Blockchain is a tech breakthrough providing significant potential for increasing operational efficiency. However, it is impractical to invest in it with the fear of missing out. It is necessary to have a clear understanding of how a business can benefit from it. Whether Ethereum blockchain development services, Hyperledger solutions, or any other platform-based development will benefit a business depends on the requirements. An experienced blockchain app development company can assist an organization in addressing the challenges of it.
So, with this Blockchain Development Guide, let’s explore the technical aspect of the emerging technology and its integration applicability into a business.
Blockchain, in the language of a layman, is a database that is;
Distributed across a network of nodes with no centralized governing authority
Shared across permissioned network participants with access to information stored on the database
Once added, nobody can change the encrypted data residing on the network. It requires a consensus to add information to a block in the chain and then to change it.
Any authorized individual or organization can access records for authentication or auditing purposes
Essentially, It stores digital information (transactional information) with a hash function in blocks and chains them to each other. For example, a current block will have a hash code of the previous entry, and the current block hashcode will be in the consecutive one. This process ensures that a blockchain solution serves the mentioned characteristics.
From a market viewpoint, it is a network of exchanges for the transfer of value from peer to peer. The process involves the approval of a transaction and, without requiring any intermediary, making it legitimate from the legal perspective.
Now, let us explore the technical side of the emerging technology, aspects of blockchain-based app development, and various prerequisites that go into the development of blockchain applications. We will start with types
Types of Blockchain
There are two types of blockchains primarily; private and public. There are, however, also several variations, such as Consortium and Hybrid blockchains.
A public blockchain is a distributed ledger network that is non-restrictive, with no permit requirement. Anyone with Internet access can join the network and become an authorized node.
A private blockchain is a blockchain that operates with restrictions or permissions only in a closed network. Private blockchains come in use usually within an organization or enterprise were participants of a blockchain network are only selected members. The level of security, permissions, permissions, accessibility is in the control of an organization.
A blockchain consortium is a semi-decentralized system, where a blockchain network gets operated by more than one organization. It is contrary to what we saw in a private ledger, which only one company controls. In this type, more than one organization can act as a node and exchange information or do mining