How To Build Your Own Blockchain Using Node.js

Build your own blockchain using Node.js

Want to know how to build your own blockchain using Node.js?

This is a great question which we will answer here.

According to Globes News Wire, “Blockchain Technology Market will Reach USD 21.07 Billion by 2025”.

Blockchain innovators stand to reap both the financial rewards as well as the gratification of helping to improve people’s lives. Here’re a few amazing case studies of companies who hired DevTeam.Space to build their software products:

  1. DentaMatch – Healthcare Android and iOS App
  2. Medicoin – Healthcare Blockchain-Based Web Application
  3. Medical Supply – Healthcare Mobile App and Web Application


Blockchain: The complexities
Ethereum: Making blockchain development easier
Simplifying blockchain development further: Challengers to Ethereum
Enterprise blockchains for big businesses
Hyperledger Fabric: Bringing enterprise blockchain within reach
What is Node.js: An introduction
Approaches for blockchain development with Node.js
Approach #1: Blockchain development on Lisk
Approach #2: Blockchain development using Node.js on Fabric
Exploring Node.js for an important blockchain development project?

Blockchain: The complexities

An illustration of different uses of blockchain

A brief overview of the technology would show the complexities of blockchain development. Here is a short introduction to blockchain:

  • Blockchain emerged a decade ago. Bitcoin is the earliest implementation of it, and it‘s a public blockchain.
  • It‘s a decentralized “peer-to-peer” (P2P) network of computers, also called “nodes”.
  • Every node has the entire information on the blockchain, making it a distributed database.
  • There is no central server. If hackers take out one node, the others will still have the entire blockchain.
  • Since every node always has the latest state of the database, they all can serve as a ledger of all transactions. Hence, blockchain is also called “Distributed Ledger Technology”.
  • Transactions are grouped into blocks.
  • Each block has the cryptographic hash of the earlier block. I have explained how cryptographic hash functions secure blockchain in “Quantum computing: will it kill blockchain?”.
  • This form of linkage, when represented pictorially, appears as a chain. This is how the name “blockchain” originated.
  • Users on the network have digital signatures, which use modern data encryption technology.
  • The entire network of nodes participates in the transaction validation, using a consensus algorithm. This makes transaction validation fully transparent, and dependant on intense computing.
  • Hacking such a network by capturing the majority of the computing power isn‘t practical. There is no economic incentive for hackers. This makes blockchain highly secure. Bitcoin uses the “Proof of Work” (POW) algorithm. Read about it in “Proof of work vs proof of stake Comparison”.


Ethereum: Making blockchain development easier

An image of bitcoin

As you can see, developing a blockchain isn‘t exactly simple, although Bitcoin offered only a disintermediated P2P payment network. Ethereum, launched in 2015, offered much more. Ethereum also made blockchain development simpler. Following are a few relevant facts about Ethereum:

  • They offered smart contracts, i.e., pieces of code that automatically transfer cryptographic assets based on predefined conditions. I have explained smart contracts in “How to deploy smart contract on Ethereum?”.
  • Smart contracts are open-source, transparent, tamper-proof, irreversible, and autonomous.
  • Developers code Ethereum smart contracts using languages like Solidity or Vyper.
  • Ethereum allows application development and offers a suite of protocols for that. The central component here is “Ethereum Virtual Machine” (EVM), which executes the code. I have explained the role of EVM in “Blockchain software development using the Ethereum network”.
  • Smart contracts and EVM together enable developers to build and run “decentralized apps” (DApps) on Ethereum.
  • These are open-source web apps, running on the Ethereum network.
  • They use cryptographic tokens and store data securely on a blockchain.
  • The user community evolves a consensus and determines the future of a DApp. Read more about DApps in “How to convert web app into a Dapp”.
  • Entrepreneurs and developers can buy Ether (ETH), i.e., its‘ native cryptocurrency. They can then use this feature-rich platform to build decentralized business models. This increased the adoption of public blockchains.


Simplifying blockchain development further: Challengers to Ethereum

Over time, new public blockchain development platforms emerged as challengers to Ethereum. They are trying to simplify blockchain development further. A few examples are as follows:

  • NEO: This is a smart contract platform offering better scalability and transaction throughput thanks to their “Delegated Byzantine Fault Tolerance” (dBFT) consensus algorithm. A software developer can code smart contracts using popular programming languages like C#, Java, Python.
  • EOS: Programmers can code smart contracts using C++ on this smart contract platform. EOS offers better scalability and transaction throughput since they use “Delegated Proof of Stake” (DPoS) consensus algorithm.
  • Lisk: Lisk is not a smart contract platform. Developers can create DApps that run on their specific side chains on Lisk. This avoids congesting the main network. Lisk is faster since it uses DPoS consensus algorithm. Developers can access their “Software Development Kits” (SDKs) and code DApps using JavaScript. They can also integrate smart contracts with their DApps.


Enterprise blockchains for big businesses

An illustration of blockchain

Enterprises can‘t use public blockchains due to the following reasons:

  • They can only allow trusted participants, whereas public blockchains are open to anyone.
  • Enterprises need to guard their sensitive information, however, public blockchains are fully transparent to all participants.
  • Public blockchains don‘t offer the scalability and transaction throughput enterprises need.
  • Enterprises need reliable processes, methods, tools, and frameworks.

These add further complexity, and enterprise blockchains are the answers. Read more about this in “Public vs private (permissioned) blockchain comparison”.

Hyperledger Fabric: Bringing enterprise blockchain within reach

There are a few enterprise blockchain platforms. Hyperledger Fabric, commonly called Fabric, is a prominent example. Fabric is a project of Hyperledger Consortium. It‘s an industry organization with the objective of promoting enterprise blockchain adoption using open-source tools and frameworks.

Fabric has several advantages, as follows:

  • It‘s a permission blockchain framework. It has a “Membership Service Provider” component that helps organizations ensure only trusted parties join the network.
  • Fabric allows for access control to sensitive data. It also employs data-partitioning to ensure confidentiality of sensitive transactions.
  • The consensus algorithm mirrors the transaction approval process businesses follow, with specific roles performing their duties.
  • Fabric has a modular architecture with pluggable components, making implementation easier.
  • The platform offers hardware-based additional security measures for digital keys.
  • Technology giants like IBM, AWS, Microsoft, and SAP offer Fabric as “Blockchain as a Service” (BaaS) and this make implementation easier.

Read more about Fabric in “Pros and cons of Hyperledger Fabric for blockchain networks”.

What is Node.js: An introduction

Node.js is a highly popular runtime environment, with famous apps like Twitter, PayPal, and LinkedIn using it. Developed by Ryan Dahl, and first released in 2011, Node.js uses V8, which is Googles‘ open-source JavaScript engine. Node.js offers the following advantages:

  • js enables asynchronous event-driven programming, which eliminated blocking processes. This improves scalability.
  • It‘s a highly performant runtime environment.
  • Developers with JavaScript expertise can easily learn Node.js, and it improves their productivity.
  • Data streaming is easier to implement with Node.js.
  • Thousands of sharable open-source modules and tools enrich the ecosystem, which also boasts of a vibrant developer community.
  • Open-source NoSQL databases like MongoDB use JavaScript, therefore, Node.js developers can easily implement these.

Read about these advantages in “10 great tools for Node.Js software development”.

Approaches for blockchain development with Node.js

As you can see from the above overview of blockchain and various platforms, there is a lot to plan for when undertaking blockchain development. These are as follows:

  • Determine whether you need blockchain.
  • Decide whether you need a crypto token.
  • You need to choose between public vs private blockchain.
  • There is a need to choose the right platform, which will expedite your project.
  • You need to select the right tools for your development.

Read more about these aspects in “What to plan for when undertaking blockchain software development?”.

For blockchain development using Node.js, I recommend the following approaches:

  • Use Lisk, if you are developing a DApp on a public blockchain.
  • Use Fabric if your development project is in an enterprise environment.


Approach #1: Blockchain development on Lisk

You can use Lisk to develop a public blockchain DApp that utilizes Node.js, as follows:

Step #1: Build your development team

You need the following roles in your team:

  • Business analysts;
  • UI/UX designers;
  • JavaScript developers;
  • Solidity smart contract developers;
  • Testers;
  • A project manager (PM).

Step #2: Buy Lisk crypto tokens

You need to buy Lisk (LSK) crypto tokens to develop an app on the Lisk platform. This involves the following steps:

  • You need to download and install the “Lisk Hub” desktop wallet. This offers secure storage for your Lisk tokens. You can send and receive Lisk easily. This also makes it easier for you to vote in the Lisk network decision-making process.
  • Use “Lisk Hub” to create your Lisk ID and initialize your Lisk account.
  • Buy Lisk from a crypto exchange. You can get a list of crypto exchanges selling Lisk in “5 best websites to buy LISK cryptocurrency at cheapest price”.

Step #3: Set up “Lisk Core”

Lisk Core” is the program for implementing the “Lisk Protocol”. The following quick facts are relevant here:

  • “Lisk Core” uses Node.js as the engine for code execution.
  • It uses PostgreSQL database to store all information on the Lisk main network.
  • It also uses Redis as the database to cache API response.

Read more about it here.

Your development project on Lisk requires you to run a Lisk node, and “Lisk Core” lets you do that. This requires the following steps:

  • You need to set up “Lisk core”, by following the instructions here.
  • Follow the “Lisk Core” user guide to know how you can do the required administration, configuration, and monitoring tasks.

Step #4: Set up “Lisk Commander”

“Lisk Commander” is a “Command Level Interface” (CLI) to use the “Lisk Core” APIs. You will use it in the development process. Take the following steps:

  • Set it up using the instructions here.
  • Check out their user guide. It covers the configuration, the list of commands, and the general usage of “Lisk Commander”.

Step #5: Set up “Lisk Elements”

“Lisk Elements” is a JavaScript library, which has quite a few Node.js packages that you can install separately. You can cover several functionalities in your app using these packages, e.g.:

  • Cryptographic functions;
  • Passphrase helpers;
  • Creating, signing, and verifying transactions.

Set up “Lisk Elements” using the instructions here.

Step #6: Develop, test, and deploy your app

Now that you have installed the required Lisk SDK components, you can create your app. This involves the following steps:

  • Build your sidechain specifically for your app.
  • Use “Lisk Commander” to interact with the sidechain.
  • Utilize appropriate modules from “Lisk Elements” to build your app functionalities.
  • I assume you have coded Solidity smart contracts outside Lisk by now. You need to integrate them with your app. Max Kordek, one of the founders of Lisk has explained how to integrate Smart contracts with an app on Lisk. Read “What is Lisk? And what it isn‘t.” for more information.
  • Use LSK stored in “Lisk Hub” to implement your app, and for other operations.

You can use the extensive documentation provided by Lisk, for further guidance. This completes blockchain development using Node.js on Lisk.

Approach #2: Blockchain development using Node.js on Fabric

I will now explain blockchain development using Node.js on Hyperledger Fabric. This approach involves the following steps:

Step #1: Form a development team

Like the earlier approach, your team needs BAs, UI designers, testers, Node.js developers, and a PM. Additionally, you need Fabric developers.

Step #2: Choose a “Blockchain as a Service” (BaaS) platform

As I had mentioned earlier, a key advantage of Fabric is that several technology giants offer it as part of their BaaS platforms. I recommend you use “IBM Blockchain Platform”. Following are a few relevant facts about this BaaS platform:

  • It expedites the development since IBM handles the blockchain infrastructure-related complexities.
  • You can get all features of Fabric, for e.g., the pluggable architecture, “channels” for confidential transactions, SDKs, improved security, etc.
  • The platform offers sample codes and tools.
  • Governance tools will help you in managing the network rules, scaling, and setting up membership.
  • This platform uses Kubernetes, the renowned open-source orchestration system for deployment, scaling, and application management. This makes deployment easier.

Sign-up for “IBM Blockchain Platform” here.

Step #3: Familiarize yourself with the Fabric Node.js SDK

Fabric offers a Node.js SDK for blockchain app development. The important facts about this SDK are as follows:

  • You can access this comprehensive documentation for setting up this SDK.
  • The SDK works with a Node.js runtime, and it provides robust APIs to communicate with the Fabric blockchain network.
  • There is robust documentation to help you with network configuration using this SDK. You can access it here.
  • Developers can use the SDK to submit transactions to Fabric chaincodes, i.e., smart contracts in Fabric parlance.
  • The SDK offers querying features for smart contracts. Various queries are possible, e.g., block-by-number, block-by-hash, transaction-by-id, etc.
  • The client component of the SDK enabled creating new channels for confidential transactions. You can access this tutorial to know more about it.
  • A “Peer” is a kind of node on Fabric with a specific role in the consensus algorithm. Developers can use the Node.js SDK to send channel information to peers so that they can join the channel.
  • The SDK helps with installing chaincodes on peers and instantiating them.
  • Monitoring various events like block events and transaction events is possible with this SDK.
  • The SDK enables easy registration of new users and revoking existing users.

This is not an exhaustive list of the features. Read more about the Fabric Node.js SDK here.

Step #4: Use the Fabric Node.js SDK on “IBM Blockchain Platform”

Using the Fabric Node.js SDK on the “IBM Blockchain Platform” involves the following:

  • Choose the right “IBM Blockchain Platform” offering according to your requirements. There are various options, e.g., enterprise plan, “IBM Blockchain Platform” for AWS, etc. Read about them in “Getting started with IBM Blockchain Platform”.
  • Deploy “IBM Blockchain Platform” in accordance with the offering you chose.
  • Install cURL for downloading Fabric sample code, by following the instructions here.
  • Install Node.js runtime and NPM. You can use these instructions.
  • Install Fabric samples, using these instructions.
  • Use the network monitor to install the chaincodes from the samples most suited to your requirements. Follow these instructions to do this.
  • Code your app using the Fabric Node.js SDK.
  • Add network API endpoints to your app.
  • Prove the authenticity of your app by enrolling it.
  • Register your app using the client side certificates you generated during the enrolment.

You can now execute various functions by invoking and querying chaincodes. Read detailed instructions in “Developing applications with the Fabric SDKs”. This completed blockchain development using Node.js on Fabric.

Exploring Node.js for an important blockchain development project?

Blockchain is new, and blockchain development can be tricky. Node.js is a relatively new option for blockchain development, which is why it’s essential to hire experienced Node.js developers who will be able to build a reliable product. You need to carefully choose the right platform. Moreover, need to hire a capable team including several niche skills. You might need to engage a professional development partner for projects like this. Check our guide “How to find the best software development company?” before you select a partner.

Frequently Asked Questions

Is it possible to build a blockchain?

Provided you have the skills and experience to code a blockchain solution then you can build a blockchain. Read this article for more information.

What are the best blockchain platforms?

• Ethereum
• IBM blockchain
• Ripple
• OpenChain

What is Node js?

Node.js is a JavaScript runtime environment that allows JavaScript code to be run outside of a web browser.

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