Although the word "blockchain" has already been used in many places, many people say that the actual situation is still unclear.
Therefore, we asked an engineer who is actually involved in blockchain development to tell us what blockchain development is like.
In this article, I would like to ask about the work of a blockchain engineer and shed some light on “blockchain,” which is often difficult to understand.
What does a blockchain engineer do?
Mr. A: My job is to implement and develop blockchain-related applications and the blockchain itself.
What is the difference between the two?
Mr. B: To begin with, blockchain is not a system that can do anything by itself.
For example, a blank Excel sheet with nothing written on it is not useful to people. By entering some data into Excel, sorting it, and calculating it, you can finally help people.
Mr. A: Blockchain is essentially a database for storing and exchanging data, so if it just sits there blank, it has no value to general users.
Using that infrastructure, you will need an application to exchange crypto assets and issue and sell NFTs.
In this analogy, Excel is the blockchain, and the data entered there and the calculation processing are the blockchain applications.
Are there more engineers who develop blockchain itself or engineers who develop applications?
Mr. B: In my position as a blockchain engineer, I think that what I develop most of the time is overwhelmingly the latter, and both myself and Mr. A do, applications.
Mr. A: This is because there are already many blockchain infrastructures in existence. If we are to create a new blockchain, there is a big issue of how to disseminate that chain.
It is not very realistic to develop a new blockchain and overtake the many well-known chains that already exist. Therefore, many engineers are creating applications that run on blockchains that are already in operation.
The most famous one is Ethereum, so most blockchain engineers develop applications that run on Ethereum. Of course, there are some people who are developing Ethereum itself, but they are a small percentage of the total.
Mr. B: There are many other blockchains, but Ethereum currently holds the majority of the market share, so I think there are probably the most engineers developing applications related to Ethereum.
Moreover, there are many blockchains other than Ethereum that are influenced by Ethereum. From an engineer's perspective, if you can develop an Ethereum application, you can often use those skills when developing other blockchain applications.
Mr. A: However, not all applications are visible to general users. We also develop applications for blockchain-related companies such as exchanges to use in their business operations.
What kind of applications do blockchain engineers develop?
Mr. A: Even though we are blockchain engineers, the work we are responsible for varies widely and varies from person to person, so it is difficult to generalize, but things like wallets, blockchain games, systems for DeFi, etc. are things that are difficult for users to see. Blockchain engineers also create systems for managing exchange funds.
The question is, ``What do programmers create? 'It's like hearing '. There are programmers who create business systems for companies, and there are programmers who create servers for smartphone applications.
Anyway, think of a blockchain engineer as someone who is creating some kind of blockchain-related application. It really depends on each person what exactly they are making.
When I hear about blockchain engineers, I get the impression that they have amazing technology. What specific skills do you need?
Mr. B: First of all, it's basic knowledge as an engineer. Even though it is a blockchain-related application, there are many parts that are no different from normal system development.
In addition to that, you will also need to learn programming languages for blockchain, such as Solidity, for writing Ethereum smart contracts.
Mr. A: Also, knowledge about blockchain is required. Blockchain applications ultimately need to exchange data with the blockchain or parse and connect blockchain programs.
At that time, you need to understand how blockchain is created and how transactions are processed.
Mr. B: Also, the blockchain industry is changing really quickly, and new technologies and mechanisms are being created one after another. Therefore, you must keep up with this information and incorporate it appropriately into the applications you develop.
This may be said to be a special part of the profession of blockchain engineer.
Mr. A: The field of blockchain is really wide-ranging, and there are a lot of things that we need to learn. There's probably no one who understands everything about it, so I think it's important to be conscious of studying every day the knowledge you need for your job.
Mr. B: Even if you don't develop the blockchain itself, you must always keep up with information such as what updates are coming to Ethereum. In response to this, I sometimes modify the applications I am developing or try new approaches.
Mr. A: However, the discussion up to this point really depends on a case-by-case basis. For example, if you are involved in a Metaverse project, it is not uncommon for you to be in charge of parts that have little to do with blockchain.
In that case, you will still be required to have a minimum knowledge of blockchain, but you will not be writing smart contracts yourself.
Do you write all the programs from scratch to create applications? Do you sometimes repurpose it?
Mr. A: Sometimes I write it completely from scratch, but I often refer to code written by other people. To begin with, the blockchain industry is an open source world, so the code you need is often already created somewhere.
Reusing code from other applications may sound like a bad thing, but as long as it's not illegally stealing program code, it's not a bad thing.
Mr. B: Security is very important in blockchain, so it's often better to reuse code that already has some level of security than to write your own code without fully understanding it. Based on these, we sometimes verify things ourselves and create appropriate code.
It seems like a very difficult job. From here, please tell us more specifically about your job as a blockchain engineer. How did the two of you become blockchain engineers?
Mr. A: Originally, I was an engineer who mainly worked on the backend (server-side processing) of smartphone games, but from there I became interested in crypto assets and blockchain, which led me to my current position.
Mr. B: When I was a student, I joined a company that did blockchain-related work as an intern, and then went on to work as a blockchain engineer at several companies.
Mr. A: There are probably very few people who fully understand blockchain when they enter this industry.
Mr. B: Yes. There is a real shortage of blockchain engineers worldwide, and there is always competition for talent. In Japan, I feel that engineers with some knowledge and experience in blockchain development often work at exchanges or major companies.
Mr. A: I think there are many patterns in which people enter this industry after working as programmers in jobs unrelated to blockchain. Of course, I didn't really understand blockchain at that point, so I learned it while working.
How many people usually work on the development? Also, please tell us about your work environment.
Mr. A: It's hard to answer because unless it's a very large company, there isn't a clear team structure, but in most cases, it's developed by a few people working together with people inside and outside the company.
My work is almost completely remote. However, I think this is more due to the current situation than being a blockchain engineer.
Mr. B: I am basically fully remote as well. Personally, I would like to interact widely with people in the blockchain industry, so I try to actively participate in study sessions and other gatherings.
Mr. A: I also feel that exchange is very important in order to pursue new technologies and topics. I often get hints from what I talk about at such events, and sometimes I am asked to help with work.
Mr. B: You can study and hone your skills as an engineer by yourself, but I think interacting with people is extremely important in terms of knowing the trends and trends in the blockchain industry as a whole. Above all, it's really fun to talk to people in the same industry and interested in the same things.
What should I study to become a blockchain engineer?
Mr. A: I learned while being taught at the company where I first entered this industry. The other thing to do is to research through books or join the engineering community.
Mr. B: There is a lot of technical information available in online communities, so it's common to search for it yourself and ask people who are knowledgeable about it. This isn't just a blockchain engineer; it's something any engineer would do.
By the way, how much is your salary? Is it better compared to non-blockchain engineers?
Mr. A: Generally speaking, I think there are many people who are paid a higher standard than regular engineers. The average salary in Japan is 7 million yen, and overseas it is said to be more than 10 million yen, and I am also paid much higher than my previous job.
Mr. B: I also earn a higher salary than programmers and engineers of my generation. That's higher than the average salary mentioned by Mr. A.
Mr. A: There are often articles on the internet saying, ``If you want to become a blockchain engineer, now is your chance,'' and I think that's definitely true. Blockchain engineers with certain skills are in high demand at the moment, and demand is sure to continue to grow in the future.
However, as I said earlier, in order to work as a blockchain engineer, you need to continue studying on a daily basis. It requires diligence, and above all, I think it would be difficult to continue working unless you have an interest in blockchain technology itself.
Mr. B: Also, unless you work for a very large company, I don't think you should think that you can work as a pure engineer who just writes code.
Most blockchain companies are currently startups, so in many cases they are required to do many other chores in addition to writing code. On the other hand, it's a stimulating environment because there are so many changes happening every day and you get to meet so many different people.
*Each figure is excerpted from job information.
There is a worldwide shortage of blockchain engineers, and there are job openings with an annual income of 20 million yen. Job openings for engineers by major IT companies are also increasing.
It sounds like you are very busy, but do you have a lot of so-called black environments?
Mr. A: That's a difficult question. I often study outside of work hours, so depending on how you look at it, you might say it's black, but that's what startups are like, so I think everyone has different opinions about it.
I have more free time and more discretion than the company I used to work for, so it may be a problem for some people who find that part of the job a burden.
Mr. B: I often work with startup-related people, and I get the impression that most of them are workaholics or passionate about blockchain. So, although from the outside it may seem like they are black people who are devoting everything to their work, I feel that there are many people who are clearly living a fulfilling life.
Either way, it's a job you can't do unless you have a strong interest in blockchain technology, so depending on how passionate you are about it, it may seem like a no-brainer.
By the way, do you ever buy crypto assets yourself or get information on crypto assets that are likely to increase in price?
Mr. A: I do buy some, but I only buy famous currencies once in a while. Development and investment are completely different fields, so I don't think that just because I'm an engineer I'm good at crypto asset investing.
Mr. B: There are many engineers who like talking about technology more than talking about investments. Although we collect as much information about the blockchain industry as possible, I feel that this alone will not give us an advantage in investing.
Of course, information on currencies that are likely to rise in value cannot be obtained from anywhere. In rare cases, I may have received a unique token for a project I worked on in the past as a reward. However, I didn't make a huge profit, so it was just a small bonus.
Now, please tell us how blockchain engineers and blockchain-related companies operate and generate profits. Let me ask you this straight: Are the companies/projects you two are currently involved in profitable?
Mr. A: The company I'm involved with is a startup and is still developing its product. Therefore, it is not positive in terms of business profits. At the moment, we are currently using the development funds obtained through fundraising.
Mr. B: Me too. However, the company I am currently working with generates revenue from areas other than blockchain, so blockchain development is like an upfront investment.
Mr. A: I think there are currently only a handful of companies and projects that are making profits from pure blockchain business. This is the case with exchanges and successes in DeFi.
I see. How does blockchain development begin? Will you be doing business or receiving orders from somewhere?
Mr. A: Of course, there are cases where we receive orders, but I think in most cases we develop some kind of product in-house.
This is because the number of blockchain engineers is very small in the first place, and there are not many companies that are trying to create blockchain-related services. In most cases, companies think about creating some kind of blockchain service in-house and then gather engineers.
Mr. B: Yes. I have received orders from other companies in the past in the form of cooperation requests, but I feel that most companies basically make their own products. However, recently there has been an increase in the number of companies that are subcontracting blockchain development.
Mr. A: I don't think there are many cases where people start their own sales. We are all at the stage of exploring whether there are any benefits to using blockchain, such as lower costs or increased convenience, and there is no product package to begin with.
For example, do you ever get asked by someone outside your company about creating a blockchain-related system?
Mr. B: This happens both personally and as a company. However, there are very few cases where the request is directly related to the job itself. In most cases, the conversation is just about being interested, and it is rare that the conversation progresses to the point of specifically asking what kind of system they would like to create using blockchain.
Mr. A: We often receive inquiries from people who work at large companies and want to learn about blockchain. However, in reality, there are many cases where people do not know much about blockchain. Therefore, we often end up talking about what blockchain is and what it can do.
Mr. B: I feel that the number of people doing activities such as technical consulting and system consulting is gradually increasing. Occupations like system integrators (system integrators, a service industry that supports system development and implementation for customers) in the general IT industry may also be in demand in the blockchain industry in the future.
For example, how much does it cost to ask a startup that has multiple blockchain engineers to develop some kind of system?
Mr. A: It's the same as normal system development, and it's basically a man-month calculation. For example, if you are a blockchain engineer, it will cost you around 1 million to 1.5 million yen per month, and the total amount will be determined by the time it takes to develop.
However, since there are many unknowns in blockchain-related system development, I don't think there are many cases where you can clearly decide from the beginning how much a system like this will cost.
As I listen to you talk, I get the impression that there are not many systems that utilize blockchain in the market yet.
Mr. A: To put it simply, there are many products out there for exchanges and DeFi, as well as blockchain games and wallets. For example, behind the scenes at an exchange, there is a need for an asset management system that requires strong security in areas that users cannot see.
Also, for blockchain games, a blockchain engineer is required to connect the game part and the blockchain.
Mr. B: We are not in a situation like Google or Amazon where blockchain is used behind the scenes of systems that everyone in the world uses. In that sense, it can be said that it is still being used only in some industries.
So, are there any fields in the future where everyone will actually be using blockchain?
Mr. A: That's a difficult question. Finance and logistics are often mentioned. Retail, healthcare, manufacturing such as automobiles, and entertainment are also other areas where blockchain can be used.
Demonstration experiments are progressing in this area, and blockchain may be used in the future.
Mr. B: The usage of blockchain differs depending on the field, but the traceability aspect of blockchain is attracting particular attention.
Traceability refers to the ability to trace parts, and for example, blockchain is used in the manufacturing industry to manage information such as when and where parts were made and what routes they were transported.
Mr. A: There is a possibility that such usage will become widespread in the future, but for a while I think the focus will be on the financial field using crypto assets and NFTs. For example, lending services that use crypto assets.
Also, the word STO has been a hot topic for a while, but it is a technology that takes advantage of the convenience of the existing financial system by issuing tokens on blockchains such as securities and making transactions easier. I think there will be more services that will improve the quality of life in the future.
thank you very much. Lastly, please tell us what you enjoy about being involved in blockchain development and what you hope for the future of the blockchain industry.
Mr. A: Anyway, technological progress is remarkable, and changes occur almost every day. Not only is learning blockchain-related technology fun, but it's also very exciting because I'm often impressed by new blockchain-related products.
Mr. B: I enjoy meeting people who are interested in blockchain. I really enjoy talking with people like that about the value of NFTs and discussing the changes brought about by blockchain.
When it comes to blockchain, the speculative aspects of crypto assets tend to get a lot of attention, but it seems like only recently has there been an increase in interest in the technology from outsiders as well. From now on, I think it's important to create products that are useful to society and let as many people know the value of blockchain.
Personally, I feel that blockchain has already changed the world greatly in that it has become possible to send money to people all over the world with just a wallet, but I think it can change the world even more in the future. I want products to be created, and I also want to be involved in such products.
◉Mr. A
A man in his 20s. While working as a blockchain engineer, he also has experience participating in NFT projects.
◉Mr. B
A man in his 30s. After working at multiple blockchain development companies, he currently works at a startup company. Mainly responsible for back-end development.
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