contact Us?9915006369

SCO 64–65, 2nd Floor, Sector 34A, Chandigarh.

Ajay Angirass Sharma

Serial Entrepreneur | Co-Founder & CEO —?Morph?Academy, Zuri Academy, Bigboxx Acadmey, |?Boxfy, Franchising Roots, TestDelUK & Blockchain and Crypto startups

https://www.dhirubhai.net/in/ajay34/

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