What is a Blockchain App and Why It’s a Great Idea For a Startup?

A blockchain app uses a distributed database to store information about transactions and system status. The main advantage is that they have no centralized management, which makes them more secure and resilient.

Against this backdrop, the question of how to build a blockchain application is becoming increasingly relevant. 

The work begins with the creation of a transaction that is sent. The transaction includes information about who sends and receives the funds, as well as the amount of the transfer.

Members, which operate on a consensus protocol basis then validate the transaction. This creates a single version of the database that cannot be changed without consent.

Once the transaction is validated, the state of the system is updated according to the changes that have occurred because of the transaction. These changes are stored in blocks, which are then added to the blockchain.

In addition to transactions, the network can also use smart contracts. This is software code that automatically performs actions according to certain rules set by its creator.

Why do more and more startups want to build a blockchain application?

The growing popularity of the technology is due to several factors, including:

• Decentralization and security: avoiding a single point of failure and reducing the risks of hacker attacks. 
• Wide range of applications: can be used in various fields, including finance, healthcare, logistics, public administration, real estate ownership, and even in art and music.
• Improved productivity and reduced costs: can reduce processing and storage time and cost, resulting in improved efficiency and economic benefits.
• Distributed consensus: The technology uses a distributed consensus protocol that allows participants to agree on changes. This provides security and reliability because changes must be validated by multiple participants rather than a single centralized party.
• Innovativeness: An innovative approach to storing and processing data that can solve many of the problems companies and organizations currently face.

Blockchain has become popular because of its benefits and potential across industries. Also, it continues to evolve and improve, thanks to an active development community of developers and companies.

Also Read: Here are the Top 10 Trends in blockchain technologies in 2020

Which niches are typically being developed in

Technology can be applied to a variety of industries and fields. Some of the most common categories include:

• Finance and banking: protecting financial transactions; reducing transaction costs; improving risk management and more efficient use of resources.
• Supply Chain and Logistics: tracking and managing supplies and logistics, including to make sure supply transparency and product quality control.
• Healthcare: to protect medical data, and to facilitate the transfer and exchange of medical information between various participants in the healthcare industry.
• Intellectual Property: protecting intellectual property rights, such as copyrights and patents, and providing transparency in the licensing and use of an intellectual property.
• Public Administration: improving public administration and providing transparency and openness in the decision-making process.
• Gaming industry: creating gaming platforms that provide between players.
• Social and media: providing transparency as well as protection of personal information and privacy rights.

These are just some of the possible categories, and the list can go on depending on the specific task and application.

Top 5 popular blockchain apps for 2023

There are many blockchains on the market, each designed to solve specific problems and challenges. However, below are the 5 most well-known and recognizable:

• Bitcoin – the first and most popular blockchain used to store and transfer digital assets.
• Ethereum – offers smart contracts, that is, program codes that are automatically executed when certain conditions are met.
• Ripple – for transfers between financial institutions, making international transfers faster and cheaper than traditional systems.
• Hyperledger Fabric – an open-source platform designed for use in enterprise applications that offers greater privacy and scalability.
• Brave Browser – A web browser that is designed to protect user privacy and provide a fairer content monetization model that rewards users for viewing online ads.

These are just some of the more popular projects, and the list can go on and on depending on the specific application.

What are the development technologies?

There are several technologies that can be used. Listed below are the most common ones:

• Smart contracts: software codes that are executed automatically when certain conditions are met.
• Cryptography: technology that is used to provide security and privacy.
• DApps: run on infrastructure and do not require centralized servers.
• Distributed: technology that is used to store data.
• Consensus algorithms: algorithms that are used to verify and validate transactions.
• Networking protocols: technologies that enable interaction between participants and allow them to conduct transactions and transfer information.
• Smart contracts: software codes that are automatically executed when certain conditions are met.

Development can involve using one or more technologies, depending on specific needs and functionality.

How to build a blockchain application? Basic steps

To build a blockchain application, it is important to understand that it is a complex and multi-step process involving several steps. Here are the basic steps:

• Determining the needs and choosing the platform: the first step is to determine which functions the project should perform and which platform to use.
• Architecture design: this stage defines what components will be included in the final product, how they will interact with each other, and how they will process data.
• Development and testing of smart contracts: Smart contracts are programmable scripts. At this stage, developers must develop and test the smart contracts to be used.
• User interface (UI) development: the UI must be user-friendly and intuitive. 
• Testing and debugging: testing and debugging must be performed before launching to make sure that it works and is secure.
• Deployment and configuration: after everything is tested and debugged, it needs to be deployed on the target platform and configured.
• Support and maintenance: once up and running, the project needs to be accompanied and maintained, updated and improved to make sure that it is up and running and secure.

Each of these steps can include several sub-stages and requires the appropriate technical knowledge and experience.

How to build a blockchain application – benefits and risks

Before you build a blockchain application, you must evaluate the benefits of such a project:

• Security: have a high level of security and protection against fraud and hacking.
• Decentralization: which means there is no centralized power or control, reducing the risks associated with one centralized provider or server.
• Transparency: provide transparency in the processes that take place within them due to the distributed nature of the technology. Every participant can check any transaction and verify its legitimacy.
• Efficiency: thanks to the use of smart contracts and process automation, it can be more efficient and cost-effective than traditional systems.
• Innovativeness: increasingly used across industries and sectors to create innovative products and services.

Risks:

• Complexity: to build a blockchain application, it is worth understanding in advance that it is complex and requires a certain level of technical knowledge.
• Regulatory risks: projects may face regulatory hurdles from government and regulatory agencies.
• Speed and scalability: can be slow and not scalable in some cases, especially under heavy load.
• Privacy: open and transparent, which may present privacy risks to users.
• Vulnerabilities: despite high levels of security, can be vulnerable.

Also Read: How does Blockchain play out in the different sectors? 

Conclusions

Building a blockchain application is difficult. Blockchain apps have a high level of security and protection against fraud and hacking and allow the creation of innovative products and services.

To build a blockchain application, risks such as complexity, regulatory risks, speed and scalability, privacy, and vulnerabilities must be considered and appropriate measures are taken to minimize them. One key advantage is their nature, which avoids the risks associated with centralized power or control.

Blockchains are increasingly being used in a variety of industries and sectors, including finance, logistics, healthcare, government, and many others.

They can provide transparency, security, and efficiency in the processes that take place in these industries and help improve the quality of services and products that are provided to users.