How to Build a Dapp on Ethereum Blockchain?

How to build an Ethereum dApp? Dapp is a decentralized application, which is only different from the apps we usually use (Instagram, Facebook, etc.) from a decentralization perspective. How can you understand this decentralization?

From the experience level, there is no manager in dApp; everyone is equal and supervises each other. From the technical level, traditional apps interact with the backend deployed on the server, while dApp interacts with the smart contract deployed on the blockchain. Need to know more? In this article, we will discuss how to make dApps on Ethereum along with examples of dApps.

Table of contents:

1. DApp Fundamentals
2. Ethereum dApp Development Process
   1. Ideation
   2. Design Your dApp Architecture
   3. Write Smart Contracts
   4. Develop the Front-End
   5. Testing and Deployment
   6. Security Considerations
3. Challenges in Developing dApps on the Ethereum Blockchain
4. IdeaSoft Experience
5. Conclusion

DApp Fundamentals

DApp runs in the browser and is available to users through the Internet. From this perspective, it is not much different from ordinary Web2 programs, such as the pages of the website, web applications, etc. It is composed of some HTML pages and JS, which is what we usually call the front end. But let`s take a look at the dApp architecture.

This will be a quick Ethereum dApp development tutorial for you:

• Server. It is no different from traditional Web applications. It is responsible for providing and processing data, interacting with the front-end dApp, usually reading and writing databases, processing data and business logic, and performing other work. It may be written in Java, PHP, Go, Python, or other development languages.
• Smart contracts. DApp architecture and traditional Web application architecture are different in the smart contracts part. Smart contracts are running on the blockchain of a binary code. Some blockchains are able to run smart contracts. For example, almost 90% of the smart contracts run on Ethereum. Smart contracts on Ethereum are usually developed using Solidity, and after compilation, it will become a piece of binary code, which is then deployed to Ethereum and can be invoked.
• Oracles. Many dApps have special scenarios that require additional data to complete the closed loop’s work. Smart contracts can not actively obtain data. They can only passively accept data. And it doesn’t execute regularly. The only way to pry it into execution is for an external program to call its interface. Oracles automatically, in real-time, notify the smart contract on the blockchain of the results of some event to execute the automated task.

Most dApps are web applications that have added blockchain technology. However, they all correspond to the highest security standards because hackers are more dangerous here. This is why security can take the most significant time in the Ethereum dApp app development process.
We also wrote about building dApp on Solana.

Ethereum dApp Development Process

How to build a dApp on Ethereum? Let`s discuss below!

Define Your dApp Idea

The first step in dApp development is to brainstorm and define a clear purpose for your application. If you consider the current trends in Web3, you can find the best niche for you and quickly occupy it with your dApps. Examples of dApp categories:

• Finance: DeFi platforms, lending protocols, and asset management tools.
• Gaming: Blockchain-based games with in-game assets and token economies.
• Social Media: Decentralized social networks with user-owned data.
• Identity: Decentralized identity verification and management systems.

A proper discovery phase that clearly identifies the dApp idea can greatly reduce Web3 development costs for your further project.

Design Your dApp Architecture

Planning the architecture of your dApp involves designing both the user interface (UI) and user experience (UX). A well-thought-out design ensures a seamless interaction between the user and the application. 

Front-end and back-end components must also be carefully considered. However, to make the best choice, you must be well-versed in all the Ethereum updates that change how the blockchain or Ethereum ecosystem works. Ethereum EIP-4844 is a primary example of such updates. For instance, this innovation has opened many new opportunities for dApps regarding efficient data pruning and management, scalability for a global transaction network, and enhanced user experience.

We have a great article discussing our case study on how to build a successful Web3 startup. 

Write Smart Contracts

Smart contracts are the backbone of any Ethereum dApp, executing the business logic in a decentralized manner. Solidity is the primary programming language for writing Ethereum smart contracts.

You must pay special attention to:

• Security audits. Regularly audit your smart contracts to identify vulnerabilities and ensure robustness.
• Gas optimization. Write efficient code to minimize gas costs, making your dApp more cost-effective for users.

Smart contracts like security testing can take up most of your Ethereum dApp app development time. Since they must be of the highest quality, they must be rigorously tested and developed with all the best practices and new threats in mind.

Develop the Front-End

The front-end of your dApp is the interface through which users interact with your blockchain application. Building an intuitive, responsive, and user-friendly front-end is crucial for the success of your dApp.

Popular JavaScript frameworks such as React and Vue.js are often used due to their flexibility, rich ecosystem, and ease of integration with Ethereum libraries like web3.js and ethers.js. These frameworks help in creating dynamic, single-page applications that can efficiently manage the interaction between the user and the blockchain.

We recommend you read our article about dApp UI/UX design tips that will help you make your customer journey as smooth as possible.

Testing and Deployment

Thorough testing is imperative before launching your dApp on the Ethereum mainnet. Testing methodologies you can use:

• QA automation tools. Use AI to optimize test scenarios and speed up the testing process.
• Unit testing. Test individual components of your smart contracts.
• Integration testing. Ensure that all parts of your DApp work together seamlessly.
• Testnet deployment. Deploy your dApp on Ethereum testnets like Goerli or Truffle to simulate mainnet conditions without the associated costs.

We recommend you read our article on the best practices for smart contract testing & debugging.

Security Considerations

Best practices we advise you to use for your dApp blockchain application development:

• Regular audits. Conduct security audits to identify and mitigate potential vulnerabilities.
• Code reviews. Perform peer reviews of your code to catch errors early.
• Secure development practices. Follow best practices such as using well-vetted libraries and keeping dependencies up to date.

By following these steps, you can develop dApp on Ethereum that will outperform competitors.

Challenges in Developing dApps on the Ethereum Blockchain

Developing dApps on Ethereum involves several challenges, which can be broadly categorized into technical, financial, and operational challenges:

1. Latency. Transaction finality on Ethereum can take anywhere from a few seconds to several minutes, which can be a barrier for applications requiring real-time interactions.
2. Smart contract security. Writing secure smart contracts is notoriously difficult. Vulnerabilities like reentrancy, overflow/underflow, and improper handling of external calls can lead to significant financial losses.
3. Smart contract gas optimization. Developers must optimize smart contract code to minimize gas costs, which requires a deep understanding of the Ethereum Virtual Machine (EVM) and the gas cost of various operations.
4. Evolving tools and frameworks. The tools and frameworks for Ethereum development, such as Truffle, Hardhat, and Remix, are still evolving. Frequent updates and changes can challenge developers to maintain and upgrade their dApps.
5. Usability. Many dApps suffer from poor user experience (UX). The onboarding process, especially involving wallet setup and private key management, can be daunting for non-technical users.
6. Integration with existing systems. Integrating dApps with existing enterprise systems and workflows can be challenging due to differences in technology stacks and architectural paradigms.

Despite these challenges, the Ethereum ecosystem continues to grow and evolve, with ongoing efforts to address scalability (e.g., Ethereum 2.0, layer-2 solutions like Optimistic Rollups and zk-Rollups), improve development tools, and enhance security practices. Our team at IdeaSoft can help you develop dApp on Ethereum, considering all the innovations and best practices.

IdeaSoft Experience

IdeaSoft team is well-versed in dApp blockchain application development. Our dApps on Ethereum prove that.

Decentralized staking protocol Asymetrix

Asymetrix protocol is an innovative decentralized and non-custodial platform that enables users to stake their stETH with a distinctive method of generating yields. In addition to decentralized protocol development, we worked on a DAO and protocol tokens for governance and airdrop possibilities.

After releasing Asymetrix, our cooperation was not stopped. Together with the Asymetrix team, we optimized the platform and released the Asymetrix V2. It has groundbreaking improvements, including the introduction of an additional token, esASX, and a BOOSTS system designed to reward LPs within the protocol’s ecosystem.

Global marketplace BridgeTower

BridgeTower is a global marketplace built on a proprietary technology stack. We introduced KYC/KYB, anti-money laundering (AML) by MasterCard, wallet whitelisting, proof-of-reserves, custodial services, and fiat-to-crypto on and off-ramping capabilities.

We also worked on the NFT marketplace with ERC-1155 minting and collection factory contracts, a dashboard portfolio with the total amount of all assets, and asset and wallet management. Overall, this project was delivered to the client in 10 months.

Web3 gambling platform Moonwin

Moonwin is a pioneering cross-chain DeFi platform (casino 3.0). We have successfully implemented a platform that operates on Polygon, Ethereum, and BNB Chain blockchains. Our IdeaSoft team has contributed to every stage of development, from inception and the creation of the MVP to the realization of Moonwin V1 and Moonwin V2.

The most difficult challenge for us was game mechanics development. The development of fair and entertaining casino games that leverage blockchain technology presents unique challenges.

Ensuring transparency, randomness, and provable fairness in game outcomes while maintaining gameplay dynamics and user engagement requires innovative game design. However, we had great assistance from the client side, which helped us constantly provide innovative and unconventional strategies to be tested and further integrated.

Conclusion

In this article, we have discussed how to develop Ethereum dApp along with examples of Ethereum dApp developed by our IdeaSoft team. Ethereum blockchain and ecosystem are actively evolving, and it is vital to be aware of all the innovations and changes. If you are looking for a reliable Ethereum dApp development company, feel free to contact us today. We are eager for new challenges and projects!