How to build your own blockchain: Simple setup & app implementation guide
We all know about blockchain, but not every one of us is aware of it in detail. Since its emergence, it has become a gold rush for the modern generation. It is a decentralized tech and has been evoked to gain the attention of several people.
Blockchain mechanism has successfully replaced several industries out there and had the most positive influence on the banking system. Several enthusiasts are there who are looking for ways to develop their own blockchain. If you are one of those people, in this article, we have you covered.
How to build a blockchain right from scratch?
Well, for building a blockchain from the beginning, you may opt for reliable blockchain development services or follow the given below steps to build from scratch.
Step 1: A compatible use-case needs to be classified
The future developers must be well-qualified and efficient enough to understand blockchain tech because this particular technology can change the execution process of the transactions in the coming future.
Thus, before jumping directly into the blockchain, sensible use-cases need to be identified, or you can opt for a reckoned blockchain app development company to understand in-depth.
So, there are 3 things that blockchains have the potential of working well with
- Information authentication and verification: Immutable storage, encryption, and digital signatures are there. Information or data in almost any kind of format that is storable in the blockchain is there. A private-key pair can be built by blockchain for verifying and developing digital signatures.
- Smart contracts: The smart contract functionality is put to use in blockchain tech for digitally executing an agreement and eventually lowering the loss risk.
- Smart asset management: Exchange, issuance, payment, retirement, and escrow is there. A crypto/smart asset is a real-world asset’s tokenized version.
Step 2: The most compatible mechanism and algorithms can be analyzed
The actual blockchain that powers bitcoin is made using the PoW (Proof of Work) consensus mechanism.
However, at present, several blockchain platforms are there that offer a bunch of consensus mechanisms and algorithms like PoS (Proof of Stake), PoW (Proof of Work), PoET (Proof of Elapsed Time), DPoS (Delegated Proof of Stake), PoC (Proof of Capacity), PoI (Proof of Importance), PoA (Proof of Activity), PoWeight (Proof of Weight), SBFT (Simplified Byzantine Fault Tolerance), DAG (Directed Acyclic Graphs), PBFT (Practical Byzantine Fault Tolerance), Tangle, and a lot more.
Step 3: The compatible platform needs to be identified
Several distributed ledger systems are there at present, and almost all of them are open and free sources. Based on the consensus mechanisms and algorithms that you have chosen in step 2, you will need to choose the most compatible platform of blockchain.
Some of the top platforms are- Chain Core, BigChainDB, Credits, Corda, Elements Blockchain Platform, Domus Towner Blockchain, Ethereum, Eris:DB, Hyperledger Fabric, HydraChain, Hyperledger Iroha, Symbiant Assembly, Multichain, Hyperledger Sawtooth Lake, Quorum, Openchain, Stellar, and a lot more.
Step 4: The nodes need to be designed
You will need to decide if your blockchain application or network will be formulated in a permissionless network or a permissioned network.
- Permissionless network: Everyone is allowed to join and can start verification. Some of the popular examples are Ethereum and Bitcoin networks.
- Permissioned network: Here, the owner of the network fix who can get connected to the network, and a few selected members are only allowed for verifying the blocks. If it is about the consensus mechanisms, they can be the same as in the permissionless network or also can be uniquely built.
Blockchain solutions can be public, private, or even hybrid. So, one more thing that you need to consider in this step is whether the nodes are going to operate on-premise, on the cloud, or both. Then you need to consider hardware-related problems like disk and memory size and processors.
Also, you will have to select the base Oss (Operating Systems). And to understand this concept better, you can avail yourself of top-notch blockchain application development services.
Step 5: The elements of the blockchain needs to be developed
Almost any blockchain platforms or blockchain solutions and services require a correct strategy and planned configuration for the elements mentioned below:
- Asset issuance
- Atomic exchanges
- Asset re-issuance
- Multi signatures
- Key management
- Native assets
- Block signatures
- Key formats
- Address formats
During the run-time, a few elements can be changed, but some cannot. Therefore, it is a crucial step.
Step 6: APIs need to be built
Many immutable blockchain platforms have in-built APIs, and so do not. Most of the APIs that you will need for the blockchain development project are as follows.
- Making key addresses and pairs
- Acting the audit-associated functionalities
- Verification of data through digital signatures and hashes
- Data retrieval and storage
- Smart contracts
- Lifecycle management of smart-asset such as payment, issuance, retirement, escrow, and exchange.
Step 7: The UI and admin layout
Now, almost every blockchain consulting company will recommend you to select suitable programming languages for the front-end development, external databases, and servers as well. So, you need to do that accordingly.
Step 8: The future technology needs to be added
The blockchain solution’s power can be enhanced extremely with the integration of biometrics, AOI chatbots, cognitive services, cloud, data analytics, containers, ML, and IoT.
In the foreseeable future, the future of blockchain will continue to expand. With each passing day, more tech people are rushing towards blockchain technology. Apart from this, several businesses and industrial giants are putting this technology to use or are researching it. Blockchain is here to stay, so it is a high-time to build your own blockchain to reap the full benefits out of it.