How to Use Python to Build Secure Blockchain Applications

Did you know that you can now build blockchain applications, also known as decentralized applications (or “dApps” for short) in native Python? Blockchain development has traditionally required learning specialized languages, creating a barrier for many developers… until now. AlgoKitan all-in-one development toolkit for Algorand, allows developers to build blockchain applications in pure Python.

This article will walk you through the benefits of building blockchain applications, why Python is an ideal choice for dApp development, how to set up your blockchain development environment, and how to get started building secure blockchain applications in native Python.

Why build blockchain applications?

Blockchain application development goes far beyond creating a decentralized database and peer-to-peer transactions. Unlock a new level of trust, security and efficiency for various applications.

Ensure tamper-proof records: Blockchain creates an immutable and transparent ledger, ensuring data security and eliminating the risk of manipulation.

Automate complex agreements: Smart contracts and atomic exchanges eliminate the need for third-party verification, simplifying transactions and reducing costs.

Revolutionizing asset ownership: Digitalization enables fractional ownership and secure trading of real-world assets.

Build innovative solutions: Python development skills can be used to create breakthrough applications in artificial intelligence, identity management, and secure IoT data exchange.

Why use Python to build blockchain applications?

Readability and maintainability: Python’s smooth syntax and robust tools make it easy to write, understand, and modify code, especially when working on complex and powerful blockchain projects.

Integration with other technologies: Python works well with other technologies often used in conjunction with blockchain, such as web development frameworks and machine learning libraries. This allows you to create dApps that go beyond the core functionality of the blockchain.

World-class development experience: Python boasts a large and active developer community, as well as comprehensive, high-level documentation and robust tools to support your Python and blockchain development journey.

How to set up your development environment to start building blockchain applications

The easiest way to create blockchain applications in Python is to download and install them AlgoKit. This comprehensive toolkit allows you to build, launch, and deploy secure, production-ready decentralized applications on the Algorand blockchain.

With AlgoKit you can set up your development environment and project folder and start building your project with just one command.

Download and install the prerequisites

Make sure you have Python 3.12 or later, pipx, Git, and Docker installed. On macOS you will also need to install Homebrew.

Install AlgoKit

Open command line/terminal and type “pipx install algokit”. This will install AlgoKit so you can use it in any directory.

Set up a local blockchain network

You can try a private version of the Algorand blockchain on your computer.

Type “algokit localnet start” in the command line/terminal. This will create a local blockchain network running in a container using Docker. You can then check the Docker Desktop app to see it running.

To launch a browser-based blockchain explorer to view what is happening on this local network, type “algokit localnet explore”.

Create a new project

Now that AlgoKit is installed, you can create a new project for your blockchain application.

First, run “algokit init”. A guided process will begin and you will be asked to answer a few short questions to set up your project.

If this is your first time, start by selecting “smart contracts” to indicate that you are building a smart contract application.

Since you will be writing Python code, select “Python” as the language and choose a name for the folder that will store all of your project files and a name for your application.

Finally, choose the “Production” template to set up a deployment-ready project.

The production model is like a pre-built starter kit for your Algorand project. It will give you a clear picture of how different parts like testing, continuous integration/continuous deployment (CI/CD), and deployment work together in a complete Algorand project. Then, select “Python” again.

Answer Y to the following questions to have AlgoKit install the dependencies and initialize a Git repository for you.

Once the project generation process is complete, open the project directory in your favorite code editor.

How to create secure blockchain applications in Python

Explore the code

The “Production” template will include a simple “hello world” smart contract located in “smart_contracts/hello_world/contract.py”. This contract should look quite familiar to Python developers with a couple of key differences.

The first thing to note is that we inherit “ARC4Contract” for our “HelloWorld” class. ARC4 is Algorand Request for Comment #0004 which defines the binary application interface (ABI) for Algorand methods. By inheriting from “ARC4Contract”, we ensure that the contract conforms to this standard used by many tools in the Algorand ecosystem, including AlgoKit itself.

Above the actual “hello” method definition there is also a “@arc4.abimethod” decorator. This decorator exposes the method as a public method within our contract. Since this is an ARC4 ABI method, any tool that supports the ABI can call this method with ease. AlgoKit also includes a client generator, which can generate a Python or TypeScript client to interact with any ABI methods you’ve defined.

Finally, you’ll notice that the argument and return type of our function is “arc4.String”. ARC4 also defines how we encode and decode data types when interacting with contracts. Since the Algorand Virtual Machine (AVM) does not support all the same functionality as a Python “str”, we must use the “arc4.String” type provided by the “algopy” module.

Compile and build

You can use “algokit project run build” to compile the smart contract written in native Python to TEAL, the bytecode language that AVM can understand. Building also generates additional artifacts that can be used to make interactions with the contract easier, as we will see in the tests.

Interact and test

To see how contract interaction and tests are performed, go to “tests/hello_world_test.py”. Here you can see that we are using HelloWorldClient which was automatically generated by AlgoKit during the creation phase. This makes it easier to interact with the contract and can be leveraged in testing, backend, or frontend development.

Write your code

Once you’ve explored this project and run your first “Hello World,” you’re ready to build on Algorand! You can turn the sample contract into your own dApp, such as a marketplace, a tokenized real asset manager, or an on-chain immutable data store.

Write your on-chain smart contract logic in contract.py and associated tests in “smart_contracts/tests”. Run “algokit project run build” again to recompile, deploy and test the contract in seconds.

Now you’re ready to quickly iterate as you build your application while AlgoKit takes care of the boilerplate code and setting up your development environment.

For more tutorials on how to use Python to build on Algorand with AlgoKitvisit the AlgoDev YouTube channel.

For more information on Algorand Python, refer to documentation.

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