Create your own Blockchain

What is Blockchain Development?

Blockchain is a decentralized and distributed digital ledger technology that allows multiple parties to maintain a shared record of transactions or information securely and transparently. It is the underlying technology behind cryptocurrencies like Bitcoin, but its applications go beyond just financial transactions. Blockchain is secure and transparent. It uses cryptography to secure the data. Each information is encrypted and linked to the previous information in a chain, making it very difficult to alter or delete data without being detected. Anyone can view the transactions on a blockchain, which provides high transparency and accountability. 

Blockchain development encompasses building applications and systems that leverage the power of blockchain technology. It involves designing and building decentralized applications (DApps), smart contracts, and the underlying infrastructure required to support blockchain networks.

To build a blockchain one requires proficiency in programming languages such as Java, PHP, SQL, Rust, Ruby, etc. Additionally, developers should have a strong understanding of cryptography, distributed systems, and the specific features and limitations of the chosen blockchain platform.

How to create a Blockchain?

Step 1 - Identify a Problem to solve

While blockchain boasts impressive advantages, it's crucial to avoid a "one-size-fits-all" mentality. Before diving in, thoroughly scrutinize your desired outcome. Align your specific business goals with the blockchain use cases outlined above.

Formulating a clear problem statement is crucial. This statement should meticulously detail the challenges you seek to address. Subsequently, verify if blockchain is genuinely equipped to tackle these issues. Finally, determine whether migrating your existing solution or building a new application from scratch aligns better with your project.

Step 2 - Draft your business requirements

Following an in-depth analysis, meticulously craft your business requirements document to ensure a comprehensive and successful implementation. This document should identify both on-chain and off-chain technologies necessary for building a fully functional ecosystem. Leverage these details to establish a concrete product roadmap, aiding in maintaining adherence to deadlines and facilitating resource allocation.

3 things the blockchain can do well

• Data Authentication & Verification

• Smart Asset Management

• Smart Contracts

Step 3 - Identify the Consensus Mechanism

After defining your business requirements, the crucial step involves selecting a consensus mechanism. This mechanism serves as the foundation for trust, security, and agreement within the decentralized network. While various options exist, some widely adopted mechanisms include:

• Proof of Work (PoW)

• Proof of Stake (PoS)

• Byzantine Fault Tolerance (BFT)

• Deposit-based consensus

• Proof of Elapsed Time (PoET)

Therefore, conducting thorough research and selecting the best fit is paramount for a successful implementation.

Step 4 - Identify the suitable blockchain platform

Selecting the appropriate platform for your blockchain application directly impacts the required skillset of your development team. Choosing wisely is crucial, as proper development requires thorough research and investment of time. To ensure the best fit for your business needs, consider the following factors during your evaluation:

• Targeted problems

• Cost considerations

• Development expertise

• Project Timeline

By carefully evaluating these factors, you can make an informed decision that sets your project up for success.

Step 5 - Design your Blockchain Nodes

Before commencing development, several key decisions must be made, to determine whether your project requires a permissioned blockchain or a permissionless one. Choose suitable programming languages and assess their impact on development. Decide between a private, public, or hybrid model for your blockchain solution. Will the nodes be cloud-based, on-premises, or a combination? Select the compatible operating system that best supports your application.

Meticulous evaluation of these factors weighed against your project's objectives, available resources, and budget, will ensure a well-designed and strategically developed blockchain solution.

Step 6 - Identify your Blockchain Configuration

Most blockchain platforms require careful planning for various configuration elements, such as:

• Permissions

• Asset Issuance and Re-issuance

• Atomic Exchange

• Key Management and Multi-Signatures

• Parameters

• Native Assets, Address Formats, and Key Formats

• Block Signatures and Handshaking

While some elements allow for dynamic adjustments during operation, thorough planning beforehand is crucial for streamlined development and successful implementation.

Step 7 - Build your APIs

Depending on the platform you choose, pre-made application programming interfaces (APIs) might be available. However, in some cases, you may need to develop custom APIs to address specific needs, such as:

• Key and Address Management

• Auditing and Data Verification

• Data Access

• Smart Asset Management

• Smart Contract Interaction

By carefully considering your project's requirements, you can determine the need for custom API development and ensure a comprehensive and functional blockchain solution.

Step 8 - Design Admin and User Interface

Upon finalizing the overall application plan, you can move on to designing the user interface (UI) for each individual software component. The previously designed APIs will serve as the foundation for integrating the UI elements with the back-end functionalities. Remember, the visual design choices will influence the application's overall aesthetics, while the technical design decisions will impact its architectural structure and functionality.

Step 9 - Optimize your Blockchain Application

Evaluating the success of a deployed blockchain application is crucial. For compute-intensive applications, hardware acceleration can significantly enhance performance, flexibility, and power efficiency.

These accelerators act as performance boosters for key blockchain functionalities like transaction validation, governance, and data storage. By distributing transaction processing across multiple components, they can improve both transaction speed and overall system output, while also optimizing resource utilization and reducing storage needs.

Step 10 - Adding Future Tech

Blockchain technology presents exciting possibilities when combined with other innovative solutions like AI, biometrics, and the Internet of Things (IoT). This integration can significantly enhance the capabilities of blockchain systems.

While the initial hype surrounding blockchain may have overstated its universal applicability, its potential to revolutionize various industries remains undeniable. By embracing these technological advancements in conjunction, we can unlock a future where blockchain empowers us to tackle complex challenges in a secure, efficient, and innovative manner.

Blockchain Development Challenges

There are three main challenges in building blockchain such as decentralization, security, and scalability.

Decentralization

The main reason to use blockchain is decentralization. 
In the realm of finance, blockchain empowers individuals to manage their own cryptocurrency, bypassing the need for centralized control by banks. This system leverages a distributed consensus mechanism, where verification relies on approval from a network of participants instead of a single authority. This unique system ensures the immutability of transactions, meaning they cannot be altered once confirmed.

However, the decentralization offered by blockchain comes with a trade-off: achieving consensus through multiple confirmations can lead to slower transaction processing times. Accelerating this process remains a significant challenge for developers in the blockchain space.

Scalability

The global adoption of blockchain technology depends on its ability to handle a growing volume of transactions while maintaining expected performance and robust defense against cyberattacks. However, achieving high transaction scalability can present challenges, especially as block sizes increase.

In the case of Bitcoin, the original block size limit of 1 megabyte was set to mitigate the risk of cyber threats. However, each Bitcoin transaction contributes to the size of the block, potentially leading to blocks surpassing the imposed size limitations. This can negatively impact processing speed.

Although the block-size debate was initially sparked by Bitcoin, the decisions made by developers regarding block size increase will have implications for all blockchain applications. It becomes a critical consideration to strike a balance between block size expansion and maintaining transaction speed across various blockchain implementations.

Security 

Another main challenge faced by the developers is security, even though it is also one of the benefits of blockchain development. Blockchain is a secure technology, and also a target for cybercriminals. Anything that endangers blockchain security will cause a ridge between decentralization and scalability. Ans no centralized party can intervene without regulatory oversight in the moment of security breach. In blockchain security breaches are rare, so developers need to create blockchain networks that not only add business value but also add complete security

It is important to remember that blockchain technology is in the early stages, and these challenges are involved in the development of blockchain solutions. 

Why choose Osiz as your Blockchain Development Company?

The development of blockchain is a complex and tedious task you might need an expert to build your blockchain solution. Osiz is an expert in developing blockchain, as a leading blockchain development company, we specialize in cryptography, distributed systems, and smart contract development. Our experienced team of developers builds blockchain software that benefits your business to deliver a reliable, future-rich solution that aligns with your business objectives. 

Contact our blockchain consulting services team, and get free consultation on how to create your blockchain solution.