Blockchain Web Development: Trends, Facts and Experts' Opinions

Updated on :July 21, 2024
By :Jemimah Rodriguez

Everyone is talking about leveraging blockchain technology in web development these days. But is it “worth the hype?”

Yes, it is.

We all know Blockchain is the primary technology behind cryptocurrency, decentralized apps, smart contracts, NFTs, etc. Besides that, Blockchain has exponentially grown in popularity in many other sectors beyond banking and finance. One of the sectors where Blockchain is having a profound impact is Web Development.

When integrated into web application projects, blockchain technology can greatly enhance security, credibility, efficiency, and profitability for businesses. But how?

This article can answer this question by providing complete information about how blockchain technology empowers web development based on relevant trends, facts, and experts' opinions.

Let's quickly delve into it and learn more about Blockchain technology and how it works.

What is Blockchain?

Blockchain is an unconventional type of database that stores information in blocks chained together through cryptography. Its storage method is different from that of conventional databases. Blockchain accumulates information in an immutable, decentralized manner. This means that once stored, information cannot be modified or deleted by any user within the network. Blockchain is a tamper-proof ledger that leverages high-end security and thus helps build trustworthy business applications.

To elaborate on this subject, let's look at different types of Blockchain.

Types of Blockchain

The four most popular types of Blockchain are:

Public Blockchain - Individuals with an internet connection can access and become part of the public Blockchain for mining and trading cryptocurrencies like Bitcoin and Ethereum.

Private Blockchain - You require permission to be a part of the private Blockchain. This type of Blockchain is used by companies for digital identities, supply chain processes, voting, etc.

Hybrid Blockchain - This is a blend of public and private Blockchain.  It allows organizations to share specific areas of the Blockchain with the public like information about medical aids etc., and at the same time restrict access to the information about their stock levels.

Consortium Blockchain - A group of private blockchains when connected together to improve workflows, enable transparency, and share information is known as consortium blockchain. 

Regardless of the type of Blockchain, some of its common attributes are as given below:

Blockchain Attributes

Blockchain Attributes

Let's have a look at these attributes of Blockchain in detail:

Immutable Database 

Once recorded, data cannot be modified or deleted by any participant within the blockchain network. This is one of the best attributes of Blockchain, as it ensures high-end security of the information and transactions.

Decentralized Network

In Blockchain, there is no centralized authority controlling the network. Instead, there are different participants on different nodes working together to verify information and transactions. Decentralized networks are less prone to malicious attacks, and that makes them more secure and trustworthy.

Transparent Procedures

In Blockchain whenever a transaction or information is recorded, it is shared with all the nodes within the decentralized network. The same version of the information is distributed within the network and that encourages transparent procedures. The same data is accessible to all the participants within the network reducing the chances of fraud and corruption.

Distributed Ledger

Blockchain maintains a ledger of transactions and information which is shared across a decentralized network. This distributed ledger normally provides all the details about transactions and related information. Distributed ledgers are tamper-free and can be accessed by all the participants within the network.

Consensus Algorithms

The key behind the seamless working of blockchain networks is the consensus algorithm. Whenever a participant records a transaction or information within a blockchain network, validation from the majority of active nodes within the network is required. Without validation and consent of majority participants, the information or transactions cannot be recorded. This helps in eliminating the chances of a system being hacked as it requires to gain control of millions of computers which is an impossible feat.

Quick Settlements

Blockchain eliminates the need for a third party to settle financial transactions, enabling quick settlements. This is one of the most integral attributes of blockchain technology, which benefits businesses by flawlessly tracking data and transactions.

Secure Encryption

All the information on the blockchain network is encrypted individually. As there is no central authority in Blockchain, it doesn't mean that anyone can easily modify, update, or delete the data. Every block is assigned a unique hash of its own and its previous block. All the blocks are cryptographically connected with each other, and trying to change the data means changing all the hash IDs assigned to the blocks, which is impossible.

Tokenization

On a blockchain, digital assets, whether tangible or intangible, can be represented in the form of tokens. Each token is the value of a part or whole unit of the asset. Using blockchain technology, it becomes possible to transfer the whole or fractional ownership of digital assets through tokenization. This eliminates geographical barriers, reducing transaction costs, and improves transparency while dealing in digital assets.

Let's now have a look at how blockchain technology works to dive deeper into this subject.

How Does Blockchain Technology Work?

How Does Blockchain Work?

Thus, Blockchain follows an innovative approach to recording, verifying, and storing data. As it is based on decentralized and transparent mechanisms of data management, web development companies are embracing this outstanding technology for building future-ready websites and applications. 

The report below from Statista shows how blockchain technology is used in different organizations these days.

Blockchain Technology Use Cases in Organizations Worldwide

Blockchain Technology Use Cases
Statista

These organizations are integrating blockchain into their websites, applications, and multiple digital systems to create a secure environment for their customers.

Well, this article is about blockchain in web development. So, let’s focus on that.

Blockchain is playing a prominent role in web development these days. Blockchain technology can empower web applications and help build more secure, agile, and feature-rich systems, helping businesses thrive in this competitive age. But how?

Let’s dive into details about the role of blockchain in web development.

Role of Blockchain in Web Development

The future certainly looks promising when Blockchain and web development come together. Blockchain, earlier known to be only useful for banking & finance, is now penetrating into different industries. Currently, when online scams are increasing, every business needs a website that can help them provide high end security to their clients while dealing with them. This is where blockchain steps in. Blockchain has become one of the most prominent game changers in web development because of its interoperable and decentralized nature, ability to integrate smart contracts, and secure authentication of digital identities.

Due to these qualities of blockchain technology, many progressive and futuristic CEOs, Directors, and successful mentors have cited the fact that the role of blockchain in web development is quite integral, especially when the number of digital scams are increasing by leaps and bounds. Let's elaborate further on this topic and learn how Blockchain is empowering web development supported by experts’ opinions on the same.

Decentralized Nature

The decentralized nature of blockchain enables storage of data on multiple nodes. So, a blockchain integrated website allows decentralized storage which means improved security and reliability. It eliminates all the risks relating to data getting stolen or tampered with. This opens up new opportunities for businesses to launch highly secure websites that store crucial information like health records, financial statements, etc.

This is what Siona - data specialist at Straits Research,, has to say about the decentralized nature of blockchain technology.

Blockchain's decentralized nature enhances security and transparency by eliminating the need for a central authority - Siona - Data Specialist at Straits Research

Interoperability

Blockchain can break down silos between different departments within an organization because of its quality of connecting data, cryptocurrencies, and smart contracts stored within multiple blocks. Blockchain can help different websites interact, communicate, and exchange information with each other in real time. The ability to be interoperable drives better connectivity within different departments of an organization, resulting in improved communication and collaboration. This has led to mass adoption of blockchain in web development for enterprise level websites, intranets and portals.

This is what Jonathan Ehrenfeld (head of Securities Strategy at Swift) has to say about the interoperable nature of Blockchain.

"[Our experiments]" will also highlight the potential value of using a blockchain interoperability protocol to securely transfer data and value between legacy systems and a potentially unlimited number of blockchains. Jonathan Ehrenfeld - Head of Securities Strategy at Swift.

Digital Identity Verification

Blockchain uses digital signatures and cryptographic keys to authenticate devices, systems, and users. This helps in preventing frauds and identity thefts. Ensuring that the right person has the access to critical data is very important for healthcare, finance, supply chain, and many other types of organizations wherein robust protection against data tampering and breaches is required. For example, financial organizations use a blockchain website for their KYC procedure to record data in a highly secure manner which helps them win the trust of their customers.

Cassie Fields - the president of Autoleap had the same experience by integrating Blockchain in their business websites, and this is what she has said about the same.

We are now able to provide our clients with better digital identity management thanks to blockchain technology. We can provide clients more control over their digital identities and personal data by utilizing Blockchain's secure and decentralized features. Customers now feel more secure and private thanks to this, which has raised their level of trust in our brand. Cassie Fields - President of Autoleap

Smart Contracts

A smart contract is an agreement between two or multiple parties stored in a blockchain network like Ethereum or EOS. There are predefined sets of conditions mentioned in smart contracts which need to be fulfilled by concerned parties agreeing upon them. These contracts are guaranteed by the nodes of the entire blockchain network and cannot be altered without their consent. Web developers use smart contracts in blockchain websites for financial, real estate, supply chain business websites where ownership of currencies, assets, and documents is highly crucial. As there is no human intervention in signing up smart contracts, the process of ownership and agreements become efficient, quick, and more secure.

Adam Garcia - the owner of The Stock Dork, shares his opinion about Smart Contracts here.

Integrating Blockchain in web development enhances security, boosts transparency, and streamlines processes with smart contracts. This technology reduces data breach risks and builds user trust, making operations more efficient and reliable. Adam Garcia - Owner of The Stock Dork

Now that you know that there are certain qualities of Blockchain that have the potential to make websites and applications secure, agile, and future-oriented, let's examine the major differences between traditional and Blockchain web development to better understand this subject.

Traditional V/S. Blockchain Web Development

Point of Difference Blockchain Web Development Traditional Web Development
Security Blockchain is based on decentralization and cryptography and thus is considered to be highly secure. Traditional websites use centralized databases, which are prone to malware attacks, so security issues can arise.
Customization It is difficult to execute changes once development is done in blockchain websites. Customization and changes can be done easily with traditional web development
Data Management Data, once recorded, cannot be changed as Blockchain is based on immutability, which allows read and write permissions only within its network. The data on traditional websites can be easily added, modified, and deleted by password-authenticated users.
Architecture Blockchain is based on a distributed ledger mechanism wherein every node in the network can participate together in the consensus algorithm. Traditional websites are based on centralized database architecture in which the server is the central processing unit and users act as recipients.
Cost The cost of building a blockchain website or app can be around $6000-$45000 The cost of building traditional websites or apps can be around $1000-$145,000

Now that we know the difference between traditional websites and Blockchain websites, let's move on to knowing the benefits of integrating Blockchain in web development to acquire more clarity on this subject.

Benefits of Integrating Blockchain in Web Development

Harnessing the power of Blockchain in web development can bring a lot to the table in terms of trust, efficiency, and security.

Below-mentioned are some of the most prominent benefits of integrating Blockchain into web applications with real-life experiences.

Improves Transparency

As Blockchain uses distributed ledger technology, it can record identical data and transactions at multiple locations at the same time. All the participants of the network can view the same records. This capability enables website information to get recorded evenly across multiple nodes of the network. Members of that blockchain network have access to the same data ensuring ultimate transparency. Moreover, the data stored in blockchain websites is stamped with date and time which cannot be changed or tampered with.

Here, Adrian Cruz - co-owner of Columbus Concrete Co. has shared his experience about how Blockchain benefitted them in terms of improving transparency of their business website.

Integrating Blockchain into our website has been transformative. We've seen a significant boost in transparency, which has built greater trust with our customers. They appreciate knowing their data is secure and transactions can't be tampered with. This increased trust has translated into higher sales and a stronger reputation for our brand. Adrian Cruz - Co-Owner of Columbus Concrete Co

Enhances Security

Blockchain in web development addresses the biggest issue in this tech world, which is data security. With blockchain technology you can anonymize personal data and use permissions to prevent access to that data. The unified information is stored in several computers instead of one single server which makes it next to impossible for hackers to even view the data. With enhanced security on your website, you can provide a safe environment to your customers and win their trust which ultimately leads to higher conversion rates.

In this context, Marc Bishop has shared his experience about how blockchain technology helped his company enhance security and data integrity within their clients’ eCommerce applications.

One significant benefit we've observed is enhanced security and data integrity. Blockchain's decentralized nature makes sure that information is stored across multiple nodes, making it extremely difficult for hackers to alter or delete information. This has been particularly advantageous for our e-commerce clients, who handle sensitive customer data and financial transactions. Marc Bishop - Director at Wytlabs.

Increases Speed and Efficiency

Blockchain for web development has the potential to automate processes. The most prominent example of the same is "smart contracts." Moreover, blockchain powered processes, whether it is about transacting or signing up a contract, don't require humans to intervene. Thus, Blockchain integrated into websites fosters automation and helps in increasing speed and efficiency.

In this context, Shawn Plummer, CEO of The Annuity Expert, shared his experience of how blockchain technology has enabled them to speed up their transactions and enhance their service delivery.

Blockchain technology reduces the need for extensive reconciliation processes, which are often required in traditional financial systems. This streamlined approach not only speeds up transactions but also significantly cuts down on the labor and associated costs of maintaining multiple ledgers. This efficiency has been crucial in reducing our operational expenses and enhancing our service delivery. Shawn Plummer - CEO of The Annuity Expert

Boosts Marketing

A website is a mode of communication between businesses and their customers. Blockchain has transformed the way digital marketers communicate, engage, interact, and connect with their customers. Blockchain comes with transparency and security, which enable companies to implement innovative marketing ideas and loyalty programs for their customers. Thus. It is a win-win situation for businesses and customers alike when it comes to integrating blockchain technology into websites.

In this context, Laviet Joaquin seconds his opinion on blockchain helps in boosting marketing efforts leading to considerable outcomes.

Blockchain can help digital marketing managers achieve better results and create more assertive, confident customer relationships. Laviet Joaquin - Marketing Head at tp-link.

Reduces Transaction Costs

Compared to traditional systems, blockchain enables low cost transactions, which can be quite useful for eCommerce web developers. Moreover, transacting through blockchain websites is more secure than traditional payment methods. As there are no intermediaries that can cause delays and raise transaction costs, utilizing blockchain technology in website payment systems has proven to be beneficial.

Mr. Rashid Khan - CEO and Founder of Dubai's Best, agrees to this point by giving his opinion on how Blockchain enables low transaction costs.

Intermediaries drive up transaction costs by slowing down traditional payment methods. Blockchain technology facilitates quick and affordable transactions since there are no middlemen to add to the expenses or cause transaction delays. Rashid Khan -CEO and Founder of Dubai's Best

Improved Supply Chain

Blockchain integrated with supply chain websites and applications can help businesses to reduce the risk of thefts and counterfeiting of assets and products. This helps in improving trustworthiness in the minds of the users. Blockchain enabled supply chain websites and applications provide real-time tracking of the products that ultimately improves speed, efficiency, and security throughout the products' journey from acquisition to delivery.

As Sturgeon Christie (CEO at Second Skin Audio) emphasizes on how blockchain has made their supply chain management process smooth, accurate, and efficient.

Blockchain integration supports our real-time inventory management. It provides instant updates and greater accuracy in stock levels, which is critical for managing supply chains and forecasting needs more effectively. Sturgeon Christie - CEO of Second Skin Audio.

Out-Of-The-Box Ideas

Using Blockchain in web development enables businesses to introduce new business models and execute out-of-the-box ideas, which was impossible earlier with traditional web development. For example, tokenization allows creating digital tokens that can help create innovative websites that deal in artwork or any other type of asset.

In this context, Rajesh Namase, co-founder of TechRT, has given his opinion on how Blockchain helps conceptualize and execute new ideas.

Employing tokenization and decentralized financing (DeFi), Blockchain also creates new revenue streams. Leveraging Blockchain allows us to investigate novel revenue strategies and broaden the range of services we provide. - Rajesh Namase - Co Founder of TechRT.

So, these are the benefits of integrating blockchain technology into web development. However, like every coin has two sides, along with benefits, blockchain web development has challenges of its own. Let's take a look at the challenges of integrating Blockchain into web development and how to overcome them.

Challenges of Integrating Blockchain in Web Development

As Blockchain is still in its infancy, there are several challenges that businesses face relating to its integration to their websites as discussed below.

Scalability

As the number of transactions on a blockchain website grows, there are chances of scalability issues arising. The website can face slower processing times, network congestions or frequent crashes. This can impact user experience and drive away potential customers. While building websites aligning scalability with security becomes crucial and that should be taken care of to overcome this challenge.

Expensive

Creating a blockchain website consumes more time than a traditional website. Skilled blockchain developers can charge around $30-$50 per hour, according to Upwork. The approximate cost of creating a private blockchain is $10,000 to $100,000. Moreover, a complicated blockchain application can cost a minimum of $250,000. So, building a Blockchain-enabled website can prove to be expensive, but you can lower these costs by looking out for affordable blockchain developers on the GoodFirms platform.

Lack of Standardization

For the broader adoption of Blockchain, it becomes necessary for web developers to integrate it seamlessly with other existing systems and platforms. This interoperability might become a challenge when there is a lack of standardization across blockchain networks. However, there are protocols and frameworks available that can bridge the gap between several blockchain platforms and enable smooth data flow.

Environmental Concerns

Blockchain mechanisms like Proof of Work (PoW) are known to be utilizing high energy and so can impact sustainability and raise environmental concerns. To address this issue, blockchain experts have come up with eco-friendly consensus algorithms like Proof of Stake (PoS) and Proof of Authority (PoA).

Legal Compliance

There is a lot of uncertainty when it comes to rules and regulations pertaining to Blockchain in different countries. Abiding Blockchain cross-jurisdictional regulations can be challenging for every business integrating it into their websites. Whether it is smart contract enforceability, intellectual property protection, antitrust violations, anti-money laundering, or know-your-customer(KYC) related legal complexities, businesses require complying with all the regulations relating to Blockchain.

So, these are the challenges that should be considered starting from the conceptualization and strategy planning phase of the blockchain project. The risks relating to the Blockchain may seem to be daunting, but many of these pitfalls are those that businesses might face while implementing other technologies as well. With a better understanding of the risks and challenges of a blockchain deployment, decision-makers can take the required steps in advance to support their business needs and make their blockchain projects successful.

In this context, Michael Prokop, Blockchain Leader, Deloitte US Risk & Financial Advisory has very well said about managing risks in a Blockchain based application.

No technology, including Blockchain, is without risk. Long-term winners in the blockchain space know how to recognize the risk, quantify the risk, and manage the risk in a blockchain-based application. - Michael Prokop, Blockchain Leader at Deloitte US Risk & Financial Advisory.

Today, the use of Blockchain is growing across every significant industry. Let's have a look at how different industries are integrating blockchain within their websites and making the most out of this emerging technology.

Use of Blockchain Web Development in Different Industries

The use of blockchain enabled websites and applications are growing across multiple industries. This section highlights how blockchain technology is being used in different industries whether it is about storing and updating health records securely, maintaining transparency in supply chain, verifying digital identities, or launching voting systems.

Finance & Banking

Cryptocurrencies like Bitcoin are backed by Blockchain. But, its applications are beyond cryptocurrencies. Many small, medium, and large enterprises in the financial sector are deploying blockchain applications within their organizations to eliminate fraudulent activities and improve efficiency in their operations. 

The Global Blockchain Finance Market was valued at USD 8.1 billion in 2023 and is expected to rise to 80.02 billion in 2032.

Supply Chain Management

In supply chain management, Blockchain is used to track the journey of the products, from manufacturing or acquisition to delivery after sales. It is also used for "Smart Contracts" in supply chain management. There can be no compromise on the security of the data where there is Blockchain. Because of that, it has become quite useful for reducing fraud and corruption in supply chain management and winning the trust of suppliers and customers. 

The Global Blockchain Technology in the Supply Chain Management Market is estimated to grow from around $262.9 million in 2021 to around $3153.7 million by 2028.

Healthcare

One of the major challenges of the healthcare sector is recording and storing sensitive medical data of patients with high-end security. Blockchain in web development helps the healthcare industry in overcoming this challenge as it has the potential to store information in a transparent and decentralized environment, having minimal risk of data getting tampered with or leaked. For this reason many healthcare organizations and hospitals are deploying Blockchain in their websites to record and store their crucial information.

The Global Blockchain in Healthcare Market size is likely to grow from $58 million in 2023 to approximately $641 million by 2035.

Media, Advertising, and Entertainment

Blockchain is helping the media, advertising & entertainment industries to integrate efficiency and transparency within their workflows. Moreover, it is also known to provide greater security for Intellectual Property (IP) and eliminate copyright infringement. Blockchain has revolutionized the way this industry works, as copyright owners no longer have to depend on third parties to bring their art to the attention of their target audience, gain popularity, and collect royalty. They can directly deal with and monetize their content, hold interactions with their audience, enable real-time billing, and eliminate the complexities of rights management.

Blockchain in the media, advertising, and entertainment industry is likely to grow from $395.6 million in 2022 to $11,766.5 million by 2030.

Government

As blockchain technology has the power of securely storing data, government organizations are using it in their websites to record citizens' identity information, such as their birth and death status, marital information, property transfers, and more. This information is stored in encrypted form, leading to greater security and control. Blockchain also helps Government organizations to streamline attestations, and verify ownerships of land, vehicles, etc. Moreover, Blockchain powered smart contracts can ease land-title transfers for Government organizations and make their processes quicker and efficient.

The Global Blockchain Government market was valued at $2.5 billion in 2022 and is expected to reach $218.6 billion by 2032. 

Cybersecurity

Blockchain is the backbone of all the cyber security related organizations. As blockchain technology stores information in a decentralized environment, to hack a Blockchain powered website hackers need to take control of several nodes instead of a single server which is next to impossible. This way, blockchain has been successful in helping cybersecurity businesses in protecting their clients from cyber attacks and data breaches.

As per a recent IBM report, the global average cost of a data breach in 2023 was $4.45 million, which accounts to a 15% increase over three years. Blockchain helps reduce these data breaches and is thus extremely useful for cybersecurity purposes.

Regardless of the type and size of your business, Blockchain can play a major role in making your website more efficient, secure, and transparent enabling you to gain more control over the data and win the trust of your customers.

Let's now move on to knowing the latest trends in Blockchain web development, which can help you in launching innovative, future-ready, and revenue-generating websites and applications.

Latest Trends in Blockchain Web Development

Blockchain is evolving and transforming the web development world, opening doors to new innovations and opportunities. Below are the latest trends in blockchain web development that allow businesses to stay updated, drive consistent growth, and expand exponentially.

Growing NFT Usage

NFTs are Non-Fungible-Tokens which are unique digital assets that represent digital and physical objects like artwork, collectibles, music albums, videos, and more. The usage of NFTs is growing and so companies need to adopt blockchain technology in order to create and trade NFTs and stay competitive. Blockchain integrated websites can help businesses to ensure immutability, security, and transparency in NFT transactions and ownership records.

Blockchain IoT

Security has become a major concern when it comes to data transfer through IoT devices. This is where Blockchain comes in. Blockchain pinpoints the data leakages when integrated with IoT devices and apps. As per a recent report, the blockchain IoT Market size is estimated at USD 0.82 billion in 2024,  which is expected to rise to USD 4.93 billion by 2029.

Blockchain-as-a-Service (BaaS)

You might have heard a lot about SaaS. Now what is this BaaS? BaaS means Blockchain-as-a-Service which refers to the blockchain infrastructure and tools maintained by cloud service providers. Blockchain developers wanting to set up a blockchain website need not set up and maintain their private blockchain networks. They can just use the blockchain infrastructure and tools which are maintained by cloud service providers. This makes it easy and cost-effective for blockchain development companies to build and maintain blockchain websites.

Blockchain Shakes Hands With AI

AI is already a blockbuster in the technological arena. What if it shakes hands with Blockchain? It can bring revolutionary changes to websites and applications. AI is all about collecting data, optimizing it, and using it to analyze the present and forecast the future. Blockchain helps secure this crucial data. If you want to exchange AI-generated data hassle-free with high-end security, Blockchain can be of great help. Thus, the future of websites and mobile apps is Blockchain with AI.

Metaverse with Blockchain

Metaverse is gaining a lot of attention from various industries and sectors these days. It is a virtual reality space wherein users can share digital content and interact with each other virtually. Blockchain technology that drives decentralization of data and security in transactions is being used in Metaverse-powered apps and websites for excellent functionality and user-friendliness.

Conclusion

Thus, integrating blockchain technology in web development represents a revolutionary change in terms of data protection, winning trust, and improving functionality, ultimately leading to customer satisfaction and business growth. As blockchain web development continues to advance, it is going to empower several modern businesses and redefine & improve their digital systems. Would you like to be one of them? Hire the best blockchain web developer now and build an intelligent and autonomous website that is highly secure, helping you win the trust of your clients and take your business to the next level.

Jemimah Rodriguez
Jemimah Rodriguez

Jemimah Rodriguez is a content marketing specialist having 8+ years of experience in content writing, SEO, and social media optimization. At present, she is working with GoodFirms – a reliable platform helping businesses in selecting right Software Companies & Products. For further information, you can get in touch with her on [email protected].

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