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CTO and co-founder of the French company Dfns, as well as an investor and consultant in the banking sector. Eight years of experience in software development in the financial technology field, including working at Deutsche Bank.
I have worked in cities such as San Francisco, Stockholm, London, Frankfurt, and Kuala Lumpur, and am currently based in Paris. During my career, I have founded four companies, one of which was successfully sold to Ubisoft. My experience in various international cities allows me to deeply understand global markets and business trends.
What Blockchain Developers Do
Blockchain developers create and support blockchain-based technologies. The main areas in this field include the development of decentralized applications (DApps), the creation of smart contracts, and the design and maintenance of blockchain infrastructure. Developers work with various programming languages, such as Solidity for Ethereum, Go for Hyperledger, and others. Key tasks include ensuring the security, performance, and scalability of blockchain systems. With growing interest in cryptocurrency and decentralized finance (DeFi), the demand for blockchain developers continues to grow, opening up new opportunities for professionals in this field.
The development of new blockchains is a major focus of the industry, with new projects emerging monthly or at least quarterly. Optimizing existing blockchains and creating new protocols is also important. For example, the Lightning protocol for Bitcoin was recently announced, significantly accelerating the processing of small transactions. Ethereum is also seeing active work on improving protocols, facilitating more efficient and faster transactions, addressing the needs of users and businesses.
Developers build decentralized networks using programming languages such as C, C++, Go, and Rust. These low-level languages attract specialists with experience in traditional email servers and telecommunications. The participation of experts with such experience contributes to the creation of more reliable and efficient decentralized solutions.
Smart contracts are one of the modern trends in blockchain technology. Successfully working with smart contracts requires a deep understanding of the principles of blockchain operation, as well as knowledge of financial instruments. Humanity has been using bonds, stocks, and other financial instruments for millennia, and now we are reimagining them using blockchain technology. This allows for the creation of more transparent, efficient, and secure financial solutions that can change traditional approaches to doing business.
Every month, a new blockchain appears on the market, raising questions about what else can be created and what the differences are between them. First and foremost, new blockchains offer improved consensus algorithms that increase the speed and security of transactions. There are also specialized blockchains developed for specific industries, such as finance, healthcare, or logistics, allowing them to be adapted to specific business needs.
Furthermore, new projects often introduce innovative features, such as smart contracts that automate the execution of agreements, or governance mechanisms for decentralized organizations. Differences between blockchains also include their scalability, privacy, and compatibility with other systems.
Thus, the development of blockchain technologies continues to open up new possibilities and approaches, making each new version unique and capable of solving the pressing problems of modern society.
Sometimes unusual events happen. For example, Billy Markus and Jackson Palmer, while working at IBM, created Dogecoin as a joke. However, many users took it seriously and began investing in the cryptocurrency. This led to an unexpected surge in Dogecoin's popularity, which became not only a meme but also an asset in the crypto market.
Blockchain forks are a process in which one blockchain system splits into multiple branches. This occurs when network participants cannot reach consensus on key issues. In such cases, a group of miners may disagree with the current rules and switch to a new version of the protocol. Forks can be either temporary or permanent, and they play an important role in the evolution of blockchain technology, allowing for the introduction of new features and bug fixes. Understanding the mechanism of forks is important for investors and users to monitor changes in the ecosystem and make informed decisions. Confirmation time is the time it takes for a transaction to be confirmed in blockchain systems. When I send you money, we wait for ten blocks to complete to ensure the stability of the transaction and avoid any potential problems. Once this process is complete, we can be sure that the funds have reached you and that there has been no fork that could affect the status of the transaction. Decentralized systems are complex bureaucratic structures, sometimes even slower than government agencies. Their creation requires the consent of a significant number of people with diverse interests. After lengthy discussions and debates, some participants may decide: "Forget it." I'll create my own coin, with blackjack and courtesans. This demonstrates how high consensus requirements can push people to create alternative solutions.
Most blockchains are developed based on existing technologies, adding new features or removing unnecessary ones. Often, new projects arise from the desire to create an alternative, as happened with PolkaDot.
Stellar was designed to integrate the concept of Oracles—an external financial institution that can publish its products on the blockchain. This allows users to easily place assets, such as Amazon and Apple shares, into custody. Stellar is distinguished by its high transaction processing speed. We created a Stellar-compatible fork, optimizing it and removing unnecessary elements, which allowed us to achieve a speed of approximately 1.5 million transactions per second.
The concept of ESG (environmental, social, and corporate governance) is becoming increasingly relevant, as many companies and organizations are beginning to recognize the importance of energy conservation. In recent years, there has been a growing interest in sustainable practices and innovative energy efficiency solutions. This opens new opportunities for the implementation of technologies that help reduce energy consumption and minimize the carbon footprint. Implementing ESG initiatives not only helps conserve resources but also improves the reputation of companies, which in turn attracts investors and customers interested in sustainable development.
It is likely that many of the existing blockchains will not survive in the future. However, it is possible that in ten years we will see around 50 different blockchains, each with its own unique function and target audience. Blockchain technology continues to evolve, and this opens up new opportunities for the creation and adaptation of platforms. It is important to monitor trends and innovations in this field to understand which blockchains will be in demand and which may disappear.
How Blockchains Are Developed
The question of who has the right to make changes to Bitcoin is important for understanding its decentralized nature. Contributors are typically developers who actively participate in the Bitcoin community and contribute to the code. However, final decisions on changes are made through a community consensus process.
Anyone can propose changes through a pull request in the Bitcoin repository on the GitHub platform. These proposals are discussed by the community, and their adoption depends on the opinions of other developers, miners, and users. Ultimately, changes are implemented only after they have received sufficient support and approval from the community. Thus, the decision-making process in Bitcoin is decentralized and takes into account the opinions of all stakeholders.
Connecting to the blockchain requires an application capable of performing three key functions: mining cryptocurrency, making transactions, and validating them. Let's imagine that you have a new idea and have committed the corresponding code. If someone has become interested in your concept and created version 1.1 of the miner, it is important that other miners agree to use this version. Therefore, a single commit is not enough; consensus among all network participants is required so that everyone confirms their desire to work with the proposed version. This is an important aspect of the blockchain ecosystem, ensuring its stability and security. Sending transactions on the blockchain is simple and involves transmitting text information. However, the key question is how these transactions will be recorded in wallets, how new blocks will be mined, and how miners will be rewarded for processing other users' transactions. The transition to Ethereum 2.0, which involves changing the mining mechanism from proof of work to proof of stake, is currently being actively discussed. However, simply updating the code is not enough – successful implementation of the changes requires the consent of the majority of miners who have already invested in hardware, such as video cards. This process requires a careful approach and consideration of the interests of all network participants. Blockchains use both general-purpose and domain-specific languages. Popular general-purpose languages include C++, Java, Python, and Go. These languages provide flexibility and powerful tools for developing complex blockchain applications.
Among the domain-specific languages, Solidity stands out; it is specifically designed for creating smart contracts on the Ethereum platform. Also worth mentioning are Vyper and Rust, which are used in various blockchain ecosystems to ensure the security and efficiency of code.
Thus, the choice of programming language depends on the specific task and the platform on which the blockchain solution is being developed.
Working with the Ethereum Virtual Machine involves using the Solidity language primarily. I have an opinion about programmer masochism: we chose JavaScript to experience difficulties at work. In the 1970s, there were more convenient programming languages, but Bash was chosen for working on Linux. Likewise, Solidity is a language that, despite its shortcomings, continues to be used by programmers.
I recommend paying attention to learning WebAssembly (Wasm), as this technology is closely related to the Rust programming language. Wasm is gaining increasing recognition and support from various blockchains, including projects like PolkaDot and Cosmos. Adopting Wasm could open up new opportunities for developers looking to build high-performance applications and smart contracts in blockchain ecosystems.
Ethereum remains the largest blockchain, but there are other significant platforms. One such platform is Tezos, which I mistakenly invested a significant amount in. Tezos supports smart contract development in the C++ programming language, making it attractive to developers. Stellar, meanwhile, has developed its own language that simplifies the process of creating smart contracts. These alternative blockchains offer unique opportunities for developers and investors, expanding the horizons of distributed ledger technology.
Blockchain development includes both open-source and proprietary solutions. Open-source platforms like Ethereum and Hyperledger provide developers with ready-made tools and libraries to build decentralized applications. However, some companies offer proprietary solutions that may include unique consensus algorithms, specialized APIs, and other tools to enhance security and performance. These solutions are often tailored to specific business needs and may provide additional benefits, such as technical support and integration with existing systems. The choice between open-source and proprietary solutions depends on the project's requirements and business goals.
There are several popular blockchain platforms in active use, including R3 Corda and Hyperledger. In the context of smart contract development, the Truffle Suite framework from ConsenSys is worth mentioning. This tool is designed for testing smart contracts and provides a number of utilities that allow developers to create and test contracts off-chain. This is especially useful, as blockchains can have limited transaction processing speed. Waiting up to two minutes to publish a contract can be inefficient and can also be a burden on the budget, since even testing requires virtual money that must be mined. Using tools like Truffle Suite significantly simplifies the process of development and testing in a blockchain environment.
On the Rinkeby testnet, you need to publish your Twitter address and include a link to the tweet. This will result in 18 virtual Ethereum. However, sometimes the supply of virtual Ethereum may run out, in which case you will need to find alternative ways to publish the contract. Using testnets like Rinkeby allows developers to test their smart contracts without spending real funds. However, it's important to monitor the availability of virtual resources to avoid delays in development.
How to Become a Blockchain Developer
Becoming a blockchain developer requires a number of key skills. First and foremost, knowledge of programming fundamentals is essential, including languages like Solidity, JavaScript, and Go. Understanding distributed systems and cryptography is also essential. Understanding blockchain architecture and how it functions will aid in developing and optimizing smart contracts.
Furthermore, database skills, especially decentralized ones, are helpful. Experience with development and testing tools like Truffle and Ganache will significantly speed up the process of project creation and implementation. Knowledge of existing blockchain platforms, such as Ethereum, Hyperledger, and others, will help you choose the right technologies for specific tasks.
In addition to technical skills, analytical thinking and the ability to solve complex problems are also important. The ability to work in a team and communicate with other development and business professionals also plays a significant role in success in this field. Overall, a successful career in blockchain development requires a combination of technical and soft skills.
Security auditing is a key aspect of contract development and publishing. When publishing a contract, it is important to use proven programming patterns that ensure clients can access the latest version of your application. This will help prevent potential vulnerabilities and ensure reliable operation of the software. Ensuring the security of your contract not only protects your data but also increases user trust in your product.
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It's important to understand that when developing a banking application, in a worst-case scenario, we can simply shut down all servers if we discover a vulnerability. However, this won't work with blockchain. Therefore, it is highly recommended to have a specialist on your team who is familiar with conducting an infosec audit of the code and team. For example, last month, a smart contract bug resulted in the loss of $120 million. Similar incidents occur regularly, highlighting the importance of thorough code review and adherence to security standards in blockchain development.
It's important to understand how to test and how the RESTful interface functions. Every operation in the system requires resources, even if it involves rewarding miners. This places additional responsibility on developers. Current trends are reminiscent of the 1990s, when programmers combined the roles of developers and analysts. Over time, these roles began to be separated: a business analyst emerged, as well as specialists focused exclusively on the backend and frontend. However, it is important to remember that a deep understanding of all aspects of development allows you to create higher-quality and more effective solutions.
Overall, mastering smart contracts and DeFi is not very difficult. Most of them are easier to implement than creating frontend websites with animation. This makes them accessible to developers looking to delve into the world of decentralized finance and automated solutions.
I recommend taking the time to study finance to better understand its mechanics. This can be a complex, but rewarding endeavor. There are many books from the Financial Times that may seem complex, but they contain valuable information and can significantly expand your financial knowledge. Understanding financial fundamentals will help you make more informed decisions and manage your resources more effectively.
You can develop web applications that integrate with blockchain. It is important to understand how it works and become familiar with the theoretical foundations. For example, you might want to consider the SushiSwap platform, which offers the ability to create analytical tools thanks to its backend. Using the MetaMask wallet app, which is easily installed in the Chrome browser, you can connect to SushiSwap and start working with the blockchain without any complications. NFTs, or non-fungible tokens, are unique digital assets that can be linked to various off-chain assets. One interesting area of NFT application is video games. For example, Ubisoft offers the opportunity to purchase NFTs that can be used in their games. Players can purchase unique items, such as weapons in Call of Duty or powerful swords in Warcraft. These NFTs not only provide owners with exclusive in-game items but also create new opportunities for interaction and trading in the gaming space. With the development of blockchain technology, the NFT market continues to grow, opening new horizons for gamers and collectors.
It's important to note that in the 1960s, the term "database company" existed to describe companies that claimed to be database specialists. Back when database technology was just beginning to develop, many organizations proudly announced, "We implemented a database, now we're a database company." Today, we see a similar situation with blockchain. Many companies claim, "We integrated blockchain into our processes, therefore we're a blockchain company." This approach emphasizes the importance of the technology, but it doesn't always reflect a deep understanding of its capabilities and applications.
From a CTO's perspective, developers specializing in blockchain technology will be in high demand in the future. Blockchain continues to evolve and be implemented in various fields, including finance, logistics, and healthcare. The increasing interest in cryptocurrencies and decentralized applications is also driving the need for qualified specialists. Companies are looking to integrate blockchain to improve the security, transparency, and efficiency of their processes. Therefore, developers with knowledge of blockchain technologies will be an important part of the team in the future.
The blockchain field is likely to grow fivefold in the next few years. From 2017 to 2020, the market experienced Crypto Winter, when its value dropped significantly. However, we have successfully overcome this period. An analysis of the gross blockchain product in Europe and America shows that we have great potential for growth. Significant development of blockchain technologies is expected in the commercial sector, which will open up new opportunities for business and investment.
Where to start learning blockchain development
If you want to delve deeper into the topic of blockchain and cryptocurrencies, we recommend paying attention to several key books and video courses. Among the books, it is worth highlighting "Mastering Bitcoin" by Andreas Antonopoulos, which offers a deep understanding of blockchain technology. Also useful is the book "The Bitcoin Standard" by Saffiodin Ammous, which examines the economic aspects of cryptocurrencies.
As for video courses, the Coursera platform offers educational programs from leading universities, such as "Blockchain Basics" and "Bitcoin and Cryptocurrency Technologies." These courses will help you gain both theoretical and practical knowledge about blockchain and cryptocurrencies.
Studying these resources will allow you not only to get acquainted with the basics of the technology but also to understand how it is applied in various sectors of the economy.
I am going to promote a book by my friend Robert Ellis called "Blockchain Maturity". In this book, the author draws parallels between the development of blockchain and the growth of the internet, based on which he makes predictions about the future of the technology. The publication was published in 2017, and it will be interesting to analyze which predictions Robert made incorrectly. This analysis will help better understand the dynamics of blockchain development and its impact on various sectors.
There is a resource called Crypto Zombies, which is similar to CryptoKitties. In 2017, the popular NFT project appeared, allowing users to purchase virtual kittens, breed them, and create new ones. In Crypto Zombies, the process is slightly different: you create your own zombies and then breed them with kittens, resulting in zombie versions of kittens. The website offers an interesting online tutorial called Crypto Zombies Loom Network, which helps you understand the game mechanics and the creation of unique zombies.
ConsenSys is actively engaged in the development and implementation of solutions based on blockchain technologies. A16z, or Andreessen Horowitz, is one of the most influential investment firms in the US, with significant resources in the cryptocurrency sector. The company's founders, Marc Andreessen and Ben Horowitz, are known for creating the Netscape browser and developing early cloud technologies. These achievements have strengthened their reputation and allowed them to actively invest in promising startups, including projects in the cryptocurrency field.
The Blockchain Insiders podcast is a valuable resource dedicated to the application of blockchain technology in various industries. New episodes are released every two to three weeks and are an excellent source of information for those interested in career opportunities in this field. The podcast discusses real-world examples of blockchain and smart contract implementation, which can be especially useful for professionals and job seekers. In addition, the podcast hosts conduct conversations with experts and techies who share their knowledge and experience. Also worth checking out is the Fintech Insider podcast, which offers deep insights into the world of financial technology and will be of interest to anyone interested in staying up to date with the latest trends in fintech.
ConsenSys offers numerous libraries for testing and developing smart contracts on the Ethereum platform. However, it is important to look beyond blockchain. It's recommended to study how blockchain interacts with other technologies and systems. Blockchain is an abstract concept, like the stock market, and understanding its mechanisms can be complex. This problem has been around for a long time, dating back to the "tulip mania" in Amsterdam. There's nothing new about it, and there's no need to be ashamed of it.
Reading is an important aspect of personal development and broadening one's horizons. Regularly reading books, articles, and other materials not only enriches one's knowledge but also develops critical thinking. In today's world, access to information has become easier, so everyone can choose the format that suits them best: e-books, audiobooks, or print publications. Don't forget that reading improves concentration and memory. Choose a variety of genres and topics to make the process more engaging and rewarding. Read constantly, and it will help you grow as a person and a professional.
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