Choosing the Right Blockchain: A Developer Guide to Building Decentralized Applications

Choosing the Right Blockchain: A Developer Guide to Building Decentralized Applications


Introduction

Decentralized applications leveraged blockchain technology to change the way users interact with app functionalities. Using the decentralized nature of blockchain, dApps introduce users to a peer-to-peer network, eliminating the need for intermediaries and reducing the time required to transact.

Also, the security and integrity of decentralized applications are preserved thanks to blockchain's immutability and tamper-resistance nature. By distributing transactions among node validators, using consensus mechanisms to validate blocks, and storing transactions on an immutable distributed ledger, blockchain ensures that dApp users can explore a trustless environment where users have control over thier data.

Selecting Blockchain: What to consider?

Choosing the right blockchain is the starting point of building an application, for this, you must consider features like security, cost, privacy, and scalability.

1. Ethereum

Launched on July 30, 2015, Ethereum is a decentralized and open-source blockchain proposed by Vitalik Buterin and co-founded by Gavin Wood, Mihai Alisie, and others. Ethereum was initially introduced to address the limitations of Bitcoin by giving developers access to smart contracts, decentralization, and a programming language that has syntax similar to Javascript and C++. However, the blockchain has developed to an ecosystem of remarkable projects including, MakerDAO, Uniswap, Axie Infinity, Sandbox, and several other dApp are built on Ethereum.

Pros:

  • Robust Ecosystem: Ethereum is an ecosystem with different types of applications and protocols that make navigating blockchain infrastructure and integrating other necessary components extensively easy for developers
  • Interoperability: Ethereum supports technical standards like ERC-20 (for fungible tokens) and ERC-721 (for non-fungible tokens) to facilitate interaction with different projects.
  • Security: Moving from the Proof-of-Work mechanism to the Proof-of-Stake mechanism marks a notable change in the security and scalability of Ethereum. The mechansim requires that validators use their assets as collateral, to promote security on Ethereum and prevent bad actor from compromising the system.
  • Privacy: As a Layer 1 blockchain, Ethereum offers extensive privacy that is known to every blockchain. While transactions are performed on a public ledger, users transact with wallet addresses instead of personal information.

Get free access to Ethereum RPC to build your dApp

Cons

  • High fees: The major downside of the Ethereum blockchain is that transactions attract high gas fees.
  • System congestion: Though the ecosystem has dedicated considerable resources to enhancing scalability, the system is still frequently adopted, which constantly increases transaction volume and may result in congestion.

2. Binance Smart Chain (BSC)

Introduced by the largest cryptocurrency exchange, Binance, the BSC Chain is a blockchain network designed to provide decentralized applications with an efficient and high-performance blockchain without the system congestion experienced on Ethereum and enhances efficiency using Proof of Staked Authority (PoSA) mechanism.

BSC combines several blockchain protocols to create one robust blockchain that provides a scalable alternative for dApp developers. A BNB Beacon Chain serves as the staking and governance layer, a BNB Greenfield offers decentralized data storage tools, and the opBNB and zkBNB are system scalability solutions layer.

Pros

  • Low fees: One of the notable features of the BSC chain is the low gas fee on transactions. Unlike Ethereum, BSC provides adept crypt traders with a platform where transacting can cost as low as $0.01.
  • Interoperability: The BSC chain is used by notable cryptocurrency applications, including Binance's decentralized and centralized app, to facilitate cross-chain and multi-chain transactions.
  • EVM-Compatibility: BSC, as a smart contract and EVM-compatible network, allows developers to deploy existing Ethereum-based decentralized applications.
  • Strong Community: From the user base to dApp development, developers can leverage Binace's backing for exposure, liquidity, and support.

Cons of Building on BSC

  • Centralization Concerns: First, BSC chain is associated with a centralized exchange, aslo, the Proof of Staked Authority (PoSA) consensus mechanism has been described as a system that can lead to centralization because it gives rise to a limited number of validators controlling the network.
  • Potential Security Risk: As BSC gains popularity, it becomes an attractive space to bad actors. Notably, the system has seen many attacks; thus, enhanced security and auditing may be required to protect dApps
  • Constant Regulatory Scrutiny: From KYC to several other regulatory  , centralized platforms in the blockchain space are subject to strict crypto regulation. BSC may face strict regulatory control because it is closely related to Binance.

Get free access to BSC L2 RPC to build your dApp

3. Arbitrum

Arbitrum is a Layer 2 scaling solution developed by Offchain Labs to improve the scalability and efficiency of Ethereum. The blockchain uses optimistic rollup technology to offer scaling solutions.

By executing smart contracts and aggregating transactions off-chain, Arbitrum blockchain rolls up transactions into one bulk batch and sends the batch to the main chain for validation. Transactions are presumed to be valid at the point of submission; this enhances transaction throughput, offering developers the chance to build dApps with enhanced performance.

Pros:

  • Low Transaction Fees: It offers users and developers a cost-effective choice compared to Ethereum
  • Transaction Speeds: The fact that transactions are performed off-chain and are presumed valid gives Arbitrum a chance to allow quicker confirmation and submission of transaction making a good option for developers that prioritize speed.
  • EVM-Compatibility: As a developer, Arbitrum allows you to deploy your existing Ethereum-based apps easily.

Cons

  • Decentralization: While the blockchain is designed to be fully decentralized with time, it is noteworthy that the Arbitrum central team controls a reasonable part of the network.
  • Complexity of Rollups: Rollup is still considered complex for developers to understand. To opt for this blockchain, rollup optimization knowledge is required to build the performing dApps.
  • Finality and Withdrawal Delay: The fast throughput on any optimistic rollup blockchain relates only to the point of submission; finalizing transactions may encounter delays when validity is contested.
  • Security Risk: As a Layer 2 chain that relies on validators to contest the validity of malicious transactions, it is vulnerable, and invalid transactions may be confirmed where validators fail to perform the said duty within the required time (7-day challenge period).

Get free access to Arbitrum RPC to build your dApp

4. Base

Another Layer 2 scaling solution to consider is the Base Blockchain. Developed by Coinbase (a major crypto exchange) on the OP Stack Superchain, Base blockchain offers features that can enhance the usability and scalability of decentralized applications for users.

Base offers developers and users extensive access to a scalable Ethereum; hence, deploying your Ethereum-base dApps requires no alteration. Also, users can access several Coinbase products, efficiently trade over 200 assets, and leverage the fiat onramp feature to facilitate crypto transactions easily.

Pros

  • Low Transaction: Transacting and building on Base is considerably cheaper than Ethereum.
  • Fast Transaction: Base also leverages optimistic rollup to enable fast transaction process, giving developer access to build a dApp with superior user experience
  • Robust Ecosystem: Base leverage the growing Coinbase ecosystem to offer developers and users access to extensive resources and products
  • Security: Base blockchain enjoys the security of Ethereum; hence, it is considered highly secured

Cons

  • Centralization: The affiliation with a centralized exchange impacts the decentralization of Base blockchain. However, the platform is gradually working towards becoming a largely decentralized and open-source blockchain.
  • Withdrawal: Using the optimistic rollup technology, Base also inherits the finality and withdrawal delay associated with optimistic rollups.
  • Regulatory Scrutiny: As a product developed by a major centralized exchange, Base may be subjected to high regulatory requirements like KYC, which may impact usability for developers in strict crypto regulations.
  • Interoperability: While Base may offer access to several products, cross-chain transaction is limited

Get free access to Base L2 RPC to build your dApp

5. zkSync

zkSync is an Ethereum Layer 2 scaling solution that uses the zero-knowledge rollup technology to enhance transaction throughput and reduce gas fees. Leveraging the rollup tech tool, zkSync can bundle multiple transactions into one batch off-chain and submit the transaction to Ethereum (the main chain).

Pros

  • Privacy: Where privacy is of utmost importance for your dApp, zkSync is a blockchain option because it offers advanced security by ensuring that transaction details are only available for transacting parties (sender and receiver).
  • Security: Unlike optimistic rollups, zkSync uses zero-knowledge rollups to ensure that transactions are validated at the point of submission.
  • Finality: Since transaction validity is confirmed when submitted, users can enjoy fast finality without delay.
  • Interoperability Challenge: Decentralized Exchanges like zkSwap showcase the blockchain's ability to support cross-chain activities.

Cons

  • Transaction throughput: This is considerably lower because transactions must be validated before they can pass the submission stage.
  • Cost: Additional hardware is required for validation on the blockchain
  • Complex Development Process: Building dApps on any rollup-enhanced chain requires the additional knowledge of rollup technology
  • Emerging Ecosystem: zkSync rollup is considered relatively new; hence, the ecosystem is still undergoing gradual development and adoption, which may mean fewer integration tools.
  • Limited support for NFT: Though the platform supports NFT, its infrastructure capacity is still minimal. The zkSync team is working on this aspect by increasing NFT transactions on the platform.

Conclusion

While the blockchain space continues to expereince improvement that provides developers with the best offer in all these aspects, developers must identify features crucial to the application they seek to develop. By highlighting the primary attribute and users' expectations from the dApp you are working on, you can quickly determine what to prioritize or sacrifice.