Blockchain Solutions are Different from Custom Software. Here's How:

You need a solution.

The only thing left is figuring out the software type - traditional or blockchain-based?

‍

While blockchain can be used to build custom-software applications with similar goals, blockchain-based solutions, and their development process require a different approach.

‍

This article will help you understand how blockchain-based solutions differ from custom software and what goals this technology can help you achieve.

‍

Blockchain Unique Features

‍

One of the crucial things to look at in blockchain solutions is its unique features, as it gives us a better sense of what exactly blockchain is and the areas it can be implemented.

‍

Feature 1: Decentralization

Blockchain is maintained by a network of nodes - individual computers connected to the blockchain network.

Each participant in the network has a copy of the entire ledger. If the network member makes changes to it, it will be verified and approved by other participants and replicated across the network.

‍

The Benefits:

• The decision-making is distributed among the blockchain network
• Higher transparency → higher security
• Reduced risk of data manipulation

Feature 2: Immutability

Data stored on a blockchain cannot be changed, modified, or deleted once added to the network.

‍

The Benefits:

• This creates an additional layer of security and trustworthiness to the blockchain-based solution.

Feature 3: Transparency & Security

Blockchain technology is not only a great place for storing data, like a huge digital library of information. It is also a system that ensures the integrity and security of data.

‍

The Benefits:

• Even if different computers can access blockchain data and add information, no one can amend or delete the data.

‍

Feature 4: Cryptography

If you’ve had a question of ‘how exactly blockchain can ensure the security and privacy of the data changes’ - the answer is cryptography. Cryptography is a practice of implementing secure communication in the presence of 3rd parties.

‍

The Benefits:

• Cryptography makes it impossible for unauthorized network members to access the data.
• It's the most secure and transparent way to store and manage sensitive information that requires high levels of security.

Feature 5: Consensus Mechanism

The consensus mechanism ensures that all nodes (computers in the network) agree on the ledger’s state. It can be done through different consensus mechanisms that prove that you have assets or have done work.

‍

A great example of how it works can be visible through the consensus mechanism's reaction to bypassing the rules. The consequence of such actions is a possibility of asset loss.

‍

‍Types of Blockchain

‍

Even a basic understanding of the types of blockchains can help you polish your idea of blockchain as a technology that is versatile to diverse needs.

‍

‍

There are 4 types of blockchains: Private, Public, Hybrid, and Consortium.

The only difference between these types is the rules for data input and the access to data from outside the network.

Private blockchains:

Private blockchains are less decentralized than public ones. Only authorized parties can add data to the blockchain.

Potential use cases: A company can use a private blockchain to keep track of its supply chain in a "closed ecosystem.”

‍

Public blockchains:

A completely decentralized blockchain where everyone can access and add data if they follow the rules outlined by the protocol that governs the blockchain.

Potential use cases: Transferring Bitcoin through the Bitcoin blockchain.

‍

Hybrid blockchains:  

A combination of the public blockchain and private blockchain, where the authorized entities that have access to data input are carefully determined by the blockchain network.

Potential use cases: Can be used to store industrial, real estate, or medical records.

‍

Consortium blockchains:

This blockchain is controlled by more than one group or organization. The publicity of the data to the outside world is determined by the entities with access to the blockchain.

Potential use cases: Can be used in supply chain management or research purposes.

‍

Blockchain Developer Skills

‍

Covering the differences between blockchain solutions and traditional software is impossible without going through the necessary skills.

A blockchain developer should know how to build a secure and reliable digital ledger of data, decentralized applications, and smart contracts.

‍

Blockchain software development is a process of creating and implementing blockchain-based solutions.

‍

This can include:

• Decentralized applications (dApps) development
• Smart contracts development
• Blockchain Solutions tailored to specific business needs

A certified blockchain developer should understand the nature of this technology.

‍

Experience with algorithms, blockchain limitations, security considerations, and technical expertise in cryptography, distributed systems, and smart contract development is vital in blockchain development.

‍

Below are the skills that our developers believe to be the most important in blockchain development.

‍

Skill 1: A deep understanding of blockchain technology and its limitations

Only with a thorough understanding of these concepts a software developer can create a blockchain that is efficient, secure, and resistant to attacks.

‍

Skill 2: Consensus algorithms

Blockchain development requires understanding consensus algorithms used to validate transactions on the network. Developers need not only to be familiar with different consensus algorithms but also to be able to choose the appropriate one for their application.

‍

Skill 3: Security Considerations

The development of blockchain solutions requires a heightened focus on security, as the technology’s decentralized nature makes it a target for attacks. Developers must know about the best security practices and be able to implement them effectively.

‍

‍Approach to Blockchain Development

‍

Blockchain solutions' approach to development is similar to traditional software development, as it involves planning, development, testing, and deployment stages.

‍

However, compared to traditional software, the requirements for each step are often more complex.

‍

Planning

‍

At the planning stage, it is crucial to have a clear view of the end-user of the solution, their aspirations, and the problems that you plan to solve with blockchain.

‍

Other questions that you should consider include:

1. What do you want to achieve with your product?
2. How should the features be built?
3. How should users interact with the platform - on-chain/ off-chain/ through API?

‍

We've recently written a detailed guide on the product roadmap with actionable tips for successful project planning and questions to ask your potential blockchain development company.

‍

Design & Development

‍

As each blockchain has its coding language, blockchain development is quite a complex task requiring previous working experience with this technology.

‍

One of the most important questions you might need to consider at this stage is: Which blockchain(s) would be the best option?

‍

Choosing the right blockchain for your solution can be a real challenge. Some are more suitable for NFTs or smart contracts. Some can be a better choice if your project includes a significant scaling potential.

‍

This is something that you have to brainstorm with your blockchain partner.

‍

Testing, Security Research, and QA

‍

Apart from scanning for bugs, blockchain security testing is a process that aims to find system vulnerabilities before the potential attacker does so.

‍

The blockchain security researcher browses or downloads the application, goes through all possible paths, and looks for ways to break something, steal the data, or block it, keeping in mind the possible mindset of attackers.

‍

If you have more questions about blockchain security research, you might find answers in our interview with our Blockchain Security Researcher, Paweł Rejkowicz.

‍

Deployment + Maintenance & Support

‍

Once the blockchain solution has been tested and approved, it can be deployed to the intended users or customers.

After your solution is deployed, we provide you with ongoing maintenance and support, including bug fixes, upgrades, and security updates.

Summary

Blockchain technology can be a perfect match if your solution requires greater transparency and higher security. Implementing blockchain or building blockchain-based software can deliver a trustworthy and secure experience to software users.

Compared to blockchain-based solutions, custom software targets specific business needs and often requires less development time.

When deciding between blockchain and traditional custom software, the most important thing to consider is the business need, the target market, and the potential project scalability.

‍