What is Blockchain Development?
Unless you’ve been offline for the past few years, you’ve probably heard about cryptocurrency and the waves it’s making in financial services and technology.
Digital assets like Bitcoin, Ethereum, and the like are attracting attention not only for their sky-high prices but also for the technology underpinning it all—blockchain.
Blockchain is an innovative, decentralized digital ledger that is now in the spotlight across many industries beyond banking or finance. Blockchain development is part of the mainstream tech conversation, and many new companies are eager to get involved.
What are the must-know concepts of blockchain development, and what are some projects worth tracking? There is so much to discover, and it’s all happening fast.
Here’s a starter guide to blockchain development so that you can stay on the cutting-edge of crypto and other relevant tech trends.
Blockchain Development Fundamentals
Are you brand new to the ideas and protocols of blockchain development? Let’s delve into the basics before we talk about skills, projects, and real-world applications.
What Is Blockchain Development?
Blockchain development is a broad category of computer science focused on creating, applying, and optimizing blockchain technology.
As we know, blockchain is the technology and architecture that underpins popular cryptocurrencies like Bitcoin, Ethereum, and other altcoins that have captured the attention of investors over the past decade.
However, blockchain technology goes far beyond the infrastructure of digital currency like Ethereum blockchain and crypto mining.
Blockchain development can range from stock trading to accounting, insurance to supply chain management, smart contracts to business models, and so much more.
Blockchain has a huge range of potential functions and draws from a broad spectrum of skills and disciplines that you may not expect.
Blockchain development is so broad, you could have two highly skilled developers from opposite ends of the industry working on completely different projects with unique programming languages, platforms, and skill stacks.
Why Blockchain Development Matters
It’s time to talk in practical terms – what does blockchain development bring to the table, and why do companies seek it out?
Blockchain adds value in several ways.
The first benefit of blockchain is speed. Whether you’re transferring data, verifying transactions, or running a complicated database that’s constantly updating and changing, you want information to move fast without compromising accuracy or security.
That leads to the next point—integrity of information. Since a central authority cannot alter blockchain ledgers, they are always up-to-date with the latest, most accurate information and no question marks.
This also reveals the blockchain benefits of transparency, traceability, and audit-ready data trails that give you insights in a flash. Consider how many issues this solves automatically, and discover why it's so helpful across industries.
Finally, blockchain systems have the universal benefit of reducing costs, whether you’re a legal firm, a dropship warehouse, or a local credit union. With blockchain, the need for intermediaries or third parties to authorize or greenlight processes is all but eliminated.
Blockchain networks are built with trust, transparency, and immutability in mind, taking information technology to the next level in every sense. It’s not hard to come up with a few ideas of your own for blockchain in your own life or business dealings.
With so many advantages, it’s no wonder why the list of blockchain development projects continues to grow exponentially.
Blockchain Development Skills and Processes
Do you think you have what it takes to be the next Satoshi Nakamoto? Do you want to work for the Linux Foundation? Here are a few of the skills you’ll need, plus a preview of typical project timelines.
Skills Needed for Blockchain Development
There are no prerequisites to learn about blockchain development. Still, if you are not a trained computer scientist, it may be intimidating to jump into blockchain application development. You can start small in the blockchain ecosystem by focusing on common comp sci disciplines like javascript and building up your skill stack.
Cryptography is one area with a heavy math influence and may be a good place to start for newc blockchain software developers. Game theory expertise is also highly relevant to blockchain, as are various strains of economics (macro/micro) and P2P networking concepts.
More advanced blockchain students will want to look into data structures (linked lists, hashmaps, binary search trees), encryption, and distributed systems, which focus on key concepts like consistency, consensus, and fault tolerance.
Don’t get discouraged – blockchain development is a lifelong journey. Pick a place to start, and adopt an open, learn-everything mindset with professionalism and grace.
Typical Development Process
A blockchain project follows a familiar structure seen in engineering and software development, starting with a problem (or set of problems) that needs solving.
Once the goal is identified, developers must determine the type of blockchain platform best suited to achieve it.
Depending on the depth and complexity of the project, an existing blockchain platform may be fully capable, or a new network prototype may need to be established from scratch.
From there, developers create proof of concept, and visual and technical designs lead the charge for the remainder of the development process.
Teams may use proprietary project management systems or common agile workspace tools like Jira, Trello, or Confluence.
Finally, rigorous testing and QA are needed before the project’s final implementation since stakes are high in industries such as healthcare, finance, legal, and supply chains.
By the time a blockchain solution is developed and deployed, the project will have been through dozens of phases, versions, and iterations. That’s just how things go in the world of tech!
Blockchain Development Cost
Did we mention that blockchain development is expensive? In a blockchain-crazed world, it’s a simple matter of supply and demand.
Highly skilled blockchain developers are paid well for their services since talent is limited, and interest in blockchain projects is exceedingly high.
Analysts suggest prices will come down sooner than later, but skilled developers should still consider looking at blockchain as a potential area of specialization—it’s here for the long haul.
Ongoing Improvement
Just stop by the GitHub blockchain app, an online community of software developers, to see the work-in-progress approach that blockchain developers use to take on large-scale projects in different areas of the industry.
Each day, there are hundreds of new instances of discovery, innovation, and fixes to common problems dealt with by blockchain developers.
Remember, this is the open-source version of blockchain development that doesn’t necessarily have strict deadlines or parameters. If you’re leading a private blockchain project for your own company, there is far more pressure to get things done correctly in a short period.
Still, like any form of software engineering, blockchain development should be viewed as an ongoing process with a clear path towards improvement.
Thankfully, much of the groundwork has been established for dApps, existing blockchain networks, and your average blockchain development company, but if you aim to start a platform from scratch, give yourself plenty of time, resources, and patience.
What Does the Future Hold for Blockchain?
There is so much to look forward to in the world of crypto and blockchain development beyond just your cryptocurrency wallet and other financial transactions.
From eco-friendly Bitcoin mining to the huge range of next-gen blockchain projects we previewed today, it’s no wonder that people are so excited about this industry.
Stay tuned to crypto news and keep an eye on the blockchain projects that spark your interest— you never know when opportunity may knock.
Sources:
Authoritative Guide to Blockchain Development | Free Code Camp