In the recent years there is an onrush of smart technologies that has opened up new vistas for business process optimization. What was a daunting task almost 15-20 years ago have now become part and parcel of our daily lives – whether that be virtual currencies, e-banking and faster online payments. Blockchain is one such technology that enables to make secure financial transactions without any commission charges. But “How does Blockchain Work?”.
In the initial years, Blockchain acted as a distributed database for the execution of transactions between the various Bitcoin users. The main feature of the technology that distinguishes the Blockchain technology from the others is that it does not have any centralized storage, but the data remains distributed in the form of interconnected blocks. These blocks are united in the form of a chain with the help of complicated algorithms. The new blocks get added to the end of the chain. But, alterations are not possible. This in turn offers the highest level of security.
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In order to build trust, the Blockchain must eliminate all intermediaries. This does not require your own Blockchain but requires already existing networks of the likes of Bitcoin, Hyperledger and Ethereum. Out of these, Bitcoins and Ethereum are open source, public chains which are decentralized but Hyperledger is a private chain that is open source too.
Next, we will delve into the tools to be used by the Blockchain developers – both Ethereum as well as Bitcoins.
5 Tools Used by the Blockchain Developers
Following are the tools used in Blockchain Application Technology. These are:-
- Coinbase’s API
BaaS, or Blockchain as a Service was created by Microsoft. It is an useful tools for creating dapps (decentralized applications). This enables the developers to build dapps in a cheaper or safe environment. Moreover, it is supportive of multiple chains like Eris, MultiChain, Storj and Augur. BaaS enables the backend with capabilities needed for Blockchain solutions. So, just by using a few clicks, the Blockchain can be launched, rather not setting your own Blockchain in Azure.
If you want to create new bitcoin apps or integrate the Bitcoins in the already existing applications, then start using Coinbase’s API. It has a system that creates Bitcoin wallets and addresses. Moreover, bitcoins can be bought, sold, send and received worldwide. It not only helps to create something new, but also helps to gather read-only-data. Furthermore, the API provides the developers with mobile SDKs and client libraries.
You can develop apps using native Mist applications on the testnet or the Ethereum Blockchain. It is useful for the Ethereum developers, as it helps to store Ether or carry out with transactions as well as deploy the smart contracts. Mist will enable you to work on the browser. It is Ether that acts as electricity for Ethereum. For the execution of a smart contract, you need to spend some Ether.
This offers tools and APIs for adding data to the distributed ledger. It makes it possible to create verifiable database on the Bitcoin blockchain – using data and processes. It comes with its own open standard called Chainpoint. This helps to record data and generate receipts with information for verification of the data – with no need for any intermediaries.
The developers use Solidity to write codes on the Ethereum blockchain. Solc is the compiler for Solidity. Some of the Ethereum nodes have Solc implementation but it comes as a standalone module for offline compiling. You can compile the solidity files, by using or not using nodes. Use solc.compile without the need for external nodes. Solc acts as a translator for the smart contract language Solidity to Ethereum’s byte-code.
Finally, the Blockchain developers act as the real Unicorns in the market. The companies are on the lookout for these talents, but only a few are available. You can gather more knowledge on the technologies and the tools from the various online communities and the various events.