Blockchain Development Guide: Everything You Need to Know in 2024

Did you know that the blockchain market size is expected to cross $67.4 billion by 2026? In fact, global spending on blockchain solutions has increased from $6.6 billion in 2021 to $19 billion in 2024.

It can be said that the global blockchain market is experiencing rapid growth!

Blockchain technology has also transformed our understanding of data storage, transactions, and security. That’s why business owners or tech enthusiasts who want to stay ahead of the curve must understand blockchain development in detail.

In this blog, we will discuss:

Let’s get started!

Benefits of Blockchain Technology for Businesses

There are several benefits to using blockchain technology for business. Here are a few of them:

1. Reducing Costs

Blockchain technology can help businesses save money. It improves transaction processing efficiency while decreasing the need for manual processes like data gathering, editing, and reporting.

Blockchain technology can speed up the process of clearing and settling transactions, which directly leads to cost savings. Wondering how it happens. Well, blockchain eliminates third-party providers that traditionally handle the processing that blockchain can do.

2. Building Trust

Blockchain helps build trust between parties when there is a lack of trust. As a result, the organizations agree to conduct business or exchange data in ways that they otherwise would not have done.

One of blockchain’s popular advantages is its ability to facilitate trust. Early use cases of blockchain technology showed how it could help companies share data or payments, even if they didn't have a direct business connection. Cryptocurrencies are a popular example of how blockchain fosters trust.

3. Creating smart contracts

One popular application of blockchain for business transformation is smart contracts. As the name suggests, it is a self-executing contract, where the terms and conditions of both parties are written in codes. Following this, a decentralized blockchain network stores the codes in an unchangeable manner.

Wherever the requirements are met, the related codes are run. In case, one party breaches the agreement, the services/products are returned to the other party. Companies can take action by using smart contracts, without the need for government representatives or regulatory bodies.

4. Customer Engagement

Blockchain increases consumer engagement via access, transparency, simplification, and trust in company operations. Blockchain technology and customer interaction open the door to numerous advantages and opportunities.

You can avail of these advantages by choosing the top blockchain development companies. The benefits include giving users control over their data, integrating transparency, and fostering quick transactions.

5. Improving Security and Privacy

Blockchain offers businesses a high level of security, which makes hacking nearly impossible. This level of security comes from end-to-end encryption that generates an irreversible record of transactions, preventing fraud and unauthorized behavior.

Moreover, hacking becomes practically difficult because blockchain data gets distributed among a network of devices. Not to mention, by anonymizing data and requiring permissions to restrict access, blockchain can better address privacy concerns.

6. Financial Management

Businesses invest a lot of money in maintaining and enhancing their current systems. They constantly look forward to investing in options that can lower costs and enhance their current procedures.

Enters blockchain!

Organizations can save a significant amount of money by using this technology instead of third-party vendors. Blockchain eliminates the necessity for vendor fees as it does not have any inherited centralized players. Furthermore, transaction validation requires less interaction, eliminating the need to spend money on simple tasks.

7. Capital Raising

By adopting blockchain, business owners and entrepreneurs get an alternate way to raise money through initial token offerings (ITOs). ITOs can be freely traded on exchanges. They are similar to a regular company's revenue share or stock.

Interested investors can purchase tokens based on blockchain technology. This token might be useful for utilizing an organization’s goods or services, or it may just represent a stake in the company. ITOs' growing popularity has made them a competitive alternative for companies looking to raise finance.

Challenges in the Adoption of Blockchain Technology for Businesses

Blockchain technology is innovative, but it comes with a unique set of challenges. Below are a few major challenges that blockchain faces:

1. Complexity

The complexity of blockchain makes it difficult to understand. People who lack technical expertise and knowledge might find it challenging to navigate the world of blockchain and cryptocurrencies. That’s why, many people avoid entering this area. This complexity creates a barrier to adoption and understanding.

2. Energy Consumption

For blockchains like Bitcoin and Ethereum 1.0, energy consumption is comparatively high because they use the Proof-of-Work consensus method. This is because mining and transaction validation demand a significant amount of processing power.

On the other hand, the Proof-of-Stake consensus method requires less processing power. This is why Ethereum 2.0 has been switched to Proof-of-Stake.

3. Limited Interoperability

Blockchain interoperability across different networks refers to its capacity to communicate and share data.

Every blockchain has its own set of rules and procedures. As a result, there is less natural interaction and data sharing between different blockchains. It restricts their entire potential and usefulness.

4. Limited Scalability

Due to scalability issues, blockchain experiences slow transaction speeds during high-traffic periods. In busy networks, this causes delays and increases transaction costs. Scalability varies depending on the blockchain platform.

5. Integration Issues

Companies face numerous difficulties while integrating blockchain into current technological infrastructures. To overcome integration challenges, they must revamp their current systems. This process can be difficult, costly, and time-consuming.

Blockchain is more sophisticated than standard databases because it operates differently from typical databases in both its data structure and operational methods.

Furthermore, integrating blockchain requires a certain degree of technological know-how. But many organizations don’t have it. That’s why it is essential to develop user-friendly blockchain integration tools and platforms for wider adoption.

6. Uncertain Regulations

One major issue with blockchain technology is that the regulations are still being decided. Governments and regulatory agencies globally are working to understand this new technology and create regulations around it. It makes the regulatory environment unpredictable and unclear.

This uncertainty poses a serious issue for businesses looking for clarification on how future legislation will impact blockchain-based projects.

In the absence of clear norms, companies avoid making significant investments in blockchain projects. For blockchain technology to thrive and be used securely across different sectors, clear policies must be created, that are the same for everyone.

Blockchain Use Cases

Did you know that the blockchain’s common advantages have led to its usage across different industries? Below are a few of them:

1. Finance

One of the popular use cases of blockchain technology is cryptocurrency (such as Ethereum and Bitcoin). Crypto wallets are used to manage cryptocurrencies. What’s more? Blockchain can facilitate international money transfers in a faster and cheaper way.

Financial services that operate on a blockchain without traditional financial intermediaries (lending, borrowing, and trading) are called decentralized finance (DeFi).

[Also Read - How Blockchain Technology Can Revolutionize the Fintech Industry]

2. Identity Verification

Digital identities are safely recorded and stored on blockchain networks to stop identity theft and fraud. Also, a blockchain network can be used to verify travel documents.

3. Insurance

Frauds are common in the insurance claim procedure. Due to this, claim evaluations can take a long time. By using blockchain technology, insurance companies can streamline data verification, payouts, and claims processing. It also reduces the time and expenses involved in processing claims.

Blockchain technology allows insurers to produce unchangeable and reliable records of the ownership history and warranty claims of high-value insured assets. This promotes openness and reduces the chances of claims of fraud.

Since blockchain saves insurers time and money by reducing work duplication and enhancing compliance control, KYC and AML procedures can also be enhanced.

4. Global Trade and Commerce

Blockchain technology is digitalizing trade documentation, streamlining laborious procedures (letters of credit), and offering an environment for secure trade finance transactions. Thanks to blockchain, issuing letters of credit can be done using smart contracts based on pre-established conditions.

Blockchain technology can generate a transparent record of a product's origin, ownership history, and movement across the supply chain. For instance, Walmart's blockchain solution and IBM's Food Trust track products immutably from farm to store, ensuring ethical sourcing and compliance with food safety regulations.

5. Healthcare

The rapid expansion of blockchain is benefiting healthcare providers by allowing them to use decentralized electronic health records (EHRs). Blockchain technology guarantees data integrity for any modifications to a patient's medical history by generating a permanent audit trail.

What’s more? Healthcare providers can use blockchain technology to maintain credentials, licenses, and certifications. This can be done on a distributed ledger, facilitating verification procedures and reducing the possibility of fraud.

[Also Read - How Blockchain Boosts Healthcare? Trends, Innovations & Advantages!]

6. Government and Public Sector

Blockchain is not limited to the commercial sector; central governments and the public sector are also investigating its potential applications. Blockchain-powered identity management and citizen records help fight fraud, data manipulation, and unauthorized access.

Popular Blockchain Development Tools

Below are the six most trending blockchain development tools in 2024:

1. Solidity

This language is similar to JavaScript and is used for creating smart contracts on the Ethereum network. It's commonly used for creating dApps.

2. Truffle

Along with being an Ethereum programming environment, Truffle functions as a testing framework. It simplifies the creation, testing, and implementation of smart contracts.

3. Remix

Remix is a web browser-based integrated development environment. It is designed for the development of Ethereum smart contracts.

4. Vyper

Similar to Python, Vyper focuses on simplicity and security. It's an additional option for creating Ethereum smart contracts.

5. Rust

Rust is known for its functionality and safety. It is used in blockchains like Polkadot and Solana. This language is difficult to learn.

6. Yul

Yul is an intermediate language, used as a stand-alone in certain situations or for inline assembly within Solidity.

Common Blockchain Development Platforms

Blockchain platform allows creating and managing blockchain applications, including smart contracts. Below are four popular blockchain development platforms:

1. Ethereum

Ethereum is based on blockchain and carries out smart contract execution through a decentralized virtual machine called the Ethereum Virtual Machine (EVM). The EVM is a global open-source environment, designed to be run on a decentralized computer network. It allows programmers to create and implement smart contracts in multiple programming languages and decentralized apps (DApps).

2. Cardano

Cardano provides a safe and secure platform for creating decentralized apps. It uses a unique consensus method, called Ouroboros and focuses on scalability and interoperability.

3. Tezos

Tezos’ on-chain governance approach sets it apart from other blockchains, allowing upgrades without hard forks. It's a good platform for developers looking to create dApps that can grow without interfering with the network.

4. Polkadot

Polkadot is all about interoperability, allowing blockchains to connect and exchange data. This platform is the best choice for developers creating apps that can work with several different blockchains.

How Protonshub Can Help You With Blockchain Development?

We assume you might have understood the advantages and disadvantages of blockchain, its use cases, platforms, and tools. Now, let Protonshub Technologies help you!

Our developers have an impressive track record of offering scalable and feature-rich blockchain solutions to different industries. We are early adopters of advanced technologies and follow a strategic process to help businesses explore the world of decentralized apps.

With the blockchain industry maturing and evolving, you would need a reliable partner like us by your side. Don’t wait anymore. Reach out to us today with your blockchain development needs.

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Ekta Singh

"Senior Content Writer"

Ekta Singh is a rookie food experimentalist and k-drama fan with 4+ years of experience in writing. Bridging gaps between companies and customers through conversion-driven content is her forte. She believes in writing stories for a living and living life for exploring places.