Blockchain was initially developed to process digital transactions using cryptocurrencies like Bitcoin. Today, its use extends to innovations such as decentralized blockchain apps that offer enhanced security, faster transactions, more transparency, and anonymity compared to traditional, centralized apps.
Despite a highly profitable market, blockchain development remains a technical field, with only a limited number of skilled developers capable of creating blockchain-based applications. Let’s take a deep dive into how to develop blockchain applications, their benefits, and top examples to inspire you.
What Are Blockchain Apps?
Blockchain app development involves creating applications using blockchain technology. They are mostly used to create supply chain management systems, decentralized finance (DeFi) management platforms, and cryptocurrency wallets.
Blockchain apps are decentralized, eliminating intermediaries between users exchanging data or crypto assets. By using peer-to-peer blockchain networks instead of a single server, network, or computer, blockchain apps achieve higher security and operate independently from any central authority.
How Does Blockchain Technology Work?
Blockchain is a decentralized network that distributes data storage, shares information among its peers, and serves as an alternative to traditional databases. Different blockchains provide various functionalities such as processing peer-to-peer exchanges and building decentralized apps or dApps.
Blockchain is public and transparent to all members of the network. Information is organized chronologically into "blocks," which are then linked together in a chain. Whenever a transaction or data exchange occurs on the blockchain, this event is broadcast to all network members, who receive a record of the action.
When a block reaches its full storage capacity, it is closed and linked to the previous block, thus forming a chain. Once the “blocks” are added to the chain, they can no longer be changed or tampered with, making the blockchain secure and immutable. When new information is added, it is stored in a new block.
How To Develop a Blockchain Application in 7 Steps
Blockchain mobile app development offers enhanced security, transparency, and data integrity. You can create a reliable, innovative blockchain app tailored to meet your business needs by following these steps on how to build a blockchain app:
- Determine the blockchain app’s purpose
- Choose a blockchain platform
- Define your business requirements
- Create a mockup or proof of concept
- Prepare technical and visual designs
- Prepare and test the beta version
- Launch your blockchain app
1. Determine the Blockchain App’s Purpose
Like any other application, it's important to understand the end-users' issues and pain points. Identify what your blockchain app should resolve and develop a problem statement. Your proposed solution should support your business objectives and fit your capabilities and capacities.
For instance, if you are a financial service provider that wants to implement blockchain applications to help users with their records and bookkeeping, investigate all the possible app use cases and what specific benefits yours can provide.
The possibilities are endless — from blockchain games to real estate. Once you've identified the purpose of your blockchain app, how it can help your audience, and its core differentiators, it's time to decide on the blockchain platform and development tools you will use.
2. Choose a Blockchain Platform
You should create your decentralized app on a blockchain platform that meets your business needs. There are two ways you can approach this:
- Create a new blockchain: Creating a new blockchain framework gives you fully customized transaction validation protocols, algorithms, tech stack, transaction fee, etc. Although this type of blockchain platform development is the most versatile, it is also the most expensive and time-consuming. You should only take this road if you’re considering creating your own cryptocurrency.
- Clone an existing blockchain platform: A more efficient and cost-effective way is to develop blockchain applications on an existing open-source platform whose source you can deploy on your server. This ensures that your app can still be accepted by users.
You can also opt for a white-label solution provided by Blockchain as a Service and use third-party cloud services. The best choice depends on the problems you seek to solve with your blockchain application, and which platform has features that complement your goal. Consider factors such as the consensus mechanism (the protocols in place to verify data before a new block is added), its scalability, functionality, and adoption rate.
Building a blockchain framework is time-consuming and expensive, so it’s worth considering the already available open-source platforms and using their code. These include:
- Ethereum: This blockchain platform uses the Solidity programming language and is one of the most widely adopted blockchains, second only to Bitcoin. It is designed to be scalable and programmable, which is why it’s also home to dApps, smart contracts, and most NFTs (non-fungible tokens).
- Hyperledger Fabric: This platform is ideal for corporate purposes such as exchanging data with company members.
- R3 Corda: Perfect for eCommerce, supply chain, and healthcare, R3 Corda is a platform for developing permissioned blockchains.
3. Define Your Business Requirements
Next, you should draft business requirements and brainstorm specific ideas about your app:
- Finding the tech components you should add to the blockchain ecosystem.
- Making a product roadmap that explains the process from start to finish, within a certain timeframe.
- Developing a blockchain model and conceptual workflow for the app.
- Deciding whether to build the app on a permissioned or permissionless network.
- Picking a front-end programming language, server, external database, etc.
4. Create a Mockup or Proof of Concept
A mockup or proof of concept should demonstrate and visualize the blockchain app in practice. This can usually be a theoretical build-up or a design prototype.
Theoretical build-up requires use cases that help stakeholders understand the product’s viability. The app prototype, which is created after receiving feedback, consists of the following:
- Design sketches
- Tested product
- Mockups
- Information architecture
Given the scope and the cost of a project like blockchain application development, we suggest creating a prototype app to ensure everything works well before launch. This will help you test your idea and clearly demonstrate the roles of network participants, the transactions they will make, and how they will interact with the blockchain.
During this stage, you need to decide which parts of your app will be on the blockchain and which won’t. Some functionalities of your mobile or web app might not require blockchain technology and can instead be stored and deployed from the cloud.
5. Prepare Technical and Visual Designs
Once the stakeholders give the green light on your proof-of-concept or prototype, it is time to get the technical and visual designs ready. Creating user interfaces (UIs) for every app component is the next step in developing your blockchain app.
You should also come up with APIs to integrate with UIs to run an app in the backend. Visual designs provide the appearance and feel, while technical designs serve as the app’s architecture.
6. Prepare and Test the Beta Version
Once the stakeholders approve the alpha version of the app (the version that underwent testing), the developers need to test the software. At this point, it may not have all its features and functionalities.
Once the alpha version is released, it is time to prepare the beta version. At this stage, the app has the complete set of features, but bugs and issues may still be a common occurrence. The beta version is tested by a group of people outside of the organization who can provide unbiased feedback.
The development process for the beta version depends on the following:
- The platform you’re using to build your app
- The language you choose for the project
- Consensus mechanism
- What the transactions and interactions among all nodes (devices like computers and laptops that act like small servers) will be like
The duration of the development phase can take up to several months. To develop the app, you must be familiar with adequate technologies, including JavaScript, Python, GO, Rust, C++, Node, Solidity, etc. If you’re not familiar with these programming languages and development techniques, you can outsource application development to a skilled and experienced developer.
During app testing, you can use a test network to ensure a thorough review of all aspects and functionalities, including UX (user experience) and integration.
7. Launch Your Blockchain App
Once the testing stage is complete and you have identified and fixed any lingering bugs, the final step is to launch your app. However, this does not mean that your job is finished. Once the app is live, you need to monitor its performance, audience response, and various app metrics to see how well it is performing and make adequate changes and updates if necessary.
Types of Blockchain Development
There are two ways to approach blockchain development: based on network accessibility or whether or not they support cryptocurrencies. Here are the differences:
1. Network-Based Blockchain Types
There are three types of networks you can use to develop your blockchain application:
1.1. Permissionless Blockchain
In a permissionless blockchain, the network is public. This means it is accessible to all members, and anyone can become a member regardless of their device, all while remaining anonymous. An example of a permissionless blockchain is Bitcoin.
1.2. Permissioned Blockchain
In a permissioned blockchain, the network is private. This means only authorized users can join the network and there is a set of rules all participants must follow when making transactions. Permissioned blockchains are typically used by enterprises for internal purposes. An example of a permissioned blockchain is the open-source platform Hyperledger.
1.3. Hybrid Blockchain
A hybrid blockchain is a mix of public and private. It allows organizations to create a private blockchain next to the public one, so they can control what data is accessible to everyone and what remains private. An example of a hybrid blockchain that combines the best of both worlds is XinFin.
2. Cryptocurrency Support-Based Network Types
Based on cryptocurrency support, blockchains can be divided into cryptocurrency-based and non-cryptocurrency-based blockchains.
2.1. Cryptocurrency-Based blockchain
Blockchains play an important role in cryptocurrencies. It facilitates the exchange of these digital assets, allowing users to send and receive crypto. Some sophisticated blockchains also offer digital wallets that store cryptocurrencies and crypto exchange systems for trading.
2.2. Non-Cryptocurrency-Based Blockchain
Due to the blockchain’s transparency and data security features, non-cryptocurrency-based blockchains are primarily used for inventory management and storing data across industries. They are based on Distributed Ledger Technology (DLT), which is a decentralized digital database distributed across devices, where each device has access to the database. There is no central authority in a decentralized database.
7 Main Benefits of Blockchain App Development for Businesses
The demand for blockchain applications is growing rapidly. In 2023, the market was valued at $4.7 billion in 2023 and is projected to reach $27 billion by 2028. Moreover, blockchain application development has gained significant traction across various industries due to its numerous benefits for businesses:
- Security: Blockchain comes with enhanced security as data is distributed and verified across an entire network, making it difficult for hackers to tamper with information.
- Speed and efficiency: Transactions are processed faster through blockchain than traditional methods due to their peer-to-peer nature, which removes third parties like banks from the equation. Blockchain features like smart contracts also automate processes based on conditions met, reducing errors.
- Reduced costs: No third parties or go-betweens also means reduced costs, since fewer resources are needed to validate and facilitate transactions.
- Transparency: All users have access to transaction data, and updates are verified universally, minimizing the risk of fraud. As blockchain is a distributed ledger, all members of the blockchain platform have access to the same information. This means updates and changes are validated universally through a network consensus.
- Traceability: Blockchains record all related transaction data, such as the sender and recipient. Since the blockchain is transparent, you can easily trace the record of a transaction on the blockchain and verify its authenticity to prevent fraud.
- Integrity: Blockchain technology prevents changes in the blocks through its hash feature; each block contains transaction data, its own hash, and the hash of the preceding block in the chain. The hash serves as a block’s fingerprint, which changes if the information in the block is altered. This means altering a single record would require modifying all subsequent ones, which is virtually impossible. This mechanism maintains the network’s data integrity and ensures it is secure and immutable.
- Privacy: Despite the network’s public and decentralized nature, the identity of users remains private and anonymous.
Important Factors To Consider in Blockchain App Development
Developing a blockchain app requires a strategic and systematic approach due to its unique structure, security demands, and technological intricacies. Here are some essential factors to consider:
1. Blockchain Platform
Selecting the right blockchain platform impacts scalability, security, and compatibility with your intended app features. Public blockchains foster innovation and trust but have lower transaction speeds, which can impact scalability. Permissioned blockchains fetch lower costs and deliver faster speeds, but restricted access can affect trust for broader applications.
Popular choices include Ethereum for smart contracts and decentralized apps, Hyperledger for enterprise-level solutions, Binance Smart Chain (BSC), and Polkadot.
2. Data Storage
Your data storage strategy affects scalability, costs, and transaction speeds. On-chain storage can be expensive and slow, while off-chain systems like cloud servers or InterPlanetary File Systems (IPFS) are faster and easier to scale.
3. App Security
Blockchain technology is inherently secure, but vulnerabilities can still arise from improper implementation, app issues, and external threats. Smart contract audits, data encryption, access control, and regular testing can safeguard the system and keep data safe.
4. Regulatory Compliance
Compliance with legal and regulatory standards is critical, especially for blockchain apps that handle sensitive data or financial transactions. Non-compliance can lead to penalties, loss of user trust, and a negative reputation.
Primary areas of concern include:
- Data protection regulations: Limit the amount of personal data stored on the blockchain or use pseudonyms or encryption to reduce the chance of direct identification. Off-chain storage is best for sensitive data that might need deletion.
- Consumer protection laws: Ensure that all terms of user, privacy policies, and disclosures are clear, transparent, and easily accessible.
- Anti-money laundering compliance: Monitor transactions for suspicious patterns and create mechanisms for reporting potentially illicit activities.
- Tax and financial reporting: Maintain clear, immutable transaction records to facilitate transparent tax and financial reporting.
- Industry-specific regulations: The Health Insurance Portability and Accountability Act (HIPAA) for healthcare apps and the Financial Industry Regulatory Authority (FINRA) for finance apps are two examples of regulatory requirements for different industries.
5. UI/UX
A user-friendly, intuitive, and accessible app ensures a seamless user experience. Streamlined navigation keeps users focused on essential actions without overwhelming them. Simplified interfaces reduce learning curves and encourage broader adoption, even for non-technical users. Design responsive layouts that adapt well across screen sizes for mobile and desktop.
Show transaction details, including fees, estimated processing time, and confirmation steps, in a clear format. Include real-time progress indicators and status updates to reduce user uncertainty and build trust and reliability.
A seamless wallet experience is critical, so simplify setup and integration, with options to connect, import, or create wallets directly within your app. Allow third-party wallets like MetaMask for versatility. Include options to view balances, transfer assets, and access transaction history.
6. Interoperability
Your app should integrate seamlessly with existing systems and other blockchains. High interoperability allows assets, information, and functionalities to flow freely across networks, breaking down silos and expanding the utility of blockchain apps.
Interoperability is achieved through cross-chain bridges, atomic swaps, and platforms like Polkadot, Cosmos, and ICON.
How Much Time and What Resources Are Needed for Blockchain App Development?
The timeline for a blockchain app development process depends on numerous factors. The proof-of-concept stage typically takes 2 to 3 weeks, and then it takes another 4 to 5 weeks to create a minimum viable product (MVP) with essential features.
Depending on the app’s requirements, further development may take an additional 2 to 3 months. More complex, feature-rich apps may need 6 to 12 months or longer.
The cost of developing a blockchain application also depends on several elements, beginning with personnel. You can assemble an in-house team of blockchain app developers, hire freelancers, or partner with experienced blockchain development companies.
Your app’s core features will also dictate your upfront and ongoing expenses:
- User authentication and profiles: The estimated cost for secure login and identity management with multi-factor authentication is $3,000 to $7,000.
- Smart contracts: Simple contracts can be as low as $5,000, but highly customized, multi-functional contracts require a lot of development time and extensive testing, which can run up to $20,000.
- Token integration: In-app asset exchange and secure integration cost $5,000 to $15,000.
- Decentralized data storage: Expenses for decentralized systems like IPFS are around $2,000 to $10,000, depending on the amount of data stored and the complexity of integration with the blockchain.
- Blockchain wallet integration: Blockchain wallets have high security and encryption standards. To ensure seamless transactions, you will need to spend around $5,000 to $15,000.
- Transaction management: Timestamping, validation, and tracking all transactions costs $5,000 to $12,000. Real-time tracking and transaction analytics can increase expenses.
- Payment gateway integration: For crypto and fiat payments, along with security and compliance requirements, the cost is between $5,000 and $15,000.
Here’s a breakdown of other factors that affect the cost of developing a blockchain app:
| Factor | Description | Estimated Cost |
| Development team | Blockchain developers, UI/UX designers, QA specialists, and project managers | $10,000 to $200,000 |
| Blockchain platform | Public blockchains like Ethereum fetch higher transaction fees, while custom development on a private blockchain is comparatively more affordable | $5,000 to $20,000+ depending on the platform and licensing |
| Compliance and security | Code audits, legal consultations, and data protection measures | $10,000 to $30,000 |
| Maintenance | Security updates and feature enhancements ensure long-term success and scalability | 15% to 25% of the initial development cost |
| Testing | Thorough security and performance testing | $10,000 to $30,000 |
| Hosting | Servers, storage, and blockchain nodes | $1,000 to $10,000 annually |
Commonly Used Tech Stack for Blockchain App Development
The following tech stack enables developers to build secure, scalable blockchain apps tailored to specific functionalities:
- Blockchain platforms: Ethereum is one of the most popular platforms, known for its robust ecosystem and smart contract support. For developers seeking efficiency, BSC offers lower fees and faster transactions.
- Programming languages: Solidity is the primary language for Ethereum and BSC, known for their smart contract functionality. Golang supports enterprise-level, permissioned apps. Rust is favored for high-performance blockchains due to its memory safety and speed.
- Frameworks and libraries: Web3.js and Ethers.js are essential JavaScript libraries that enable interaction with Ethereum. Truffle and Hardhat provide tools for compiling, testing, and deploying smart contracts.
- Data storage: IFPS ensures data integrity and immutability. BigchainDB combines blockchain with traditional database capabilities, making it suitable for apps needing high throughput.
- Databases: MongoDB is commonly used for off-chain data that doesn’t require blockchain’s immutability. LevelDB is popular for its efficient key-value storage.
- APIs: The Graph queries blockchain data, so it is useful for apps requiring complex data retrieval. Chainlink connects smart contracts with real-world data.
- Testing tools: Remix IDE is great for writing and testing smart contracts, while MetaMask helps manage user accounts and test decentralized transactions. Ganache is an Ethereum simulator that enables free testing.
7 Most Popular Types of Blockchain Applications
- Cryptocurrency: These apps enable decentralized, peer-to-peer transactions without intermediaries, providing transparent and secure money transfers.
- Decentralized finance: Apps like Uniswap offer services like lending, borrowing, trading, and yield farming.
- Non-fungible tokens (NFTs): These marketplaces enable users to buy, sell, and trade NFTs in all their forms.
- Games: Players can own, trade, and profit from in-game assets and economies, creating more immersive and financially rewarding gaming experiences.
- Decentralized autonomous organizations (DAOs): These apps are blockchain-based organizations governed by smart contracts and community voting. They facilitate decentralized decision-making and resource management in a transparent, democratic way.
- Digital identity verification: These apps store and verify identities on the blockchain, which enhances privacy for various services.
Top 3 Blockchain App Examples
Here are three examples of popular blockchain applications that showcase the technology’s versatility across various industries:
1. MetaMask
MetaMask is a widely used cryptocurrency wallet and gateway to dApps. Available as a browser extension and mobile app, it allows users to securely store, send, and receive Ethereum and ERC-20 tokens. It has an intuitive interface for managing assets and supports custom token addition.
This blockchain app has a user-friendly design and integrates seamlessly with numerous dApps, enabling users to interact with DeFi, NFTs, and blockchain-based games. It is favored for its flexibility, open-source code, and non-custodial security.
2. Tensor
Tensor is a popular NFT trading platform on the Solana blockchain, known for its advanced trading tools and user-centric features. Tailored for professional and active NFT traders, the app has features like real-time analytics, granular trade data, and customizable charting, making it highly attractive for those who need deep insight and control over their trades.
Tensor has a streamlined interface for listing and trading Solana NFTs, with integrated social features like collections and feeds. The app focuses on speed and efficiency due to Solana’s high transaction throughput and low fees.
3. Axie Infinity
Axie Infinity is a blockchain-based game that allows players to earn cryptocurrency by breeding, battling, and trading digital pets called Axies. Each Axie is a unique token that can also be bought, sold, or traded on the NFT marketplace, creating a robust in-game economy.
The app gained popularity due to its innovative blend of gaming and blockchain, offering users a chance to earn real income while playing. It is a pioneering example with accessible mechanics, engaging gameplay, and a thriving community.
Blockchain Application Development Takeaways
Blockchain is a powerful and widely used technology for developing decentralized apps. Since it eliminates the need for centralized authorities and third parties, blockchain peer-to-peer networks are faster, more secure, transparent, and cost-effective.
More and more businesses are integrating blockchain into their services and offers. So, if you're considering developing a blockchain-based app of your own, consider hiring a team of specialized experts from the blockchain development industry over assembling an in-house team.
Our team ranks agencies worldwide to help you find a qualified partner. Visit our Agency Directory for the top app development companies, as well as:
- Top Blockchain Development Companies
- Top Enterprise Mobile App Development Companies
- Top Android App Development Companies
- Top AI App Development Companies
- Top App Developers In San Francisco
Our team also highlights award-winning work on the Design Awards page, so be sure to check it out for the best and latest in app design.
