How to Develop Your Moneymaking Dapp Using Solidity Smart Contract: Step-by-Step Guide

Blockchain allows developers to build innovative decentralized apps (dApps) with new revenue streams and benefits. The backend code of decentralized apps is on the blockchain, compared to traditional apps that use centralized servers. Ethereum, a popular platform for dApp development, uses Solidity as its primary smart contract language. In this step-by-step guide we’ll cover how to build a dApp with Solidity, from setting up your development environment to deploying on the Ethereum network. We’ll also cover architecture, challenges and budget planning so you can build a successful and profitable dApp.

Let’s get started and bring your vision to life!

Solidity dApps with Smart Contracts for Blockchain: Overview

Solidity smart contracts are computer programs that run on blockchain decentralized networks, facilitating, verifying and enforcing digital agreements between parties. Written in Solidity and deployed on Ethereum, these contracts allow users to execute agreements without intermediaries. Once written in Solidity, these smart contracts are deployed on the Ethereum blockchain and become a deployed smart contract that users can interact with. They are self-executing, automatically executing the terms once conditions are met.

Used for transactions from simple financial to complex business logic, Solidity smart contracts can create digital tokens, manage assets, and develop decentralized applications (dApp Solidity). They offer security, immutability, transparency, customizability, and cost-effectiveness, making them an essential tool to leverage blockchain technology.

In summary, Solidity smart contracts are a tool for businesses and individuals to leverage blockchain technology. They provide a secure, reliable and cost-effective way to facilitate digital agreements and transactions.

How to Build dApps: Challenges You May Face

While Solidity has many advantages and enables you to build highly effective decentralized applications (Dapps), you should consider the challenges you may face during the development process. Decentralized applications run on a decentralized network, which is different from traditional applications that rely on centralized servers. By knowing these obstacles, you can prepare for and overcome them. Here are five challenges you may face when using Solidity:

Security:

Decentralized applications are vulnerable to attacks such as hacking, phishing, and other malicious activities. As a developer, you need to ensure your source code is secure and the application is resistant to attacks. The backend code of decentralized apps being hosted on a blockchain adds complexity and maintenance challenges that developers must address for security.

Scalability:

Decentralized applications must handle large amounts of data and transactions. Developers need to make sure their applications can scale to meet the demands of their users.

Interoperability:

Decentralized applications should be able to interact with other applications and services. Developers must ensure their applications are compatible with other services and applications.

User Experience:

Decentralized applications must offer a good user experience. Developers have a responsibility to make sure their applications are intuitive and easy to use.

Regulatory Compliance:

Decentralized applications must comply with applicable laws and regulations. Developers must ensure their applications are compliant with relevant laws and regulations.

Solidity For Blockchain Architecture

A typical Solidity for blockchain architecture consists of:

While decentralized apps run on a blockchain, they may still require centralized servers for user data management and complex interactions, so it’s a hybrid structure.

Smart Contracts:

Written in Solidity, smart contracts are self-executing agreements that contain the logic and rules of the dApp. They are deployed on the Ethereum blockchain and interact with the Ethereum Virtual Machine (EVM) to perform tasks such as updating the state, executing transactions and enforcing business rules.

Ethereum Blockchain:

The Ethereum blockchain is the decentralized, distributed ledger that stores the state of the dApp and all its associated transactions. It provides a secure and transparent way to manage data and execute smart contract addresses.

Ethereum Nodes:

Ethereum nodes are responsible for validating and propagating transactions, maintaining a copy of the blockchain, and executing Ethereum smart contracts on the EVM. Nodes can be full nodes, which store the entire blockchain history, or light nodes, which store only a subset of the blockchain data for faster synchronization.

Front-end Application:

The front-end application is the user interface of the dApp, where users interact with the underlying smart contracts. This can be a web or mobile application built using technologies like React, Angular, or Vue.js. A React app is a popular choice for developing feature-rich user interfaces for dApps and provides a responsive and user-friendly experience.

Web3.js or Ethers.js:

A JavaScript library that enables communication between the front-end application and the Ethereum blockchain. It allows the front-end application to send transactions, query the blockchain, and interact with deployed smart contracts.

Wallet Integration:

To interact with a decentralized app, users need a cryptocurrency wallet that supports Ethereum and its associated tokens. Wallets like MetaMask, Trust Walle,t or Coinbase Wallet can be integrated into the front-end application to enable users to sign transactions and interact with the dApp securely.

Off-chain Services and Storage:

When building Solidity decentralized apps, they may require off-chain services and storage for data that is not suitable for on-chain storage due to cost, scalability or privacy concerns. This can be achieved using traditional databases, decentralized storage solutions like IPFS, or off-chain computation services like Oracle networks.

Development Frameworks and Tools:

To develop, test, and deploy Solidity-based dApps, developers use various frameworks and tools like Truffle, Remix, Hardhat, and Ganache.

Tech Stack to Build a Dapp With Solidity

To build a Dapp with Solidity, you need a tech stack consisting of various tools, libraries, and frameworks that facilitate development, testing, deployment, and user interaction. Developing smart contracts is a crucial part of building decentralized apps and requires a good understanding of blockchain programming languages and security measures. Here is a recommended tech stack to build a dApp with Solidity:

• Solidity: The programming language for writing smart contracts on the Ethereum blockchain. Familiarize yourself with Solidity syntax, data types, and constructs to create the logic and rules of your dApp.
• Development Environment and Editor: Choose a suitable development environment or code editor to write and organize your Solidity code. Popular options are Remix (an online IDE for Solidity), Visual Studio Code with the Solidity extension, and Sublime Text with the Ethereum package.
• Node.js and npm: Node.js is a JavaScript runtime that allows you to run JavaScript on the server side, npm (Node Package Manager) helps to manage dependencies for your project. You’ll need Node.js and npm to work with various tools and libraries in the Ethereum ecosystem.
• Truffle or Hardhat: Truffle and Hardhat are popular development frameworks for building, testing, and deploying Solidity-based dApps. They provide built-in functionality for compiling, deploying and interacting with smart contracts and tools for testing and debugging.
• Ganache: Ganache is a personal Ethereum blockchain that allows you to run tests, execute command,s and inspect state while controlling how the chain operates. It’s useful for local development and testing before deploying your smart contract to a live network.
• Web3.js or Ethers.js: These JavaScript libraries enable communication between your front-end application and the Ethereum blockchain. They allow you to send transactions, query the blockchain, and interact with smart contracts from your application. Libraries like Ethers.js also allow to interact with the deployed smart contract, run commands, and display data retrieved from it, which is key to the functionality of the dApp.
• Front-end Frameworks and Libraries: Choose a front-end framework or library like React, Angular, or Vue.js to build the user interface of your dApp. These tools allow to create a responsive and user-friendly experience for interacting with your smart contract. We have more info on creating a dApp with React in our blog.
• Cryptocurrency Wallet Integration: Integrate a cryptocurrency wallet like MetaMask, Trust Wallet, or Coinbase Wallet into your dApp to allow users to sign transactions and interact with the application.
• IPFS or other decentralized storage solutions: If your dApp requires off-chain storage, consider using the InterPlanetary File System (IPFS) or another decentralized storage solution to store and retrieve data in a decentralized way.
• Testing and Auditing Tools: Use tools like Slither, MythX, and OpenZeppelin to test and audit your smart contracts for potential security vulnerabilities and to create sure your dApp follows best practices.

How to Create dApps: How to Make Decentralized Software With Solidity Smart Contract

Building a dApp using Solidity involves smart contract development, testing, deployment and front-end integration. Here are the code snippets and configurations needed to compile and deploy smart contracts in a dApp. Here’s a step by step guide with code samples to help you build a dApp with Solidity:

Step 1: Set up your development environment

Install Node.js and npm (Node Package Manager) to manage dependencies and use various tools in the Ethereum ecosystem.

Step 2: Install development tools

Install Truffle or Hardhat, Ganache and a code editor like Visual Studio Code with the Solidity extension. or Hardhat, Ganache, and a code editor like Visual Studio Code with the Solidity extension.

npm install -g truffle

Step 3: Initialize a new Truffle project

Create a new project directory and initialize a Truffle project inside it.

mkdir my_dapp
cd my_dapp
truffle init

Step 4: How to create a dApp on Ethereum: Write your Solidity smart contract

Create a new file called MyContract.sol in the contracts directory and write your smart contract.

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

contract MyContract {
    string public message;

    constructor(string memory _message) {
        message = _message;
    }

    function updateMessage(string memory _newMessage) public {
        message = _newMessage;
    }
}

Step 5: Write a migration script

Create a new file called 2_deploy_my_contract.js in the migrations directory to deploy your smart contract.

const MyContract = artifacts.require("MyContract");

module.exports = function (deployer) {
  deployer.deploy(MyContract, "Hello, world!");
};

Step 6: Compile and deploy your smart contract

Start Ganache and deploy your smart contract to the local blockchain.

truffle compile
truffle migrate

Step 7: Write tests for your smart contract

Create a new file called my_contract.test.js in the test directory to write tests for your smart contract.

const MyContract = artifacts.require("MyContract");

contract("MyContract", (accounts) => {
  it("should initialize with the correct message", async () => {
    const myContract = await MyContract.deployed();
    const message = await myContract.message();
    assert.equal(message, "Hello, world!");
  });

it("should update the message", async () => {
    const myContract = await MyContract.deployed();
    await myContract.updateMessage("New message!");
    const message = await myContract.message();
    assert.equal(message, "New message!");
  });
});

Run the tests to ensure your smart contract is functioning as expected.

truffle test

Step 8: Build the front-end application

Use a front-end framework like React, Angular or Vue.js to create the user interface of your dApp. Using a React app is a popular choice for building the user interface of a dApp, providing a responsive and user-friendly experience.

Step 9: Integrate Web3.js or Ethers.js

Install and import Web3.js or Ethers.js to interact with your smart contract from the front-end application. npm install web3 import Web3 from ‘web3’;

Libraries like Ethers.js facilitate interaction with the deployed smart contract, enabling users to run commands and display data retrieved from it, which is key to the functionality of the dApp.

npm install web3
import Web3 from 'web3';

const web3 = new Web3(window.ethereum);

Step 10: Connect to a wallet (e.g., MetaMask)

Integrate a wallet like MetaMask into your dApp to enable users to sign transactions and interact with your smart contract.

async function connectWallet() {
  const accounts = await window.ethereum.request({ method: 'eth_requestAccounts' });
  // Use accounts[0] as the user's wallet address
}

Step 11: Interact with your smart contract

Use the Web3.js library to interact with your smart contract from the front-end application. Read the contract’s state, send transactions and listen to events.

First, initialize the contract instance with its ABI and address.

import MyContractABI from './MyContractABI.json';

const myContractAddress = '0x1234...'; // Replace with your deployed contract address
const myContract = new web3.eth.Contract(MyContractABI, myContractAddress);

To read the contract’s state, call the message function:

async function getMessage() {
  const message = await myContract.methods.message().call();
  console.log("Message:", message);
}

To send a transaction and update the message, call the updateMessage function:

async function updateMessage(newMessage) {
  const accounts = await web3.eth.getAccounts();
  const from = accounts[0];
  const gas = await myContract.methods.updateMessage(newMessage).estimateGas({ from });

  await myContract.methods.updateMessage(newMessage).send({ from, gas });
}

Step 12: Deploy to a live network

After thoroughly testing your dApp on a local development network, you can deploy your smart contract to a live network like Ethereum Mainnet or a test network like Rinkeby.

First, configure Truffle with the appropriate network settings and a wallet provider like MetaMask.

// truffle-config.js
const HDWalletProvider = require('@truffle/hdwallet-provider');
const mnemonic = 'your mnemonic phrase here';

module.exports = {
  networks: {
    rinkeby: {
      provider: () => new HDWalletProvider(mnemonic, 'https://rinkeby.infura.io/v3/YOUR-INFURA-API-KEY'),
      network_id: 4,
    },
  },
};

Then, deploy your smart contract to the desired network:

truffle migrate --network rinkeby

Ways to monetize the dApp with Solidity and calculate profits

There are several ways to monetize a dApp developed using Solidity. Here is a table outlining a few common monetization models:

Monetization Model	Description
Transaction fees	Charge users a small fee for each transaction they perform on your dApp, calculated in Solidity.
Premium features	Offer additional features or services for a fee, such as access to advanced functionalities.
Native tokens	Create your own cryptocurrency or token within your dApp and charge users for usage.
Advertising	Integrate advertisements into your dApp and generate revenue from sponsors or advertisers.
Smart contract royalties	Implement royalties on your smart contracts, receiving a percentage of the revenue generated by other developers who use or build upon your contracts.

To move from initial cash flow to profit, carefully track your revenue and expenses. Deduct your expenses from your revenue to determine your net income. Then, calculate your return on investment (ROI) by dividing your net income by your initial investment and multiplying by 100 to get the percentage. This will help you understand how profitable your dApp is and if your monetization strategies are working effectively. Regularly reviewing and adjusting your monetization models as needed will help maximize your dApp’s profitability over time.

How ProCoders Can Help If You Decide to Create Dapp Using Solidity?

If you decide to create a dApp using Solidity, we can assist you throughout the development process, offering many benefits:

Discovery Phase:

We will work closely with you to understand your project’s goals and requirements so that dApp aligns with your vision and meets your objectives.

Offshoring Benefits: 

By working with our offshore development team, you can benefit from lower development costs, diverse expertise, and access to a larger talent pool without compromising on quality.

Full Development Services: 

We offer a full range of development services from initial concept and design to testing, deployment, and ongoing maintenance. So your dApp is fully supported throughout its lifecycle.

Dedicated Support: 

At ProCoders, we are committed to providing excellent customer service, offering dedicated support throughout the development process and beyond. You can rely on our team to answer any questions or concerns you may have during the project.

By partnering with us to develop a dApp using Solidity, you can tap into our expertise, resources, and support to ensure a successful outcome for your project.

Conclusion

To code in Solidity, learn the basics, set up a development environment, write a smart contract, test and deploy, and interact with the contract. Engage with the community and explore advanced concepts for further growth.

Creating a moneymaking dApp with Ethereum smart contracts is an exciting adventure. Follow this step-by-step guide, and you will be ready to create, test, and deploy your own decentralized software. As you go along, remember to prioritize security, user experience, and continuous improvement so your dApp remains competitive and profitable in the ever-changing blockchain space.

At ProCoders, we can help you with any challenges you may face during your dApp development journey. We know creating a successful dApp can be complete,x and we are here to provide expert guidance and support at any stage of your project. By working with us you can ensure your vision comes to life and leaves a lasting impact in the digital world.

Join the world of decentralized applications bring your vision to life, and make a lasting impact in the digital world.