How to create a blockchain application

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Decentralized exchanges, crypto wallets, and peer-to-peer lending platforms are just the tip of the iceberg in the burgeoning blockchain app market. Who knew you could run a distributed healthcare or fintech application where both consumers and providers have an equal say in how data is aggregated and shared? Before we talk about blockchain application development, we will briefly summarize what blockchain (also known as DLT) and blockchain applications actually are. Finally, this technology is directly related to the most fundamental layer of DApp applications.

If we go back a bit and think about why we use applications, we have to admit that each application stores data, processes it and shows it to us. Put the stock app on your phone: stock charts, industry news, indices – it’s all data that the app extracts, processes and displays in the most digestible format. Remove that data and the app becomes an empty shell. With a typical application (99% of today’s software), the data resides on centrally controlled servers owned by a company that developed an application.

For example, Apple’s stock app uses the company’s servers, which pull information from stock exchanges and news sites, and then make it available to users through the app’s interface. The key here is that only Apple controls how app data is processed and delivered to customers.

How to create a blockchain application

develop the idea

You need to identify use cases for your application and make sure your idea requires blockchain or not. It is important to note that blockchain is a method of encrypting data and validating transactions, and if implemented incorrectly, it does not guarantee any additional security for transactions.

Once you have concluded that blockchain is essential for your project, you need to realize that blockchain development is FREE. There are several ways to develop a blockchain application, discussed in the next point, that differ in cost and functionality.

As a valid example of the use of blockchain, if you are a real estate agent and you want to create a blockchain-based supply chain application that will keep a record of every property you sell, you need to understand the multiple use cases of the application and how it works. donate Benefit your business and the consumer.

Identify the right blockchain platform

Once you have concluded that your business should be blockchain based, you need to identify the right platform or technology to use. There are two basic ways you can go.

Create new blockchain

You can choose to create your own blockchain framework where you decide everything from algorithms to transaction validation, from tech stack to token transaction fee. This is the most comprehensive type of blockchain development, but also the most expensive. Basically, they are thinking of creating another bitcoin or ethereum, which while it sounds lucrative, can cost you upwards of hundreds of thousands of dollars. Generally, you would only choose this option if you are creating your own cryptocurrency.

Clone popular blockchain platforms

The other most efficient way to develop a blockchain based application is to develop it using a popular blockchain platform. These platforms are open source, so you can fork their repositories and deploy the code to your own servers. The most important question to ask yourself is: why would the world adopt a blockchain that you created? Remember that a blockchain platform is only as successful as the number of nodes in the network that can validate transactions.

Some popular platforms are Ethereum, Hyperledger Fabric, and Hyperledger SawTooth. Each one has certain characteristics that can help you decide. You can read more about these platforms here. The most popular blockchain platform is Ethereum, which can hold both your coins and tokens (see next point). Some points about Ethereum –

  • Ethereum is a public and open source distributed computing platform based on blockchain, featuring the functionality of smart contracts.
  • Ethereum uses a proof-of-work algorithm, called “Ethash”, which requires more memory to make mining more difficult.
  • Smart contracts on Ethereum are written in the Solidity programming language, which is a subset of Javascript.

Use tokens on existing blockchain platforms

This is a bit different from the previous point. At the last point, we clone the entire blockchain platform and deploy it on our own servers, provided we have a sufficient number of network nodes to validate mining transactions.

But we can also “just create tokens” and deploy them to an existing running blockchain like Ethereum. These platforms provide out-of-the-box APIs, algorithms, and mining strategies to easily implement blockchain in your application (blockchain as a service). You do not need to create a separate waller for your tokens/transactions as Ethereum tokens are accepted by a variety of existing wallets.

This is similar to creating your own eCommerce store on Shopify. Shopify has all the eCommerce features out of the box on its platform, and users only enter the data required to create their own Shopify store. Similarly, you can simply code your own tokens in the Solidity language and implement them on Ethereum (or use another language for different blockchain platforms). The existing platform offers you out-of-the-box services that you can use to transact with your tokens. Remember that tokens can be both coins and smart contracts.


Since blockchain development is very expensive, it is advisable to first develop a proto-application to ensure everything works as intended before deploying it to a live server or existing blockchain platform like Ethereum. During proto-development, you also need to decide which part of the application will be on-chain and which part will be off-chain.

In simple terms, since you are building a web app or a mobile app that uses blockchain, there may be normal functionality that can run on general cloud hosting that does not require blockchain. Then there is the transaction part of the app, which you would probably put on the blockchain platform. You must also decide whether your application (or parts of it) will be built on a privileged network or an unprivileged network.

  • Allow less networks. Here everyone can join and start checking. The best known examples are the Bitcoin and Ethereum networks.
  • authorized network. In this case, the network owner decides who can join the network and only a few members can verify the blocks. Consensus mechanisms can be the same as in a permissionless network, or they can be completely unique in design (for example, based on authority).


This is the core element of blockchain application development. For the sake of simplicity, let’s follow the process described in point 2c. above, i.e. H. the use of tokens on existing blockchain platforms. It is important to first understand the transaction mechanism. The token is essentially a long alphanumeric string that serves as a unique identifier for your coin/smart contract. Each blockchain wallet user has unique public and private keys (similar to long passwords). These keys are used to identify users to credit/withdraw funds or to refer to the smart contract. This is very similar but much more secure compared to adding a new beneficiary to your bank account using their bank account number etc.

You can create your own smart contract/token in Solidity language for Ethereum. You must first create a test token and verify its functionality before implementing it on a real blockchain. Follow this official guide to creating your first Ethereum token and this blog post to understand the nuances of creating your own token. Once you create the contract/token, you put it “on-chain”, which essentially means deploying your code to a server.

A transaction begins when a user submits an attempt to send a token, which the network validates as valid (if they own the token and haven’t sent it to anyone). Your token information is then combined with your private key, which then spits out a digital code that is then verified by the network using the sender’s public key. This is possible because a contract signed with a private key can be validated with a public key, but no public-private key mapping can be established, so everything remains secure.

Final words: How to create a blockchain application

I hope you understand this article, How to create a blockchain application. If your answer is no, you can ask anything via the contact forum section related to this article. And if your answer is yes, please share this article with your friends and family to give us your support.

Editorial Staff
Editorial Staff
The Bollyinside editorial staff is made up of tech experts with more than 10 years of experience Led by Sumit Chauhan. We started in 2014 and now Bollyinside is a leading tech resource, offering everything from product reviews and tech guides to marketing tips. Think of us as your go-to tech encyclopedia!


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