Best Practices for Blockchain Wallet App Development

Blockchain Wallet App Development is growing rapidly and getting popularity to unexpected heights. Blockchain technology is transforming the digital currency industry by introducing cryptocurrencies with the entire decentralized system. There is also a possibility to have real-life virtual money via blockchain technology which can be redeemed with several merchants like Tesla.

Now, if currencies do not have any physical existence, then there must be a way to keep them for better allocation.

While reading to IDC’s (International Data Corporation) research, I have found a massive difference in spending on blockchain solutions globally between 2019 and 2020. In 2020 it increased very fast and reached the cost of around $4.1 million, which is double compared to 2019.

IDC also stated that blockchain spending will continue to grow throughout the prophecy period with a five-year CAGR (Compound Annual Growth Rate) of around 46.4%. By 2024, it is expected to reach a total of nearly $17.9 billion.

As mentioned above, you have seen the spending that is not particular for technology infrastructure. But if you look at it from a technology perspective. You will find that IT services will account for around 70% to 75% of all blockchain spending throughout the forecast period. IT services spending will grow very fast in the upcoming five years, with a Compound Annual Growth Rate of around 51.4%.

Blockchain Development Platforms

Ethereum

It is an open-source, blockchain-based platform, taken into consideration for blockchain Decentralized App Development (dApp) and ICOs (Initial Coin Offerings) with smart-contract functionality that is used for its own cryptocurrency. Ethereum is used to codify and decentralize also. Its flexibility and adaptability make it the first choice for every blockchain app development company to build a blockchain app. It’s not just a platform, it is a programming language.

EOS

EOS platform aims to offer decentralized application hosting, smart contract capability, and decentralized storage for the enterprise solutions. It also solves the scalability issues found in Blockchains like Ethereum and Bitcoin, along with removing all the fees obtained by the users.

Hyperledger

It is an open-source platform used to create advanced blockchain solutions. It offers essential guidelines, frameworks, standards, and tools to build blockchains. Corporate giants like Bosch, IBM, Hitachi, and JP Morgan are using Hyperledger for blockchain applications. For example, IBM is building blockchain solutions based on IoT, etc.

IOTA

IOTA is an open-source DLT based solution which provides secure payment services between connected IoT devices. To store the transactions, it uses a DAG (Directed Acyclic Graph). It has innovative and unique characteristics, such as faster confirmation times, management of unlimited transactions at a time, free transactions of any size, and many more, making it the ideal platform for developing payment systems.

Types of Blockchain Solutions

If you want your Blockchain Wallet Development to be successful, then it is important to understand the different types of blockchain solutions. Blockchain solutions are categorized in two types.

1. Network-based
2. Cryptocurrency Supported

Now, let’s move forward with the sub-types of these categories.

1. Network-based

It provides core functionalities of the blockchain architecture such as Automated data synchronization, process automation, strict privacy, immutability, ability to deal with multiple permissions, and security features. Using these functionalities, you can develop a more efficient and data-driven business model at a lower cost.

The type of blockchain based on the network is of two types; Permissionless blockchain solutions or Permissioned blockchain solutions.

• Permissioned Blockchain Solutions

These blockchains are the additional blockchain security systems because they maintain an access control layer to permit certain actions that only identifiable participants can perform. Permissioned Blockchain Solutions forms an ecosystem where the only authorized person can act. Ripple is one of the largest cryptocurrencies that utilize this type of blockchain solution.

• Permissionless Blockchain Solutions

As the name itself suggests, users in these blockchain solutions do not need permission to join or interact with them. The whole network is publicly available for every device. Everyone can access the blocks and can easily create a personal address. The very first example of these types of blockchain solutions is Bitcoin. With permissionless blockchain, Bitcoin allows users to transfer digital currencies among themselves.

2. Cryptocurrency Supported

Depending on the cryptocurrency support, blockchain is widely categorized as two types; Cryptocurrency Based Solutions and Non-Cryptocurrency Based Solutions.

• Cryptocurrency Based Blockchain

As you can understand its meaning by the name, it runs only on those blockchains that are based on cryptocurrencies. There are a few trending sub-types of cryptocurrency based blockchain solutions.

• Initial Coin Offerings (ICO)

It is a type of seed funding, or you can say a form of crowdfunding. In ICO, a company looking to raise funds to create a crypto coin, app, or service launches ICO as a medium to raise seed funding.

• Crypto Exchange

This blockchain system is used for trading digital currencies or cryptocurrencies. If you do trading, the foremost thing that comes into our mind is security. Especially when you intend to purchase and hold that on a long-term basis, and want to trade frequently, everyone wants privacy and safety. Coinbase and Coinbase Pro is one of the best examples of crypto exchange that are most secure.

These crypto exchanges accept postal money orders, credit card payments, and other types of payments also. Crypto exchanges are also known as DCE (Digital Currency Exchange) systems.

• Dapp

Dapp is a decentralized app that deals with P2P networks in real-time with the help of protocols. It doesn’t work on the app that is controlled by a single entity.

Augur, Tor, BitTorrent, Popcorn Time, BitMessage, and Sia are the best examples of what a Decentralized App development company can bring into existence.

• e-Wallets

These are the secure and safest cryptocurrency wallet options that allows users to manage and store their bitcoins. These wallets also hold public and private keys via which one can send, receive, and store cryptocurrencies. These blockchain mobile wallets are mainly related to the trading and conversion of cryptocurrencies in three different ways.

• Hybrid
• Centralized
• Decentralized
• Non-Cryptocurrency Support

This type of blockchain solutions aren’t only for cryptocurrencies. These solutions are based on DLT (Distributed Ledger Technology), considered basically for inventory management. Here, a question comes into our minds is what Distributed Ledger Technology is?

Well, a distributed ledger technology is a database distributed across various nodes and computing devices that enables a decentralized digital database’s functioning. These networks eliminate the need for a central authority to keep a check against manipulation. Each node of it has a replica copy and is used to process it independently.

Conclusion

Blockchain Wallet App Development is in trend nowadays, because it is the underlying technology of cryptocurrency, naturally it extends all the perks like robust encryption techniques, security, till they are permanent and unalterable.

I have mentioned platforms and types of Blockchain Wallet Development if you want to know more about this. Also Read: Crypto Wallet Development