Blockchain app development: How to build secure blockchain applications

In 2024, the hype around blockchain continues to grow. Many businesses are curious about this trend and want to develop applications based on it. Why? Because this ground-breaking technology provides top-notch security and allows to create platforms with transparency that build trust.

At first, it may seem that developing blockchain software is an easy process. And, in fact, to users it will look the same as a regular application. However, it is important to understand that each type has its own unique concepts, advantages, and challenges, and crafting a decentralized solution is no exception.

So, if you want to learn more about blockchain technology and how it can benefit your business, you’re in the right place. In this article, we’ll cover all the ins and outs and, as a bonus, provide you with a step-by-step guide on how to build a blockchain app (aka dApp).

Essential concepts in blockchain application development

When it comes to decentralized platforms, there is a lot of new terminology. Acronyms, phrases, and jargon expressions are flying around, leaving you with the pain of googling every word. But not today. To help you get up to speed with blockchain, we have collected all the necessary information in one place. So, let’s take a look.

What are dApps (decentralized applications)?

Decentralized applications, or dApps, run on a blockchain or peer-to-peer (P2P) network. They spread across the network and connect their users with each other using blockchain technology and smart contracts. The main advantage of dApps is that they do not need an intermediary company. Instead, they use lines of computer code that can be customized for different use cases. In other words, you can even make it publicly available to anyone with access to the Internet.

Public vs. Private blockchains

In short, blockchain technology is a digital ledger that records and verifies information on multiple computers. It is a distributed database that keeps an orderly chain of records and makes it impossible to falsify information. At its core, there are two types of this network: private and public.

A public blockchain is a series of blocks that can be “read” by anyone in the world. That is, any user of the network can send transactions, confirm them, and contribute to consensus. Public blockchains are typically used for cryptocurrencies, but many other industries that require transparency, security, and trust leverage them as well.

Private blockchains, on the other hand, offer limited access to data. Only predefined users can log on to the network and confirm transactions. This guarantees increased control and confidentiality, which is beneficial for organizations such as banks, healthcare facilities, and government agencies.

When choosing the type of blockchain to develop your mobile application, consider your business needs. If transparency and trust are your main priorities, a public blockchain is the perfect option. However, if you aim to work with confidential information, look no further than a private blockchain.

Smart contracts

In the context of blockchain, another interesting phrase that comes to mind is smart contracts. This is an agreement that is drawn up using a combination of code and blockchain, which can only be concluded and terminated using a computer program.

This technology is popular due to its automation. When predefined conditions are met, the smart contract appears, automating tasks and ensuring that all parties involved play by the rules. This eliminates the need for intermediaries, simplifies processes, and builds trust through complete transparency.

Blockchain platforms and languages

There are various building blocks you need to understand before starting work on blockchain app development. The main thing to consider is platforms and programming languages that cover a lot of purposes. So that you don’t get lost in the flow of information, in the next sections, we’ll introduce popular technologies commonly used in the development process.

Ethereum and Solidity

Ethereum is an open-source, decentralized network that boasts a robust infrastructure designed to run smart contracts — self-executing programs that automate agreements and transactions. Solidity is Ethereum’s native programming language, allowing developers to craft these smart contracts with precision. Being inspired by popular languages like C++, Python, and JavaScript, it provides a familiar and readable syntax for programmers.

However, no technology is perfect. Ethereum faces scalability challenges, meaning it can get congested during periods of high activity. Solidity, while powerful, requires a strong grasp of coding concepts and blockchain fundamentals to avoid vulnerabilities in smart contracts.

Despite these limitations, Ethereum and Solidity remain a powerful duo. Their strengths make them a perfect starting point for anyone exploring the exciting world of building blockchain applications.

Hyperledger and GoLang

While Ethereum dominates the public blockchain network, enterprise needs often demand a different approach. That’s where Hyperledger, an open-source project under the Linux Foundation, offers a suite of frameworks for building enterprise-grade blockchain solutions. Unlike Ethereum, it focuses on private, permissioned networks, allowing businesses to control who participates and what information is shared. This ensures greater privacy and regulatory compliance, which is crucial for many enterprises.

GoLang is the preferred language for developing Hyperledger applications. Known for speed, concurrency features, and growing popularity, it is a perfect fit for building scalable and performant blockchain applications. Plus, GoLang’s static typing helps prevent errors, a critical aspect of secure enterprise deployments.

Binance Smart Chain and C++

Beyond the big names, innovative platforms like Binance Smart Chain (BSC) are rising through the ranks. BSC, built by the crypto powerhouse Binance, offers a high-performance alternative to Ethereum. This smart contract platform boasts blazing-fast transaction speeds and significantly lower fees, making it ideal for cost-sensitive applications.

Binance Smart Chain utilizes C++ for smart contract development. This powerful language, known for its performance and memory management, allows developers to create highly optimized smart contracts. C++’s ability to handle complex tasks efficiently makes it suitable for building robust and scalable blockchain infrastructure.

Why choose blockchain for your application development?

The hype around blockchain technology is not dying down, which is not surprising. However, despite all this popularity, the question arises — is this technology suitable for the development of my mobile app? The answer to this question is not clear-cut because every business is unique, and accordingly, so are its needs. To help you make the right decision, let’s check out different aspects.

Advantages of blockchain technology

First, blockchain boasts incredible security. Transactions are encrypted and distributed across a network of computers, making them virtually tamper-proof. This eliminates the risk of fraud and unauthorized modifications, creating a trust system that transcends traditional intermediaries.

Transparency is another advantage. Every transaction on a blockchain network is recorded on a shared ledger, visible to all authorized participants. This fosters trust and accountability, as all parties involved have a clear view of the entire process.

Finally, decentralization eliminates the need for central authorities. In a blockchain network, power is distributed among participants. This reduces single points of failure and reliance on trusted third parties.

Market trends

The popularity of blockchain technology is proved not only by words but also by facts. According to Fortune Business Insights research, the global market size could reach a staggering $825.93 billion by 2032, reflecting a Compound Annual Growth Rate (CAGR) exceeding 50%.

The appetite for blockchain-related investments is at an all-time high. According to a recent report from Coinshares, crypto funds reached a record-breaking trading volume of over $30 billion in early March. This surge in activity reflects growing investor confidence in the potential of blockchain technology and its underlying assets.

These trends underscore the growing importance of blockchain. As the technology develops and real-world applications gain traction, we can expect blockchain to become an integral part of the near future online landscape.

Industry adoption

Nowadays, blockchain technology is widely used in almost every industry. For example, it is revolutionizing the financial sector. This technology provides faster cross-border payments, more secure asset trading and opens the door for cool new financial tools. As a result, everyone can benefit from a smoother and more transparent financial system.

In the supply chain management sector, it makes every step in a product’s journey, from origin to final destination, transparent and verifiable. This, in turn, enhances traceability, reduces fraud, and optimizes supply chain operations across various industries.

For the healthcare, blockchain offers many advantages due to its security. Various institutions can develop apps for secure patient record management and medical research collaboration, facilitating interaction between doctors and promoting deeper studies in this field.

Governments worldwide are also exploring the potential of blockchain to improve transparency and efficiency in areas like identity management, voting systems, and land registries. Blockchain’s ability to create secure and auditable records can change the way governments interact with citizens and businesses.

A step-by-step guide to developing a blockchain application

We have discovered a lot of analytical information about blockchain technology. But the practical part is of the greatest interest — how to actually create a blockchain application? In the step-by-step guide below, we gathered all the necessary data to help you turn a dream into a real, actionable product.

Step 1: Identifying security goals

Security is one of the most important aspects you should consider before developing a blockchain application. Think about the information you will be processing. Is it private data that needs the highest level of protection or a network with open records? Understanding these needs will help you choose the right methods to prevent any digital break-in attempts.

Step 2: Choosing the right blockchain platform

As we mentioned earlier, there are various platforms that will suit different business needs. However, it is equally important to pay attention to the skills and knowledge of the development team, as this will affect the time and cost of product development.

First, determine what features you need to add to the platform and what size and type of user base you expect to handle. Finally, discuss these details with the team so that they can understand your requirements and choose the right blockchain platform for it.

Step 3: Development and coding standards

Before you start coding, it’s important to make sure that the project’s team adheres to development standards. At this stage, experts can leave comments or notes on the code to explain its purpose and functionality. It’s also a good practice to use separate systems to track changes made to the code so you can easily roll back if necessary.

Step 4: Testing and auditing

After the blockchain product is developed, you need to thoroughly audit it for bugs and errors in operation. During testing, examine how the application interface works, ensure that integrations work well, and determine whether any issues pop up when using it. The ideal scenario is to launch a test version of your app so that real users can interact with it. This will allow you to get relevant feedback and outline what aspects require improvement.

Step 5: Deployment and maintenance

So, you have reached the final phase of dApp development — deployment. This stage includes setting up the infrastructure to make your product visible to users. Continuous support of the application is another integral process. To help your app grow, check it for bugs that may appear unexpectedly, update features to keep users engaged, and make sure security is always at the highest level. This way, you will provide the best possible service to your users, who, in turn, will bring you conversions, positive reviews and increase your market awareness.

Security considerations in blockchain application development

Another important aspect of our article is the security of blockchain applications. Although this newest technology is striving for 100% protection, there is always a risk of a hacker attack and data leakage. To avoid this as much as possible, we suggest you consider the following tips.

Risk mitigation strategies

When building a blockchain application, identify and assess potential risks early on. Once you have a clear understanding of these threats, formulate a strategy to address them. It can include such things as using secure coding practices, scheduling regular audits, and encrypting sensitive data. This way, you will be proactive in responding to emerging challenges and will provide a high level of security for your app.

Regulatory compliance

Given that regulatory requirements vary depending on the location and specific use case of your blockchain app, it is important to stay informed. Understanding frameworks such as anti-money laundering (AML) and know-your-customer (KYC) protocols will help you design your platform with compliance in mind from the get-go. Besides, you can seek support from professional developers who already have a track record of crafting this type of app.

Data encryption techniques

One of the most effective methods is to encrypt data with a special key. This means that if fraudsters try to hack into your app, personal data will remain confidential. It’s all possible thanks to the encryption that makes the data unreadable for those who do not have the special key.

End point

Blockchain is a powerful technology that is being discussed by a large number of companies. Moreover, many businesses are already using it for their products and take advantage of the benefits. If you want to join this innovative niche with a blockchain application, do not hesitate to contact IvorySoft. We are here to lighten your work and take care of all the technical aspects, from analysis and strategy to development and release.

FAQ

Is blockchain suitable for my business?

Blockchain can be a powerful tool for many businesses, but it’s not a one-size-fits-all solution. We recommend carefully evaluating your specific needs and conducting further research to determine if this innovative technology is the right fit for your business.

How to choose between a public and private blockchain?

Public blockchains are open to anyone, which is ideal for applications that need widespread access and decentralization. Private blockchains are permissioned, offering more control and faster transaction speeds. To make the right choice, identify your priorities — unrestricted access and maximum transparency or faster transactions and tighter control.

How do I source qualified blockchain developers?

You can spend time on freelance platforms and recruit your team. Or, you can contact IvorySoft specialists. Our developers have the necessary skills and understanding of best practices for developing blockchain applications. If you have a spark of an idea, let us turn it into reality.