How to build a reliable blockchain infrastructure for a cryptocurrency platform

If you plan to develop a cryptocurrency platform, it’s important to understand how a robust infrastructure can help your project succeed.

While many people tend to focus on the features, few people actually know how to build a reliable infrastructure. When you’re building a platform for the novice or seasoned investor, it’s crucial to be able to safeguard your users’ information from potential exposure to cybercrime.

In this article, we’ll discuss the importance of reliable blockchain infrastructure so you can create a solid foundation for your platform.

What is blockchain technology?

Blockchain is a database that ensures transparent sharing of information. It is best known for its role in cryptocurrency systems, such as Bitcoin. Blockchain helps to keep a decentralized record of transactions.

What differentiates it from a typical database is the way that data is structured: it is stored in blocks that have a certain capacity. When they are full, they are connected to form a chain of data.

The information that follows is collected into a new block & then added up to the chain. The data is chronological and can’t be removed or dited without consensus from the network.

What is blockchain infrastructure?

Blockchain infrastructure is the set of tools and facilities that make this technology work. It’s crucial to ensure that your infrastructure components can sustain your MVP, as well as establish the groundwork for scaling up.

You need to consider such things as how many transactions per second you can handle, how much storage space do you need, what type of consensus algorithm you want to use, etc.

How to build a blockchain infrastructure for a cryptocurrency platform

So how to establish a reliable blockchain infrastructure? What is going on behind-the-scenes?

Every complex system requires appropriate infrastructure to function. Building a reliable infrastructure requires careful planning. Here are the main steps involved in the process.

Step 1: Set your goals

It’s important to first identify a use case that makes it profitable, such as data verification (digital signatures, immutable storage), asset management (payment, exchange, escrow transactions), etc.

Step 2: Identify consensus mechanism

There are different mechanisms you can use, such as proof of stake, byzantine fault-tolerance, etc. The Bitcoin platform uses proof of work as a consensus mechanism.

Step 3: Select the platform

The platform will be chosen depending on the consensus type. Some of the well-known platforms include Corda, Ethereum, EOS, Klaytn, Credits, and Stellar.

Step 4: Design the nodes

Blockchains can be public (anyone can access them), private (closed to only selected users), and hybrid. You’ll need to take care of the nodes’ operating environment, which could be cloud, on-premise, or both.

Step 5: Build the components

The components of the platform need carefully designed configuration. Keep in mind that some parameters can be changed at run-time while others cannot.

Step 6: Create the APIs

Some platforms let developers create their own APIs, while others have pre-existing ones that the developer can integrate with their own code.

Step 7: Develop the user interface

You’ll need to decide on the type of programming languages to use, which may include Java, Python, Ruby, etc. Also, you’ll have to select external databases and servers.

Step 8: Adding advanced technologies

By integrating  artificial intelligence, bots, data analytics, machine learning, and the Internet of Things into your cryptocurrency solution you can significantly increase its capabilities.

Why a reliable blockchain infrastructure is so important

It is the backbone of everything, it is what keeps the whole thing running smoothly.

The first thing you need to do when planning is to ensure that every single line of code has been reviewed by developers and security experts before being released. This will help protect against bugs and vulnerabilities in your application, which can result in lost funds for your customers if there are any security issues.

In addition, blockchain infrastructure helps create an environment where trust can be established between parties. This makes it safer for users to interact because they know that their information won’t be mishandled.

Finally, it can also help alleviate some of the problems of traditional currencies like inflation. These problems could potentially plague any cryptocurrency platform if left unchecked.

How blockchain can help your project succeed

Blockchain has many advantages over traditional databases. Here’s what is at stake:

Decentralized governance

Your project will be decentralized which means that all decisions are made by the people who vote on them. Decentralization allows for faster processing and lower fees than centralized systems, which means we can provide a better product at a cheaper price.

Transparency

Blockchain technology allows for transactions to be tracked, which removes the need for third parties like banks or credit card companies to handle transactions. Every transaction made is completely traceable. The resulting transparency makes it easier for people involved in any kind of transaction.

Efficiency

It allows for faster processing than traditional databases; this means that your system will run more efficiently and won’t waste time waiting around while other processes complete tasks like indexing documents into databases or retrieving information from remote servers

High security standards

This technology uses encryption to reduce the probability of a security breach. This prevents hackers from being able to steal or manipulate information. Even if they have access to sensitive user data like passwords or other personal information like payment card numbers. Hackers will not be able to tamper with information stored on your platform.

To wrap up

Blockchain can be a powerful tool. It makes it hard to hack, steal coins, or manipulate markets. However, infrastructure must be built carefully in order for this technology to work properly.

It requires a lot of planning and foresight, not to mention the hard work that goes into making each piece of the system work together smoothly. You need to make sure that you’re using the right tools, and that you have all the necessary resources in order to build your system.

If you have questions about building a blockchain infrastructure, our experts would be happy to help. You can reach out to us via contact@dedicatted.com for a free consultation.