Having worked on several blockchain platforms for various industries, We now feel that in 2021 we should provide a comprehensive guide on blockchain for all of our readers. So, no matter if you are looking for a job, struggling to understand how blockchain works?, or trying to figure out what benefits blockchain could bring to your startup or established business; It is going to be worth reading for you all.
We have tried to keep the whole article simple and skimmable for your convenience.
What is Blockchain?
In simple words, it’s a digital concept to store data. This data storage concept is decentralized, transparent, and immutable. It’s called a blockchain because, in reality, it’s a chain of timestamped digital records — referred to as “blocks” — that are cryptographically linked together.
The best part of the blockchain is that everything that goes into the blockchain stays there. Also, nobody can tamper with the blockchain once it’s been created. For example, If I buy a house right now and add a photo of the property rights to a blockchain, I will always be able to prove that I owned those rights at that point. Nobody can change that data once it is on a blockchain.
And because of its transparency and immutability, It has become one of the fastest-growing technologies, with major players such as Amazon, Microsoft, and IBM investing in the domain.
How does Blockchain Works?
Before we start looking into the technicalities of how blockchain works? why not take a relatable example to see it in function. And the simplest analogy could be seen as Google Doc.
When we create a doc and share it with a group of people, the document gets distributed rather than being copied or transferred. That’s why everyone in the group can see the changes in real-time.
Now let’s understand the blockchain working process more specifically.
The whole blockchain process covers 3 specific concept blocks, nodes, and miners.
Blocks: Every chain consist of multiple blocks and each block is characterized by 3 basic elements:
- The data in the block.
- A 32-bit whole number referred to as nonce that further generates a block header hash.
- The 256-bit number Hash.
When the first block in blockchain is created, a nonce generates the cryptographic hash. The data in the block is signed and forever tied to the nonce and hash unless it is mined.
Nodes form the infrastructure of a blockchain. They store, spread, preserve the blockchain data and keep the network functioning. In other words, blockchain exists on nodes.
Miners validate new transactions and record them on the blockchain.The very process through which new blocks are created is referred to as mining.
Because of its basic functioning structure, Blockchain is powerfully more secure than traditional databases because it removes middlemen like banks, businesses, and governments from the safety equation, replacing them with distributed nodes — computers in a blockchain network.
What values does Blockchain add to your Business?
Blockchain has impacted the business world growth graph. It has created the whole new level of thinking about how to transform processes, bring flexibility across complex networks like supply chains, facilitate trust, verify the digital identity of people and objects, and build new revenue models.
It has rapidly progressed from an obscure technology to the forefront of R&D for major financial institutions, universities, governments, and multinational corporations.
So irrespective of your business industry, blockchain can add considerable value to your business:
- It is an immutable public digital ledger, which means when a transaction is recorded, it cannot be altered.
- Due to the encryption feature, Blockchain brings security.
- The transactions are done in an instant with complete transparency, as the ledger is updated automatically. So businesses get the speed.
- As it is a decentralized system, no middleman fee is required. Hence, It’s cost-effective..
- The authenticity of a transaction is verified and confirmed by participants. No risk of Central authority and fraud.
Types of Blockchain
Note: Include private, public and hybrid blockchain in the creative
Primarily there are 3 types of blockchain.
- Public blockchains like Ethereum and Bitcoin
- Private blockchains like Hyperledger and R3 Corda
- Hybrid blockchains like Dragonchain
However, there are some variations too like Consortium and Federated blockchains
What is Public Blockchain?
Public blockchain allows anyone to participate as users, miners, developers, or community members. All the transactions that occur on public blockchains are fully transparent, which implies anyone in the blockchain can examine the transaction details.
- Fully decentralized, immutable, and secure ledge system.
- Anyone is allowed to join and participate in the consensus.
- Transactions are anonymous but transparent to everyone.
What is Private Blockchain?
Private blockchains are a permissioned network of authorized nodes. No one outside the private network can access the data exchanged between two nodes.They are valuable for enterprises who want to collaborate and share data but don’t want their sensitive data visible on a public blockchain.
- A single organization will have authority over the blockchain network.
- This closed ledger provides faster output with privacy.
- Simplified data handling process but not open to everyone.
What is Hybrid Blockchain?
Hybrid blockchain combines the privacy benefits of a permissioned and private blockchain with the transparency and security benefits of a public blockchain. It provides businesses the flexibility to choose what data they want to make public and transparent and what data they need to keep private.
- Authoritative access only certain elements are private
- This closed ledger provides faster output with privacy.
- Simplified data handling process but not open to everyone.
How much does it cost to build a blockchain-based platform?
Blockchain is often called the “New Internet” because of the freedom the technology provides by allowing digital information to be distributed but not copied.
The popularity of blockchain has increased not only in the terms of voice but also in the increasing investment by industry experts.
And so, there are questions all around the web, what does it cost to build a blockchain-based platform. Here goes the answer.
The budget for blockchain application development depends on the following factors:
- Type of blockchain platform you need.
- The Difficulty level of the blockchain project.
- Individuals involved in completing the blockchain project.
- Third-party subscription tools used.
- And others
The blockchain development could take time from months to years to get successfully implemented. Rather than giving you a generic estimation, I would suggest you find out answers to the above questions that will help you figure out the cost.
List of top blockchain development companies
Hashstudioz is one of the leading blockchain development companies providing services across various industry verticals. With more than 30+ successful projects ranging from Supply chain management, Smart Contract implementation, Blockchain custom development, and more it has pitched itself as the topmost organization under blockchain services.
The organization has been offering optimal blockchain solutions in Blockchain Application Development, Fintech Solutions, Cryptocurrency management including Artificial Intelligence, IoT, Machine Learning, and Cloud Applications.
Headquarter: USA, India
Contact: +1 (415) 890 8990, +91-95000 69296 | Employees: 250+
Itransition is a workforce that is capable of developing leading blockchain solutions. They have successfully developed the latest implementations in financial blockchain services. The team at Itransition has been working on providing businesses with their requirements in blockchain consulting and technology development.
The leading blockchain solutions that the company has been creating solutions in ICO development, Cryptocurrencies development, data & Identity management.
Headquarters: USA & UK
Contact: +7202072820 | Employees:5000+
Altoros is a US-based development company that was established in 2001. It allowed enterprises to adopt new technology and scale their business. They have served their global clients with the right consultation and high-quality blockchain development services.
With a highly-skilled team, they are ready to put their efforts in leading idea evaluation to design & deployment of end-to-end quality services that are required to build an application.
One of their leading blockchain development services is Automating Bond Issuing.
Contact:650 265 22 66 | Employees: 990+
Prolifics carries itself with experience in Product Engineering, Cloud, Data & Analytics, and Blockchain Development. Solutions developed by Prolifics are segmented under industries such as Banking & Finance, Retail, Healthcare, and the Public sector enterprises.
The organization holds its strength in providing optimal solutions based on business needs with the leading technology architecture in AI & Machine Learning, Business Analytics, Data Management, Cloud Architecture.
Headquarters: Orlando, Florida
Contact: (800) 458-3313 | Employees: 5000+
The Future of Blockchain
First introduced as a research project in 1991, Blockchain is effortlessly settling into its late twenties. Like most millennials its age, Blockchain has seen its fair share of public analysis over the last two decades. No wonder, Blockchain skills became one of the most sought-after talents in the world. The demand increased by almost 2,000 percent from 2017 to 2020.
Well, we have seen the blockchain potential, and now Businesses around the world are speculating about where the technology will be headed in the coming years.
Every investor is more intrigued by blockchain-based solutions. In the future, blockchain will stand to make businesses and government operations more accurate, secure, efficient, and cheap with fewer middlemen.
Blockchain is ready to make many transforms in various industries today!
Frequently Asked Questions
Q1. How do I get started with Blockchain development?
A. Starting with blockchain requires a right strategy and some patience. However the below steps will give you a roadmap to get going with the blockchain:
- Learn the fundamentals of blockchain like their types, structure and functioning.
- Get your hands on the basics of blockchain programming on Space Doggos or CryptoZombies.
- Get coding!
Q2. Which programming language is required for Blockchain?
Q3. How long does it take to develop a Blockchain?
A. Like any other technology, The duration of a blockchain project depends on the application specific requirements. Usually, The project is initiated with PoC, which typically takes 2-3 weeks. Once the PoC is done, it takes around 4-5 weeks to develop a minimum viable product with bare minimum features. And the full development takes time considerable to various factors.
Q4. What is the salary of Blockchain developer?
A. The salary of a blockchain developer depends on his/her proficiency, experience, the company as well as the location. As per Glassdoor, The national average salary for a Blockchain Developer is ₹5,08,308 in India. However, According to Hired, an average salary for a blockchain developer varies between $150,000 and $175,000 per year.
Q5. Is Python used in Blockchain?
A. Yes, Python is used in blockchain. Because of its versatility and speed, it is useful for blockchain as anyone must be able to add to the chain without the transactions being processed in parallel. Python allows developers to create a simple blockchain in less than 50 lines of code.
Q6. How do I choose a Blockchain platform?
A. Selection of a Blockchain platform requires you to consider certain factors like:
- Whether is Permissioned or Permission-less.
- Tokens/Crypto or not.
- Developer availability.
- Speed of transactions.
- Granular security.