Bitcoin is no longer a novelty. People all over the globe make long-term investments or trade online. The article will be interesting for buyers of P2P solutions as well as for everybody who wants to learn a bit more about the essentials of blockchain software development.
Blockchain meaning: Essential knowledge
Up-to-date technology gives people lots of possibilities and means to communicate directly with no help from third parties. When it comes to financial matters, it’s not so simple. To complete a primitive transaction we need to involve a third party such as a bank. for example.
It’s currently becoming easier to deal with money transaction. Sending cryptocurrency from A to B is no longer a kinda hype or novelty but a typical operation that is performed by millions of people daily.
Blockchain is a chain of records about crypto transactions that could be verified by the whole community.
The technique was originally described in 1991 by a group of researchers. Initially it was intended to timestamp digital documents until it was adopted by Satoshi Nakamoto in 2009 to create the digital currency bitcoin. Put simply, it is a public registry completely open to anyone.
How does blockchain work?
First off, blockchain functions in the peer-to-peer networks. These are different from server networks where a person requests server to execute a particular action. P2P networks are decentralized i.e. having no central server and allowing any computer (a node) run both as a client and as a server. The first blockchain implementation is considered to be a bitcoin network.
This technology is used not only for sending digital coins from one person to another. It can be also used for the following purposes:
- To collect taxes (a future perspective).
- To send money from one country to another with minimal commissions.
- For building smart contracts.
- To create cryptocurrency exchanges or trading platforms.
- To pay for different services bypassing traditional financial intermediaries.
We wrote a simple story for you to make it clear how it works.
- Tom wants to send money to James.
- His transaction is represented online as a block.
- The block is shown to everyone in the network.
- The members approve the block is valid.
- Once it is approved it can be added to the chain of records.
- James receives money from Tom.
Let’s find out what components a block is comprised of. Below is an image demonstrating three components of a block. The data shows a receiver and a sender, and the amount of the transaction. A hash is often compared to the fingerprint as it is a unique set of figures and letters that is used as an identifier of the block. The last element is a hash of the previous block which is a part of a blockchain.
What is blockchain wallet?
A blockchain wallet is actually a name given to any reference point from or to which a transaction is made. A more common name is a bitcoin wallet or a cryptocurrency wallet that contains the information about a private key, the latter being an integral element of any transaction.
General overview: Bitcoin software development
Building bitcoin software as well as ICO or cryptocurrency development is all about using innovative techniques and tools. What are the most popular solutions buyers are currently looking for? We’ve done a small research on blockchain solutions and here’s what we’ve got.
What are the most popular blockchain solutions?
Exchange platforms are places where people can buy, sell, or exchange cryptos. The quantity of exchanges is growing rapidly as it is considered to be a profitable business. The users of the platforms have to pay commission for the services on exchange. Usually, the amount of fee depends on whether you are a taker or a maker. It can be from 0% to 2% fee.
Wallet apps are also in high demand due to the fast-paced life. It’s convenient to execute transactions or check out your balance on the go. You can do it at any time and from any place on mobile.
Blockchain code is also used for building mining software. Mining is a process of getting bitcoins. People involved in that process are called miners. They use mining software that solves algorithms and math problems. For solving the problems miners get some cryptos in exchange. In the early days miners solved these problems with the processors in their computers. Soon miners discovered that graphic cards used for gaming suit better to this kind of work. Cards are faster and use more electricity. The first mining products included chips re-programmed for mining bitcoin. Application-specific integrated circuit chips (ASICs) are designed specifically for bitcoin mining.
8 open source blockchain development platforms
With a great demand of blockchain programming IT specialists look for new opportunities in building scalable and secure solutions. There are a lot of developer-friendly open source platforms for creating those solutions. Here is a list of the most popular platforms:
- Open Chain
- IBM Bluemix Blockchain
All platforms offer free source and tools to build software that can run for different industries including not only finance but also healthcare, supply chain, etc.
Where to hire a blockchain software engineer?
Today you can find a bunch of blockchain software companies on web. Thousands of those offer fast and reliable solutions. Think carefully what you really need before hiring a developer or a developing company. Note that outsourcing services will cost cheaper that’s why so many buyers contact offshore development providers. You must also be aware that the company you choose provides blockchain project management and testing, the latter being of core importance for exchanges and trading platforms. Before launching any crypto-based application you must be sure that your community will get high-quality and secure services and that your provider is able to complete the project with regard to these requirements.
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