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Prerequisites to Learn Blockchain Technology: It’s Not What You Think It Is

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16th Feb, 2024
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Prerequisites to Learn Blockchain Technology: It’s Not What You Think It Is

There has been a massive development in the field of Blockchain technology in the last decade. Many people and companies came to know about Blockchain Technology and witnessed the growth of blockchain demand, Thanks to Bitcoin. It is a technology to keep the records that are safest, secured, fast and without any central governing authority. It has completely revolutionized how the industry works and keep track of transactions and records. 

Due to its many benefits, many companies and startups became interested in blockchain technology. This further gave rise to soaring demand for blockchain developers in the market. Blockchain tops the list of emerging jobs according to a report shared by LinkedIn. It is one of the most sought after skills by large companies.

Blockchain is an upcoming field and market which is growing rapidly in the coming years the market size is expected to reach 163.83 billion by 2029. There are many reasons contributing to blockchain’s popularity in today’s time, and the security that it provides in transactions is one of those. Another very important reason is the traceability of the data blockchain provides.

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Blockchain has a very unique way of operating. The term blockchain is a process of recording information in a format that is not comprehendible by anyone easily. This format of recording the information allows the scope of secure transactions, that cannot be hacked or changed.

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What is Blockchain technology? 

Before we talk about the prerequisite for Blockchain, let us understand what blockchain is. Blockchain can be defined as a digital ledger of all the cryptocurrency transactions across all the peer-to-peer networks. This advanced database mechanism allows transparent information sharing within a business network. A Blockchain database is used for storing data in blocks that are linked together like a chain. 

The data cannot be deleted or modified without consensus from the network as the data is chronologically consistent. This is because, Blockchain can be used to create an immutable or unaltered ledger for tracking payments, orders, accounts, and various other transactions. 

This technology has a built-in mechanism that helps prevent unauthorized transaction entries and builds consistency in the transactions’ shared view. 

Why is Blockchain important? 

Since you are interested in studying Blockchain technology, you must be aware of why it is so important and popular in today’s world. There are many challenges when it comes to recording financial transactions. Blockchain technology helps mitigate any legal issues that may arise due to unsupervised transactions. 

This technology is used for developing a tamper-proof, decentralized system for recording transactions. All transactions made using Blockchain need to be approved by both parties and it is automatically going to be reflected on both their ledgers. 

If you are wondering who can learn Blockchain? Any individual who has a basic technical understanding can learn Blockchain. 

What are the characteristics of Blockchain technology? 

For anybody wondering ‘is blockchain easy to learn?’ the answer is yes, as long as you have a brief idea about the prerequisites listed below. The following are some of the key features of Blockchain technology: 

  • Decentralization 

In Blockchain, decentralization refers to transferring decision-making control from a centralized entity (organization, individual, or group) to a distributed network. Transparency is used by decentralized Blockchain networks to reduce the need for trust among members. These networks also discourage members from exerting control or authority over each other in ways that degrade the network functionality. 

  • Consensus 

For recording transactions, a Blockchain system establishes rules about member’s consent.new transactions can be recorded only when a majority of the members in the network are giving consent. 

  • Immutability 

Anything that cannot be altered or changed is known as immutability. No participant will be able to tamper with any transaction once it has been recorded in the shared ledger. If there is an error in any of the transaction records, you will have to add a new transaction to correct the mistake, and both these transactions will be visible to the network. 

If you want to build a successful and fulfilling career in technology, Blockchain is perfect for you. There is a lot of scope for growth in the field along with a lucrative Blockchain developer salary per month

Prerequisite Skills Required to be a Blockchain Developer

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1. Fundamental skill and Knowledge in Technical Field

There are a few skills that one should learn to become a blockchain developer. An individual should have a good knowledge of Information technologies, Information security, and computer science. The basic understanding of an aspiring blockchain developer should be clear in distributed systems, networking, cryptography and data structures.

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  • Distributed systems and Networking

Blockchain is a distributed ledger that works across the network, and an individual should know how the network and distributed system works. A good understanding of how peer to peer networks work is a must. It helps in creating a good foundation in the network of computers which can range from routing to topologies of the network.

All the connected computers are used for processing in the Blockchain. Byzantine fault-tolerant consensus is an essential key feature in the security of the Blockchain that one should understand. Just a basic understanding of the working and the basic concept will be enough for a beginner to start.

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Distributed systems collect the data in a decentralised manner where the data is collected and distributed among the connected users. The distributed system allows the data to be shared across the networks that are concerned with the data. The major importance of a distributed system would be that it enhances the real-time update of the data, as the data is shared across nodes that has a copy of the blockchain.

Our Learners also read: Career in Blockchain!

  • Cryptography

The foundation of Blockchain is cryptography and from where the name of the cryptocurrency originated. Hash functions and digital signatures are created by using the public-key cryptography in the Bitcoin blockchain. A good background in mathematics skills can also help in the field of Blockchain for a developer. Block Ciphers, Message Integrity, and Authenticated Encryption are few concepts that one should have a clear understanding. Payments are secured on e-commerce sites by Hash Function.

Cryptography is a very important feature of blockchain technology. It helps the blockchain developer to protect the data from any unauthorized access. This is carried forward using two levels namely, the key-encryotion method and another one is hashing. The function of cryptography protects the data from potential hackers. Once the data enters the systems, it gets stored in a block and gets encrypted and all of these blocks get chained together to build a network. 

In order to secure the data, cryptography uses an algorithm and key that protects the data from the attacker. The encryption practice is to transform the input (plaintext) into the output that is encrypted (ciphertext). The attacker should not be able to decipher the input (plaintext) for the data to remain protected.

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  • Data Structures

One should also understand the data structure to learn about the complex nature of Blockchain. In the Blockchain, the data is stored in the form of blocks and not in the form of tables. Databases are replicated across the whole network, which is called distributed ledger. The integrity of data in the blocks is maintained by using cryptography.

A blockchain developer should know how Data Structures work such as linked lists, graphs, hash maps, search trees and many more. The skill of building the data structure from scratch is also essential for the blockchain developer. Knowledge of programming languages like C++, C-Sharp, C, Scala, Java, Python is also required. An individual can learn all the necessary knowledge about algorithms and data structures from the repository on GitHub.

The data structures facilitate the storage and access of data in a manner that is productive and efficient in its approach. The data structure is a broader term, it basically consists of organised data, data that has a relationship with each other, etc.

The data structure can also be understood in terms of linked lists and stacks. As the name implies the linked lists consist of linear data stored that is connected. These nodes represent a sequence and each node has a sequence for the next code.

  • Cryptonomic Understanding

A good blockchain developer should have a good understanding of the fundamentals of Blockchain. Cryptonomic is a word that is a mix of Cryptocurrency and Economics. Cryptocurrencies are affected by the valuation of currency and many monetary policies. One can also learn about the game theory to be more explicit about the working of cryptocurrency in the market and its valuation.

It will help one to understand how cryptocurrencies are kept in check without being monitored by any central bank. An individual should learn how the economic structure is working around the cryptocurrency.

In order to learn blockchain knowledge of cryptonomics becomes very important. The concept of cryptonomics is a unique innovation as it removes third-party involvement while receiving the payment.  Thai brings more decentralization in the money management, fund management, or investment management systems as it removes the middlemen.

2. Smart Contracts

The smart contracts are the programs which help in automating the transactions. It helps in increasing the capabilities of Blockchain without any need of middlemen or lawyers to settle the deal. The smarts contracts are made with specific conditions or in particular situations.

When these particular situations or conditions are met, then the transaction will be automatically processed when required. Currently, Auditing and optimizing of smart contracts cannot be done by many developers. A developer should be very well aware of all possibilities of execution of a smart contract. He should be able to ensure that smart contracts are only executed when it is expected.

Smart contracts bring more automation and transparency to the processes. It makes sure that once the pre-determined conditions are met it executes the actions.

In a smart contract, the details are put in the form of a code and these codes are not arranged randomly rather there is a method or a sequence to this arrangement. So as and when these arrangements meet the requirements get fulfilled and the contract gets executed. Just like any traditional contract, there is a feature of deadline in these digital contracts as well.

The smart contract enhances the security, transparency, and accuracy of blockchain technology. The feature is advantageous and allows record-keeping, reduction of middlemen, reduction of fraudulent transactions, and many more.

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3. Decentralized Applications

There are some decentralized applications (DApp) that are built on blockchains. There are various platforms for a blockchain developer to build a DApp. Here are some of the popular Decentralized Applications:

  • Hyperledger

The main goal of Hyperledger is to develop technologies in the cross-industry Blockchain using an open-source collaborative platform.

It was created by the Linux Foundation in the year 2016. The aim was to increase collaboration between entities across the network. It uses a ledger-based technology framework and blockchain to carry out the needful tasks.

Hyperledger is not to be confused with crytptocurrency,  blockchain, or an organization rather it facilitates the building of the ecosystem, environment, or infrastructure for a successful blockchain system, etc.

There are various layers that hyperledger uses, such as-

  1. Consensus layer
  2. Communication layer
  3. Smart layer
  • EOS

EOS stands for Electro-Optical System. The main goal of the EOS blockchain is to support industrial-scale applications. It is a decentralized operating system that has more scalability and higher transaction speed such as Ethereum.

EOS is a platform based on blockchain that facilitates to development, building, or running the business applications. EOS provides secure and authorized access between the DApps. EOS also allows business applications to build secure, authorized applications similar to web-based applications. 

EOS.IO and EOS tokens are the other two elements of EOS. The EOS.IO software controls and manages the blockchain software. Whereas, the EOS tokens as the name suggests are the cryptocurrency of the EOS.

EOS has certain features that make the work easier for the developer such as self-describing interfaces, interface development, etc. These features make the application development and management smoother.

  • NEO

Da Hongfei and Erik Zhang founded Antshares in 2014, which was renamed NEO in 2017. NEO is not limited to one language, unlike Ethereum. A beginner can use Various programming languages such as Java and C# can be used to build DApps on NEO. It will work as a platform for digital businesses in the future.

NEO is used to fully digitise the assets available on a platform to achieve the goal of a smart economy. In order for this to happen, smart contracts play a big role in the process.

A digital asset is a term that holds a broader perspective. It is not only used for the digital assets buts also for the physical assets that have been tokenized on the blockchain during transfer.

NEO supports transparency and security for digital assets. The assets enjoy protection validated by the digital identity and protection given to them. It has two tokens and NEO gas is used to pay for the transactions happening on the blockchain.

  • Ethereum

In 2015, Vitalik Buterin created Ethereum, which is currently the most popular platform for development. The Ethereum is fueled by the cryptocurrency called Ether. The language used in the Ethereum is called Solidity. Solidity is a smart-contract oriented language. Robustness is similar to a programming language like JavaScript and C++.

Ethereum is used to create digital and secure technology. It has tokens that can be used on the blockchain technology platform. It allows the functions to be decentralised that are secure to be used. It is one of the reasons why Ethereum is used by blockchain developers.

The platform of Ethereum has a native cryptocurrency that is ETH or ether. Ethereum is a blockchain technology-powered platform where ether is the currency of Ethereum.

Also read, Blockchain career and its future growth 

4. Learn to Simplify

A blockchain developer should be able to innovate using the design thinking methodology. Blockchain is used to simplify the processes in the business, which helps in driving outcomes of companies.

5. Understand Blockchain Security

A developer in Blockchain should have security skills like elliptic curve digital signatures, Merkle proofs, cryptographic hashing, private key, and public-key cryptography and many more. Frameworks in security are getting evolved for regulatory needs, legal needs, and compliance needs.

The blockchain contains data that is huge in amount and should not be compromised. The blockchain has an inherent feature that is secure, decentralized, and transparent.  

There are various types of blockchain that are private, public, permissioned, or permissionless. A blockchain engineer needs to be aware of various types of existing blockchains and the potential threats to them.

There are various types of attacks that blockchain technology is prone to. The following are potential threats to blockchain technology-

  1. Phishing attack
  2. Sybil attacks
  3. Routing attacks
  4. 51% attacks

6. Know the Platforms

There are multiple frameworks in Blockchain and learning all of them can create confusion. One should know how to select the right blockchain platform for particular cases. Different blockchain platforms such as XDC Network, Stellar, Quorum, OpenChain, R3 Corda, Ripple, Ethereum, and Hyperledger Fabric are some of the excellent blockchain platforms that a beginner can start to learn about.

The companies choose which type of blockchain platform they require depending upon various factors such as the development platform, the type of platform that is required, languages required to develop the platform, scalability solution required, smart contracts usability, etc.

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7. Distributed ledger expertise

A developer should be an expert to build distributed ledger technology. It will help in accelerating the development of smart contracts.

8. Master of Interoperability

The mindset of blockchain developers should be open source because there is a risk of deployment in various technology platforms of interconnecting ledgers. Business outcomes can be driven, and latency is reduced by integrating with systems of an enterprise.

9. Embracing Blockchain Expertise as a Service

During the formation of the consortium, skills of negotiation and collaboration are critical. Blockchain as a Service is a new latest thing in the market that a blockchain developer should be able to take benefits from.

10. Learning to Drive Business Outcomes

A developer needs to understand the result expected by a business. One should build direct connections and explore data flow between customers, suppliers and trading partners across the ecosystem.

11. Blockchain architecture 

This is another prerequisite for Blockchain technology, ideal for individuals who want to build a character as a Blockchain architect. Blockchain developers are expected to have a complete and thorough understanding of Blockchain, including its working and how the architecture of the network supports the functionality. 

They should be familiar with the different kinds of consensus algorithms like proof of stake or proof of work. They are also expected to know about the four types of architecture in Blockchain – private, public, consortium, and hybrid. This is an important prerequisite for learning Blockchain technology.

12. Web Development 

Here is another prerequisite to learn Blockchain. With Blockchain’s emphasis on decentralized networks, web development has become an integral part of Blockchain technology. Blockchain professionals should know about web development. 

They need to have a comprehensive understanding of the technologies that support web applications. They should also be aware of what it takes to design, develop, and secure those applications. Blockchain web applications need to be user-friendly and efficient, without causing any adverse effects on the Blockchain network. 

Blockchain can impact businesses’ growth by providing more secure, transparent, and traceable data. Blockchain technology cuts the cost by removing the intermediaries.

In today’s times, blockchain technology is rising and giving opportunities to professionals to grow. Due to the demand for technology, there are many resources to get oneself educated, so the age-old question of how to learn blockchain technology seems to be fazing away. 

The professionals are paid very high in this field for the skills, expertise, and scientific mind they bring. The blockchain developer salary ranges from 2.4 LPA to 20.7 LPA and the average salary is 6.5LPA (Source). The figures may vary depending on the skills, experience, and upskilling history.

Real-world applications of Blockchain 

If you have worked on the prerequisites to learn Blockchain technology, you’re in luck. Blockchain has the potential to change almost every working industry today. If you looking forward to building a career in Blockchain technology, there are many promising options for you to choose from. Here are some of the industries where Blockchain technology has made an impact: 

  • Finance 

Finance was one of the first industries to recognize the potential of Blockchain technology. Blockchain is used for making efficient and secure payments. Several banking institutes have also started to employ Blockchain solutions to speed up cross-border payments and reduce transactional costs. 

  • Energy 

It is used in the energy industry for facilitating peer-to-peer energy trading. With this technology, energy producers will be able to sell directly the excess energy to consumers without any intermediaries. 

  • Real estate 

Blockchain can change the entire real estate domain by offering transparent and secure platforms for property transactions. This technology can help in reducing risks of fraud, lower costs, and speed up transactions. 

  • Healthcare 

In the healthcare industry, Blockchain technology can help in improving tasks like data sharing and record keeping. Any medical record stored in Blockchain can be accessed safely by both healthcare providers and patients. This leads to better patient care. It can help in preventing medical fraud, ensuring that the sensitive data is accessed by only authorized personnel. 

There are various career opportunities available in the blockchain field, such as-

  1. Blockchain Developer
  2. Blockchain Solutions Architect
  3. Blockchain Project Manager
  4. Blockchain Legal Consultant
  5. Blockchain Quality Engineer

Career opportunities in Blockchain 

Blockchain is used in almost every sector as we just saw. There are several job roles that you can explore in Blockchain technology. Here are some of them:

  • Blockchain developer

Blockchain developers are high in demand as they help organizations expand their businesses to Blockchain platforms. This is probably one of the most marketable career paths in the Blockchain. These are high-ranking positions, hence Blockchain developers need to pay absolute attention to detail.

A Blockchain developer salary is a lumpsome amount because of how demanding the job role is. These are professionals who have expertise in programming (such as C++, Python, and Javascript) and they build Blockchain applications. So for anyone wondering ‘does Blockchain require coding?’, the answer is yes it does.

Average Blockchain developer salary: 8.5 LPA

  • Blockchain engineer

The experts behind the development of any top company’s computer network, data structures, cryptography, and algorithm are Blockchain engineers. These engineers are responsible for developing the infrastructure and software needed to run Blockchain networks.

Blockchain engineers examine and optimize the nitty-gritty features of Blockchain technology. A Blockchain engineer salary in comparison to a Blockchain developer salary per month is almost the same.

Average Blockchain engineer salary: 8.3 LPA

  • Blockchain solution architect

These professionals are responsible for designing, assigning, and connecting Blockchain solutions with team experts like network administrators, developers, IT operations, and UX designers. This helps in developing the complete Blockchain solution.

Average Blockchain solution architect salary: 21.0 LPA

  • Blockchain solutions quality engineer

A Blockchain solutions quality engineer is responsible for checking and assuring that all operations are up to the mark according to the Blockchain development environment. These professionals conduct testing and automation of Blockchain frameworks. An important skill for these professionals is attention to detail which will help them spot any anomalies. Having good communication skills can go a long way for these individuals as it helps in maintaining good work relationships.

Average Blockchain quality engineer salary: 13.3 LPA

  • Blockchain consultant

These individuals help new crypto firms develop growth strategies. They analyze the impact of Blockchain technology on a business and develop and implement strategies for increasing business efficiency. These professionals must have a proper understanding of Blockchain and the current market trends.

Average Blockchain consultant salary: 15.4 LPA

Why should you pursue a career in blockchain? 

Blockchain technology is a skill that is high in demand but not many candidates are experts in it. Blockchain experts are needed in multiple fields. With the emergence of Blockchain technology, many industries have been revolutionized. The applications of Blockchain are seen in a wide number of industries (as mentioned above).

It is a universal infrastructure that stores or transfers information across the globe in a secure manner. With a proper understanding of the technology, you will not only be able to advance to senior job roles but also become a decision-maker during business collaborations.

With the application of Blockchain, industries can build decentralized secure databases, that are safe from manipulation and tampering. It helps increase data safety, transparency, and efficiency in making business transactions. Also, the cost of various business processes is reduced because of Blockchain solutions.

Conclusion

As we can see how the Blockchain has grown so much in just a few years, no one can deny that the Blockchain is the best technology that many industries will be based on in the future. The skills required to become a blockchain developer ranges from understanding technical knowledge to study fundamentals of working of cryptocurrency and blockchain structures.

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Many large companies have already started using the applications of Blockchain in their businesses and reaping its benefits. After almost a decade later, many products and services will be based on blockchain technology only, and it is the right time for anyone to begin their career as a blockchain developer.

If you are interested in building a career in computer applications, making a career in Blockchain technology can help you reach the heights of your career. A study showed that between 2021 and 2030 the Blockchain technology market is estimated to grow at a rate of 82.8%. So you must be well-versed with the prerequisite for Blockchain listed above.

There is a rise in careers in blockchain technology and blockchain has tremendously changed the very face of the technology industry forever.  If you’re interested to become a blockchain developer and build smart contracts and chaincodes, checkout IIIT-B & upGrad’s Advanced certificate program in blockchain technology.

Profile

Mayank Sahu

Blog Author
Mayank Sahu is the Program Marketing Manager with upGrad for all emerging technology vertical. His past experience is in analytics industry extensively in healthcare Domain. Mayank has completed his Graduation from IIT Delhi.
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Frequently Asked Questions (FAQs)

1Which is the best cryptocurrency and why?

Choosing the best might be subjective, but the cryptocurrency with the largest market share is Bitcoin. On January 3, 2022, it had a market value of over 900 billion dollars. The main reason for its success is that it was the first to implement and enjoy all the benefits of blockchain technology. It has become a strong currency comparable to real national currencies. It is more flexible than any other currency and is easier to trade. The accepted places are also innumerable with a higher market share, making it easier to spend and trade.

2Why should I become a blockchain developer?

Blockchain is in its earlier stages of development, so you have more opportunities to succeed in this field. The blockchain sector of the market is snowballing and has more potential than most other sectors. It is more reliable than other technologies, and its innovative technology allows developers to create creative applications. Similarly, with how different and new blockchain technology is, it has not been explored thoroughly, letting most developers be a part of the initial discovery stage.

3How does blockchain work?

Blockchain is a distributed database that gives you secure, transparent, and tamper-proof transactions. It is built on the principles of cryptography and provides for participants to track information without the need for a central authority. The blockchain database is maintained by a network of computers connected to the internet. These computers are known as nodes. The blockchain database is split into blocks containing several transactions. When a new block is created, it is added to the end of the blockchain and is verified by the other nodes in the network. This verification process is known as consensus. Once a block is confirmed, it can't be tampered with or changed. This secure and transparent system allows for participants to track information without the need for a central authority. Transactions are verified by the network of nodes, which prevents any single party from controlling the blockchain.

4Is blockchain coding hard?

Blockchain from the exterior may appear like difficult technology but with the right guidance and appropriate skillsets, it is not as hard as it seems to be. The coding skills that are required in blockchain technology are C++, JavaScript, Solidity, Python, Ruby, etc. The aspirants can give at least a few months in order to get comfortable with the languages and tools.

5Is it too late to learn blockchain?

No, it is not at all late to learn blockchain. The technology has already made its way into the system and there is still so much growth that this technology will be seeing in the coming years. The possibilities of blockchain applications are renewing with each passing day and with the professional growth in this field is also reaching new heights.

6Are blockchain skills in demand?

Yes definitely, the skills required in blockchain are in demand and because of multiple applications, the skills are not confined to blockchain only rather they are of use in various fields as well.

7Do you need programming knowledge for blockchain?

Yes, programming languages should be known to a blockchain developer. Blockchain professionals should be well versed in Python, C++, Javascript, Ruby, Solidity, etc.

8What is the salary of a blockchain developer?

The blockchain developer salary ranges from 2.4 LPA to 20.7 LPA and the average salary is 6.5LPA

9Is blockchain difficult to learn?

The technology appears to be as very tough and not easily understandable but it is not the case. It may not be the easiest technology to learn but it is not the hardest as well. With the right attitude and aptitude, technology can be learned. The aspirants would require proper guidance and foundations for them to work upon. Also, with the right amount of skillsets and experience the technology becomes easier to learn.

10Is blockchain development a good career?

Yes, blockchain development is a very good career to make in today’s times. There is a huge demand globally and nationally. The developers with good skills and experience are paid high. There are good employers in the market who are giving competitive salaries to blockchain professionals. Also, this field is not confined to one country so the developers can make a career anywhere in the world they find good opportunities.

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