- 1 Even though there have been a lot of ups and downs in the cryptocurrency market, it remains a hot topic.What is more, crypto seems to be the future of paying.
- 2 What Are Blockchain Applications?
- 3 What Does the Blockchain Application Market Look Like?
- 4 How to Get Started With Building a Blockchain Application?
- 5 Wrapping up
Even though there have been a lot of ups and downs in the cryptocurrency market, it remains a hot topic.
What is more, crypto seems to be the future of paying.
While there is a lot of cryptos investing potential, there are many more technology opportunities.
The hype around blockchain is greater than ever. In fact, the blockchain market is expected to grow from $4.9 billion in 2021 to $67.4 billion by 2026, at a CAGR of 68.4%.
As Bitcoin was the first cryptocurrency, it was also the first to popularize blockchain technology. However, thanks to Ethereum, there’s now a global community of professionals and tools revolving around the concept of decentralized applications (dapps). Here, we can mention many buzzwords, including non-fungible tokens (NFTs), stablecoins, decentralized finance (DeFi), etc.
In this article, we’ll discuss what blockchain applications are and analyze their market outlook. Finally, we’ll share some tips on how to get started with building a blockchain application.
What Are Blockchain Applications?
Blockchain apps, also known as decentralized applications or dapps, aren’t based on a server that transmits messages between users and apps or among users only. In comparison, when it comes to apps as we know them that are based on a centralized network, the user has to connect to a server.
Dapps have no servers. Instead, they are connected to nodes that control the network.
A blockchain network’s members are both users and mini-servers at the same time, and they’re in charge of validating and transferring data.
Benefits of blockchain applications
Here are some of the most important benefits of blockchain apps:
- The security is improved a lot compared to web-based apps. As there aren’t any intermediaries, the system is practically resistant to safety-related vulnerabilities.
- Dapps aren’t so prone to errors and malfunctions. This is because there’s no central point that could fail and make the entire app crash. All activity takes place on the nodes.
- Everything is transparent, which means other network users must double-check transaction modifications.
- Any user can check if the system is operating properly through public verification.
How Do Blockchain Applications Work?
A blockchain is a peer-to-peer network that distributes all data and stores it historically in chunks. This implies that when anything happens in a blockchain network, it’s shared with all participants. Everyone has a trace of it on their own devices.
Each chunk, or block, consists of transactions. These blocks are saved in a chain, and once they’re in the chain, they can’t be modified. This makes it incredibly difficult to hack and leak information from a blockchain.
You’ll need at least several gigabytes to establish a blockchain. However, because mobile devices have limited storage, dapps normally only operate on a portion of the chain.
What Does the Blockchain Application Market Look Like?
Most people have never heard of blockchains and have only a hazy understanding of what they are. However, every significant technological innovation follows the same pattern: it becomes mainstream after a while.
The blockchain is expected to follow this pattern because it simply brings too many advantages for tech users. Many businesses are already attempting to develop and incorporate a blockchain app for their own profit.
At the time of writing, there are about 4,000 dapps with around 180,000 daily active users (State of the Dapps). Ethereum is the most popular platform for building dapps, followed by EOS, BSC, and Thron.
Here are some of the most popular categories of dapps:
Dapp’s market size is estimated to reach $21,070.2 million by the end of 2025, according to a report by the Blockchain Examiner.
How to Get Started With Building a Blockchain Application?
Here are a few steps to get you started with your blockchain app.
Step 1: Find a Problem That Needs a Solution
First and foremost, you must determine the problem you need to solve or the purpose of your prospective dapp. Begin by laying out your problems and determining whether a blockchain application might help you solve them.
Many industries struggle with secure data transmission, so that’s a good starting point.
Research some similar solutions to your idea and see how others do it.
Step 2: Create a Proof-of-Concept (POC)
The next step is to develop a Proof of Concept (POC) to test your hypothesis and demonstrate its viability. Ultimately, it will enable you to evaluate your DApp with few resources before devoting a significant amount of time and money to its production.
Step 3: Pick Your Model
The previous step should have given you some important information to create the real product.
Here, it’s essential to pick the model you want to operate on. Here are some of your options:
- Build on an open blockchain like Bitcoin or Ethereum.
- Create a private network.
- Use a Blockchain-as-a-Service platform (Amazon, Azure) and build your product integrated with it.
- Use a platform of your choice to build a blockchain network. Ethereum, Ripple, Hyperledger, and R3 are some of the most popular blockchain platforms for dapps. This will affect the tech stack you’ll need to start developing your platform.
Step 4: Start Developing
Your development process will depend on several factors:
- The industry of your dapp
- The complexity of your dapp
- The model/platform you chose during the previous step
- The skillset of your team
Then, your development process should look something like this:
- Planning and strategic thinking. Define the technical specification after extracting needs, expectations, and business objectives.
- Design. This is when you think about the user experience and simplicity.
- Setting up the architecture. Think of APIs, backend, and environments.
- Development. Employ an agile process with flexible changes and constant dynamics.
- Testing. Testing should move along together with development, making sure everything works correctly.
- Deployment. Publish your app on your desired app marketplace and ensure everything is compliant.
Things don’t end once you’ve launched your dapp. Now it’s time to follow the analytics and support your users. Constant upgrades and adjustments based on user requirements and market trends should all be a part of your following activities.
Despite the fact that everyone is talking about blockchain, the market is still far from saturated. Therefore, you have the option of entering this underserved market with your own blockchain product or just incorporating a blockchain into a current model.
Decentralized applications are safer than any other sort of software because they allow for quick international transactions, accessible storage, and data integrity. However, blockchain technology is still in its early stages. Still, it may be used in various ways in both new and established enterprises.
If you’re interested in learning more about crypto, check out our beginner’s guide on how to establish a crypto portfolio from zero.