When considering a Web3/Blockchain solution there are quite a few steps to take into account in order to develop a product or a platform
with a strong foundation that would be robust and secure enough as well as scalable.
When considering a Web3/Blockchain solution there are quite a few steps to take into account in order to develop a product or a platform with a strong foundation that would be robust and secure enough as well as scalable.
Web3 Dapp Development
In case of a Web3 Dapp development steps generally followed are:
• Analysis of the business case
This is done with stakeholders before choosing the right blockchain and is critically important for the success of a project.
• Choosing the right “Blockchain”
This implies selecting a blockchain that best suits the business case of the project. For instance, for applications with a high volume of transactions, like gambling and gaming apps it is advisable to consider Layer 2 solutions such as Arbitrum, Polygon, etc. However, options like Avalanche, Tron, and Binance Smart Chain may also be suitable. On the other hand, for a Neobank application, considering the Ripple blockchain, which offers a range of options for banking projects, might be better option. Factors influencing this decision include scalability, speed, transaction costs, network security, network age, community support, as well as the number of developers working on the network.
• Node selection (self-hosted or hosted)
Depending on what the client desires, it’s necessary to either integrate a node (we prefer Infura or Alchemy) or host/parameterise nodes with clients. If you want to communicate with blockchain and read/write data to the blockchain, you must use nodes.
• Smart Contract Development
In order for the application on the blockchain to be able to perform all the imagined functionalities, it is necessary to create smart contracts. In order to create smart contracts, it is quite important that you know:
- standards (we prefer Ethereum blockchain, and knowledge of Ethereum “Improvement Proposals (EIPs) and Ethereum Request for Comments (ERC), such as ERC-20, 721, 1155, 4626, 865, and 884, which we’ve used in previous projects)
- patterns (one of the most common being the factory pattern)
- programming language that is compatible with the blockchain on which you develop Dapp.
• Backend and Frontend development
Once Smart Contracts are developed or in parallel with the development of smart contracts, it is necessary to start implementation of backend and frontend, with special attention paid to integrating SDKs for WalletConnect or MetaMask, enabling users to interact with the application through their wallets. It is necessary to understand how wallets work and how they are integrated and made available for users.
• Functional Integrations
This step involves different integrations depending on client’s needs and requirements. For example: KYC, KYT, KYB integration (we prefer SumSub), integration for quick and easy cryptocurrency-to-fiat transfer and conversion (like CoinsPaid or another option preferred by client), other payment-related integrations, cards, integration with major exchange platforms like Binance, etc.
• Internal security auditing
After completing all previous steps we conduct internal security auditing using testing mechanisms such as Dynamic Application Security Testing (DAST) and Static Application Security Testing (SAST) to rectify any weaknesses that may have arisen during the application’s development.
It’s important to note:
During DApp development, we pay attention to the jurisdiction in which servers should be deployed based on where the company is registered and who its clients are. We ensure compliance with various standards such as GDPR, HIPAA, and MiCA regulations, which have provided clear provisions. Using our extensive industry knowledge we also provide consulting services for all regulatory aspects of a project.
New Blockchain development
Developing a “blockchain from scratch” is a complex and multifaceted process that requires careful planning and attention to detail. A prime example of this is the Ethereum network, which clearly demonstrates how much time it takes to build a blockchain and, on the other hand, how vital it is to have strong community support to perform a rigorous stress-testing and eliminate vulnerabilities. As avid supporters of Ethereum blockchain, we use same approach with emphasise on core development and thorough testing.
We start by carefully considering the “Use Case” and the need for a new blockchain, because currently there are many blockchains that offer different functionalities and are tailored for great variety of projects.
If we have considered existing blockchains and a decision was made to develop a new blockchain, these are some of the steps that we identified as the most important (and believe me, there are many, many of them):
• Define the purpose and “Use Case”
Start by clearly defining the purpose of blockchain and the specific use case it will address. Consider what problem or inefficiency the blockchain will solve, whether it’s in finance, supply chain, identity management, or another domain. It is necessary to create an adequate comparison and analysis with existing blockchain solutions, in order to see what advantages and weaknesses the blockchain you want to develop brings.
If you still see the purpose of developing your own blockchain, move on to the next step “Choosing the Right Consensus Mechanism”
• Choose the right “Consensus mechanism”
Selecting an appropriate consensus mechanism based on your use case. Common consensus mechanisms include Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
The choice will impact security, scalability, and energy consumption.
It is very important to choose a consensus that first of all corresponds to your business model, use case, but also to regulatory framework. Various factors and limitations should be taken into account during this selection. A detailed analysis must be carried out, because the wrong choice of the consensus mechanism can cause the blockchain to malfunction or become inactive. Part of this step is also to determine the type of blockchain being developed: public, private, consortium.
• Design the Technical Architecture
Develop a detailed technical architecture for your blockchain. This includes decisions about data storage, data handling, network communication protocols, cryptographic algorithms and queue management. Determine if private transactions and smart contracts are needed as options.
• Creating a Technical Whitepaper
Draft a comprehensive technical White-Paper that outlines the technical specifications, goals, and expectations of your blockchain project. This document serves as a blueprint for development and communication with your team and potential investors. T
his technical document must describe the real processing and functioning of your blockchain to the smallest detail, because it will be the proof of what you did and how you did it.
• Development of the “Core Blockchain”
Here we begin the actual development of the core blockchain infrastructure, including the implementation of the chosen consensus mechanism, data storage, and the creation of the genesis block.
• Implement Security Measures
We implement robust security measures throughout the development process. The first aspect is to do threat modelling along with simulation of different attacks and protection against common vulnerabilities like double-spending, 51% attacks, replay attack and denial-of-service (DoS). It is essential to conduct regular code reviews and security audits. During this step we design a secure P2P protocol or use existing solutions like libp2p.
• Testnet Deployment and Testing
In this step we deploy your blockchain on a Testnet (test network) to allow for testing in a real-world environment without risking actual assets. We test rigorously and extensively to uncover and address bugs, vulnerabilities, and performance issues.
• Mainnet Deployment
Once we are confident in the stability and security of the blockchain we deploy it on the mainnet (production network). We ensure that all security measures are in place and that we have a plan for maintenance and upgrades.
Developing a blockchain from scratch is a significant undertaking, and it’s essential to have a well-thought-out plan and a team of experts to execute each step effectively.
More generally and applicable to any Web3/Blockchain project we make sure the following aspects are covered in detail and incorporated into development process:
- Scalability: Consider how your blockchain will handle an increasing number of transactions over time. Scalability is a critical factor for long-term success.
- Security: Blockchain security is paramount. Employ encryption, authentication, and authorisation mechanisms to protect user data and assets.
- Community and Governance: Establish a governance model for your blockchain and foster an active community of developers and users.
- Regulatory Compliance: Be aware of and comply with relevant regulatory requirements in your jurisdiction.
- Interoperability: Consider how your blockchain will interact with other blockchains and systems.
- User Experience: Prioritise user-friendly interfaces and seamless interactions to attract and retain users.
- Economic Model: Define the economic model of your blockchain, including tokenomics and incentives for participants.
- Documentation: Maintain comprehensive documentation to help developers and users understand how to interact with your blockchain.
- Upgrades and Maintenance: Plan for ongoing maintenance, upgrades, and improvements to ensure the long-term viability of your blockchain.