How to Build a Blockchain Application – Business Guide for 2024

The blockchain is a decentralized network that provides a secure way to store data. It can be used for anything from storing sensitive personal information like medical records or financial transactions to tracking supply chains or recording digital identities. Governments are even using it to issue passports and driver’s licenses!

To help you build your own blockchain app, ProCoders has compiled some tips and tricks from our experience as professional coders specializing in blockchain app development. Read now!

Blockchain App Market Overview 2022

The market for blockchain applications has grown significantly since Bitcoin’s inception in 2009. According to Statista, the global DeFi market size was valued at USD 11.78 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 42.5% from 2022 to 2030. So it’s still high time to enter the blockchain world!

Blockchain technology is not just about cryptocurrencies, but also about bringing transparency, trust and efficiency into the system. It has applications in almost all industries, including healthcare, banking, supply chain management, etc.

Here are just some examples of companies that operate based on and are into building apps on blockchain:

• Patientory (healthcare)
• Dfinity’s (intelligent contracts)
• Chain.io (finance)
• Propy Inc (marketplace)
• Xage Security (security)

How Does a Blockchain Application Make Money?

Here’re some popular ways a blockchain application can make money:

Charging for Access to the Blockchain Application.

A blockchain application may be free to use, or it can be a paid application. The decision usually depends on the goals of the application developers and how much money they want to make.

You can charge for your blockchain app in several ways:

• Charging for access to the blockchain network.
• Selling products and services directly through your dapp (decentralized application).
• Take fees off users’ transactions within your dapp’s ecosystem.
• Charging companies who build apps on top of yours.

Charging Fees on Transactions.

You can also earn from your blockchain app by charging fees on transactions. Thus, you kill two birds with one stone: earn money on your app, and avoid a huge flow of those who want to make transactions with no fees, thus overloading your server. If a person can send as many transactions as they want without any cost or risk of rejection, then it’s easy to imagine how quickly that might cause problems with your entire system.

Having Users Pay with Cryptocurrency.

Many blockchain applications are using their tokens as the primary form of payment. This means that users can pay with them for goods or services like they would using fiat currency.

You can set up your token for payment in a few different ways:

• Create a blockchain app where users can buy and sell your tokens for money (like Coinbase does).
• Set up a marketplace where users trade their own goods and services for your tokens.
• Make it so that only people who hold a certain amount of tokens can access certain features on your site or app, called “staking.”

Benefits of Investing in Blockchain Apps Development in 2022

Investing in blockchain app development will open the next benefits for you and your future project:

Reduced Risk

Blockchain technology has a decentralized computer network that is not controlled by a single entity. So, if one computer fails or goes offline, other computers on the web can continue working without any issues.

Security

Blockchain applications ensure security using cryptography techniques to store data on blocks and validate transactions between peers without intermediaries. This provides complete transparency and trust among users, partners, and customers.

Lower Costs

There is no need for intermediaries like banks or third parties who charge fees for transactions and money transfers from one point to another worldwide.

Top Industries and Technologies for Blockchain-Based Applications

The most crucial aspect to consider when thinking about how to build a blockchain application is the industry in which your business operates. Blockchain technology has the potential to revolutionize many industries. Still, there are specific industries that see more opportunities than others:

Finance

Banks are increasingly using blockchain technology to speed up transactions, reduce costs and increase transparency.

Smart contracts

Blockchain can create smart contracts that execute automatically when certain conditions are met. This eliminates the need for brokers or go-betweens in a transaction.

Internet of Things (IoT)

Sensor data from IoT devices can be recorded on a blockchain network, which makes it easier to share data across multiple parties without exposing it to privacy risks or tampering attempts by hackers.

Personal identity security

Blockchain can help with personal identity security by eliminating the need for centralized databases that store sensitive data like Social Security numbers or birth dates in one place. This makes it easier to control access to this information while also making it more difficult for hackers to steal it all at once because there is no single database they can target.

Real estate

Blockchain technology can potentially transform the way real estate transactions are done by eliminating intermediaries, providing transparency, and reducing costs.

Healthcare

Blockchain technology can store health records securely and privately, allowing medical professionals to access them from anywhere. In addition, the data would be encrypted and tamperproof.

Logistics

With blockchain, logistics can be streamlined with more transparency and security at every stage, from production through distribution to delivery.

Examples of Using Blockchain

Healthcare

Blockchain technology is being used by many healthcare companies. Examples include BurstIQ company from Denver, Colorado, and a Medicalchain from London, England.

BurstIQ’s platform is a safe and secure data management solution for healthcare companies. The company’s blockchain technology enables the safekeeping and sharing of patient records while maintaining strict compliance with HIPAA regulations.

Medicalchain uses blockchain technology to maintain the integrity of health records while providing a single point of truth for doctors, hospitals, and laboratories wishing to access that information.

Music

A bright example is Spotify. The app has been using blockchain technology since 2017 after Mediachain Labs acquired them. In the case of the music industry, blockchain brings more robust copyright protection. Since all artists are related to tracks and license agreements, this helps to avoid problems such as the illegal use of copyrights, the possibility of being sued for violating these rules or using tracks without the author’s permission. At the same time, Spotify is not the only music platform that uses blockchain because others, such as OPUS, Digimarc, Mediachain, and Vezt Inc. also prefer blockchain technologies.

Financial services

International transactions using the blockchain attract users on the grounds of their activity and always remain confidential. That’s why “Santander One Pay FX” service has gained popularity as “the world’s first blockchain-based money transfer service.” Operating since 2018, it has automated processes with almost no intermediaries for transactions, which tempts users to pay less during creating blockchain applications.

How to Integrate a Blockchain App With Your Business

If you’re looking to integrate blockchain into your business, there are many ways to do this:

• with a vendor. You can find one who can create a blockchain-based application development on a nearshore or offshore basis.
• with an internal team. You can either hire an internal team on your own or call for help from an outstaffing company. For example, such an outstaffing company as ProCoders can provide you with already assessed specialists who are proven to be real professionals in blockchain development. Thus, you not only save your time on hiring a team on your own, but also avoid hidden costs.

• outsourcing. You can outsource your project to someone without even worrying about management. The best thing about outsourcing is that you pay for the work you don’t have to worry about and get the result. However, before you outsource your project, it’s advisable to make a discovery phase, so you know how much time and money you should spend, thus not being cheated by freelancers. ProCoders happily provide discovery phase service to all its clients, so if you feel that it’s something you need before outsourcing the development to third parties – contact us!

Tech Stack of Developing a Blockchain Application

Go-Ethereum

Go-Ethereum is a client that implements the Ethereum protocol, written in Go, and runs on the Ethereum network. It is an open-source project and can be used to run an RPC node, mine Ether, or develop applications using it.

Go-Ethereum has created a set of tools for developers and users to interact with their blockchains, such as:

• A full node implementation of the Ethereum protocol with an API for developing applications with blockchain
• Interacting with smart contracts using Mist or other wallets
• Supporting Solidity compilation, linking, deployment and binary management
• Developing contracts in Solidity and compiling them into EVM bytecode

Microsoft Azure

Microsoft Azure is a cloud computing service created by Microsoft for building, testing, deploying, and managing applications and services through a global network of Microsoft-managed data centers.

Microsoft Azure allows users to create websites (using ASP.NET), mobile apps (using Xamarin), analytics apps (using R or Python), IoT apps (using Arduino or Raspberry Pi), etc., with pre-built templates that can be deployed on the platform in seconds.

Microsoft Azure also provides an enterprise-grade security model with TLS 1.2 encryption between endpoints that enables a secure connection over public networks as well as private networks inside an organization’s own infrastructure.

BigchainDB

BigchainDB is a scalable blockchain database. It’s an open-source project that allows developers to store and query data in a distributed ledger.

BigchainDB uses the Apache 2.0 license and supports the Ethereum Virtual Machine (EVM), which means you can run smart contracts written in Solidity on it.

It’s also great for storing data related to IoT devices, supply chain applications, financial instruments, property management systems, etc.

Oraclize

Oraclize is a service that allows you to verify the authenticity of data feeds in your smart contracts. Oraclize provides an easy way to integrate external data into your blockchain applications without having to trust this data or its provider. This can be especially useful when using untrusted sources such as social media or news outlets.

Blockchain API

Blockchain API is a set of RESTful APIs that provide access to blockchain data as a web service. The Blockchain API lets users build applications using the blockchain Hyperledger Fabric framework. The Hyperledger Fabric provides enterprises with a platform for building distributed ledger applications (DLAs) such as smart contracts, blockchain frameworks, and digital assets on top of their existing infrastructure.

Building a Blockchain App: Cost & Timeline

How much does it cost to create a blockchain app?

You should also research pricing if you mull over how to create a blockchain application. The price of creating a blockchain application depends on many factors. These include the type of blockchain platform you use, the level of expertise of your developer, and the general number of crypto developers for hire required for the project. For example, the average price for developing an Ethereum DApp is $20,000, while some professional blockchain developers charge up to $100,000 per project.

The cost can be divided into two parts:

• Development costs: these include salaries for programmers and other employees involved in development;
• Marketing costs: these include advertising and promotion expenses.

However, you can find more reasonable pricing. For example, in the case of ProCoders, we can provide you with it under such rates:

• average annual web 3 developer salary of $80,000 per project (however, everything depends on your project complexity and tasks that should be done);
• the average hourly rate of $29 per hour.

How long does it take to make apps on a blockchain?

It depends on the complexity of your app. Generally, a simple app can be built within 2-3 weeks, and a complex one can take up to 6-8 weeks.

Besides, finding the right blockchain app developers for your project can take a lot of time: you need to find a person with the right expertise for a reasonable price and, what’s also important, with good communication skills. As a result, blockchain application development may take a long time to complete.

ProCoders help businesses overcome this problem by providing qualified developers and programmers with technical expertise who are already tested and passed all the interviews. Interested? Contact us today!

How to save the development budget and gain the time to market?

To save your development budget, you must first understand the key factors that affect it. Here’re the most critical ones:

Hire developers from countries with a lower cost of living.

This way, you will get a developer for a reasonable price but with the same or even better expertise than your local one.

Try round-the-clock development.

It can be achieved with the help of offshoring. By delegating work to professionals from other timezones, you can set up round-the-clock development on your project: your in-house team will work when it’s their daytime, and your offshore team will work when it’s the nighttime by your side (as it would be the daytime by their side accordingly).

Save time on hiring.

To do it, you can call for help from outstaffing companies like ProCoders. Usually, they provide already pre-screened and tested developers, so you can be sure of their quality.

Make the Discovery Phase for your product.

It is a project implementation plan about how your project will be created. ProCoders help to estimate the project tasks and costs as accurately as possible with all details and nuances. We aim for 100% accuracy as much as possible!

6 Steps To Build a Blockchain App

Step #1 Planning the concept

Consider the problem you are trying to solve and how your product will fix it. Is there a gap in the current market that you can fill?

Once you’ve defined the problem, consider the solutions available for this issue. Think about how your solution differs from existing solutions in the market.

Set a scope for the project: set clear boundaries on what needs to be built, when it needs to be finished, who will be involved with different parts of development, and so on.

Besides, it would also be good to make a discovery phase for your service. Discovery is a roadmap of how your project will be developed, how much time it will take, and how much it will cost. The Discovery Phase service is available at ProCoders exclusively, so if you think it would be useful for your project – contact us!

Step #2 Choosing the tech stack

If you’re mulling over how to make a blockchain application, you’ll also need to know what application you’re building and how it will work: what features will be required in your product? For example, if your app will need a smart contract system like Ethereum, then it makes sense that Solidity would be the best programming language for developing on top of Ethereum. If you want to build an application with no smart contracts but many thousands of users per day, then Go might be more appropriate because its concurrency model can handle high loads at a low cost.

If you feel you don’t have enough knowledge to understand all technologies and what they are for, you can always call for help. For example, such outstaffing companies as ProCoders will be happy to help you and gather a dedicated team for your project who will take care of your project and make all your plans come true!

Step #3 Planning the budget

As with any IT project, setting a budget for your blockchain app is crucial. The most expensive part of the development will be the blockchain and smart contract components—which require specialized knowledge and experience—while you should expect to spend less on non-blockchain elements such as UI/UX design and integration.

However, no matter how carefully you do so, there are always deviations from the plan when planning a project. So, ProCoders advise you to plan to have about 20% extra budget in case of unforeseen obstacles.

Step #4 Hiring a blockchain development team

To find a professional blockchain team, ProCoders advises you to complete these steps:

• define your goals and expectations before you begin searching for professionals. This will help ensure that the team you hire has the right experience and expertise to build an app that meets all your project requirements.
• make sure they’re willing to learn from their mistakes—and yours too!
• ensure everyone involved understands how important collaboration will be throughout this development process so there aren’t any surprises down the line when things don’t go according to plan (which happens more often than you may think).

Step #5 Defining goals and responsibilities

You should have a clear plan of what needs to be done with your budget. For example, if you want to build a blockchain app for your business but don’t have much money available, it’s better not to start from scratch and build it from the ground up.

Step #6 Develop and Test

The final step is to develop and test your blockchain app. This typically involves two phases: the first is developing a proof-of-concept (POC), an early version of your app that you can use to demonstrate how it works, and the second is testing it with users.

At this stage, you should make sure that your POC meets all of these criteria:

• It’s secure. A secure POC has no security flaws or vulnerabilities that could be exploited by hackers looking for ways into your system.
• It’s scalable. A scalable POC can handle high user volume without crashing or becoming too slow to use due to overloaded servers.
• It’s user-friendly—your customers should be able to understand how it works at a glance without needing any special training before they start using it!

How to fund a blockchain startup?

If you are thinking about starting your own business and build applications using blockchain technology, here are some tips that will help you raise some funds:

ICO – Initial Coin Offering

An ICO is a crowdfunding method used by blockchain startups to raise capital. It’s similar to an IPO (Initial Public Offering), but without the regulatory hoops that most companies need to jump through. Instead of giving up equity in your company, you sell tokens (cryptocurrency) directly to investors in exchange for funding.

IEO – Initial Exchange Offering

An Initial Exchange Offering (IEO) is similar to an Initial Coin Offering (ICO) in that it allows companies or startups to raise funds through cryptocurrency exchanges. However, IES is conducted on cryptocurrency exchanges rather than through a dedicated platform like those used for ICOs. This means that they do not require the creation of a new cryptocurrency.

STO – Security Token Offering

Security token offerings (STO) are an alternative to ICOs. The STO provides a legal and regulatory framework for raising funds. You’ll have to register your business, file all necessary documents with the SEC, and comply with all federal laws.

Venture Capital

Venture capital is a type of funding investors provide to startup companies in exchange for equity. It’s also an option for established companies that want to expand their There’re also different types of investors (and it depends on who you will work with):

• Angel Investors:
  Angel investors put money into early-stage companies in exchange for equity (shares). They typically invest $1 million or more, but sometimes much less.
• Venture Capitalists (VCs):
  Venture capital firms invest in later-stage companies looking to overgrow through expansion and acquisition. These firms typically invest $10 million or more into a company.

Tips and Tricks from ProCoders Experience in Blockchain App Development

ProCoders has a lot of experience in developing Dapps, that’s why we already gathered a list of tips and tricks that will help you with your project!

• Don’t try to reinvent the wheel: There are already reasonable solutions for most things, so don’t reinvent the wheel if it doesn’t need reinventing!
• Make sure your project is realistic: Before starting any development project, it’s essential to ensure that your idea is ready for production. If it isn’t, ProCoders can help you improve it until it’s ready for development with our Discovery Phase. This will save time and money down the line!
• Build a simple API for developers: Blockchain developers must provide access to their APIs so that other developers in your team can easily use them for their projects.
• Use tools like Hyperledger Composer or Ethereum Studio: Hyperledger Composer and Ethereum Studio are tools that help you build blockchain applications without going through all the hassle of coding everything from scratch endlessly mulling over how to develop blockchain applications.

Conclusion

• Blockchain technology presents something entirely new for the business world, and we’re only just getting started. As technology grows and becomes more popular, it will allow businesses to develop new products and services that can positively drive our society forward.
• Having clear goals and an understanding of your target audience will help you to create your own blockchain app that is of value to your users. Put yourself in their shoes, and think about how your product will make their lives easier before you begin development.
• Plan your budget, as this is essential not only for your business plan, but also for hiring web3 developers to build your app on the blockchain.

ProCoders offers you first-class expertise in Blockchain and can help you create your blockchain app. Contact us today!