How to Create your own Blockchain
We have tried to inculcate some ideas on how to build your own blockchain technology and enter the newly trending crypto industry.
Step 1: Determine the use case.
Are you interested in smart contracts, data authentication, and verification, or smart asset management as a business? Define the goals directly from the start.
Step 2: Choose a method for reaching a consensus.
To keep the blockchain running smoothly, all of the nodes must agree on which transactions are valid and should be added to the list. The protocols that do this are known as consensus structures. There are several options to choose from when it comes to finding the right choice for the company’s goals.
Step 3: Decide which blockchain platform to use.
The consensus process you use will influence the blockchain network you use. Here’s a rundown of the most common blockchain networks to give you a better sense of what’s out there:
Ethereum (82.70 percent market share)
Step 4: Build the Nodes
If a blockchain is a wall, nodes are the bricks that make it up. A node is an Internet-connected computer that supports a blockchain by performing a variety of functions, ranging from data storage to transaction verification and processing. For performance, support, and stability, blockchains depend on nodes.
You have a lot of options when it comes to the nodes you’ll use:
What kind of permissions will they have: family, public, or hybrid?
Will they be hosted in the cloud, on-premise, or a combination of both?
Choose and collect the required hardware information, such as processors, memory, and disc size.
Select an operating system as a starting point (most common choices would be Ubuntu, Windows, Red Hat, Debian, CentOS, or Fedora)
Step 5: Build the internal architecture of your blockchain.
Keep in mind that if the blockchain network is up and running, some of the specifications cannot be modified. It’s a smart thing to take your time and consider the following points:
Permissions are needed (define who can access the data, perform transactions and validate them, i.e. create new blocks)
Formats for emails (decide what your blockchain addresses will look like).
Formats of importance (decide on the format of the keys that will be generating the signatures for the transactions).
Issue of assets (establish the rules for creating and listing all asset units)
Re-issuance of funds (establish the rules for creating more units of the open assets)
Management positions of importance (develop a system to store and protect the private keys granting the blockchain access)
Signatures with several signatures (define the number of keys your blockchain will require to validate a transaction )
Changes at the atomic level (plan for the smart contracts enabling the exchange of different cryptocurrencies without a trusted third party)
Variables (estimate maximum block size, rewards for block mining, transaction limits, etc.)
Resources that are indigenous to the area (define the rules of a native currency issued in a blockchain)
Signatures with a block (define how the blockchain participants creating blocks will be required to sign them)
Shaking hands (establish the rules of how the nodes will identify themselves when connecting to each other)
Step 6: Look after APIs
Check to see if the blockchain framework of your choosing has pre-built APIs, as not all of them do. And if your site doesn’t have them, don’t worry: there are plenty of trustworthy blockchain API providers accessible. Here are a few of them for your consideration:
Colored Coin APIs
Factom Alpha API
Step 7: Build the User Interface (Admin and User)
Communication is crucial, and a well-designed GUI means that the blockchain and its users can communicate easily.
Here are some things to think about at this point:
Web, e-mail, and FTP servers are all available.
Databases from outside sources
Step 8: Obtain legal status for your cryptocurrency
Slowly but steadily, the legislation is catching up with cryptocurrencies, and you can avoid any unpleasant surprises by researching the latest developments in cryptocurrency laws and where they are going.
Overachievers should take an extra step to develop and improve their blockchain. Don’t give up now that you’ve come this far. Consider how you will improve the blockchain by incorporating future-proof technology such as the Internet of Things, Data Analytics, Artificial Intelligence, Cognitive Services, Machine Learning, Containers, Biometrics, Cloud, Bots, among other innovative innovations.