The popularity of DeFi apps in financial products is steadily increasing, thus accelerating DeFi application development projects.
DeFi apps are capturing the financial wallets of financial industry users. But despite their growing popularity, the process of application launching remains a significant challenge.
DeFi application implementation necessitates a wide range of technical experts. However, the absolute foundation is a deep knowledge of the decentralized finance market and a team proficient in Blockchain technology.
Seven Steps to Build DeFi Applications
The Discovery or Planning Stage
The first step to building a DeFi application is to decide the type of application required for the user market. Decentralized finance is a vast sector and contributes to various finance functions. So, the focus should define and assist development teams in building apps for insurance, banking, trading, or crypto assets.
Brands should conduct comprehensive market research to understand what users look for while using the DeFi application and popular competitive features among users. This way, organizations can easily compare them to include features that align with their DeFi business idea. In addition, organizations can set goals to provide more specific features, including platforms and external services to integrate, like maps.
Creating a thorough feature list, interface design, listing project specifications, and project estimation with a timeframe are essential tasks to include in the discovery phase.
The UI/UX Design
Users dislike a complicated app interface. DeFi application development should be UI/UX friendly, where users can navigate throughout the app. Engaging with skilled UX/UI developers is vital to develop a user-friendly and visually appealing app interface. An intuitive app interface is an effective way to get more users and retain users—Design DeFi application layouts through dynamic prototypes.
Building a DeFi application includes technical specialists such as app architects, UI/UX developers, and experts. Their participation is essential to deploy particular features and UI specifics.
DeFi App Blockchain Infrastructure
Deciding on a specific Blockchain infrastructure is essential to develop a DeFi app. Specific Blockchain infrastructure includes defined data, backend servers, networking, and security software installations. As the current financial services providers prefer to invest in Blockchain, the technology benefits DeFi application developments by keeping it advanced every time.
For blockchain-specific requirements, financial chiefs will need to decide on the blockchain network for app development. Or the network on which the app will run efficiently. For instance, Ethereum is one of the preferable and popular blockchain networks for DeFi apps and is trending in the finance industry.
As most financial service providers utilize a blockchain network, there is vast congestion today. As a result, users face slower transactions and navigation on apps. Due to this, exploring other blockchain networks and building a specific blockchain infrastructure that may support features to incorporate into a business-defined DeFi app is essential.
To begin with application development, other parameters to check the blockchain infrastructure suitability are network fees, transaction speed, technical aspects, and compatibility.
Set App Development Methodology
Before the beginning of DeFi app development, it is necessary to establish an app development methodology that aligns with blockchain infrastructure. Software development methodologies and frameworks will keep all developers updated by assisting project managers with the requirements.
The current development focuses on agile methodology, given that users need instant, faster, and more accurate app solutions.
Also, apps are compatible with every device the users prefer and from any location or region. Apps today largely depend on real-time user data and follow a user-first design approach. All of these are necessary to pay attention to because use preferences are volatile for technology products. Businesses need to stay up-to-date with app features and users’ requirements. So the overall DeFi application development methodology will require frequent code modifications.
Agile DeFi app development methodology includes multiple versions. Each version involves the development, testing, and deployment of specific features. Modifications are made accordingly. This will help to build a responsive DeFi app by implementing agile methodology effectively.
Integrations for DeFi App
The integration process starts with APIs. The protocols have diverse functions, such as user authentication, app notification support, and smart contracts. The focus needs to be on critical features, bug fixes, modification of codes, testing, front-ends, and attribution platforms to deliver integrated app functionalities. For a DeFi app, the requirement for additional integrations, such as data to access off-chain data, data safety, and the DeFi wallet app feature, seems essential.
DeFi App Security
A Businesswire release, New Research From Elliptic Shows DeFi Fraud, and Theft Losses Reached $10.5 Billion in 2021, reports that crime and theft in decentralized finance applications have increased by 600% since 2020. Billions of dollars were stolen from decentralized finance (DeFi) protocols. DeFi users and investors suffered a $12 billion loss due to exploiting flaws in decentralized applications (DApps). As more and more users engage in the decentralized marketplace for trading, banking, and other financial services, financial crimes are also rising.
Such incidents show the importance of prioritizing DeFi app security among financial services providers. So, the inclusion of security-first app development procedures is necessary. Engage security professionals right from the beginning of application development processes. And even make vulnerability testing procedures a priority. Cyberattacks such as cross-site scripting and SQL injections are common yet harsh.
DeFi App Testing & QA
This step ensures the quality of the application developed. Quality assurance of developed DeFi apps is critical that makes sure they meet all the functional requirements. The app testers may perform testing methods such as integration testing, unit testing, and performance testing to ensure that each feature is operational as planned and projected. Security testing is also performed at this stage to check for any vulnerabilities in the app code.
Quality assurance specialists here monitor the app functionalities from every parameter until the app is released in the user market. They watch for front-end and back-end testing and generate reports containing defaults or if rectifications are required.
Lastly, Implement an Improvement and Maintenance Plan
Improvement and maintenance plans in the DeFi app development are necessary. It can be done by using user feedback data and analytics assembled from every stage of development. This will keep improving application features and advancing functionalities under advanced blockchain infrastructure. Maintenance is also equally essential as mobile devices update frequently. So, the apps need to be complied with the latest OS versions to run effortlessly.
The decentralized finance market is growing. At this point, it is very likely to have the next market-competitive DeFi app idea in mind. DeFi app development has a lot of possibilities, opportunities, and chances. It is a good call if businesses plan to invest in a decentralized finance application.
