What Should You Know Before Hiring Blockchain Development Company

As we see the rise of new technologies, blockchain is among those technologies that have the potential to revolutionise various industries. Blockchain leverages software development companies to develop applications on top of it without the need for central authority. They offer transparency, security, and resistance to censorship.

Decentralisation exchanges are used in financial services for peer-to-peer cryptocurrency trading and lending platforms without intermediaries. Similarly, the supply chain industry uses this technology to track their goods’ origin and movement. Additionally, blockchain technology offers efficiency and security to in-game assets and tamper-proof voting processes.

Blockchain technology allows the storage of self-executing contracts triggered when certain criteria or conditions are met. Who uses this powerful tool? Insurance companies – who require automated claim processing, Escrow services providers – who hold funds for both parties and identity management services providers – who provide controlled access to the securely stored personal data.

The Power of Blockchain:

Decentralization:

Data is not controlled by a single entity, reducing the risk of manipulation or censorship.

Transparency:

All transactions on the blockchain are publicly verifiable, fostering trust and accountability.

Security:

Cryptographic hashing ensures the immutability of data, making it tamper-proof and highly secure.

Efficiency:

Automating processes through smart contracts eliminates intermediaries and streamlines workflows.

Traceability:

Track the movement of assets or data across the blockchain for increased transparency and auditability.

Global Blockchain Market:

According to MarketsandMarkets, the global blockchain market is projected to reach $94.3 billion by 2027, with a Compound Annual Growth Rate (CAGR) of 66.2% from 2022. Worldwide Spending on Blockchain Solutions: Statista forecasts that worldwide spending on blockchain solutions will reach almost $19 billion by 2024, highlighting the increasing adoption rate.

Blockchain Technology Value Generation:

Gartner estimates that the business value generated by blockchain technology will reach $3.1 trillion by 2030, demonstrating its significant impact on global economies.

Blockchain Use Cases in Enterprises:

A Deloitte survey reveals that 80% of executives believe blockchain will have a significant impact on their businesses, indicating widespread adoption across industries.

Global Blockchain Spending in Financial Services:

According to IDC, global spending on blockchain in financial services will reach $18.9 billion by 2025, highlighting its transformative potential in this sector.

Cross-Border Payments:

The World Bank estimates that blockchain can reduce the cost of cross-border payments by up to 50%, streamlining global financial transactions.

Blockchain Adoption in Supply Chain Management:

A study by PwC reports that 85% of executives believe blockchain will significantly improve supply chain transparency and traceability.

Food Supply Chain Traceability:

Walmart’s blockchain implementation for tracking food provenance resulted in a 50% reduction in tracing time.

Countries with Blockchain Regulations:

As of July 2024, over 30 countries have implemented or are developing regulations specific to blockchain technology, indicating growing recognition of its potential.

Focus on Innovation and Consumer Protection:

Regulations are increasingly focused on fostering innovation while protecting consumers from potential risks associated with blockchain applications.

These statistics explain that Blockchain technology is the future of efficiency, security, robustness, and customer-centric development. However, integrating this technology into your business requires expert advice and recommendations. If you are looking for a reliable and experienced company to integrate this technology, you must first shortlist the best software and mobile app development companies that use them.

Later, ask these questions to confirm their knowledge and expertise in blockchain development.

FAQs to Know Before Hiring a Blockchain Development Company

These are the questions with their respective answer which are expected from an expert solution provider.

What skills are required for blockchain development?

As a leading blockchain development company, they will enlighten you with the skills needed to develop robust & secure software. Such as:

Must-Have Skills for Blockchain Development:

Blockchain Fundamentals:

A solid understanding of core blockchain concepts like decentralization, consensus mechanisms, cryptography, and smart contracts is essential.

Programming Languages:

Proficiency in languages like Solidity (Ethereum), Vyper (Ethereum), or Rust (Hyperledger Fabric) is required for writing smart contracts. Familiarity with JavaScript and frameworks like Truffle or Remix is often beneficial for development and testing.

Cryptography:

Grasping cryptographic concepts like hashing and digital signatures is crucial for securing blockchain applications.

Distributed Systems:

Understanding how data is distributed and synchronized across a network of nodes is essential for building scalable and robust blockchain applications.

Problem-Solving and Analytical Skills:

The ability to identify inefficiencies and design creative solutions using blockchain technology is vital.

What is blockchain in software development?

Blockchain technology is revolutionizing software development by introducing a new paradigm for data storage, security, and trust. Here’s how blockchain plays a transformative role:

1. Decentralization and Transparency:

2. Secure and Immutable Data:

3. Smart Contracts for Automation:

4. New Business Models:

5. Improved Efficiency and Reduced Costs:

Impact Across Different Software Development Areas:

Enterprise Software:

Blockchain can enhance security, transparency, and auditability in enterprise applications, particularly in areas like supply chain management, financial services, and asset tracking.

Internet of Things (IoT):

Blockchain can secure data communication and enable secure device authentication within the IoT ecosystem.

Web Applications:

Apps built on blockchain offer new possibilities for decentralized web applications and user-owned data.

Also Read: A Beginner’s Guide to Blockchain Technology and Its Types

Do we need front-end and back-end Development?

Yes, just as any other software development, Blockchain development also has a front-end and back-end that are developed separately.

Front-End and Back-End Development for Blockchain:

Front-End Development:

While not always required for many IT services companies but we think front-end skills are necessary for building user interfaces that interact with blockchain applications. So we have developers who use JavaScript frameworks like React or Angular to create user-friendly interfaces.

Back-End Development (Smart Contract Development):

Our back-end developers focus on writing and deploying smart contracts on a blockchain platform. Smart contracts are self-executing code that automates tasks and enforces business logic on the blockchain.

What roles and responsibilities does your Blockchain Developer have?

A top-notch blockchain development company would have developers with the right skill set and know the best practices and tools used for development. Hence, you will get this answer:

Public Blockchains (e.g., Ethereum):

Our developers focus on building decentralized applications (dApps) that leverage the existing public blockchain infrastructure. Responsibilities include smart contract development, front-end development (if applicable), and dApp deployment.

Permissioned Blockchains (e.g., Hyperledger Fabric):

Our developers can also create custom blockchain solutions tailored for specific business needs within a consortium of trusted entities. Responsibilities involve designing the blockchain network architecture, developing smart contracts, and integrating the blockchain with existing enterprise systems.

What is the difference between permissioned and permissionless blockchains?

When you are developing Blockchain software, you must have in-depth knowledge. You must be aware of these terms when you are integrating Blockchain technology.

Permissioned vs. Permissionless Blockchains:

Permissionless Blockchains:

Anyone can join and participate in the network. Examples include Bitcoin and Ethereum. These blockchains offer high transparency and decentralization but may have limitations on scalability and transaction speed.

Permissioned Blockchains:

Access is controlled by a governing body, allowing only authorized participants to join the network. Examples include Hyperledger Fabric and Corda. Permissioned blockchains offer greater scalability, privacy, and control, making them suitable for enterprise use cases.

Why should I Invest in Blockchain Development?

Certainly, there are many emerging technologies to look for when building software for business scalability as explained in question number 2. So when you meet a blockchain development company they will share insights into the advantages of using this technology and what you can achieve with it. Here are the benefits of Blockchain Technology:

Enhanced Security and Transparency:

Blockchain offers a tamper-proof record of transactions, fostering trust and reducing fraud risks.

Decentralization:

Eliminates the need for a central authority, streamlining processes and increasing efficiency.

Improved Traceability:

Track assets or data movement across the blockchain for better auditability and supply chain management.

New Business Models:

Create innovative applications and services leveraging the unique features of blockchain technology.

Also Read: How Marketplace for Business Can Help Generate Business?

Do I need to understand the challenges of this technology?

As an experienced and reliable firm, the company must make you aware of the challenges any technology holds. Knowing them will help any business overcome them with the right and possible solution. These can be possible challenges that a business may face when integrating the technology for the first time.

Understanding Challenges:

Scalability:

Processing large volumes of transactions can be slow on some blockchains.

Regulation:

The regulatory landscape surrounding blockchain is still evolving.

Energy Consumption:

Proof-of-work consensus mechanisms used by some blockchains require significant computing power.

Technical Complexity:

Developing secure and scalable blockchain applications requires specialized skills and expertise.

What are the development stages that you follow to build Blockchain Software?

Development Stages:

Planning:

Define project goals, target audience, and the most suitable blockchain platform.

Platform Selection:

Here’s a breakdown of some popular Blockchain Development Platforms to help you choose the right one for your project:

Ethereum:

The most established and widely used platform, known for its smart contract functionality and large developer community. Ideal for building decentralized applications (dApps) with a focus on transparency and immutability.

Hyperledger Fabric:

A permissioned blockchain framework from The Linux Foundation, designed for enterprise use cases. Offers high scalability, privacy, and modularity, making it suitable for building secure and consortium-based blockchain networks.

Binance Smart Chain (BSC):

A high-performance blockchain built by Binance, known for its fast transaction processing and low fees. A good option for building dApps requiring high transaction speed and cost-effectiveness, particularly within the Binance ecosystem.

Cardano:

A proof-of-stake blockchain platform focused on scalability and security. Cardano offers a layered architecture for smart contracts and on-chain governance, making it suitable for complex applications.

Polkadot:

A blockchain protocol that enables interoperability between different blockchains. Polkadot allows developers to build custom blockchains (parachains) that connect and communicate with the main Polkadot chain. Ideal for projects requiring cross-chain functionality and communication between different blockchain networks.

Tezos:

A self-amending blockchain platform with a focus on security and governance. Tezos offers a unique on-chain voting mechanism for protocol upgrades, allowing the network to evolve and adapt over time. Suitable for projects requiring a high degree of security and flexibility.

Design: Design the blockchain architecture, smart contract logic, and user interface.
Development: Develop smart contracts, and front-end applications (if needed), and integrate them with other systems.
Testing: Rigorously test the functionality, security, and performance of the blockchain application.
Deployment: Deploy the application on the chosen blockchain platform.
Maintenance & Updating: Provide ongoing maintenance, updates, and security monitoring.
Security Consideration: Implement robust security measures throughout the development lifecycle to protect user data and smart contracts.
Best Practices: Adhere to industry best practices for secure and reliable blockchain development.

Which programming languages and tools do you use to develop blockchain apps/software?

Most blockchain development companies use these languages to build applications and software integrated with this technology.

Programming Languages and Tools:

Solidity:

The most popular language for writing smart contracts on the Ethereum blockchain. It’s high-level, object-oriented, and specifically designed for blockchain development.

Vyper:

An alternative to Solidity for Ethereum with a focus on simplicity and security. It has a stricter type of system, making it less prone to certain vulnerabilities.

Rust:

A powerful and memory-efficient language gaining traction in blockchain development, particularly for platforms like Hyperledger Fabric. It offers high performance and strong security features.

JavaScript:

While not directly used for writing smart contracts, JavaScript frameworks like Truffle and Remix are popular tools for developing, testing, and deploying blockchain applications on Ethereum.

Yul:

A low-level assembly language used within Ethereum for writing highly optimized smart contract code. It’s generally not recommended for beginners due to its complexity.

Have you any experience and can you share use cases of Blockchain technology used?

Experience:

As an experienced company, the company must have experience in building blockchain applications across different industries. Here are some examples:

Supply Chain Management:

Track the origin and movement of goods for enhanced transparency and efficiency.

Financial Services:

Develop secure and efficient financial applications like decentralized exchanges and lending platforms.

Voting Systems:

Create tamper-proof voting systems that reduce the risk of fraud and increase voter confidence.

Identity Management:

Empower individuals with secure control over their data using blockchain-based identity solutions.

Use Cases:

Beyond these examples, blockchain technology holds immense potential across various sectors:

Healthcare:

Securely store and manage patient data, streamline healthcare workflows, and enable faster drug development.

Real Estate:

Track property ownership, automate transactions, and improve efficiency in the real estate market.

Energy Management:

Facilitate peer-to-peer energy trading and enable new business models in the renewable energy sector.

Gaming:

Create in-game assets with ownership rights and enable secure marketplaces for trading them.

Also Read: Unlocking the Future: 100+ Innovative AI Business Ideas for Tomorrow’s Entrepreneurs

To Conclude:

Before hiring a blockchain development company, here’s what you should know:

Your Project Needs:

Clearly define your project goals and target audience to choose the right platform (e.g., Ethereum, Hyperledger Fabric).

Blockchain Expertise:

Ensure the company has experience with your chosen platform and relevant industry use cases.

Security Measures:

Understand their development practices and commitment to building secure blockchain applications.

Communication and Transparency:

Look for a company that fosters open communication and keeps you informed throughout the development process.

By understanding these key points, you’ll be well-equipped to select a qualified blockchain development partner to bring your innovative project to life.