Finding a Blockchain Developer is Like Navigating A Small Town: A Comprehensive Guide For IT Recruiters

Nikolaj Klestov03.04.2024

Opinions on blockchain’s future significantly vary: some see it as the next big thing, while others view it as a passing trend. Yet, the shift to the Web3 Internet, powered by blockchain, is undeniable. With the rise of Web3 projects, the demand for blockchain developers is surging, outpacing the available talent.

Mykola Kliestov, CTO and co-founder at ITExpert, explores the essential specialist skills needed for successful blockchain implementation and why hiring a blockchain developer remains a challenge.

What is blockchain used for?

Blockchain stands out as a versatile technology widely used in cryptocurrency and various other fields. Functioning as a sequential chain of blocks, it records comprehensive transactional data. Unlike conventional databases, blockchain ensures immutable records, permitting only the addition of new information.

The transparency and security inherent in blockchain technology make it indispensable across several domains. Here are some key areas where distributed ledger technology is essential:

In the financial sector and stock market, blockchain serves as a secure repository for all transactional data, facilitating direct financial transactions while cutting down on costs and transaction times.

For logistics and supply chains, blockchain enables comprehensive tracking of a product’s journey from origin to destination.

In the insurance industry, smart contracts powered by blockchain trigger automatically upon the occurrence of an insured event, streamlining claims processing.

Blockchain is also pivotal in copyright management, storing detailed information about products to aid in resolving ownership disputes over rights.

In the energy sector, blockchain reduces reporting and infrastructure costs, empowering even individual solar panel owners to engage in micro-sales of electricity directly.

Small businesses, heavyweights like Mastercard and IBM, as well as government companies in many countries are actively looking for blockchain specialists.

Mykola Kliestov

CTO and co-founder at ITExpert

“When we talk about blockchain, we’re referring to an entire ecosystem of decentralized products. There are several key concepts within this field that blockchain specialists often deal with, and which are commonly found in their CVs and job descriptions.

Firstly, the blockchain platform itself is crucial for any project. Ethereum and Bitcoin are among the most popular platforms.

Another important concept is decentralized finance or DeFi. This encompasses cryptocurrencies and payment systems, enabling seamless transactions such as paying with cryptocurrency in stores.

A broader category within this space is Web 3.0, which represents an Internet built on decentralized technologies, including various blockchain applications beyond just finance.

The past years have seen a surge in NFTs (non-fungible tokens), digital assets tied to specific items like images. Unlike bitcoins, each NFT is unique and irreplaceable. Well-known brands like Coca-Cola, Adidas, and Louis Vuitton have embraced NFTs in various forms.

NFTs are utilized in online gaming for purchasing digital goods, in applications using the play-to-earn model (such as $SLEEPEE tokens for hours of sleep), and in SaaS products like eCommerce platforms integrated with decentralized systems.

Decentralized governance is another notable category in the blockchain realm, where voting takes place through blockchain systems. With no central authority overseeing elections, votes cannot be tampered with or falsified.”

Are blockchain solutions popular in Ukraine?

Ukraine is emerging as a key player in the adoption of blockchain technology and cryptocurrencies, with many local companies actively involved in the space. Most Ukrainian blockchain firms operate on an outsourcing basis, contributing to major international projects like Solana.

NEAR Protocol, another notable project, boasts Ukrainian talent on its team. This technology stack enables developers to build scalable applications across multiple blockchains, potentially serving billions of users.

KUNA, Ukraine’s first crypto exchange, is making waves with its competitive edge and promising future. Additionally, WhiteBIT, a prominent European crypto exchange, was founded by a Ukrainian entrepreneur.

“The popularity of blockchain in Ukraine owes much to pioneering companies like Bitfury, which laid the groundwork for the industry’s growth in the country.” Mykola Kliestov

What are essential skills a blockchain developer should have?

A blockchain developer is a professional tasked with developing various products on the blockchain, such as smart contracts, protocols, platforms, and cryptographic tools. It’s essential not to confuse this role with others like blockchain software developers or web3 developers, as they primarily focus on integrating blockchain technology into existing products rather than building the core blockchain infrastructure.

Key hard skills required for a blockchain developer

– Proficiency in one or more programming languages, including C++, JavaScript, PHP, Ruby, Rust, Java, Python, Solidity, and Go. Additionally, familiarity with smart contract languages like Solidity for Ethereum or C++ for EOS.IO is essential.

– Understanding how to write and deploy smart contracts is fundamental, as they form the backbone of blockchain transactions.

– A good grasp of consensus algorithms is necessary, along with knowledge of blockchain architecture, including private, public, and consortium blockchains.

– Familiarity with various blockchain networks like Ethereum and Tron Network is important, as well as knowledge of financial instruments such as Uniswap, Aave, Curve, and Compound.

– Understanding cryptography for network security, including encryption, hashing, keys, and signatures, is crucial for developing secure blockchain applications.

– Proficiency in data structures and network protocols is essential, along with knowledge of decentralized exchange (DEX) mechanisms.

– A solid understanding of networking principles like HTTP, RPC, gRPC, and REST API is necessary, as well as familiarity with decentralized finance (DeFi) and trading concepts.

And lastly, having an English proficiency level of B2 (Upper-Intermediate) or higher is beneficial for communication and staying updated on industry developments

4 major challenges faced by hiring blockchain developers

Hiring a blockchain specialist can be tricky. Here are the main challenges and pitfalls while hiring a blockchain specialist on your own:

Narrow profile

A blockchain programmer needs more than just Java or C++ skills. They require a deep understanding of blockchain technology and its unique stack. Without this expertise, hiring the right candidate can feel like a mission impossible.

✅ Solution: bring in a seasoned blockchain expert, such as a senior engineer, CTO, or ICO manager, to conduct interviews and assess candidates’ knowledge. Alternatively, partner with an IT recruiting agency like ITExpert, which specializes in finding blockchain developers. We conduct thorough technical screenings to ensure candidates meet your requirements.

Limited market

Finding a developer with experience working on blockchain projects is a great success. Experts in the field even joke that finding a blockchain dev is like navigating a small town, and that blockchain itself is a small town in terms of the number of candidates, where almost everyone knows each other.

✅ Solution: experiment with search queries and look for blockchain developers in specialized channels, paying attention to fields such as banking, logistics, insurance, cryptocurrency, and others.

Low candidate interest

When searching and communicating with blockchain developers, expect some rejections. Many candidates are already engaged in projects and may not entertain new job offers unless they foresee compelling benefits, including salary and other perks. Additionally, candidates may be bound by Non-Compete And Non-Solicitation agreements, restricting their ability to join competing companies.

Moreover, developers with relevant skills but no blockchain experience may hesitate to enter the field, particularly if it involves joining a startup. Trust and confidence in the project’s viability, especially in young companies, can be significant.

✅ Solution: stay open to negotiating salaries and offer unique perks to attract top talent.

Complicated expertise

In a blockchain team, it’s not always clear what role a developer plays in the project. Is he/she responsible for consensus architecture and protocols? Or rather for software? Is Java sufficient, or do you need a developer experienced in GETH and web3.js to develop tokens?

✅ Solution: take the time to familiarize yourself with blockchain concepts, tools, and product essence. Collaborate with your manager to define the candidate profile clearly. Alternatively, engage a specialized recruiting agency to expedite the search, considering market constraints and nuances of finding Blockchain developers.

Where & how to look for blockchain developers

Let’s now try to figure out where to look for developers who will help you successfully implement blockchain technology.

“Direct headhunting remains a viable option for finding blockchain specialists. Just like regular developers, these experts can be found on platforms like LinkedIn. Unlike before, many now openly share project and technology details on their profiles, making it easier to identify and approach them.” Mykola Kliestov

Try two options: search through logical operators by skills and through special filters. LinkedIn will show profiles with the keywords you’re looking for.

Specialized meetups

Developers, including those with a blockchain background, attend conferences, meetups, hackathons, and other IT events — for instance, the famous Ethereum Devcon. You can meet skilled specialists, discuss the vacancy, and next steps in hiring there.

Niche resources

Be creative in your sourcing approaches. For example, you can:

Explore Reddit threads related to blockchain development where developers engage in discussions. You might discover potential candidates there.

Search for specialists in niche Slack or Discord channels, some of which boast over 5,000 members, providing a rich pool of talent.

Compile a list of companies from which you can potentially recruit employees. Platforms like the Bitcointalk forum, which announces new crypto projects and serves as the first forum about Bitcoin, can be helpful in this regard.

IT recruitment agency

Finding a skilled blockchain developer can be challenging and time-consuming. If you’re not prepared to invest significant effort in screening candidates and offering non-typical benefits, consider reaching out to professional recruiters.

IT recruitment agencies have access to a pool of qualified candidates and possess the expertise to fill specialized positions. They can provide valuable hiring consultations and assist you in finding the perfect candidate for your project.

Blockchain technology has already demonstrated its effectiveness, and its potential continues to grow. With the potential for global adoption of cryptocurrencies, integration of blockchain into public processes to enhance data security, and the emergence of digital currencies in international banking, the future of blockchain looks promising.
For instance, in November 2023, the Dubai Financial Services Authority granted official authorization for the use of Ripple’s XRP token within the International Financial Center’s jurisdiction. Moreover, experts predict that by 2030, 5–10% of assets will be tokenized, paving the way for an array of innovative solutions leveraging blockchain technology.

Mykola Kliestov

CTO and co-founder at ITExpert

“The peak of blockchain and cryptocurrency coincided with the onset of the coronavirus pandemic, sparking a surge in blockchain startups.

During this time, ITExpert collaborated with numerous blockchain startups, including Bitfury, Exonum, and gaming projects utilizing smart contracts, along with other decentralized finance products. With the recent surge in Bitcoin prices, we may anticipate a new wave of interest.

It’s essential to recognize that every technology follows a unique development trajectory: from initial hype to either fading away or becoming quietly integrated into everyday use. Blockchain seems to be heading towards the latter. Despite fluctuations in the field, there will always be a steady demand for blockchain technology and skilled professionals in the industry.”