Blockchain development is a niche area that’s continually gained momentum over time among top companies in tech. This means that the demand for these specialists is high, while the number of qualified developers is still relatively low.
Companies are, however, realizing the value and use cases for hiring a blockchain developer even though it’s quite a challenge to find a good one in today’s talent shortages. Dealing with high work rates, finding real experts (and weeding out those who pose as experts), and retaining them takes a lot from a company.
That’s why company owners and decision-makers must understand how to successfully find and hire blockchain development teams, including the skills and qualifications that companies should look for, relevant interview questions, and the advantages of outsourcing this work.
What Can a Blockchain Developer Do for a Business?
A blockchain is a digital ledger or data record used to document valuable information. It’s used, for instance, to save financial transactions, payment histories, and consumer identities, and it’s the technology behind Bitcoin and other cryptocurrencies.
This tech is also applicable in many other business areas, from smart contracts to supply chains. It promises a renewed sense of security, transparency, and responsibility to the businesses that use it.
A blockchain developer works within the engineering team to develop, release, and maintain blockchain applications and systems. They’re also responsible for the functionality and safety of relevant blockchain networks.
A good blockchain developer helps a business by creating tools that enable automatic execution, digital asset management, production grading, trusted business networks, and advanced security.
According to the U.S. Bureau of Labor Statistics, there were 1,364,180 software developers in 2021 in the United States alone. Out of those software developers, only 18,416 were active blockchain developers, according to the Electric Capital developer report. Only 1.3% of all software developers actively engage in blockchain development in the United States. This field is relatively recent and it requires a combination of many skills, which explains why it’s sometimes rather difficult to find experts whenever they’re needed.
Ethereum, Polkadot, and Cosmos are the three biggest ecosystems for blockchain developers with 4,011, 1,400, and 950 monthly active developers, respectively, in 2021. These are some of the fastest-growing ecosystems in crypto, with thousands of projects created every year.
Blockchain Developer Hiring Guide
There are few blockchain developers currently on the job market, as this technology is relatively new. It also takes a lot to properly learn it, which makes it an even more valuable skill. This is why companies need to know where and what to look for when hiring a blockchain developer.
Choosing among freelancers, in-house blockchain developers, or an outsourcing agency depends on the needs of the company. Each type of candidate has its benefits and disadvantages.
Businesses should know where to find these experts and how to create a compelling job description. Other developers may find the rates for this kind of job attractive, but they may not have the right skills to do it, so it’s important that recruiters ask the right questions during job interviews.
Job Description
Companies who want to hire in-house blockchain developers need to create attractive and detailed job descriptions. However, the first step is to decide where they’re going to look for the talent.
Job boards like Indeed or Jooble are always good places to start. While they’re not specialized for blockchain developers, they still cover a lot of different specialties and have good traffic. Using the right keywords is enough to get the job offer noticed. Smaller, specialized websites also fetch job ads from these boards and repost them.
Companies who want to ensure that their job ad only reaches true experts can try finding websites that are solely dedicated to blockchain developer hiring. Some of those specialized sites include:
The job description itself should be clear on every aspect of the available position. It should include the main responsibilities of the blockchain developer, the required skills and qualifications, the benefits, and the salary ranges.
According to PayScale, the average base salary for a blockchain developer is $112,000 per year in the United States. This value ultimately varies depending on the skills and qualifications of the expert and the location of the company.
Responsibilities of a Blockchain Developer
There are different blockchain position types available, and each type serves a different function within a company. Blockchain developers might work as software UX designers, frontend developers, blockchain application developers, and smart contract engineers and developers.
While these positions slightly differ from each other, the responsibilities of a blockchain developer remain similar. They must design, test, and develop new blockchain applications that meet the requirements of each client.
Specific responsibilities might include collaborating with management to review blockchain technology needs, keeping updated on the latest cryptology techniques, and maintaining and optimizing both client and server-side applications, all while working with full teams across the company.
Skills and Qualifications
Blockchain development is a complex skill that requires a lot of knowledge. Ultimately, the required skills and qualifications depend on the company’s needs. However, there are a few basic skills that every blockchain developer should have.
Being fluent in different programming languages is a must. At a minimum, blockchain developers should be comfortable with C++, Java, JavaScript, Node.js, Python, and Solidity (for Ethereum). It’s also important for applicants to have the ability to quickly write clean and simple code.
Having experience with blockchain development platforms is also necessary. The right candidates should know how to work with Ethereum, Hyperledger, and other similar platforms. Other relevant blockchain knowledge includes cryptocurrencies, smart contracts, and initial coin offerings (ICOs).
To narrow down the search for the perfect candidate, a few extra skills and qualifications to look for are as follows:
- Bachelor’s degree in computer science, cybersecurity, or related
- Previous relevant experience
- Analytical, problem-solving, and communication skills
- Attention to detail
- Data structure and database knowledge
- Ability to work in a team-based environment with a full development team
Interview Questions
Blockchain development is a complex field that requires a lot of knowledge. To hire the best of the best, recruiters should test their candidates. One of the best ways to understand the basic skills of candidates is to ask a few pertinent questions during the interview process.
Depending on the requirements of the position, some questions might work better than others. However, here are a few basic questions that every blockchain developer should be able to answer:
What are the different types of blockchain networks? Explain.
There are three types of blockchain networks: public, private, and consortium, or cooperative blockchains. Public blockchains, like Bitcoin, are open for everyone to join and participate in. Private blockchain networks have a central point of control and function as peer-to-peer networks.
Consortium networks are accessible to several different companies. Each organization has access to data, transactions, and assets through the same platform. This is useful for companies that want their partners to share responsibilities with them.
How does a blockchain recognize a block?
A hash identifies each block within a blockchain. Hashes work as a summary of the information or data within the block. They also include transnational data, a time stamp, and a reference to the previous block, known as the parent block.
Is it possible to make changes to data after it’s written in a block?
After writing data in a block, it isn’t possible to make changes to the data. There’s no way to reverse this, and the only way to erase the data is by removing the blocks completely.
Which are the most popular platforms for building blockchain applications?
Some of the most popular platforms for building blockchain applications include Ethereum, Hyperledger, Qtum, EOSIO, and IOTA. They allow software developers to build applications and other solutions using cryptocurrencies.
It’s rather hard to find a candidate with thorough and perfect answers. However, any applicant that feels comfortable enough with these concepts is surely someone to have in consideration when making the final decision.
When hiring a blockchain developer, testing their technical abilities is as important as knowing how knowledgeable they are in general. Therefore, it’s sometimes a good idea to provide candidates with a few practice tests in order to evaluate their skills. Here are a few examples of tests that might prove useful:
- Error checking tests – These tests have candidates compare at least two sets of data (like two complete lines of code) to check for any discrepancies. This is a measure of the candidate’s attention to detail.
- Programming language tests – Blockchain developers must feel comfortable with a wide variety of programming languages. Sometimes, it’s wise to provide them with small tests in which they have to use these languages, just to confirm they have the required skills for the job.
- Logical reasoning tests – Logical reasoning tests attest to the blockchain developer’s problem-solving skills. This is an important skill considering that blockchain developers have to keep meeting new clients’ demands and developing new applications.
Depending on the complexity of the position offered by the company, recruiters might select more or different technical tests. What’s important is that they take the time to verify the skills of potential candidates.
It might also be a necessary step to test the applicants’ soft skills. Teamwork, adaptability, time management, communication, and other interpersonal skills are extremely valuable in every blockchain developer.
How to Hire Blockchain Developers With BairesDev
Hiring blockchain developers with an outsourcing provider requires a lot of communication. The company needs to clearly express what its needs are and what they’re looking for in the right candidate. This way, the provider has a higher chance of connecting the company with the best talent. Here are a few steps to follow when working with an outsourcing provider:
- Clearly describe the requirements to the outsourcing agencyIt’s important to set requirements and specifications as early as possible when hiring a blockchain developer through an outsourcing company such as BairesDev. Companies should explain their projects so that the candidates meet their expectations.
- Understand the type of blockchain developers the outsourcing agency providesAs previously mentioned, there are many different types of blockchain developers with different skills and responsibilities. It’s important to know what type of developers are available and if they match the requirements of the project. Companies should ask the outsourcing agencies how many blockchain developers they can provide and what type of experience they have.
- Listen to suggestions provided by the outsourcing agencyGood outsourcing providers have a lot of experience in matching companies with the right talent. It’s possible that the agency might have specific candidates in mind when meeting with different companies. Taking their suggestions to heart is normally a good idea, especially for companies that are new to this field and might not know exactly what to look for. Consider scheduling a virtual meeting or call with the potential hires before making any decisions.
There are many advantages to outsourcing blockchain developers. These experts have a lot of experience in their field and their skills are sharp and specialized. Hiring and training a regular software engineer to fill the position of a blockchain developer would be a huge investment that would also take a lot of time.
It’s also a lot more cost-effective to hire a blockchain developer from an outsourcing company than it is to hire in-house. These developers usually work remotely, so they already have access to all the technology they need. This way, the company doesn’t have to invest any money into their training or the necessary tech.
Start Building Your Blockchain Team With BairesDev
Leaders should hire blockchain developers through outsourcing agencies if they’re looking to launch a startup and have a limited budget. It’s also a good idea to resort to outsourcing providers whenever the company needs to quickly advance in a project without having to spend large amounts of time looking for the right developers.
As companies begin to recognize the importance of blockchain technology, the demand for skilled professionals is on the rise. Blockchain developers are highly knowledgeable and can perform a wide variety of tasks in a company, depending on their particular field. To make sure that they get the best blockchain developers in the market, companies should make use of both regular and dedicated job boards. Their job descriptions should be clear and enticing at the same time.
Potential candidates need to know exactly the type of skills and qualifications the company is looking for and the responsibilities the leaders expect them to take on. The selection process should include some sort of test to help recruiters select only the most knowledgeable candidates.
Taking advantage of interviews is a great opportunity. There, recruiters will ask the candidates a few questions to put them to the test. The questions can be as basic or as hard as the position requires.
Testing candidates on their technical abilities and soft skills might also be an important step in the process. There are many software developers in the market, but only a small percentage of them actually have the necessary skills for blockchain development.
Companies can also consider hiring blockchain developers through outsourcing agencies. They can help them find the best candidates while still saving them time and money. Startups, companies with low funding, or even those who don’t have the time for an exhaustive recruitment process would benefit from outsourcing.
