The internet is a huge part of most people’s daily lives and there is no sign that this is going to change any time soon. However, cryptocurrencies, and the technologies they use are changing the way the internet functions.
The thing that makes cryptocurrencies so unique is the platform they are built on. All cryptocurrencies are built on Distributed Ledger Technology (DLT) platforms; the most popular of which is blockchain.
Many people and organisations build on this platform, and they are known as blockchain development companies. Keep reading to find out everything you need to know about blockchain development companies.
What is a blockchain development company?
This technology is essentially a digital database for storing information; this information is stored in groups that are known as ‘blocks’. This system is similar to a spreadsheet; however there are a few main differences:
Decentralized: This technology is known as being decentralized, which basically means that it is not stored in one place and has no centre. Therefore, it is stored across multiple different computers (which are referred to as nodes). These systems are known as peer-to-peer networks simply because there are no third party sites involved. This means that no single entity has control over the information meaning user’s deal directly with each other rather than through a third party.
Public: This basically means that all the data involved in this system is public and accessible to everyone.
Guided by Consensus: This is a way of protecting the blockchain development company from fraud. Essentially, more than half of the nodes (computers) have to agree that the new data is valid before it is added.
Immutable: This is another way of preventing the system from fraud or hacking, it basically means that once the information is added, it cannot be edited or removed. The information is fully encrypted which prevents hacking.
What are dApps?
Many people have heard of the term dApps but they don’t actually know what it is, or how it relates to blockchain development companies.
Basically, the software that is built on these systems are known as dApps (decentralised applications). The backend code of a dApp is running through a peer-to-peer system.
Interestingly, the first dApp was built on Bitcoin’s platform and its peer-to-peer payment system as an alternative to centralised banking.
A blockchain development company works on building dApps and therefore creating a decentralised internet.
What do blockchain development companies build on?
There are two main platforms in which dApps can be built upon; Ethereum and NEO. Although both allow the user to build dApps, they achieve this in slightly different ways. DApps are created using programming languages.
NEO allows users to build with a range of different programming languages, such as C# and Java. Due to this, it is very simple for experienced coders and web creators to create dApps on using this platform.
Ethereum, however, has its own language that all builders must use. This language is called Solidity. Therefore, experienced web designers will have to learn a new language in order to use this platform. But, Solidity is similar to other languages like C++ and Javascript.
NEO places a high importance on providing platforms for the digital businesses of the future. This platform is based in China and works closely with the Chinese government. This network is incredibly fast and is an excellent option for those looking to process lots of transactions per second.
Ethereum, however, has links with many big businesses, such as Samsung and Mastercard. This blockchain development company places more focus on users to continue growing the platform. Furthermore, it also has the largest dApp building community.