2017 saw one subject that was topic of discussion across the globe, be it your office group discussions or social media platforms – “blockchain”. As on date the healthy chaos that has been created around blockchain and cryptocurrency, does not seem to die down.

With the growing rise in fans and equal number of critics, blockchain application development is gaining tremendous popularity. The buzzword has go so deep that even a change in name of a brand, aligned with the technology per se, is yielding amazing returns.

For example, there is a company in UK, named On-Line PLC. After this blockchain tsunami, it changed its name to On-Line Blockchain PLC. As a result of which the share price of this company rose exponentially by 394%

This may sound absurd but it is a fact. If you still don’t believe in this, then just look at these staggering statistics:

  • The blockchain market was around $339.5 million, but the projection till 2021 is to the tune of $2.3 billion
  • According to IDC, in 2018 companies will be spending around $2.1 billion only blockchain application development

Having a glance at these crunching statistics, one thing is clear that blockchain technology has become a focal point for many businesses, which includes startups and even established businesses.  Companies in sectors such as manufacturing, media, telecommunications, finance, banking, etc. are showing key interests in blockchain based applications.

Though blockchain is considered to be a path-breaking technology with immense potential in the future, if you invest in blockchain application development without any basic understanding of its impact on business, this can backfire.

What is Blockchain Technology?

In a very simplified language, blockchain technology is a decentralized, transparent and publicly accessible database, where transaction records are stored in compartments called blocks and paired with each other with a hash function. Each block has a hash code of the previous one and that’s how the pairing goes ahead. This was a technology perspective. Now form the business angle, it is simply exchange of transaction from peer to peer; a protocol that makes a transaction valid, in legal terms. 

Blockchain solutions are broadly classified on two essential criteria

  • Cryptocurrency
  • Network

Network based Blockchain Solutions

When we are talking about network based blockchain applications, we can either have a Permissioned blockchain solution or a Permissionless blockchain solution. This type of a blockchain solution essentially delivers the core functionalities of any blockchain architecture such as

  • Auto data synchronization
  • Managing multiple permissions
  • Process Automation
  • Privacy & Security features

This ensures that enterprises are able to develop a more cost effective data driven model.

Crypto-currency based Blockchain Solutions

These type of blockchain solutions run on crypto currencies. Typically, the following type of blockchain solutions will fall into this bucket:

  • Wallets
  • Crypto exchange
  • Initial Coin Offering
  • Dapp

Different Type of Blockchain Platforms

At present there are over 25 platforms for developing blockchain based applications. However, there are top five platforms that are considered by application development service providers, for building blockchain based applications:

  • Ethereum
  • Multichain
  • Hyperledger
  • IOTA
  • Quorum

So, how do you select a platform? It is quite understandable to be a bit confused with all these platforms available, as to which one to go for. Hence, there are certain factors to be taken into consideration, while selecting the right platform

  • The first that you will look into is the core nature of the platform – such as going for crypto- currency based or something like smart contracts.
  • Then the next thing you need to factor in is the requirement of smart contracts. A smart contract is self-processing and self-validating protocol that is based on the blockchain system
  • What is the consensus protocol needed? Sometimes your requirement may vary such as Proof of Work, Proof of Stake, and so on.
  • Are you planning to use crypto currencies or not is also a critical factor
  • Selecting the right kind of network is also a very important element. Whether you want to have a system where the information flow is free.

Cost Implications for Blockchain Application Development

With the entire buzz around blockchain and the technology architecture, one lingering question is – how much does it cost to build a blockchain based application? The fact of the matter is that it is very difficult to envisage the actual cost of development of a blockchain application. However, you can estimate the efforts needed to develop a type of an application which should give some indication on the cost that can be factored.

Implementation of Blockchain Applications

Blockchain has an unimaginable potential and it can be implemented in various ways to your current business processes.

  • The first implementation would be for transaction purpose, such as transactional processes including financial payments
  • Another way to use blockchain is to use it as a distributed cloud storage unit for your customers
  • Smart contracts are the other way to implement blockchain across your customers
  • Blockchain technology can be used to create notary and other form of validation.
  • Supply chain and logistics management is another area where blockchain technologies can be implemented to ease out operations and cut down operational costs.

There are more such areas of implementation where blockchain technology can be leveraged. And the journey has just begun.

get confused?

Contact our Experts

  • Your Name
  • Email Address
  • Conact Number
  • Message / Query