Bhavesh Parekh

Blockchain Fundamentals To Know Before You Approach A Blockchain App Development Company

Blockchain is the future. We have heard people telling this. On social media, tech articles, panel discussions, and more, experts and tech enthusiasts are all in for blockchain implementation. Driven by their insights and advocacy, you and I wouldn't think twice to join the blockchain bandwagon. This impulse would make us approach a blockchain app development company and avail their blockchain app development services. Once implemented, we would wait patiently until we get to see the actual results of the technology.

In a lot of cases, most businesses never get to experience the true potential of blockchain. Why?

Because they have not been guided properly.

Whenever we talk about blockchain technology, we only swim on the surface with statistics and numbers on how much the industry would be valued in the next couple of years. Or, we would get to read insights on the percentage of companies preferring blockchain development solutions. Our research ends there. With half knowledge, we tend to get excited and start with blockchain implementation.

What Is Blockchain?

Immensely popular in the world of finance, blockchain is increasingly gaining momentum across all industries and sectors. With businesses around the world coming up with newer use cases of the technology, diverse niches are looking at implementing the technology and reaping its benefits.

In simple words, blockchain is a tamper-proof technology that is a unique type of database. However, in this database, data or information is not stored collectively but in blocks. A series of blocks chained together is what we call blockchain.

Cryptography lies at the fulcrum of blockchain technology, adding a solid layer of security.

To refine the process further, a blockchain app development company would develop and roll out a unique blockchain app for your business. Once you have your app, you would have the credentials to use the secure app. The key you possess is extremely important and unlike your other credentials, there is no way to recover your key with ‘Forgot Password’ or other techniques.

This is a one-way blockchain that adds credibility. With your teammates on the blockchain network, transactions and entries happen on a regular basis. The new transaction is initiated and transmitted to everyone via peer-to-peer communication. Whenever a new transaction happens, everyone in your network solves a mathematical equation or a puzzle to validate the new transaction. What is happening here is that every stakeholder involved has an idea of the transaction that is entering the network.

When the transaction is successfully validated, the new information is compiled with previous information and clustered into a single block. As you make more transactions, all the blocks are chained together, forming a blockchain. This way, you have a decentralized system where everyone is a regulating authority and have a record of every single transaction happening in your network.

We hardly analyze if our business needs it, the pros and cons of blockchain application development services for our niche and market, the RoI we could expect, and more. That's why we felt it was extremely important to address this concern and shed light on the fundamentals.

So, if you are an entrepreneur seriously looking to deploy blockchain technology for your business, read this post and get a systematic idea of how you can go about doing it. This is what you need before you think of approaching a blockchain app development company.

As always, we will take a ground-up approach.

Let's get started.

Are There Different Types of Blockchain?

Yes! There are three different types of blockchain in fact. Let's look at them quickly.

Public

An open network that does not have any permit restrictions. Anyone can be part of the network and become a node. Though public, it does not take away the core essence of blockchain – which is decentralization.

Private

It is a closed network very much similar to the one you would have if you had an app built by a blockchain app development company. Only the members or approved stakeholders are part of this network. As far as accessibility and permissions are concerned, it is in the hands of the business that implements the technology.

Consortium

When more than one business or organization shares a blockchain network, it is a consortium.

How Much Will A Blockchain App Development Company Charge For A Project?

Well, this is where we generally run out of answers because honestly, there is no rule of thumb or formula to give an exact estimate that is also objective. Whenever you approach a blockchain development company, the expenses involved in availing blockchain application development services would depend on the following factors:

• the specific blockchain app type you need for your business
• the complexity of the app and its underlying purpose and idea
• the competency of the team at the blockchain development company
• the development methodologies deployed
• scalability and more

| Read here original blog: Blockchain App Development