Category: Blockchain

Non-Negotiable Tips for Developing a P2P Lending Platform

Posted on by deftsoft

The world is emerging with new methodologies to find alternatives to traditional lending systems and P2P lending platforms have democratized the finance scenario. Because of lucrative borrowing and investing options, people are swaying away from conventional monetary systems. 

According to Yahoo Finance, the global P2P lending market is poised for significant growth, with a projected market share of USD 621.3 billion by 2032. This represents a compound annual growth rate (CAGR) of 28.1% between the forecast period of 2023 and 2032, signaling a wealth of opportunities for those in the industry.

Whether you’re a business organization or enterprise looking to build a P2P lending platform, we have gathered the most practical tips to keep in mind before and after developing a successful P2P lending platform.

Before discovering the tips for a robust P2P lending platform, it is important to understand how P2P platforms make money.

How Can You Benefit from P2P Lending Platform Development?

A peer-to-peer lending platform is a decentralized common ground for lending and borrowing money. Powered by blockchain, it is not owned by any third-party beneficiary, financial institutions, banks, NBFCs, or credit brokers. 

Borrowers and lenders can sign up on a P2P lending platform through KYC/AML verification. A dedicated crypto wallet is assigned to investors and borrowers. Lenders can find their borrower match and gain competitive interest rates. 

But how does a P2P lending platform earn money?

Investors and borrowers pay a particular platform fee when making transactions on a P2P lending platform. The platform also charges a fee when someone avails of the platform’s services.

Top Tips to Consider Before P2P Lending Platform Development

Tips to Consider Before P2P Lending Platform Development

Here are the topmost tips to consider right before developing a P2P lending platform:

1. Research About the Market’s Needs

The first step before developing a P2P lending platform is to perform comprehensive market research about what the user wants. It is very critical to analyze the pain points that are prevailing in conventional lending systems and how you can address the pain points of investors and borrowers. You must also understand how you can offer unique values and attractive interest rates to the users.

2. Focus on a User-Friendly Interface

A user-friendly interface can make or break your P2P lending platform’s success. Make sure that you create a design that is intuitive to navigate, offers a simplified transaction process and streamlined workflows, provides an easy loan application process and is transparent about its terms and conditions.

3. Top-Tier Security and Compliance 

User security and compliance are pivotal in ensuring the safety and protection of users leveraging the P2P lending platform. You must incorporate regulatory standards into the platform’s software along with legal considerations. This practice will help curate a P2P lending platform with end-to-end security.

4. Broad Spectrum of Lending Products

Your P2P lending platform must offer a diverse range of loans to borrowers and investors. These lending options include business loans, personal loans, student loans, medical loans, etc. Therefore, you will be able to attract a wide variety of users to your P2P lending platform.

5. Implement Credit Scoring and Risk Assessment 

Integrating a credit scoring system is important to help lenders estimate the risk involved in lending money to the borrowers. This system can analyze a borrower’s complete lending history—whether he has previously been a defaulter or not—the borrower’s profile and other important data to understand the risk involved. 

The P2P lending platform developers can use new-age machine learning functionalities and algorithms to build a foolproof and compelling P2P lending platform for investors and borrowers.

6. Built-In Profile Matching

Automation can ease down various processes such as document verification, loan application review, credit history checks and lender-borrower profile matching. P2P lending developers can define certain criteria that can speed up the lending process and facilitate the mediation of successful loan transactions.

7. Integrated Real-Time Updates

You must create a dedicated platform dashboard that provides real-time updates about the loan application, its status, interest rates, loan repayment notifications to the borrowers, monthly interest gained by the lenders, etc. This transparent communication through a P2P lending platform facilitates real-time updates.

Top Tips to Consider After Developing P2P Lending Platform

Tips to Consider After Developing P2P Lending Platform

Once the P2P lending developers have created the platform, here are some of the top tips to consider for your P2P lending platform:

1. Robust Customer Support

Quick and responsive customer support plays a significant role in determining the success of a P2P lending platform. You must have an effective and easy-to-use customer support system that quickly resolves users’ queries, whether the user has inquiries as a borrower or investor.

2. Efficient Platform Updates

You must ensure that the P2P lending platform is up-to-date with the latest industry standards by frequently pushing out new updates to the platform. Along with regular updates, you must specialize in keeping the app in compliance with the industry’s latest security standards.

3. Smart Default Handling

Your P2P lending platform must also have a smart system for handling the borrower defaults. In case of loan defaults, there must be a robust and efficient dispute system so that the dispute can be resolved easily.

Conclusion

Peer-to-peer lending has revolutionized the lending scenario entirely by eliminating any kind of intrusion from third-party beneficiaries. The rapid growth of the P2P lending market presents a significant opportunity for businesses and enterprises to develop innovative and user-friendly platforms. By focusing on thorough market research, user-friendly interfaces, top-tier security, diverse lending products, and advanced credit scoring, developers can create successful P2P lending platforms. 

Post-development, maintaining robust customer support, regular platform updates, and efficient default handling are crucial for long-term success. Embracing these non-negotiable tips ensures the creation of a compelling and secure P2P lending platform that meets the evolving needs of borrowers and investors.

FAQs

1. What is a P2P lending platform?

A P2P lending platform is a decentralized marketplace that connects borrowers and lenders directly, bypassing traditional financial institutions. It is often powered by blockchain technology to ensure security and transparency.

2. How do P2P lending platforms make money?

P2P lending platforms earn money through platform fees charged to both borrowers and lenders for transactions and services provided on the platform.

3. Why is a user-friendly interface important for a P2P lending platform?

A user-friendly interface ensures that users can easily navigate the platform, apply for loans, and complete transactions smoothly, which is crucial for the platform’s success and user satisfaction.

4. What security measures should a P2P lending platform include?

The platform should incorporate regulatory standards, legal considerations, and robust security protocols to protect user data and ensure compliance with industry standards.

5. How can a P2P lending platform handle borrower defaults?

A smart default handling system should be in place, including an efficient dispute resolution process to manage loan defaults and ensure smooth resolution of any issues that arise.

Step-by-Step Guide: How to Build a dApp on Ethereum with Ease 

Posted on by deftsoft

A technology that started with a digital currency called Bitcoin has now opened the door to building fully functional apps. Many people confuse Ethereum with Bitcoin; however, they’re not the same.

If you’re intrigued by the idea of creating a decentralized app (dApp) on the Ethereum blockchain platform, then this guide is a treasure trove of knowledge for you. It’s your key to unlocking the world of dApp development. Let’s get started.

Is Ethereum Just Another Bitcoin?

Ethereum is not a digital currency like Bitcoin. However, it is a software platform built on blockchain that allows developers to build decentralized apps (dApps).

Ethereum was ideated by Russian-Canadian programmer and cryptocurrency researcher Vitalic Bitterin in 2013. Later, in 2015, it went live. The simplest explanation of Ethereum in two words is ‘Software platform.’

So, how does Ethereum differ from Bitcoin?

“Bitcoin and Ethereum are both use cases of blockchain technology with different purposes.”

– CryptoCasey’s podcast

Bitcoin is simply a digital currency that people can use as a form of payment to send to and from each other or hold as a store of value. On the other hand, Ethereum is a programmable blockchain that people can use to build software to create valuable products and services due to the decentralization properties of blockchain technology.

The software that people can build on Ethereum is called decentralized applications or dApps.

What Exactly is a dApp?

A decentralized app or dApp is an app whose data is stored on a distributed network of computers. It is a Web3 app that can be developed on a platform that is built on blockchain. A dApp enjoys three main benefits of being developed on a blockchain network. These are:

  • Decentralization

 The blockchain network is decentralized. Firstly, it means that the data is stored on a group of computers (nodes) rather than on a central server. Secondly, the network is not owned by any third-party intermediary, not even the government.

  • Transparency

Another important asset of blockchain is transparency. This means that the transactions recorded on the ledger are available for everyone to see and are stored on a network of computers around the world, thus making data impossible to alter or modify.

  • Immutability

Immutability simply means that the data recorded and stored on the blockchain cannot be changed, altered or forged. This un-modification of records is achieved through cryptography and blockchain hashing processes.

In simple words, when a Web3 developer builds a dApp on a blockchain network like Ethereum, he knows that no one can control the data or network or destroy it.

Also Read: The Beginner’s Handbook to Decentralized Apps (dApps)

Things to Know Before Building a dApp on Ethereum

There are two main things to know before beginning to build a dApp on Ethereum. Follow along!

  1. Know About Gas Fee

As discussed before, blockchain is decentralized, meaning it is software distributed across a vast network of computers around the world to incentivize people to host and maintain data on the blockchain. Ether was created as a form of payment to fuel the Ethereum network. 

So, anyone who wants to build a software application, i.e., dApp on an Ethereum network has to pay for the computing power and space required for using Ether. The amount of Ether required for network fees is determined by a built-in pricing system known as Gas.

Note: You only need to pay the gas fee for dApp deployment.

  1. Proficient in JavaScript and/or Solidity

If you’re entirely new to blockchain and dApp development, you cannot directly jump on learning about blockchain programming languages. You must first have the time and patience to learn a basic programming language such as JavaScript or Python. You must also be aware of front-end development as well. It is only then that you can plunge your hands into blockchain programming languages such as Solidity or Go to build smart contracts from dApp.

How to Create a dApp on Ethereum Step-by-Step?

Now that you’re aware of what you need to create a dApp on Ethereum let’s address our primary focus: how to build a dApp on Ethereum. There are numerous steps involved in building a dApp, such as setting up the development environment to deploy the smart contract and then creating a frontend so that the users can interact with the app.

Follow the given roadmap to build dApp on Ethereum:

Create a dApp on Ethereum Step-by-Step_

1. Prepare Your Development Environment

You need to install the following tools and runtime environment:

  • Install Node.js runtime environment and npm package to run JavaScript applications and manage packages. You can download Node.js from here.
  • The next step is to download Truffle, a popular development framework for Ethereum. You can install Truffle with the following bash script on Node.js:

npm install -g truffle

  • Then, download Ganache, an Ethereum development tool that allows you to simulate the blockchain environment locally and deploy smart contracts.
  • It is important to download a software cryptocurrency wallet to interact with Ethereum. To do this, download MetaMask, a browser extension for managing Ethereum accounts and interacting with the blockchain.

2. Code a Truffle Project

After installing all the required tools, create a new Truffle project and set up your directory infrastructure. The goal of Truffle is to deploy dApps and smart contracts to Ethereum. It offers you all the tools and libraries to simplify development, building the contract, testing, deploying and managing it.

3. Write Smart Contract

You can write the smart contract in Solidity, which is one of the most widely used blockchain programming languages for Ethereum. Compile and migrate the smart contract using Truffle. A good tip is to connect your GitHub repository to Truffle Teams.

4. Test Smart Contract

You can write the tests in Mocha and Chai to test the functioning of your smart contract.

5. Build a Frontend to Interact with Smart Contracts

To interact with the smart contract, you need a front-end framework such as React.js. This allows you to integrate Web3.js with the Ethereum blockchain.

6. Finally, Deploy the dApp

Once you’re satisfied with the created version of your dApp, it’s time to deploy your smart contract to Ethereum. You can promote it to production by deploying it to Mainnet or any testnet. After that, connect your frontend with the deployed contract.

Build a dApp on Ethereum with an Example

It’s good to have practical knowledge, but what’s fun when you don’t know how to code the dApp in real life? To make it easy, we’ve taken an example of a peer-to-peer lending dApp that you can build by following these steps. Consider this practice as a warmup exercise so that you can get started with creating your own dApp on Ethereum.

Here are the practical steps to build a dApp on Ethereum:

  1. Set Up Development Environment

The steps are already mentioned above.

  1. Creating a Truffle Project
  • Use the following bash script to initialize the Truffle project:

mkdir LendingDApp

cd LendingDApp

truffle init

  • Use the following Arduino code to prepare the directory structure:

LendingDApp/

├── contracts/

│   ├── Migrations.sol

│   └── Lending.sol

├── migrations/

│   ├── 1_initial_migration.js

│   └── 2_deploy_contracts.js

├── test/

├── truffle-config.js

  1. Write the Smart Contract
  • Create ‘Lending.sol’ in ‘contracts’ folder by writing the following Solidity code:

pragma solidity ^0.8.0;

contract Lending {

    struct Loan {

        uint256 amount;

        address payable borrower;

        address payable lender;

        uint256 interest;

        bool repaid;

    }

    Loan[] public loans;

    mapping(address => uint256[]) public borrowerLoans;

    mapping(address => uint256[]) public lenderLoans;

    event LoanRequested(uint256 loanId, address borrower, uint256 amount, uint256 interest);

    event LoanFunded(uint256 loanId, address lender);

    event LoanRepaid(uint256 loanId);

    function requestLoan(uint256 amount, uint256 interest) external {

        loans.push(Loan({

            amount: amount,

            borrower: payable(msg.sender),

            lender: payable(address(0)),

            interest: interest,

            repaid: false

        }));

        uint256 loanId = loans.length – 1;

        borrowerLoans[msg.sender].push(loanId);

        emit LoanRequested(loanId, msg.sender, amount, interest);

    }

    function fundLoan(uint256 loanId) external payable {

        Loan storage loan = loans[loanId];

        require(loan.lender == address(0), “Loan already funded”);

        require(msg.value == loan.amount, “Incorrect amount”);

        loan.lender = payable(msg.sender);

        lenderLoans[msg.sender].push(loanId);

        loan.borrower.transfer(loan.amount);

        emit LoanFunded(loanId, msg.sender);

    }

    function repayLoan(uint256 loanId) external payable {

        Loan storage loan = loans[loanId];

        require(msg.sender == loan.borrower, “Only borrower can repay”);

        require(!loan.repaid, “Loan already repaid”);

        uint256 repaymentAmount = loan.amount + loan.interest;

        require(msg.value == repaymentAmount, “Incorrect repayment amount”);

        loan.repaid = true;

        loan.lender.transfer(repaymentAmount);

        emit LoanRepaid(loanId);

    }

    function getLoanDetails(uint256 loanId) external view returns (uint256, address, address, uint256, bool) {

        Loan storage loan = loans[loanId];

        return (loan.amount, loan.borrower, loan.lender, loan.interest, loan.repaid);

    }

}

  • Compile the smart contract through the following bash script:

truffle compile

  • Create ‘2_deploy_contracts.js’ in ‘migrations’ folder using the following JavaScript code:

const Lending = artifacts.require(“Lending”);

module.exports = function (deployer) {

    deployer.deploy(Lending);

};

  1. Migrate the Smart Contract

You the following bash script to migrate the smart contract:

truffle migrate

  1. Test the Smart Contract
  • Create ‘Lending.test.js’ in ‘test’ folder by writing the JavaScript code:

const Lending = artifacts.require(“Lending”);

contract(“Lending”, accounts => {

    it(“should allow a user to request a loan”, async () => {

        const instance = await Lending.deployed();

        await instance.requestLoan(100, 10, { from: accounts[0] });

        const loan = await instance.loans.call(0);

        assert.equal(loan.amount, 100, “Loan amount should be 100”);

        assert.equal(loan.interest, 10, “Loan interest should be 10”);

        assert.equal(loan.borrower, accounts[0], “Borrower should be the account requesting the loan”);

        assert.equal(loan.lender, 0x0, “Lender should be empty initially”);

    });

    it(“should allow a user to fund a loan”, async () => {

        const instance = await Lending.deployed();

        await instance.fundLoan(0, { from: accounts[1], value: 100 });

        const loan = await instance.loans.call(0);

        assert.equal(loan.lender, accounts[1], “Lender should be the account funding the loan”);

    });

    it(“should allow a borrower to repay a loan”, async () => {

        const instance = await Lending.deployed();

        await instance.repayLoan(0, { from: accounts[0], value: 110 });

        const loan = await instance.loans.call(0);

        assert.equal(loan.repaid, true, “Loan should be marked as repaid”);

    });

});

  • Run the test by using the bash script:

truffle test

  1. Build the Frontend to Interact with Smart Contracts
  • Set up the React app by using the following bash script:

npx create-react-app lending-dapp

cd lending-dapp

  • You then need to install Web3.js through the following bash script:

npm install web3

  • Create App.js components by using the following JavaScript code:

import React, { useState, useEffect } from ‘react’;

import Web3 from ‘web3’;

import Lending from ‘./contracts/Lending.json’;

const App = () => {

    const [web3, setWeb3] = useState(null);

    const [account, setAccount] = useState(null);

    const [contract, setContract] = useState(null);

    const [loans, setLoans] = useState([]);

    const [loanAmount, setLoanAmount] = useState(“”);

    const [loanInterest, setLoanInterest] = useState(“”);

    useEffect(() => {

        const init = async () => {

            const web3 = new Web3(Web3.givenProvider || ‘http://localhost:7545’);

            const accounts = await web3.eth.requestAccounts();

            const networkId = await web3.eth.net.getId();

            const deployedNetwork = Lending.networks[networkId];

            const instance = new web3.eth.Contract(

                Lending.abi,

                deployedNetwork && deployedNetwork.address,

            );

            const loanCount = await instance.methods.loansCount().call();

            const loanDetails = [];

            for (let i = 0; i < loanCount; i++) {

                const loan = await instance.methods.getLoanDetails(i).call();

                loanDetails.push(loan);

            }

            setWeb3(web3);

            setAccount(accounts[0]);

            setContract(instance);

            setLoans(loanDetails);

        };

        init();

    }, []);

    const requestLoan = async () => {

        await contract.methods.requestLoan(loanAmount, loanInterest).send({ from: account });

        setLoanAmount(“”);

        setLoanInterest(“”);

    };

    const fundLoan = async (loanId, amount) => {

        await contract.methods.fundLoan(loanId).send({ from: account, value: amount });

    };

    const repayLoan = async (loanId, amount) => {

        await contract.methods.repayLoan(loanId).send({ from: account, value: amount });

    };

    if (!web3 || !contract) {

        return <div>Loading Web3, accounts, and contract…</div>;

    }

    return (

        <div className=”App”>

            <h1>P2P Lending DApp</h1>

            <h2>Request a Loan</h2>

            <input

                type=”number”

                value={loanAmount}

                onChange={e => setLoanAmount(e.target.value)}

                placeholder=”Loan Amount”

            />

            <input

                type=”number”

                value={loanInterest}

                onChange={e => setLoanInterest(e.target.value)}

                placeholder=”Loan Interest”

            />

            <button onClick={requestLoan}>Request Loan</button>

            <h2>Loans</h2>

            <ul>

                {loans.map((loan, index) => (

                    <li key={index}>

                        Amount: {loan[0]} – Interest: {loan[3]} – Borrower: {loan[1]} – Lender: {loan[2]} – Repaid: {loan[4].toString()}

                        {!loan[4] && (

                            <>

                                <button onClick={() => fundLoan(index, loan[0])}>Fund Loan</button>

                                <button onClick={() => repayLoan(index, parseInt(loan[0]) + parseInt(loan[3]))}>Repay Loan</button>

                            </>

                        )}

                    </li>

                ))}

            </ul>

        </div>

    );

};

export default App;

  • Connect with smart contract:

Make sure that your frontend is connected to the right network where your smart contract is deployed.

  1. Deploy the dApp

After testing the dApp, the final step is to deploy the smart contract to Ethereum Testnet or Mainnet. Leverage the following steps to do so:

  • Update ‘truffle-config.js’ with the suitable network configuration (e.g., Rinkeby, Mainnet). You can deploy using Truffle through the following bash code:

truffle migrate –network <network-name>

  1. Deploy the Frontend

You can then use a hosting service such as GitHub Pages, Netlify or Vercel to host your React app.

Conclusion

That’s a wrap! If you’re a mere beginner or intermediate and want to refer to a guide on how to build a dApp on Ethereum, this blog is the perfect guide to get started. You can follow the complete roadmap to create your dApp. All you need to do is set up a development environment for creating a smart contract and then test and deploy the dApp. 

If you’re an enterprise or business organization looking to build dApps, Deftsoft has a dedicated team of seasoned dApp developers who can build a professional dApp for your business venture. We’re here to help.

FAQs:

1. What is the first step in building a dApp on Ethereum?

The first step in building a dApp on Ethereum is to prepare your development environment. This includes installing Node.js, npm, Truffle, Ganache, and MetaMask. These tools are essential for running JavaScript applications, managing packages, simulating the blockchain environment locally, and managing Ethereum accounts.

2. Do I need to know any specific programming languages to create a dApp on Ethereum?

Yes, to create a dApp on Ethereum, you should be proficient in JavaScript and have a good understanding of front-end development. Additionally, you will need to learn Solidity, the programming language used for writing smart contracts on Ethereum.

3. What is the role of Gas fees in building a dApp on Ethereum?

Gas fees are required for deploying and running transactions on the Ethereum network. When you build a dApp on Ethereum, you need to pay these fees in Ether (ETH) to compensate for the computing power and storage space utilized on the network.

4. How do I test my smart contract during the dApp development process?

You can test your smart contract by writing tests using Mocha and Chai frameworks. These tests help ensure that your smart contract functions correctly before deploying it to the Ethereum network. Truffle provides built-in support for these testing frameworks.

5. What are the main benefits of developing a dApp on the Ethereum blockchain?

The main benefits of developing a dApp on the Ethereum blockchain include decentralization, transparency, and immutability. Decentralization ensures that the data is stored on multiple nodes rather than a central server. Transparency allows anyone to view the transactions recorded on the blockchain. Immutability means that once data is recorded on the blockchain, it cannot be altered or deleted.

Why Does Your Business Need Blockchain Development Company’s Expertise?

Posted on by deftsoft

What started as a digital currency, Bitcoin, in 2009 has now evolved into a technology that’s transforming industries. Various industrial segments are evolving with the implementation of blockchain technology. In 2024, Blockchain is known for its three key pillars: decentralization, transparency, and immutability, and it’s being embraced by businesses across the globe.

Driven by its attractive features, numerous enterprises and business organizations are leveraging blockchain technology to make their operations more feasible and interesting. One of its major benefits is the elimination of third-party intervention, ensuring a more streamlined and secure process.

according to Google Trends

Even according to Google Trends, there is a consistent uptrend in the popularity of users indulging with Blockchain technology.

This guide outlines the fundamentals of what to look for in a blockchain development company, the various blockchain development services involved, and, of course, why your business needs a custom blockchain development company.

What Exactly are Blockchain Development Services?

Blockchain development refers to the development, design, testing, and optimization of blockchain technology products such as decentralized applications (dApps), smart contracts, Non-Fungible Tokens (NFTs), crypto wallets, STO development, etc. 

Blockchain development services are services that a blockchain development company provides to build various blockchain-powered solutions with an array of industrial applications, such as in e-commerce, retail, technology, transport and logistics, hospitality, medicine, research, etc. 

For enterprises, business organizations, and startups, the key is to choose a reliable blockchain development company with a proven track record. With such a blockchain development partner, you can be sure that your blockchain development needs are in safe hands.

Why Your Business Must Invest in a Blockchain Development Company?

Outsourcing your blockchain development project is a strategic move. By entrusting your project to a blockchain development company, you can be confident in achieving tangible results. With a dedicated team of seasoned professionals focused on your project, you can achieve success quicker and more efficiently. This practice also combats the need to allocate a hefty in-house budget to kickstart a project.

Why Your Business Must Invest in a Blockchain Development Company

The following are some of the significant reasons why you require investing in a blockchain development company:

  • Years of Dedicated Expertise

A reliable blockchain development company has years of experience related to a specific technology, which in this case is blockchain development. It become quite time-consuming and inefficient to create a team of blockchain developers, UI/UX designers, coders and testers from scratch. This is why it is easier to outsource a blockchain project than to deploy it yourself.

  • Array of Developers

When you hire a blockchain development company for your project, you significantly open the doors to a broad spectrum of blockchain developers. Be it smart contract development, ICO/IEO/STO development, dApp development, NFT marketplace development, P2P lending platform development or any other type of blockchain development services, a smart blockchain development company can cater to all that you need.

  • Customization at its Best

You get a complete and 360-degree evaluation of your project with the experts in blockchain technology before they kickstart the project. These well-versed professionals with tons of experience analyze your requirements, validate your vision and then offer a customized blockchain solution that suits your needs.

  • Faster Time-to-Market

Blockchain development companies work with strict deadlines without hampering the quality of the project outcomes. Therefore, you experience faster time-to-market without compromising on the functionality and efficiency of the final product. One of the other upsides of outsourcing your project is that you get solid feedback from an external source that gives you an open perspective on your approach.

What are the Various Blockchain Development Services?

A custom blockchain development company offers multiple blockchain-related services. Based on your goals and objectives, you can choose any of the following blockchain development services that are prevalent in today’s market:

1. ICO, IEO and STO Development

Are you looking for fresh and unconventional ways to raise funds for your startup or a potential idea? Look no further than the Initial Coin Offering (ICO), Initial Exchange Offering (IEO) and Security Token Offering (STO) development services. Since STO is the latest and most evolved methodology, look for an innovative STO development company that checkmarks all of your requirements.

When outsourcing an ICO, IEO or STO development project, look for a blockchain development company that provides end-to-end token development services that address the entire process of developing and listing tokens on a blockchain platform like Binance and also, marketing these tokens in a suitable ecosystem. Opt for a company that provides an innovative approach, follows a quick preparation process for ICO, IEO and STO development and ensures high-quality fundraising and the correct execution of the development process.

2. dApp Development

With the worldwide adoption of blockchain technology, the industry is inclining towards decentralized applications (dApps). If you’re in search of a leading blockchain development company that creates apps that function on a distributed ledger technology, the dApp development services are the right fit for your requirements. 

These development companies provide custom dApp development services that can build robust decentralized apps on various blockchain platforms such as Binance, Stellar, Ethereum, EOS, Ripple, Hyperledger, Polkadot, etc. The process of dApp development not only includes app development but also involves creating smart contracts to implement certain conditions for the app. 

Look for a company that provides scalable, extensive and easy-to-deploy dApp development services so that you can foster achievable results for your blockchain project.

3. Smart Contract Development

Smart contract development services lay the foundation of blockchain development methodology as these services help streamline various transaction processes that take place on a blockchain network. If you want to implement a smart contract for your dApp or fundraising, etc., it is indeed important to hire professional smart contract developers who can eliminate physical paperwork and also, ease down the legal implementation of smart contracts.

In such cases, it is imperative to hire a custom smart contract development company that has a professional team of developers, designers, code writers, deployers and QA testers. Your primary goal should be to emphasize the importance of getting a ‘secure’ smart contract built by the company. 

There are a bunch of smart contract services available in the industry. These services include smart contract architecture and development, audit and optimization, smart contract for dApps, for NFTs, for DeFi and smart contract consulting.

4. Crypto Wallet Development

Crypto wallets are of premium importance as they store all the decentralized assets inside them. Whether you’re an enterprise, business organization or startup owner looking to secure your digital assets in an intuitive and easy manner, crypto wallet development services are meant for you. 

A crypto wallet development company develops a crypto wallet that stores private and public keys, stablecoins, tokens, Non-Fungible Tokens (NFTs) and other cryptocurrencies with utmost security and perfectly on-time delivery. From DeFi trading to securely investing on decentralized exchange (DEX) platforms, crypto wallets can help you function in the safest manner.

Ensure multi-step authentication, sophisticated security of digital assets and intuitive wallet navigation through crypto wallet development services.

5. Peer-to-Peer (P2P) Lending Platform Development

If you’ve ever taken a loan, you can completely understand the hassle associated with its approval. However, peer-to-peer (P2P) lending eliminates the need for third-party intermediaries such as banks, NBFCs, credit brokers or financial institutions. If you want to get a P2P lending platform built, you can reach out to a P2P lending platform development company.

The company that you outsource your project to takes care of a 360-degree approach which includes the development of the P2P lending platform, loan processing, investments and reducing maintenance costs. By utilizing the power of latest and cutting-edge technologies such as IoT and Artificial Intelligence (AI), a P2P lending platform development company builds robust, seamless, easy-to-use P2P websites and apps.

6. NFT Marketplace Development

If you’re an enterprise or business organization that dreams of building a secure, scalable, and extensive Non-Fungible Token (NFT) platform, then you need to choose an NFT marketplace development company. 

An NFT marketplace development company can cater to your industry-specific requirements and build a decentralized solution that can host art and collectibles from artists all around the world. The company can create an NFT marketplace on the blockchain of your choice, including Binance, EOS, Ripple, Ethereum, Solana, Avalanche, Polkadot, etc. If you want to achieve exponential growth for your NFT venture, it is quite important to invest in a blockchain development company.

What is the Future of Blockchain Development?

As the blockchain technology is gaining traction in the various avenues, the future of this technology seems bright and promising. Moving on, we can expect certain trendlines and extensive adoption of the technology. The following are some of the major trends to expect in the future:

  • Increased Adoption across Industries

As blockchain technology matures, various industries such as finance, healthcare, and supply chain management are expected to adopt blockchain development services more extensively. A blockchain development company can offer tailored solutions that ensure secure, transparent, and efficient processes, thus driving mainstream adoption.

  • Enhanced Interoperability

Future blockchain development will focus on enhancing interoperability between different blockchain networks. Blockchain development companies will prioritize creating protocols that allow seamless communication and data exchange between disparate blockchains, fostering a more connected and efficient ecosystem.

  • Integration of AI and IoT

The convergence of blockchain with Artificial Intelligence (AI) and the Internet of Things (IoT) will open new avenues for blockchain development services. Blockchain development companies will leverage these technologies to create smart, autonomous systems that can handle complex tasks, enhance security, and improve decision-making processes in real time.

  • Focus on Sustainability

As concerns about blockchain’s environmental impact grow, future blockchain development will emphasize sustainability. Blockchain development companies will innovate to create more energy-efficient consensus mechanisms and explore renewable energy sources to power blockchain networks, ensuring a greener future.

  • Regulatory Evolution

The regulatory landscape for blockchain is evolving, and future developments will be influenced by emerging regulations. Blockchain development services will need to stay compliant with these regulations, and companies will play a crucial role in developing solutions that meet legal standards while maintaining the decentralized ethos of blockchain technology.

Partner with An Innovative Blockchain Development Company

In today’s competitive world, diligently investing in a blockchain development company has become a non-negotiable. One such premier blockchain development company is Deftsoft. For the last 18 years, Deftsoft has been a leading name in various avenues, with blockchain being one of the most successful ones. 

Known for its customized blockchain development services, we offer various services pertaining to blockchain such as ICO, IEO and STO development, smart contract development, P2P lending platform development, NFT marketplace development and crypto wallet development. The company has a team of seasoned professionals, including blockchain developers, UI/UX designers, QA testers, and many other blockchain experts. 

Join hands with an innovative and custom blockchain development company like Deftsoft to yield tangible results that exceed your expectations.

FAQs:

1. What services can I expect from an STO development company?

An STO (Security Token Offering) development company specializes in creating security tokens that represent ownership of assets such as real estate, equity, or bonds. These tokens are developed to comply with regulatory standards and can be traded on blockchain platforms. You can expect an STO development company to handle the entire process, from token creation to listing and marketing, to ensure a secure and legally compliant offering.

2. Why should I hire a blockchain development company for my project?

Hiring a blockchain development company provides access to experienced professionals who specialize in various aspects of blockchain technology. These companies offer comprehensive services, including dApp development, smart contract creation and crypto wallet development. Outsourcing your project can benefit you from their expertise, which can lead to faster development times, lower costs and a higher-quality final product.

3. What blockchain development services can I expect from a professional company?

A professional blockchain development company offers a wide range of services such as dApp development, smart contract development, ICO, IEO and STO development, crypto wallet development, P2P lending platform development and NFT marketplace development. These services are tailored to meet the specific needs of various industries, ensuring efficient and secure blockchain solutions.

4. How does a custom blockchain development company differ from a standard one?

A custom blockchain development company focuses on creating tailored solutions that align with your specific business requirements. They provide a thorough analysis of your project needs, validate your vision and develop a customized blockchain solution. This personalized approach ensures that the final product is optimized for your unique use case, delivering maximum value and efficiency.

5. What factors should I consider when choosing a blockchain development company?

When selecting a blockchain development company, consider factors such as proven track record and experience in blockchain projects, range of services offered, including dApp development, smart contracts and STO development, customization capabilities to meet your specific project requirements, speed of development and adherence to deadlines, quality of the development team including developers, designers, and QA testers and compliance with regulatory standards and focus on security. By evaluating these factors, you can ensure that you choose a reliable and competent blockchain development partner.

Altcoin Season Alert: Bitcoin Alternatives Explained 

Posted on by deftsoft

On the social media platform Twitter, the altcoin buzz is real. People from all corners of the world are discussing altcoin, often with the misconception that it’s a shortcut to wealth. But is this really the case?

Apparently, an altcoin season or altseason comes up when all the other cryptocurrencies besides Bitcoin outperform the latter and offer groundbreaking returns. The altcoin season arrives when there is bullish behaviour in the activity and trading volume of cryptocurrencies alternative to Bitcoin.

What is altcoin? Is the altcoin season over? What strategy should I use to invest in altcoins? Keep on reading to find the answer to these questions.

How Do You Define an Altcoin?

Any cryptocurrency other than Bitcoin (BTC) is called an altcoin. The term became popular when Ethereum was introduced in 2011. It was then that a new cryptocurrency was created, apart from Bitcoin. 

Therefore, Ethereum is an altcoin. Other cryptocurrencies such as Binance Coin, Solana, Cardano, Dogecoin, Toncoin, Tether and Shiba Inu are altcoins.

Decoding the Altcoin Season 

So, when is an altcoin season, and how does one identify the beginning of it? 

They say don’t put all your eggs in one basket. This is what cryptocurrency investors believe in, too. Bitcoin has proven to be a tangible asset in offering groundbreaking returns. Out of hunger for more, investors began exploring alternative cryptocurrencies to Bitcoin to diversify their investment portfolio and identified altcoins as a golden opportunity!

Belonging to the small to mid-cap markets, these altcoins are more volatile and thus, offer potential gains. 

Is Altcoin Season Over?

The two main indicators of a successful altcoin season are:

  • Bitcoin’s dominance in the market
  • Altcoin’s price performance

When there’s a major drop in the dominance of Bitcoin in the market, that’s when investors run out to invest in alternative cryptocurrencies, altcoins. Bitcoin hit its record-high around $74,000 in mid-March when there was an increase in the interest from new spot exchange-traded funds.

Fast forward to now, Bitcoin is falling down even below $66,000!

Bitcoin is falling down even below $66,000!

On the other hand, Ethereum’s price has surged 15% in the last month, while altcoins have also experienced a significant drop in their rates.

A basic rule of thumb to detect if the altcoin season exhibits an uptrend is when 75% of the top 50 altcoins perform relatively better than Bitcoin over a period of 3 months. However, only 8 cryptocurrencies have managed to outperform Bitcoin in the period of the last 3 months!

8 cryptocurrencies have managed to outperform Bitcoin in the period of the last 3 months

However, the Bitcoin season has apparently started again after a five-month span. There was an uptrend in altcoins at the beginning of January 2024, but it has subsided substantially.

Major Show Stealers in the Altcoin Market

When talking about altcoins, Cardano and Dogecoin are some of the major cryptocurrency performers in the web3 industry. Let’s learn about these two cryptocurrencies in detail:

1. Cardano (ADA)

Cardano is a blockchain platform known for its focus on sustainability, scalability, and interoperability. Founded by Charles Hoskinson, one of Ethereum’s co-founders, Cardano aims to provide a more secure and efficient infrastructure for decentralized applications (dApps) and smart contracts. Key features include its unique consensus algorithm, Ouroboros, which enhances scalability and security. ADA, Cardano’s native cryptocurrency, fuels transactions and operations within its ecosystem.

Benefits and Recent Performance:

  • Scalability: Cardano’s architecture allows for scalable and efficient transactions, supporting a wide range of applications.
  • Interoperability: It aims to facilitate seamless communication between different blockchain networks.
  • Recent Performance: ADA has shown significant growth, gaining attention for its technological advancements and strong community support.

2. Dogecoin (DOGE)

Initially created as a light-hearted meme coin, Dogecoin has evolved into a popular digital currency known for its vibrant community and low transaction fees. Developed by Billy Markus and Jackson Palmer, Dogecoin distinguishes itself with its accessible and user-friendly approach to cryptocurrency.

Benefits and Recent Performance:

  • Community Engagement: Dogecoin has a robust community that actively supports charitable causes and adoption efforts.
  • Low Fees: Transactions with Dogecoin typically incur minimal fees, making it attractive for everyday transactions.
  • Recent Performance: DOGE has experienced periods of significant price volatility, driven by social media trends and celebrity endorsements.

Disclaimer: These are mere suggestions based on the current market sentiments. We do not indulge in offering investment strategies for individual portfolios.

How to Create a Strategy During Altcoin Season

Here’s how you can create a strategic investment for potential altcoin investments:

  • Research and Due Diligence: Evaluate the technology, team, and community behind each altcoin.
  • Market Analysis: Monitor market trends, including trading volumes and price movements.
  • Risk Assessment: Assess the risks associated with each investment, considering factors like regulatory changes and technological vulnerabilities.

How to Mitigate Risks Associated with Altcoins?

You can follow the below-mentioned strategies to eliminate risks associated with investing in altcoins:

  • Portfolio Diversification: Spread investments across different altcoins and asset classes to minimize exposure to individual risks.
  • Setting Goals: Define investment goals and stick to a well-defined strategy to avoid impulsive decisions.
  • Staying Informed: Always ensure that you keep yourself updated about market developments and adjust your strategy accordingly. Don’t forget to put your money where your mouth is!

Final Words

Investing merely in altcoins is a pure gamble in 2024. You cannot forget the primary outperformer, Bitcoin, when trying to diversify your portfolio in the cryptocurrency space. Always play safe to protect yourself from the volatile market.

At Deftsoft, we don’t just observe the trends—we build the technology that powers them. Whether you’re looking to secure your digital assets or tap into the vast potential of altcoins, our custom crypto wallet development services are designed to meet your needs. 

Join hands with the experts for the blockchain revolution. Contact us today to understand how our solutions can enhance your investment strategy and keep you ahead of the curve in the dynamic world of cryptocurrency.

FAQs:

1. What defines an altcoin, and how does it differ from Bitcoin?

Altcoin refers to any cryptocurrency other than Bitcoin. Initially popularized by Ethereum’s introduction in 2011, altcoins serve various purposes beyond Bitcoin’s digital gold narrative, including supporting decentralized applications (dApps) and enhancing transaction efficiency through different consensus mechanisms.

2. Is the altcoin season over, and how can I recognize its onset?

Altcoin seasons are characterized by increased trading volumes and market activity among cryptocurrencies other than Bitcoin. One indicator of an altcoin season is when a significant number of alternative cryptocurrencies outperform Bitcoin over a sustained period, typically observed through market dominance shifts and price-performance metrics.

3. Why should I consider investing in altcoins like Cardano and Dogecoin?

Cardano (ADA) and Dogecoin (DOGE) represent diverse opportunities within the altcoin market. Cardano focuses on scalability and sustainability, offering robust infrastructure for dApps and smart contracts. Dogecoin, originally a meme coin, boasts a supportive community and low transaction fees, making it accessible for everyday transactions.

4. How can I develop a strategic investment plan during the altcoin season?

Creating a strategic investment plan during the altcoin season involves thorough research, market analysis, and risk assessment. Evaluate each altcoin’s technology, community support, and market trends. Monitor trading volumes and price movements to identify potential opportunities while considering regulatory changes and technological risks.

5. How can a blockchain development company assist with crypto wallet development services?

A blockchain development company like Deftsoft offers custom crypto wallet development services tailored to secure digital assets and facilitate seamless transactions. Whether you’re a new investor or an experienced entity in the market, specialized crypto wallet solutions ensure enhanced security, usability, and integration with blockchain networks, empowering you to navigate the cryptocurrency market confidently.

Smart Contract Vulnerabilities: Types & How to Prevent Them

Posted on by deftsoft

Smart contracts have transformed the way transactions occur across the web. These are self-implementing agreements among stakeholders without the interference of intermediaries on Web 3.0. It is important to note that smart contracts are built and run on top of blockchain.

Most commonly, users deploy smart contracts on Ethereum. A smart contract consists of a set of conditions and once these conditions are met, it launches automatically. Sounds easy and safe, right? Even though the smart contract is executed in the correct way, hackers have found their way into this ‘immutable’ blockchain system!

Why does this happen? 

This is because there are many vulnerabilities or weaknesses in a smart contract that need to be identified. Therefore, smart contract auditing is the answer to recognizing the smart contract vulnerabilities and eliminating them.

You can refer to this guide to understand in-depth about the top smart contract vulnerabilities and what you can do to avoid them.

What is Smart Contract Auditing?

Smart contract auditing is the process of performing a thorough and comprehensive analysis of a smart contract in an application. The objective of smart contract auditing is to look for vulnerabilities and act on them robustly. 

According to a CertiK report of 2023, the Web3 landscape lost a total of $1.84 billion across 751 security incidents. With such a huge number lost in the market, there is a grave need for performing security audits in smart contracts. 

There are numerous tests that a smart contract auditor performs to identify these smart contract vulnerabilities. We’ll discuss more about these tests in the later part of this blog.

Watch Out for These Smart Contract Vulnerabilities 

smart contract vulnerabilities

Here’s a list of top smart contract vulnerabilities that you need to watch out for in a target smart contract.

1. Reentrancy

When talking about Ethereum vulnerabilities, reentrancy is one of the most common types of smart contract vulnerabilities. This is a kind of vulnerability where an attacker tries to push in a malicious smart contract before a transaction is made. The reentrancy smart contract vulnerability can cause heavy financial loss as the attacker can get the ‘malicious’ smart contract implemented.

The reentrancy attack is one of the most common malicious attacks found in smart contract implementation. 

The following are the main types of reentrancy attacks:

  • External Call

In this type of reentrancy attack, an attacker looks for the availability of an external call through a malicious contract.  The external call befools the callee to execute the arbitrary code. Therefore, you must be aware if there is any external call getting executed in your smart contract.

  • Single Function Reentrancy

When an attacker is trying to call the exact vulnerable function again and again, it is called single function reentrancy. The scariest part about this attack is that the balance is only modified after the funds are transferred.

  • Cross-Function Reentrancy

This kind of reentrancy test is a complex version of the attack. It occurs when a vulnerable function shares its state with a function that can be potentially exploited by an attacker.

  • Read-Only Reentrancy

This is a new type of reentrancy test in which the attacker cannot directly enter and exploit a smart contract. Instead, he enters into another smart contract which then reads the state of the original smart contract. This reentrancy attack is quite hideous in nature as it doesn’t attack directly on the target smart contract.

How to Prevent Reentrancy Attacks?

  • For Other Reentrancy Attacks

One of the simplest ways to prevent reentrancy attacks, other than read-only reentrancy attacks, is to use ReentrancyGuard. It allows you to add a modifier to the functions that are vulnerable in nature. For example, you can use the nonReentrant modifier to stave off single-function and cross-function reentrancy attacks.

  • For Ready-Only Reentrancy Attacks

To avoid read-only reentrancy attacks, you can leverage the checks-effects-interactions pattern for the highest level of security. The trick is to make the state changes prior to an attacker enters the smart contract. 

The checks-effects-interactions pattern follows the below-mentioned sequence to order smart contract functions:

  1. Begin the function with checks, such as assert or require statements.
  2. Perform the state of the smart contract, that is, you need to make state modifications.
  3. Lastly, you need to perform interactions with other smart contracts. External function calls are a great example.

The implementation looks as follows:

function withdraw() external {

  uint256 amount = balances[msg.sender];

  balances[msg.sender] = 0;

  (bool success,) = msg.sender.call{value: balances[msg.sender]}(“”);

  require(success);

}

Here, the balance is set to 0 and nothing can be transferred after the first interaction.

2. Gas Grieving

Gas grieving is another significant and commonly found smart contract vulnerability, especially on the Ethereum platform. Let’s understand what it means. Whenever a user has to make a transaction or execute a smart contract, a certain fee must be paid. This fee is called a gas fee. The price of this gas fee is decided based on the demand, supply and network capacity during a transaction.

Sometimes, the gas fee is enough to implement the smart contract but not enough to make calls to other smart contracts, which are called sub-calls. When these sub-calls fail to happen, either the execution is continued or the transaction fails. 

This is when gas grieving, a significant smart contract vulnerability occurs. For example, a relayer contract allows a user to make and sign a transaction. This usually happens when users are not able to pay for the gas.

How to Prevent Gas Grieving?

Although there is no definite way to prevent gas grieving smart contract vulnerabilities, you can do the following:

  • You can code the smart contract or get it coded by a blockchain developer and set the amount of gas fee to be sent. This way, the user doesn’t have to send the gas fee dedicatedly.
  • Only the trusted users should be allowed to relay the transactions. 
  • Another way to prevent gas grieving is to provide enough gas. It can be done with the following code:

// contract called by Relayer

contract Executor {

    function execute(bytes _data, uint _gasLimit) {

        require(gasleft() >= _gasLimit);

        …

    }

}

Source: GitHub

3. Integer Overflows and Underflows

Integer overflows and underflows occur in a smart contract when the result of an arithmetic operation exceeds or remains below the fixed-size ranges. Older smart contracts leveraged the SafeMath library to prevent exceeding or ‘less than’ values. However, in the Solidity blockchain platform, there is a built-in SafeMath logic that prevents integer overflowing and underflowing.

We’ll take the case of Solidity, where integer types have the following maximum values.

  • Unit8 => 255
  • Unit16 => 65535 
  • Unit24 => 16777215
  • Unit256 =>  (2^256) – 1

So, when do the overflows and underflows occur? When the value goes beyond the maximum value, integer overflow happens. This is when the value is taken back to zero. 

On the contrary, when the value is even below the minimum value limit, integer underflow happens. This is when the value goes up to the maximum value limit.

Overflow bugs especially occur with small integer types such as unit8, unit16, etc. as these integer types have smaller maximum values that get overflowed easily. Therefore, these values should be used with utmost care.

How to Prevent Integer Overflows and Underflows?

Here are the two approaches you can use to prevent integer overflows and underflows:

  • You can use the SafeMath library if you’re working on older smart contracts.
  • The 0.8.0 version of Solidity does not allow any occurrence of integer overflows and underflows as it comes with a built-in SafeMath logic.

Note: You can avoid the SafeMath logic by using unchecked blocks.

4. Unencrypted Private Data

Unencrypted Private Data

Blockchain is an immutable technology however, it is completely transparent in nature. All the information stored on the blockchain is readable, accessible and visible to everyone on the network. Therefore, it is not advisable to add confidential or sensitive information on the blockchain network.

Smart contracts built on top of blockchain often contain sensitive functions and variables. To give you an idea, the smart contract code, storage and data can always be read by anyone. Malicious attackers can decompile the code and gain sensitive transaction information. 

How to Prevent Private Data Leaks?

You can follow the below-mentioned tips to prevent data leaks:

  • Smart contract developers must implement specific access controls.
  • You can also use the principle of least privilege by leveraging Solidity’s variable and function visibility modifiers. This allows you to offer minimum-level visibility to the smart contract.

5. Denial of Service (DoS) Attack

There are many reasons for a Denial of Service attack, one of which is when logic cannot be executed. This often occurs as a result of unexpected revert. Some of the prominent reasons for the logic to get reverted are as follows:

  • Integer Overflow/Underflow

If you’re using anything below Solidity 0.8.0 where the SafeMatch library is missing, there are many chances of creating integer overflows and underflows while performing arithmetic operations. These overflows and underflows can cause a revert that can gradually lead to a Denial of Service (DoS).

However, it doesn’t mean that the usage of checked math will always lead to DoS attacks. You just need to take care while working with small integers such as int8/uint8, int16/uint16, int24/uint24, etc.

  • Reverting Funds Transfer

Sometimes, when you try to send funds to a user with functions, Denial of Service (DoS) attacks can occur. The attacks occur in these functions when the functionality depends on the successful transfer of the funds.

An attacker can act to send funds to a smart contract and then simply create a fallback function that reverts the complete payment. This way, the attacker can revert all the payments and those payments can never be refunded.

Note: You can prevent the reverted payments by using a pull function rather than a push function. This way, the recipient can call the function for payment.

  • Unexpected Balances 

Sometimes, an attacker deliberately increases your account funds to cause an unexpected revert. He can either do so by simply transferring ERC20 tokens into the contract or by forcibly sending Ether to a contract.

For example, an attacker may forcibly send Ether to a contract even before the first deposit which can cause all the deposits to revert.

How to Prevent Denial of Service (DoS) Attacks?

The following are the best ways to prevent Denial of Service (DoS) attacks:

  • You must never call external smart contracts that cannot be fully trusted. On the flip side, you should also stay away from granting access to untrusted accounts.
  • It is advisable to use multi-signature wallets that use multiple private keys to access or transfer cryptocurrency assets.
  • You can set a gas limit to prevent the exhaustion of gas units through malicious recursive calls.

Bottom Line

With the emerging use of blockchain technology, smart contracts are emerging as a significant entity to enable transactions. However, hackers have still made their way to detect poignant smart contract vulnerabilities to parse their way into the technology. This is the reason why it is important to adopt smart contract vulnerability detection techniques to identify bugs in smart contracts and act on them robustly.

Are you an enterprise or business organization looking for smart contract testing services? Deftsoft is here to help cross-check your smart contract against all the above-mentioned smart contract vulnerabilities. Contact us now!

FAQs:

1. What are the common types of smart contract vulnerabilities? 

Smart contract vulnerabilities include reentrancy attacks, gas grieving, integer overflows and underflows, unencrypted private data, and denial of service (DoS) attacks. These vulnerabilities can lead to significant security issues and financial losses if not properly addressed.

2. How can I perform smart contract vulnerability detection?

Smart contract vulnerability detection involves conducting thorough audits and analyses of the smart contract code. This process includes identifying and reducing vulnerabilities through various tests and checks, such as the use of ReentrancyGuard, checks-effects-interactions patterns, and SafeMath libraries.

3. What tools can be used as a smart contract vulnerability scanner?

A smart contract vulnerability scanner can be a specialized software or tool designed to automatically detect vulnerabilities in smart contracts. Examples of such tools include MythX, Oyente, and Slither, which analyze the code for potential security flaws and provide detailed reports on any detected issues.

4. How can smart contract vulnerabilities be prevented? 

Preventing smart contract vulnerabilities involves several practices, including:
=> Using the checks-effects-interactions pattern to avoid reentrancy attacks.
=> Implementing SafeMath or using Solidity 0.8.0 and above to prevent integer overflows and underflows.
=> Ensuring proper access controls and visibility modifiers to protect private data.
=> Making DoS attacks expensive through gas fees and time-lock puzzles.

5. Why is smart contract vulnerability detection crucial for blockchain applications? 

Smart contract vulnerability detection is crucial because it helps identify and address security weaknesses before they can be exploited by hackers. By detecting vulnerabilities early, developers can ensure the integrity, security, and reliability of blockchain applications, thereby protecting users and assets from potential threats and financial losses.

Top 10 Blockchain Development Companies

Posted on by deftsoft

Once merely started as a decentralized digital currency, blockchain has now become a full-fledged autonomous technology. With its numerous applications across various industries, blockchain technology has become an indispensable resource for fostering business security and growth. 

According to Cision PR Newswire, the global blockchain market is expected to reach a whopping $39.7 billion in 2025. Another statistic from Statista states that blockchain technology is forecasted to reach around 943 billion U.S. dollars in 2032 with a CAGR of 56.1%.

Whether you’re a tech-based enterprise or a business organization, it is imperative to invest in a premier blockchain development company to propagate a secure, transparent, and credible environment. 

Explore the novel wave of transformation from our well-researched list of top-notch blockchain development companies.

How to Choose the Best Blockchain Development Company?

There are plenty of factors to consider when looking for a solid blockchain development company. From the company’s authority to project history, enterprises and business organizations must consider a certain set of pre-considerations before handing over a pivotal blockchain project to a blockchain development company. For your ease, we have laid down the list of key questions to ask yourself when choosing the right fit for you.

You can refer to the following questionnaire when choosing the best blockchain development company that fits your bill:

  • How long has the company been established?
  • What is the team size of the experts of the company?
  • Does the company’s services align with your budget?
  • How are the reviews of the company’s blockchain development services?
  • What is the company’s search engine ranking?
  • What technology stack is leveraged by the company?
  • Does the company have reliable client testimonials?
  • What industries has the company been catering to?
  • Is the company flexible and robust with its offerings?

After finding out the answers to these questions, you can find the best blockchain development company that offers customized services. 

Our team of experts have carefully created a list of reliable blockchain development companies so that you can choose the one that meets your project’s scope and expectations.

List of Top-Notch Blockchain Development Companies

It’s time to address the elephant in the room: where to find the best blockchain development services? With sophisticated research, you can refer to the following top blockchain development companies to outsource your blockchain project.

1. Deftsoft – Customized Blockchain Development Services

Deftsoft is an all-inclusive blockchain development company that has been offering customized solutions across various industries for more than 18 years. The company has a vast clientele from across the globe, including healthcare, logistics, finance, e-commerce, etc. They have specialized blockchain developers, UI/UX designers, and testers to aid enterprises and business organizations in fulfilling their project requirements and achieving their vision in a dedicated economic budget.

Deftsoft is a Clutch-recognized blockchain development company with an aggregate rating of 4.8 stars. It offers full-cycle and scalable blockchain development services with experts who have experience with various blockchain platforms such as Hyperledger, Ethereum, Tezos, Stellar, EOS, Polkadot, Binance, Polygon, Avalanche, Substrate, Cardano, etc. 

These experts are also fluent in blockchain-specific programming languages, including Solidity, Rust, Go, C++, JavaScript, Python, Vyper, Kotlin, React and Angular.

Whether you’re a well-established enterprise or an emerging startup or a business organization, Deftsoft’s innovative and custom blockchain services are meant for you.

Deftsoft offers the following blockchain development services to boost enterprise growth and enhance industry recognition:

  • Initial Coin Offering (ICO), Initial Exchange Offering (IEO) and Security Token Offering (STO) development 
  • Decentralized Apps (dApps) development
  • Smart contracts development
  • Crypto wallet development
  • Peer-to-peer (P2P) lending platform development
  • Non-Fungible Tokens (NFTs) development

Key Specifications:

  • Years of Experience: 18 years
  • Awards and Recognitions: Clutch and TiECON partner
  • Projects Completed: 900+
  • No. of Blockchain Experts: 50+

2. Mobile Coderz

Mobile Coders is an innovative blockchain development company that helps enterprises and business organizations unleash the power of decentralized ecosystems. They help clients build smart contracts, integrate crypto wallets and other digital wallets, engineer decentralized applications and build crypto exchange platforms. Their goal is to help businesses grow and stay competitive across the globe.

The company has a team of blockchain developers who help you build a decentralized ecosystem for your brand and revolutionize your blockchain idea into a practical blockchain solution. It is a leading name in the industry and has comprehensive blockchain knowledge.

The highlighting features of their blockchain development services include reduced costs, enhanced security, high transparency and traceability, individual data control and automated business processes.

Their blockchain development services include the following:

  • Blockchain app consultation
  • Smart contract development 
  • End-to-end dApp solutions
  • Initial Coin Offering (ICO) development services
  • Crypto wallet development
  • Hyperledger based solution
  • NFT marketplace development
  • Crypto tokenization

Key Specifications:

  • Years of Experience: 7+ years
  • Projects Completed: 75+
  • No. of Blockchain Experts: 20+

3. Debut Infotech

Debut Infotech is yet another blockchain development company that offers customized blockchain development services. Established in 2011, Debut Infotech is a company focused on yielding tangible results and outshining competitors.

This company provides secure and scalable blockchain solutions with a special focus on creating smart contracts, decentralized applications (dApps) and performing blockchain integration in various modern solutions.

You can elevate your business with their various blockchain development services such as blockchain technology consulting, blockchain supply chain management, custom blockchain app development, hyperledger fabric development, decentralized app (dApp) development, NFT marketplace development, smart contract development, coin and token development and crypto wallet development. 

The company possess numerous experts who are familiar with a diverse range of blockchain platforms such as Polygon, Binance, Ethereum, Corda, Hyperledger, Substrate, Polkadot, Avalanche, Tezos, etc. 

The primary goal of Debut Infotech is to offer affordable blockchain solutions in healthcare, finance, retail and e-commerce, gaming, logistics and supply chain, entertainment, travel and real estate. 

Key Specifications:

  • Years of Experience: 13 years

4. Osiz Technologies

Osiz Technologies is a dynamic blockchain development company that has been established for over 15 years in the industry. This company is specialized in offering customized blockchain development services to business organizations and startups by harnessing their expertise in Solidity, Hyperledger, EVM, Substrate and Cosmos.

Osiz Technologies offers cutting-edge solutions to clients across the globe who offer cutting-edge solutions to enterprises, startups and business organizations. Their comprehensive blockchain development services include blockchain consulting, blockchain app development, blockchain-powered startup support and other future-proof blockchain solutions. 

The highlighting blockchain development services offered by Osiz Technologies are as follows:

  • Crypto exchange development
  • AI development
  • Metaverse development
  • Game development
  • Web3 development
  • Defi development
  • Token development
  • NFT marketplace development

The benefits of their blockchain development services include enhanced privacy, increased efficiency and cost-saving, transparency, traceability, global accessibility and trust. You can outsource your project to Osiz Technologies if you want bespoke blockchain development services.

5. Boosty Labs

Boosty Labs is an offshore blockchain development company that has solid experience in developing cryptocurrency, smart contracts and other enterprise blockchain solutions. They lay their foundation on following an efficient and well-established internal process, thus creating a high-level and sophisticated approach to quality control. 

The highlighting blockchain development services of Boosty Labs include outsourcing blockchain app development for B2B businesses, smart contract development services that include creation and launch of cryptocurrencies, building decentralized exchanges and decentralized apps (dApps) for decentralized finance, outsourcing decentralized web and mobile development services and secure storage of cryptocurrencies. 

This company majorly focuses on boosting the growth of startups through blockchain technology, fintech and cloud computing. Boosty Labs help you create an end-to-end blockchain product that you can confidently showcase the world. Established for more than six years in the industry, the company’s first-ever client was Storj, the world’s largest decentralized cloud storage solutions.

Key Specifications:

  • Years of Experience: 7 years

6. SCAND

SCAND is an emerging blockchain development company that offers unbiased access to blockchain development services to startups and business organizations. SCAND’s prime focus is on offering reliable blockchain development services and developing cryptocurrency solutions such as crypto wallets, crypto exchanges, trading apps, etc.

The company has gained comprehensive experience in the blockchain industry as it has been an early bird in the budding field of blockchain and cryptocurrency. The two main offerings of Scand include the following:

  • Blockchain software development services
  • Blockchain app development services

The blockchain software development services include developing apps to manage and trade cryptocurrencies, building secure and efficient cryptocurrency exchange platforms, and blockchain-powered marketplaces, NFT marketplaces and other custom blockchain network solutions. 

The blockchain app development services of SCAND include creating solutions that ensure the mitigation of attacks on decentralized solutions. The company has a team of well-versed blockchain developers who possess deep expertise in fortifying critical networks and hardware requirements. It doesn’t end there. The seasoned developers also focus on fixing data issues to maintain a tamper-free decentralized environment. 

Key Specifications:

  • Years of Experience: 24 years

7. Jafton

Jafton is a premier blockchain development company that has revolutionized the existing traditional processes running across a broad spectrum of industries. It offers affordable blockchain and distributed ledger solutions for various segments such as real estate, retail and supply chain management. The main objective of Jafton is to ensure the security of sensitive data and build robust payment systems by leveraging the power of robust distributed ledger systems.

Over the period of eleven years, the company has built more than 200 apps that are functioning across the globe with a high satisfaction rate. It is a custom blockchain app development company that utilizes the power of blockchain developers and other professionals. They offer end-to-end services that include building a minimum viable product (MVP), pilot and full-scale custom blockchain solutions. 

Their process of creating blockchain solutions start right from discussing the project, planning and preparing a proposal, designing the MVP that kicks off the development process, developing and coding the project, Quality Assurance (QA) testing and finally releasing the project.

Key Specifications:

  • Years of Experience: 11 years

8. UIG Studio

UIG Studio is a specialized blockchain development company that has a dedicated group of developers and designers who are experienced in building decentralized apps with a unique interface that is user-intuitive and seamless to the users. Now, their primary focus has become offering trustworthy blockchain solutions and developing products around the technology. Considering custom software development as their prime focus, the company can help you transform your business idea into a fully-functional and secure blockchain application.

UIG Studio caters to various projects belonging to media and entertainment, logistics, supply chain management, healthcare, digital identity, banking and many other industries. The pivotal blockchain development services of UIG Studio include building decentralized applications, smart contracts, enterprise blockchain solutions and blockchain wallets. 

The company has a team of blockchain developers who are proficient in working with the most popular and mainstream blockchain platforms such as Hyperledger, Ethereum and EOS. The professionals also leverage the power of Agile development process, rigorous testing and robust launch of the blockchain project.

Key Specifications:

  • Years of Experience: 14 years

9. PixelCrayons

PixelCrayons is an innovative blockchain development company that focuses on creating decentralized, transparent, credible and secure transaction platforms for decentralized networks. They have quite a wide range of experience in the industry as they build secure and efficient systems to drive business growth and eliminate potential risks of malicious attacks. 

PixelCrayons offers various blockchain development services which include blockchain consulting, digital transformation through advanced blockchain technologies, digital wallet development on Web3, decentralized apps on hyperledger fabric and multichain networks, smart contract development, minimum viable product (MVP) development, and many more.

To summarize, PixelCrayons provides solid blockchain services, including designing smart contracts, integrating blockchain into existing systems, building decentralized apps proficiently and other custom blockchain development services.

Key Specifications:

  • Years of Experience: 20 years

10. Etteligens Technologies

Ettleligens Technologies is a solid blockchain development company that mainly focuses on creating decentralized and immutable mobile app solutions for the decentralized world of Web 3.0. This company has a full-fledged team of blockchain developers, designers and marketers who help clients foster their blockchain projects to new heights without compromising security norms.

The company offers various blockchain development services such as minimum viable product (MVP), crypto exchange development, end-to-end dApp development, private blockchain development, Initial Coin Offering (ICO) development services, crypto wallet development, hyperledger-based solutions, supply chain decentralized solutions, smart contract auditing, decentralized finance and payment solutions and other custom blockchain development services.

Key Specifications:
Years of Experience: 10 years

Bottom Line

Choosing the right blockchain development company that fits your checklist is pivotal in yielding affirmative results. Ensure that you find a company that aligns with your project requirements, your budget and project type. For instance, if you’re building a decentralized mobile app, you must consider blockchain development companies that have a proven track record of building apps in a dedicated space.

We hope this list of top-notch blockchain development companies helps you find what you’re exactly looking for!

The Beginner’s Handbook to Decentralized Apps (dApps)

Posted on by deftsoft

dApps, an acronym for decentralized apps, has become the talk of the town. With the worldwide blockchain obsession across the globe, tech geeks are paving ways to disrupt the decentralized market. No surprise, the emerging technology has now taken over the app market as well.

Google Trends report,on decentralized apps

According to the Google Trends report, interest in decentralized apps has also shown an upward trend over the last year. We have more stats for you! According to Crypto Potato, decentralized apps witnessed a whopping 77% rise in activity in the first quarter of 2024 and a 7 million daily active wallet user count.

What are decentralized apps or dApps? How does a dApp work? What are the features and types of dApps? What industries are using dApps? Are there any challenges faced in adopting dApps? What is the future of dApps?

If you’re looking for an answer to all these questions, you’re at the right place. We consolidated all the useful information with comprehensive research via our blockchain developers.

Let’s start with the basics.

What is a Decentralized App?

A decentralized app is a Web 3.0 app built on top of blockchain technology. Let’s expand the term ‘decentralized’ to get a better understanding of what a decentralized app is. Decentralized means that there is no central server where the data is stored; however, it uses a distributed ledger technology where the information is stored on a number of nodes. 

Similarly, dApps are decentralized apps as there are no third-party intermediaries. Let me explain it with an example! If you wanted to sell your digital book on a centralized network, you could use PayPal as a payment gateway and create a checkout store that gives the user a book after checking out. Here, PayPal acts as a third-party intermediary.
However, in the case of a dApp, you can directly sell your digital book to the interested buyer without the need for a third-party beneficiary. You can code a smart contract that will be implemented once a user clicks on the payment option.

What is a Decentralized App

How Does a dApp Work?

As discussed above, a decentralized app or dApp works on top of blockchain technology. The backend of the app works on a peer-to-peer decentralized network. A dApp also has a frontend and user interface similar to that of a traditional Web 2.0 app. You can also host the frontend on any decentralized server such as IPFS.

The dApps are usually written in robust programming languages such as JavaScript, C++, Ruby, Go, Python, Solidity, etc.

Although dApps function quite similarly to the traditional apps that exist on Apple Store and Google Play Store, there are some highlighting features of a dApp that are worth noting.

What are the Features of a Decentralized App?

Features of dApps

The following features of the dApp are noteworthy:

  • Decentralized: dApps are decentralized in nature, meaning that they do not function on a central server but rather on a distributed network of computers or nodes. For example, a decentralized application runs on Ethereum, a public, open platform.
  • Consistency: dApps operate the same way no matter what environment they’re running in, unlike centralized applications that run differently on various operating systems such as Windows, MacOS, Ubuntu, and Linux.
  • Dedicated Virtual Environment: All the decentralized applications run inside an isolated virtual environment called the EVM or Ethereum Virtual Machine. It is a virtual environment created to keep smart contract errors or buys at bay. This functionality helps in the seamless functioning of the blockchain network.
  • Open Source: There is no single server or entity that controls the functioning of dApps. These apps are open-source and the code is available for public inspection.
  • Agile: dApps have all the agility to function in various environments irrespective of the function that needs to be performed. When provided with the necessary resources, dApps can carry out any task. 
  • Incentivized: A dApp works on the model of incentivization to the users. It can generate exchangeable and tradable tokens as proof of value. These tokens act as rewards on the blockchain network.
  • Protocol Compliant: Since dApps work on various blockchain platforms such as Bitcoin and Ethereum, they function by following significant cryptographic algorithms to show proof of value. For instance, both Ethereum and Bitcoin function on Proof of Work consensus mechanism protocols. 

What are the Types of dApps?

Decentralized apps or dApps can be classified into various types based on consensus mechanism and functionality. 

Let’s first classify them on the basis of the consensus mechanism:

types of dApps on the basis of consensus mechanism
  • Type I dApps

The type I dApps are the foundational dApps that form the framework for other dApps to be build upon. They have their own blockchains. For example, digital currencies such as Ethereum and Bitcoin, and smart contracts.

  • Type II dApps

The type II dApps are the decentralized apps that function on top of type I dApps since they do not have a blockchain of their own.  They function on the basis of protocols and can have their own protocols. For example, the Omni protocol works on the Bitcoin blockchain.

  • Type III dApps

The type III dApps refer to the dApps with which a user interacts directly and performs actions on it. In other words, the type III dApps are built on top of type II dApps. These dApps have a decentralized marketplace or a digital wallet built on them. For example, an NFT marketplace to trade art or any other digital collectibles.

Now, let’s classify dApps on the basis of functionality:

types of dApps on the basis of functionality
  • Financial dApps or DeFi Apps

Financial dApp is a type of decentralized app that brings peer-to-peer (P2P) payment systems into the limelight. These apps eliminate the need for third-party intermediaries to enable and even create payment gateways. For example, Aave is a decentralized (DeFi) investment platform that allows lending and borrowing of cryptocurrency at both fixed and variable interest rates.

  • Governance dApps

dApps also have significant applications in the government sector, thanks to their unwavering transparency and credibility. These decentralized apps are being used in voting systems and Decentralized Autonomous Organizations (DAOs) that help make decisions on the basis of consensus protocols without the need for a central authority. 

  • Gaming dApps

Decentralized apps have opened the door to another dimension of possibilities by turning virtual characters and artifacts into unique and verifiable assets. You can sell, buy or trade these assets on various marketplaces or even make an NFT out of them. For example, CryptoKitties is a decentralized gaming app that works on EVM where users can sell, buy and trade virtual cats or kittens.

  • Social Media dApps

You can also enjoy decentralized social media networks through dApps. For example, Lenstube is a decentralized social media app where users can share videos, mint their username and create their own Web 3.0 identity. The app is powered by Lens Protocol.

What are the Various Industries Utilizing dApps?

Many industries across the globe have recognized the power of dApps. From real estate to logistics, the blockchain technology has left no stone unturned. Let’s explore the applications of decentralized apps across various industries:

  • Supply Chain Management

dApps implementation in supply chain management has transformed the way in which goods are tracked. The intervention of dApps has allowed direct communication with the business partners, thus leading to improved business operations, enhanced transparency and traceability. 

For example, VeChain is a blockchain-powered platform that improves business operations by enhancing the tracking of goods, products and processes. Another excellent example is the IBM Food Trust uses a private blockchain to provide actionable food supply chain data with immediate access to authorized users, right from the farm store to the end consumer.

  • Healthcare

The utility of dApps in healthcare is quite evident. It significantly helps in securing and managing patient data in a decentralized manner without sharing data with third parties. It also helps to enable interoperability between healthcare providers. 

For example, MedRec is a decentralized record-tracking platform that gives full access to patients over medical record distribution. Patientory is another blockchain-powered software solution that provides control of patient data and incentivizes them through tokens.

  • Real Estate

Blockchain technology has also spread its wings in the real estate industry. It has simplified property transactions and mitigated fraudulent activities since there is no involved beneficiary.

For example, Propy is a real estate transaction platform that uses blockchain for transparent transactions and allows to navigate real estate deals completely online. RealIT offers tokenized assets for investing in real estate as a blockchain-secure passive income source.

  • Entertainment

dApps are also infiltrating the entertainment segment and helping to create more personal relationships between the artist and his cult following. The blockchain technology has also helped in fair revenue distribution amongst the people working in the background in the entertainment industry and introduced direct artist-to-fan interaction.
For example, Audius is a decentralized music streaming platform where users can create immutable and timestamped records through which they can earn bonuses and can be incentivized. Another example is Theta which is a blockchain-powered network for video streaming.

What are the Challenges of dApp Development?

Now that we have talked about the bright side of dApp development, let’s talk about the major challenges that the world is facing in building dApps. The following are the concerning downsides of dApp development:

  • Scalability Issues

Blockchain technology does not offer scalability features like cloud computing. It often lags behind in working up to its full potential in times of network congestion. It often faces low transaction speed when there is a high traffic influx. Not to mention the excessive gas fees that is charged on every payment on the blockchain network. For example, Ethereum has a high gas fee.

  • Security Concerns

Although blockchain is a decentralized and credible technology, it is still not away from the hands of malicious attackers and hackers. Talking about smart contracts, they’re not yet safe to use since they’re prone to many vulnerabilities. You must remember that blockchain itself is a public ledger that offers some kind of transparency.

  • Difficult User Adoption

Unlike Web 2.0, which is easily accessible to users via search engines, blockchain is relatively less accessible. In fact, people are not familiar with the use cases of blockchain. The UI/UX of the dApps is also non-user-intuitive and difficult to adopt.

What is the Future of dApps?

Although there are still plenty of bottlenecks related to the worldwide dApp adoption, the future of blockchain technology looks quite promising. We can expect various emerging trends in the world of blockchain such as Layer 2 solutions, cross-chain interoperability and some notable advancements in blockchain technology. Since traditional cryptocurrencies such as Ethereum and Bitcoin are highly volatile, we can expect the adoption of stablecoins by merchants and enterprises.

Another potential impact of blockchain technology that we can expect in the near future is the enhanced decentralization of the Internet. We can also expect the adoption of a more equitable digital economy. 

Furthermore, the blockchain segment will be regulated in a streamlined manner to leverage the technology. For example, Dubai has already started utilizing blockchain resources to make it a smart city.

Conclusion

dApps are revolutionizing the way the world works. With an enhanced focus on data transparency and traceability, blockchain technology is becoming popular day by day. From supply chain management to the healthcare industry, every segment is exploring the scope of dApps and their decentralized nature. 

Whether you’re a blockchain-powered startup, business organization or enterprise looking to expand the horizons of your dApp app development project, Deftsoft is here to help. With a team of seasoned dApp developers, testers and UI/UX designers, we stand strong as a dApp development company. Established for more than 18 years, our distinguished dApp development services can help you stand out from the crowd and gain a competitive edge.

You can check out our other blogs to gain deeper insights into blockchain technology and beyond.

FAQs:

1. What is meant by a dApp?

A dApp is a decentralized app, meaning that it works by leveraging blockchain technology to build app solutions that do not require any third-party intermediary. It usually works by implementing smart contracts with its frontend and backend, working on consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS) to validate and verify transactions.

2. What are the main features of a decentralized app?

The main features of a decentralized app include that it is open-source, consistent, works on Ethereum Virtual Machine Machine (EVM), agile in nature and works on consensus mechanisms such as Proof-of-Work (PoW) and Proof-of-Stake (PoS). Another important feature of a dApp is that it uses smart contracts for implementing payments and transactions.

3. What are the types of dApps?

There are different types of dApps based on the consensus mechanism such as type I, type II and type III dApps. Other types of dApps include financial, governance, gaming, and social media apps.

4. What are the various industries where dApps are utilized?

The various industries where dApps are utilized include supply chain management, healthcare, entertainment and real estate. For example, it is used for sharing end-to-end data for tracking goods from manufacturers to merchants in supply chain management.

5. Give an example of a dApp.

Audius is a decentralized music streaming platform where users can create immutable and timestamped records through which they can earn bonuses and can be incentivized. This app is great for selling timestamped records as a unique asset in the entertainment segment. A lot of people compare this dApp to Spotify and even find it better than the latter.

Key Powerful Features of a Successful P2P Lending Platform

Posted on by deftsoft

The world is witnessing emerging ways of investing and taking loans. P2P lending platforms are one of the highlighting reasons for the market disruption. Years ago, it was impossible to imagine digital asset lending and borrowing without any intermediary. 

However, the advent of blockchain technology has opened up a world of possibilities, empowering us to build ‘trustless’ networks in ways that were previously unfathomable.

Talking about P2P lending platform, it is a decentralized crypto, money and/or digital asset exchange platform which has eliminated the need for third-parties. Especially when you’re outsourcing your P2P lending platform development project, there are certain features of a P2P lending platform that you must focus on.

Whether you’re a startup owner searching for a reliable P2P lending platform development outsourcing company or building it yourself, you must be aware of certain features to incorporate in the solution.

To make it easy for you, we have created a list of the top features of a P2P lending platform. But before that, let’s understand what a P2P lending platform is.

What is Meant by P2P Lending Platform Development?

A P2P lending platform is a peer-to-peer (P2P) fundraising platform that allows the trade and/or exchange of money, cryptocurrency or tokens without interference from any third-party beneficiaries. Since there is no intermediary intervention, the platform is called Peer-to-Peer (P2P).

P2P lending platform development refers to the creation of a lending platform based on blockchain technology. Such a platform hosts an interface that is open for the use of both lenders and borrowers. Lenders can create their profiles and invest a desirable amount, which can yield handsome interest rates. At the same time, borrowers can borrow the money without any collateral.

You must be wondering how lenders ensure security upon loan repayment. Well, these P2P lending platforms offer borrowers a fixed amount of time to repay the loan. Therefore, these platforms are a lucrative investment for people who want to create diverse sources of passive income without any hassle.

How Does a P2P Lending Platform Work?

The primary foundation of any decentralized P2P lending platform is that such platforms connect lenders directly with the borrowers without any need for banking institutions or Non-Banking Financial Companies (NBFCs).

Here is how a basic P2P lending platform works in action:

Step 1. Both lenders and borrowers create their individual profiles on the P2P lending platform by providing their KYC/AML information. 

Step 2. When in need, a borrower raises the request for a loan application with the required amount. He also mentions his current financial status.

Step 3. An interested lender accepts the request and lends the desired amount either fully or partially. 

Step 4. When the required conditions are met, a smart contract is implemented automatically. 
Step 5. Once the loan amount is transferred to the borrower’s account, he can repay it with monthly payments and an interest rate.

how peer-to-peer lending works

What are The Features of a P2P Lending Platform?

Now that you’re aware of how a P2P lending platform works, let’s discuss the important features of an ideal Peer-to-Peer lending platform development process that makes the platform secure, transparent, sophisticated and highly credible. 

The functionality of a P2P lending platform decides the user base. The more seamless the functionalities, the higher the user count.

Check out the following significant features that can adorn a P2P platform to the highest level of sophistication and simplicity:

Features of a P2P Lending Platform

1. Simple Account Creation Process

A P2P lending development platform is created for the use of lenders and borrowers. Therefore, the account creation process must be simple and seamless for both parties. 

For Borrowers

An ideal P2P lending platform must be functional enough to assess a borrower’s creditworthiness by analyzing his/her financial and general credentials. It should verify the identity of the borrower by fetching official documents such as a passport or driver’s license.

For Investors

Simultaneously, your created P2P lending platform must register various significant details of an investor, including income and employment status, investment preferences and risk tolerance. 

Therefore, sophisticated P2P fundraising platforms must verify the identity of investors and borrowers to add an extra layer of security.

2. Robust Loan Application Process

A P2P lending platform must be developed keeping in mind to build a streamlined process for borrowers to apply for a loan. A borrower must be able to set a loan range and browse a list of potential lenders that match his interests. 

At the same time, investors must be equipped with complete transparency to gain insights into the credit history, financial stability and employment status of a borrower who sends the loan request. Later on, an investor can decide whether to accept or reject the loan request based on his risk tolerance and investment strategy.

3. Comprehensive Profile Management

Another solid feature of a P2P lending platform is a comprehensive dashboard that lays down the lender’s and borrower’s profile details. It should include other pivotal details such as lending/borrowing history, upcoming/remaining payments, KYC/AML details, credit score, connected digital wallets, etc. 

It is always a good idea to have a ‘Help’ or ‘Support’ options or chatbots that can solve the queries of investors and borrowers. This functionality will enhance your P2P lending platform’s credibility.

4. Automated Loan Matching

Implementing an optimized loan matching process is a complete game-changing feature of a P2P lending platform. By using advanced machine learning algorithms and data analytics, loan matching systems can assess the creditworthiness of a borrower and recommend a pool of borrowers to the investors along with their potential credit risk.

Through such functionality, investors can diversify their investment portfolio in a safe manner and explore a wide range of investment opportunities that align with their return goals and interests. 

5. Seamless Payment System

Seamless Payment System

An ideal P2P lending platform must have a secure and efficient payment system for processing loans. The platform must offer a myriad of options to make the payments. These options include payments through digital wallets, debit and credit cards, and net banking, etc. You can also partner with third-party trusted apps to enable payments for investors and borrowers.

6. Advanced Credit Scoring Models

Traditional credit score rating systems leverage limited data resources to assess the creditworthiness of a borrower. An efficient P2P lending platform blurs this line of unbalanced estimations and utilizes advanced methodologies to create credit scoring models. 

The Peer-to-Peer (P2P) lending platforms offer an in-depth evaluation of credit scores by collecting data from unconventional resources like social media, non-traditional income streams and online footprints to bring out comprehensive information to understand the borrower’s financial situation. Such functionality attracts investors and gives them a secure edge over others.

7. Anti-Fraudulent Systems

Developing an integrated P2P lending platform goes hand-in-hand with predicting the number of users who’ll use the platform. Therefore, it is crucial to stave off anti-fraudulent activities from the platform. 

P2P lending platform developers must integrate efficient fraud detection mechanisms that can identify risks associated with bogus identities, identity theft and other malicious activities and eliminate any other potential risks.

8. Automated Smart Contract Implementation

Incorporating smart contracts in the development of a P2P lending platform is one of the platform’s most transformative features. These smart contracts are ‘trustless’ decentralized contracts that do not require third-party intermediaries to be implemented. They work independently once certain pre-defined conditions coded in the contract come true.

Smart contracts make the payment process in lending and borrowing more efficient, transparent and robust. These contracts also eliminate operational load and other redundant fees. Therefore, smart contracts make the loan disbursement and repayment process simple, advanced and secure without any third-party intervention.

9. Secure and Compliant

Following industry-standard security protocols such as multi-factor authentication, end-to-end encryption, and secure communication channels creates a powerful P2P lending platform that is secure and compliant with the security protocols. The ultimate goal of your P2P lending platform development should be to offer the utmost security and compliance with the industry security measures.

Another great feature of a P2P lending platform is to integrate Know-Your-Customer (KYC) and Anti-Money Laundering (AML) functionalities to ensure that only genuine individuals use your platform. This practice also mitigates the risk of identity management and ensures efficient individual assessment.

Partner With an Industry-Recognized P2P Lending Platform Development Company

Are you new to the blockchain ecosystem and want to step into the realm of P2P lending platform development? Look no further than Deftsoft, a reliable P2P lending platform development company. With more than 18 years in the industry, we have contributed our expertise to a variety of projects. 

Our team of experts will help you bring your vision to life with utmost importance to the P2P lending platform’s security and user experience. We ensure the integration of advanced features to the P2P lending platform development.

Reach out to us for more info!

FAQs:

What is meant by P2P lending platform development?

A P2P lending platform is a common ground for investors and borrowers to find a perfect match without any interference from third-party intermediaries. These platforms are decentralized and offer attractive interest rates to investors and expose borrowers to a massive pool of lenders without any collateral. With high security and protocol compliance, these platforms are developed by blockchain developers and UI/UX designers. The P2P lending platform development process include planning, coding, testing, launching and optimizing the platform with high-level sophistication.

How does a P2P lending platform work?

First of all, users sign up on a P2P lending platform. Based on their ultimate goal, users can choose to be an investor or borrower. They need to put up their official documents for identity verification and financial status. A borrower can then raise a request based on the required money. Simultaneously, an investor accepts the request of the most competitive offer. Once conditions are met, a smart contract is implemented. This is when the required amount is transferred into the borrower’s account and then the borrower can pay up through monthly instalments.

What are the best features of a P2P lending platform?

Some of the best features to include in a P2P lending platform are a simple account creation process, robust loan application process, user profile and portfolio management, seamless payment system, advanced credit scoring models, automated smart contracts implementation, installing anti-fraudulent mechanisms, and integrating high security and industry protocol compliance.

What are the main benefits of P2P lending?

The key benefits of the P2P lending platform include the exposure of borrowers to a large pool of investors, lower interest rates, easy loan reimbursement without any third-party interference, reduced defaulter risk, borrower’s creditworthiness, enhanced financial system diversity, transparency and accessibility.

8 Best Programming Languages for Blockchain Development

Posted on by deftsoft

Blockchain technology has revolutionized the way the world works. Be it healthcare, e-commerce, or fintech, blockchain technology is soaring high. According to Zippia, more than 300 million people are using blockchain for cryptocurrency, which accounts for 3.9% of the global population. 

With such an enhanced user base, a lot of people are drawn to blockchain development. We have created a list of the best languages for blockchain that you can use to build your own blockchain solution or app.

Our team of seasoned blockchain professionals has carefully crafted a list of the best blockchain programming languages to provide you with a toolkit for getting started. This blog is a comprehensive guide to understanding the history, pros and cons, examples, and reasons for choosing a language for blockchain development.

Let’s begin.

Role of Programming Language in Blockchain Development

The role of a programming language is pivotal in building efficient, robust, and fast systems by leveraging the power of blockchain technology. Any language for blockchain is utilized to create a solid Hyperledger structure that creates the very foundation of a blockchain application.

These blockchain programming languages can be used to build decentralized apps on various platforms such as Ethereum, Stellar, Tezos, Ripple, Polkadot, Solana, etc. These platforms can be used to build numerous blockchain offerings such as smart contract development, dApps and NFT marketplace development.

List of Best Languages for Blockchain Development

Now is the time to gain an in-depth understanding of top-notch options for blockchain programming languages. We have considered the trendiest languages for blockchain dApps, smart contracts, and NFT development. Based on your utility and expertise level, you can choose the blockchain programming language that suits you best. Here is the compiled list of the best blockchain programming languages.

1. Solidity

Solidity is one of the best programming languages for blockchain development, especially for smart contract development. It is easy to implement smart contracts on a variety of platforms, including the most popular one, Ethereum. The language is based on C++, JavaScript and Python.

solidity

Also read: Understanding Smart Contract Development: Innovate, Code & Execute

Language History

Solidity is one of the most thriving blockchain languages. It first came into existence in August 2014 under the expertise of the design mastermind Gavin Wood, a notable Ethereum co-founder. However, this blockchain language has been developed by numerous Ethereum core contributors, such as Christian Reitwiessner and Alex Beregszaszi.

This language was created out of the need for a programming language that is compatible and easy to use with the Ethereum Virtual Machine (EVM), a runtime environment to execute smart contracts.

Advantages:

  • Code Familiarity: Since it is based on existing programming languages, it is easy to work with. This code familiarity makes it simpler for traditional developers to step into the realm of decentralization and blockchain.
  • Flexible: Although this blockchain programming language is specially dedicated to smart contract development, it still has the capability to handle complex tasks related to dApp development.
  • Diverse Use-Case: Solidity can be used to create complex smart contracts, tokens, lending platforms, games, and decentralized exchanges.

Disadvantages:

  • Endangered security and correctness of smart contracts.
  • Scalability and efficiency issues of Ethereum.
  • Enhanced gas fees.
  • Integer overflows.
  • Unexpected behavior.

Examples:

  • Ethereum: All the smart contracts that are deployed on Ethereum are built using Solidity, which is popularly known as the blockchain programming language for EVM.
  • Uniswap: It is a decentralized exchange (DEX) created by an Ethereum geek. 
  • Compound: An autonomous interest rate protocol created to build dApps and smart contracts.

Pro Tip: You can start coding Solidity on Remix, which is a web-based IDE that lets you code and compile smart contracts.

Final Review:
Great for creating smart contracts on Ethereum.

2. Rust

Although Rust is a newbie, it is one of the best blockchain programming languages for creating decentralized solutions. For the eighth year in a row, Rust has topped Stack Overflow’s annual developer survey as ‘the most desired programming language.’ 

It is deployed to build secure, immutable and innovative blockchain deliverables. It is a multi-paradigm and general-purpose programming language created for enhanced speed, safety, performance and team collaboration.

Rust

Language History

Rust is relatively younger than other languages for blockchain.   A software developer named Graydon Hoare, who was working at Mozilla, started Rust in 2006 as a personal project. The programming language came into existence on 15th May 2015 when it was introduced by the Rust Foundation. Thanks to Gavin Wood, one of the Parity founders who contributed to the enhanced popularity of the programming language.

Advantages:

  • Memory Safety & Error Detection: Rust is a static programming language that selects and checks the variable and expression types at the time of code compilation. This makes the language more reliable through safe memory.
  • Self-Upgrading: You can easily compile the Rust code into WebAssembly (WASM), which offers its self-upgradability functionality.
  • Fast and Reliable: You can write multi-headed programs that run on 16 cores and keep them readable, easy to maintain and efficient.
  • Concurrent Programming: Coming with an in-built support, you can work on multiple threads without memory issues.
  • Zero Garbage: Rust does not collect garbage. This functionality empowers developers to have precise control over memory.

Disadvantages:

  • Access to less number of libraries.
  • There’s a significant learning curve.
  • It is relatively difficult to maintain.
  • It works slower than other programming languages.

Examples:

  • Polkadot: This blockchain development platform’s core infrastructure is built on top of Rust. Even its runtime logic is based on Rust.
  • IoT Development: Rust leaves no trace of memory-related bugs, supports small binaries, has less runtime, and is efficient; it can be embedded and used to create IoT systems.
  • Web Development: Rust supports web development when working on the server side. It can also be used for APIs and high-performance web servers.

Fun Fact:
Rust is named after a Fungi that is “over-engineered to survive”.

Final Review:
If you’re heavy on performance, need efficient memory and want to create any kind of blockchain project with fast runtime, Rust is the answer.

3. Go

If you’re looking for the best programming language that is the easiest to understand, we can name no other language for blockchain development but Go. Similar to Rust, Go is a statically typed language. It is a high-level language and is quite similar to Python and JavaScript since it is user-friendly, scalable, flexible and fast.

GO

Language History

Go is a blockchain programming language designed by Robert Griesemer, Rob Pike, and Ken Thompson at Google in 2007. It was made available as open source on November 10, 2009. Previously known as Golang because of its early domain name, the language came into existence to fill in the gaps of C++.

Advantages:

  • Simple Language: There are no complexities or fancy code writing to the language. It exhibits perfect minimalism.
  • Easy Learning Curve: This language for blockchain is easy to learn and does not require heavy expertise in coding.
  • Built-in Testing: You do not need libraries for unit testing, as Go has its own set of testing and benchmarking tools.
  • Binary Execution: There is no need for a runtime interpreter. Therefore, it can compile single executable binaries.
  • Cross-Compilation: You can cross-compile out-of-the-box without breaking a sweat, unlike cross-compiling in C.

Disadvantages:

  • The code can be less flexible at times since it is a statically typed programming language.
  • Access to fewer libraries.
  • It offers low-speed performance as compared to Rust.
  • It lacks verbose error handling.

Examples:

  • Hyperledger Fabric: This open-source blockchain framework allows you to create a diverse range of dApps and blockchain solutions.
  • Go-Ethereum: It is one of the original implementations of the Ethereum protocol. It can be used as a library embedded in Android/iOS/Go projects or as a standalone application.

Final Review:
Go is the simplest language for blockchain. You don’t need to think much about creating a twisted logic when writing the code.

4. Motoko

Motoko is an excellent blockchain programming language for creating smart contracts. In fact, it is a programming language used to build directly on the Internet. This means that Motoko directly supports the programming model of the Internet Computer, a public blockchain network platform based on Internet Computer Protocol (ICP). Many professionals consider this language to develop smart contracts in the DFINITY ecosystem (the NPO that developed the Internet Computer).

Also read: How are Public Blockchains Different from Private Blockchains?

Motoko

Language History

Mokoto is the native language of Internet Computers. It was developed by a non-profit organization called DFINITY and introduced in 2019. It is an actor-based programming language. There are more than 400 repositories on GitHub related to Mokoto.

Advantages:

  • Memory Allocation: Mokoto has a developed garbage collector that automatically adjusts memory when a database is no longer in use.
  • Safe Upgrades: This blockchain programming language also supports safe canister upgrades.
  • Built-in Support: The language offers support for orthogonal persistence, which means that the program adopts the illusion of running “forever” and keeps its memory alive.

Disadvantages:

  •  It is difficult to test and debug Mokoto programs.
  • It does not allow setting breakpoints or setting through code running on the live network.
  • Since the language is new, there is not a wide user base for it.

Examples:

  • Internet Computer: A public blockchain based on the Internet Computer Protocol (ICP) for implementing secure and tamper-free smart contracts.

Final Review:
You can use Mokoto for your smart contract development project, especially if you want to build directly on the Internet Computer.

5. C++

C++ is yet another wonderful high-level programming language for blockchain app development. It is one of the oldest languages and has a proven track record in blockchain development. I’m quoting this because even Satoshi Nakamoto himself used C++ programming language to create the Bitcoin chain. Later on, it was also used to build Dogecoin, Qtum, Litecoin, etc.

c++

Language History:

C++ came into existence in the year 1985 when it was developed by Bjarne Stroustrup, a Danish computer scientist. It is indeed one of the oldest general-purpose, object-oriented programming languages. Over the years, we have witnessed its solid use in cryptocurrency development such as Bitcoin, Ripple, Stellar and EOS. 

Advantages:

  • Efficient Memory: C++ offers an array of benefits, with the primary advantages being having spectacular memory control and efficient CPU management.
  • Running Threads: It is easy to run both parallel and non-parallel threads using the C++ language for blockchain.
  • Compile-Time Polymorphism: C++ offers the helpful functionality of compile-time polymorphism that allows users to determine which function or operation to call based on types, order and number of arguments.
  • Code Isolation: C++ also offers the feature of code isolation for various data structures.

Disadvantages:

  • There is no garbage collection support in C++.
  • Running C++ is limited to the Microsoft platforms.
  • There is no built-in thread support.
  • The language syntax is relatively harder to understand.

Examples:

  • Bitcoin: The first blockchain and cryptocurrency in the world was created by using C++ blockchain programming language. 
  • Stellar: It is an open-source, decentralized platform for payments, cryptocurrency trades and payments. It also offers a crypto wallet.
  • Ripple: It is another blockchain service provider that offers a real-time gross settlement system.
  • EOS: It is an open-source blockchain protocol that can be used by programmers to develop and run dApps.

Final Review:
C++ is one of the most reliable languages for blockchain and can be used to create apps, smart contracts, and much more. Although it has a difficult syntax for a beginner, it is the oldest language.

6. Ruby

In the bustling world of Solidity and Rust, Ruby is often underestimated in its value. Ruby is a high-level, multi-paradigm (works on multiple platforms) and general-purpose programming language that is powerful for creating a diverse range of blockchain solutions. With this solid language for blockchain development, one can build robust, secure, and scalable blockchain applications.

Ruby

Language History:

Ruby was designed by Yukihiro Matsumoto, a computer scientist and software programmer in Japan in the mid-1990s. However, the language first appeared in 1995. This programming language gained popularity and became mainstream after the adoption of the Ruby on Rails framework.  

Advantages:

  • Developer-Friendly: Because of its impressively high readability of the syntax, it qualifies as a chosen gem for the best blockchain programming language for blockchain developers. Therefore, it is a win-win when creating smart contracts.
  • A Pool of Libraries and Gems: Ruby has an extensive pool of libraries and gems from which you can choose. For instance, gems such as Ethereum and bitcoin-ruby act as a great entry point to the blockchain community.
  • Large Community: Since Ruby is an open-source programming language for blockchain, it is backed by a massive community of developers across the globe.

Disadvantages:

  • Ruby is not a good fit for handling large projects.
  • It struggles with inefficient memory.
  • It also has some performance issues.
  • The language is not flexible to use.

Examples:

  • Chain: It is a blockchain technology platform that offers tools for building and arranging blockchain applications. It is a developer-friendly platform to create blockchain-based applications using the available SDKs and APIs.
  • Blockstack: It is a decentralized computing platform that is used to create decentralized apps, such as DeFi. The user gets complete control of the data when using Blockstack.
  •  Peatio: It is an open-source cryptocurrency exchange platform based on the Ruby on Rails framework. One can trade, withdraw, deposit and perform KYC/AML verification using this platform.

Final Review:
Ruby is the best blockchain programming language for a beginner who wants to build a blockchain application, as there is great community support for the language.

7. JavaScript

JavaScript is yet another one of the emerging languages for blockchain. Once, JavaScript was merely a browser scripting language. With the introduction of frameworks such as Node.js, JavaScript has expanded with advanced capabilities, one of them being blockchain development. It can be used mainly for real-time dApp interactions and communication between nodes.

JavaScript

Language History:

JavaScript is an object-oriented language created by Brendan Eich, the former CEO of Mozilla. It was first made available for public use on December 4, 1995. It was first created for web development, but with the introduction of frameworks, it was gradually adopted by the blockchain community.

Advantages:

  • Entry Point: Learning JavaScript is an easy entry point to the blockchain community because of its simpler syntax than C++.
  • Functional Programming: It is one of the best blockchain programming languages because of functional programming. It is a paradigm that can be used to build computer programs without mutating data.
  • Asynchronous Language: It is an object-oriented, prototype-based and asynchronous programming language that can handle communications easily between nodes in a blockchain network.

Disadvantages:

  • It is very dynamic to consider it a blockchain programming language.
  • Anyone can see the code.
  • Its interpretation depends on the browser.

Examples:

  • Topas City: Topas City has created a VR world by leveraging the programming language. The game is in the early development stage and consists of NFTs as items, in-game assets, and a blockchain-based data recording system.
  • Your Place: Your Place is a JavaScript-powered community art experiment where contributors can add pixels of color to a canvas which, once completed, can be minted as an NFT.

Final Review:
If you’re new to both the blockchain ecosystem and coding, you can consider picking up the pace by learning JavaScript.

8. PHP

Expanded as a Hypertext Preprocessor, PHP is a server-side scripting language mostly used for web development. Almost 79% of all Internet websites are based on PHP. With the emerging blockchain technology, developers are looking for new ways to utilize PHP to create dApps (decentralized applications).

PHP

Language History:

PHP is an old programming language dedicated to website and web app development. It was created by a Danish-Canadian programmer named Rasmus Lerdorf in 1993. It was only in 1995 that it was made live for public use. 

Advantages:

  • Established Userbase: Since PHP is an old language that has been used by developers since the 90s, it can act as a reliable blockchain programming language without any syntax fuss.
  • Enables Interoperability: A lot of blockchain networks can be interconnected with each other with the help of PHP. It allows the creation of interfaces to connect a diverse range of blockchain networks via middleware and APIs.
  • Quick Development: PHP allows developers to build new applications quickly with high speed and efficiency. In the bustling world of blockchain, where speed is a significant metric, PHP can be a game-changer.
  • Diverse Applications: PHP can be used to develop all sorts of systems that can work with dApps, smart contracts and communication-enabling interfaces across the blockchain ecosystem.

Disadvantages:

  • PHP cannot be used independently for smart contract development. It usually needs another language, such as Solidity.
  • It is not a native language for many blockchain platforms.
  • It has a limited range of debugging tools.

Final Review:
Although PHP is not a dedicated blockchain development language, it can still be used to develop smart contracts, dApps and interfaces such as APIs for blockchain networks.

Bottom Line

Blockchain is an emerging technology that is ready to blow up at the speed of a bullet train. Even if you’re a beginner, there are a bunch of languages for blockchain development that can be deployed to build impeccable blockchain interfaces, dApps, NFT tokens and smart contracts. It is important to choose the right language for blockchain based on your expertise and understanding. 
If you’re a blockchain-empowered business organization, startup or enterprise and you’re confused with the right blockchain programming language to choose for your next project, you can reach out to Deftsoft. We’re a premium blockchain development company with seasoned experts in smart contracts, dApps, ICO/IEO and STO and NFT marketplace development.

FAQs:

What are the various programming languages for blockchain?

There are numerous languages for blockchain that can be used in generating smart contracts and dApps. These languages include Solidity, Rust, Go, Motoko, C++, Ruby, JavaScript and PHP.

Should you choose JavaScript or Rust for blockchain development?

If you’re looking for a programming language that provides next-level performance and memory efficiency, Rust should be your choice of language. However, Rust’s syntax is sometimes difficult to comprehend if you’re a beginner. In such cases, you can stick to JavaScript, which offers great productivity.

Is it enough to learn Solidity for blockchain dApp development?

Solidity is Ethereum’s proprietary language. It is contract-oriented and adopted at a global level by blockchain developers. Its syntax is similar to JavaScript. However, Solidity is relatively more suitable for smart contract development than for dApp development. Yet, it is a flexible language that can also be used for dApp development.

How much coding is required for blockchain?

If you’re building a smart contract or dApp, it is imperative to learn coding. You can learn Solidity or Rust to build a sophisticated blockchain project. Other options include JavaScript, Go and C++.

5 Best Blockchains for NFT Marketplace Development in 2025

Posted on by deftsoft

Non-fungible tokens (NFTs) are assets that hold unique value. The data contained in the NFTs is stored on an immutable distributed ledger system. These are non-fungible assets, meaning they cannot be divided into smaller assets for partial ownership. 

NFTs are created using various blockchain platforms. If you’re looking for the best platform to create, mint, and deploy your NFTs, this guide is the right place to start. We’ve jotted down the list of the top 5 best blockchains for NFTs that you can leverage to create and deploy your own tokens.
This blog discusses the importance of blockchain in the NFT landscape, the factors to consider when choosing blockchains for NFT, and finally, the best blockchain for NFTs.

Understanding the Importance of Blockchain in NFT

According to Statista.com, the global NFT market revenue is projected to hit an estimated number of $2,378 million in 2025. In fact, the number of NFT users is gauged to grow to a whopping 16.35 million users by 2028.

The above numbers show the significance of the NFT industry in today’s dynamic world. The buying and selling of these unique assets through tokens is prominent on blockchain platforms. First, let us understand blockchain technology and its significant role in NFTs.

Blockchain is a decentralized distributed or shared ledger technology that creates a chain of transactional records that are autonomous, immutable, tamper-free and free of any third-party intermediary. 

NFTs, such as artwork or collectibles, are built on top of the blockchain. Therefore, whenever an NFT is bought or sold, the transaction is stored on the immutable ledger. This non-fungibility ensures zero discrepancies in the digital ownership of the NFTs, along with the rarity of the assets.

Choosing the best blockchain to create NFT can be tricky, considering transaction fees, capabilities, and speeds. It is important to pick the right blockchain according to your requirements to offer an optimal user experience for your NFT marketplace or community.

Factors to Consider When Choosing Blockchain for NFT

Factors to Consider When Choosing Blockchain for NFT

Let’s discuss the important factors to consider when choosing the best blockchain for NFT. The following factors are considered when choosing the best blockchain for creating and deploying NFT:

  1. Blockchain Security and Decentralization

It is important to consider the security levels of the blockchain on which you’re choosing to create your NFT. Blockchain security refers to a distributed network that allows data decentralization. One of the biggest advantages of blockchain is that the blockchain network itself is secure against cyberattacks or manipulation. 

This is how decentralization and high security can influence the choice of blockchain for creating NFT.

  1. Efficiency and Scalability

The minting and sale of NFTs must occur efficiently and rapidly without delaying the process, as it can become frustrating for the users. Any lagging in the processing of payments can become a problem, especially during price hikes or NFT launches.

A blockchain platform that allows the scalability feature can prevent network congestion for growing ecosystems. Therefore, a blockchain platform must be robust in transactions.

  1. Cross-Platform Operability

A lot of times, users have to access NFTs from various environments, such as crypto wallets, mobile games and metaverses. It is always better to choose a blockchain platform that is flexible and allows cross-platform transfers.

  1. Budget-Friendliness

Average NFT creators/users often do not want to commit to heavy gas fees or volatility costs on the blockchain platforms. On the contrary, stable and economical blockchain platforms are preferred by creators, innovators, artists, and NFT enthusiasts. 

  1. Technical Capabilities

Another important factor is to look for a blockchain platform that supports NFT standards, meta-transactions, sophisticated smart contracts and staking opportunities.

  1. Easy to Use

A blockchain platform’s onboarding experience must be seamless and user-intuitive. In simple words, it should be easy to navigate through the platform to buy, sell and use NFTs.

Ready to Build Your NFT Marketplace? Talk to Our Blockchain Experts Today!

Best Blockchains for NFT Marketplace Development

It’s time to check out the best blockchain platforms for developing NFTs. The list is mentioned as follows:

1. Ethereum

After Bitcoin, Ethereum is the second blockchain created. When it comes to the most popular blockchain for NFT, Ethereum is the talk of the town. In fact, Ethereum is a renowned name as a well-recognized NFT marketplace.

Ethereum blockchain platform

But what owes popularity to the Ethereum platform? Let’s decipher.

  • User-Intuitive:

The Ethereum Virtual Machine (EVM) is the easiest to use for creating NFTs. Sometimes, the user just needs to upload a file and enter the required information.

  • No Ownership Disputes

Settling ownership disputes is simple and easy. This is because the metadata and transaction history are optimally recorded.

  • Smart Contract Implementation

Thanks to the smart contract functionality, the creation and execution of NFTs are seamless in Ethereum. Smart contracts are self-executing digital contracts that execute when a certain set of conditions are met. Therefore, they ensure the immutability, security, integrity, and transparency of NFTs.

  • Go-To Platform

Ethereum is a well-established name in the NFT industry. It also enables cross-chain functionality, meaning that NFTs can be accessed from multiple wallets, mobile wallets, metaverses, etc. Token standards—ERC-721 and ERC-1155—allow interoperability and make the development process easier.

The NFT marketplaces built on Ethereum are as follows:

  1. OpenSea
  2. Rarible
  3. SuperRare

2. Solana

After Ethereum, Solana is considered one of the best NFT marketplace development platforms. You cannot underestimate the power of this high-performance blockchain platform. Many renowned NFT collections are built using Solana, such as DeGods, Okay Bears, and Degen Ape Academy.

Solana blockchain platform

The notable features of this blockchain are as follows:

  • High Scalability

The Solana blockchain platform is quite popular for its ability to handle large-scale decentralized applications and NFT marketplaces. It also offers quick transactions. 

Fact Check: Solana processes 50,000 transactions per second.

  • Economical 

After Ethereum, Solana is the hotspot for NFT geeks. Many budding NFT creators and consumers prefer Solana because it has relatively lower gas fees than Ethereum. 

  • Developer-Friendly

As this blockchain platform is built using Rust programming language, Solana is a preferred choice for developers.

The NFT marketplaces built on Solana are as follows:

  1. Magic Eden
  2. Solsea
  3. Metaplex
  4. DigitalEyes

3. Tezos

Tezos is a blockchain suitable as an NFT marketplace development platform. The platform is well-known for its high security, on-chain governance and self-modifications. Overall, Tezos is a smart choice to top it off as an NFT marketplace because of its robust nature. Brownie points to the fact that this blockchain platform is relatively less crowded than Ethereum or Solana!

tezos blockchain platform

The highlighting features of this blockchain platform for NFT are mentioned below:

  • High-Security

Tezos is a unique blockchain platform that uses formal verification to implement smart contracts. This phenomenon adds an extra layer of security to the NFT marketplaces built on Tezos, making them less prone to exploitation and attacks.

  • Efficient Transactions

This blockchain platform leverages a layer 1 scaling solution called Liquid Proof-of-Stake (LPoS). This solution allows high speed and efficiency of transactions.

  • On-Chain Governance

Tezos offers on-chain governance. This mechanism allows token holders to participate in the decision-making process, allowing the platform to evolve according to users’ changing needs.

The NFT marketplaces built on Tezos include the following:

  1. TRUESY
  2. Hic et Nunc
  3. OneOf

Fun Fact: Tezos is the first ever blockchain of its kind to launch a color as a part of artwork through NFTs.

4. Polygon

Imagine a power-packed NFT creation blockchain platform that acts as a Layer 2 scaling solution for Ethereum. It offers scalability, low fees, and compatibility with the Ethereum ecosystem, making it appealing to NFT marketplaces.

Polygon blockchain platform

The following are the highlighting features of the Polygon blockchain platform:

  • Scalability 

Polygon addresses Ethereum’s scalability challenges by providing a layer 2 solution that enables fast and cost-effective transactions. The platform leverages the power of Plasma chains and sidechains, which allow Polygon to manage a large number of NFT transactions with minimal congestion.

  • Ethereum Compatibility

Polygon offers cross-platform compatibility with Ethereum. This means that Ethereum-built NFTs can seamlessly interact with Polygon NFTs and smart contracts, expanding the reach and liquidity of Polygon’s NFT marketplaces.

5. Stellar

Stellar is a powerful blockchain platform built to cater to fast and economical transactions. It allows cross-border payments and provides efficient solutions for financial transactions. While primarily focused on financial services, Stellar’s unique characteristics make it suitable for NFT marketplaces as well.

Stellar blockchain platform

Here are Stellar’s most usable characteristics suitable for the NFT marketplace:

  • Fast and Low-Cost Transactions

Stellar’s consensus algorithm enables quick transaction confirmations, typically within a few seconds, making it suitable for NFT marketplaces where speed is essential. Additionally, Stellar’s low transaction fees make it cost-effective for creators and collectors to engage in NFT transactions.

  • Built-in Decentralized Exchange (DEX)

Stellar has a built-in DEX that allows for seamless asset exchange. This feature enhances liquidity and enables Stellar’s NFT marketplaces to offer users a wide range of trading options and engagement opportunities.

Summing Up

Blockchain technology is part of creating, minting, selling, and buying NFTs on various marketplaces. This guide is the best read for beginners to find the best blockchain for NFT development. If you’re an entrepreneur or enterprise looking to develop NFT, look no further than Deftsoft. We offer custom NFT marketplace development services that suit your needs. Check out our official website to learn more!

Need Help Choosing the Right Blockchain Platform? Get a Free Consultation!

FAQs:

1. What is the role of blockchain in the NFT marketplace?

Non-fungible tokens (NFTs) are assets that hold unique value in the digital landscape. They can be digital collectibles or artwork. NFTs are built over the blockchain and can also be minted, bought, or sold. Therefore, blockchain lays the foundation for enabling the secure and decentralized transfer of ownership of the NFT tokens.

2. How to choose the best blockchain for NFT?

NFT creators and consumers can choose the blockchain platform based on their economic budget, target community, technical capabilities, scalability and platform complexity. For example, if you’re a gaming enthusiast working on a gaming NFT, Ethereum is the best platform for you, considering its large user base and gaming community. However, if you’re looking for low-cost options, Polygon or Solana is the best option as they have relatively lower gas fees.

3. Where can I find the best NFT marketplace development services?

It is pivotal to choose a reliable NFT marketplace development company that offers highly customized, sophisticated and budget-friendly marketplaces. Deftsoft offers custom NFT marketplace development services that meet your needs. From NFT creation to listing and marketing it, we do it all.

4. How do beginners choose the best blockchain for NFT?

When new to the NFT community, one must consider some specific characteristics when choosing the best blockchain. Some important traits include low gas fees, a niche-specific NFT community, blockchain platform scalability, cross-platform feasibility to interact with other NFTs and platform scalability. Deftsoft, a reliable NFT marketplace agency, can help you build your NFT and sell it on the marketplace from scratch.

5. Which is the most popular blockchain for NFT?

Considering the platform’s agility and ease of transactions, Ethereum is one of the most popular blockchains for NFT. Ethereum is a high-value blockchain platform with a dedicated community and space for almost every niche.