Why Blockchain is being indigenously developed by Bitcoin Exchange software
Exchanges are the platforms where a majority of cryptocurrencies get traded. It acts as an ideal method for investors to mark their presence in the digital world. Many companies have decided to invest their money on developing their own blockchain technology to bypass the stringent regulations imposed by public blockchain networks.
Some of the advantages that lie in developing Blockchain technology are
- It enables firms to grow their market share quickly and improve the efficiency of their operations. Privacy can also be provided for consumers to monitor their transactions.
- To fulfill the urge of earning profits, user-oriented blockchain networks can attract more traders boosting the activity on the platform.
- It adds more transparency to the platform as all members share the same distributed ledger. Everyone would accept it as it is validated via consensus. The data is accessible only to members who have permission.
- Better traceability is ensured as every trade is recorded on the blockchain. A comprehensive audit trail will be established for the whole journey of every digital asset. Products can be authenticated and fraudulent activities can be prevented.
- Quicker settlement of transactions is ensured as there is only a single digital ledger. Since third-parties are eliminated and paper-based processes are avoided, transactions are executed securely.
- Any disagreements can be resolved swiftly as it is operated over a distributed network. Since there is a shared database, nodes will distribute all the information on the blockchain equally across parties.
- There are lesser chances of hacking taking place as the Proof of Work algorithm is used which possesses strong computing power.
- Through the in-built smart contracts system, routine operations such as accepting deposits, authorizing withdrawals, and fulfilling settlements can be done automatically. It enables listing of more attractive digital assets at a lower cost.
- Earlier, businesses used to issue their digital assets via Ethereum amidst heavy competition. This resulted in firms losing their prospective user base to their rivals resulting in loss of revenue. Despite the flexibility involved for token holders and traders, it lacked an adequate value proposition.
- Companies inviting clients to launch their digital assets through successful projects will be able to retain their core trading volume.
- Since developing a self-sufficient blockchain boosts the reach of decentralization, it can improve the access to quality financial products enhancing the inclusiveness.
- Many companies are venturing to develop their own blockchain to comply with regulators in a better way. This would help in establishing an official standard for decentralized operations. Regulators can monitor the system using a supervisory node.
- Firms also experience a rise in the value of their native tokens. Tokens have become more usable as they are not only used to pay trading and listing fees but also being utilized to power the entire blockchain network.
- Many well-known exchanges are misusing their massive clout by not allowing adequate decentralization for their clients. This has resulted in a lack of a community-driven interaction in the process.
Steps to be implemented for developing Blockchain from scratch
- Information authentication – Every firm has to decide on the storage capacity, establish a digital signature, and introduce end-to-end encryption in its programs. A combination of a public and private key can be used to verify the digital signature.
- Asset management – Since assets will be promoted using tokens, strategies would have to be devised for issuance, payment, and exchange.
- Smart contract creation – They are self-executing programs that process agreements automatically and decrease the risk of loss.
- Designing the nodes – Nodes can be prepared using permissionless networks where anyone can join after completing the verification procedure. There is also a permissioned network where the owner will decide which client can join the network. The company can design the same consensus mechanisms or make it unique according to their operations.
- Finalizing key elements – Agreements regarding permissions, atomic exchanges, management of private and public keys, determining the address formats, and block signatures have to be decided in advance. Once a decision is made for certain elements, it can never be changed. So, a firm has to think critically.
- Creating the API – An application programming interface involves developing key trading pairs, verifying audits done by third parties, storing user’s data, and having standardized practices to retrieve it.
- Deciding the admin layout – Competent servers need to be installed to manage the website. An apt front-end is also needed.
- Presence of futuristic technologies – Automated chatbots can be designed for establishing an interactive relationship with the users. Biometrics should be used for customer verification. Real-time analytics must be provided through graphs and charts for a better understanding of the market.
- Other factors – Attention should be devoted to the complexity of the blockchain project, type of application needed for business, number of people involved in creating the app, kinds of tools used for project management, and subscription costs for availing third-party services.
Keep in mind the above factors while developing blockchain on your own Bitcoin exchange software. The numerous advantages in-store will help in reaping maximum benefits and gaining high traction in the market.