How to Use Private RPC Nodes for DApp Development

This guide explains the basics of using private RPC nodes for decentralized application (DApp) building. We demonstrate how to use RPC in blockchains, private blockchain nodes, smart contracts, and cryptocurrency tokens. Here’s what developers and would-be DApp builders need to know.

What are decentralized applications (DApps)?

For anyone needing a quick refresher, decentralized applications (DApps) are a class of software programs that rely on distributed networks (blockchains or permissioned ledgers). Basically, a DApp is a software application running on a blockchain network.

Technically, every decentralized application includes multiple smart contracts. A smart contract is an “agreement” between on-chain wallets: “If event A happens, event B should follow.”

In 2023, DApps can be considered as a variety of subclasses. Let’s focus on the three largest ones:

1. Decentralized finances protocols or DeFis. These applications allow cryptocurrency holders to use basic banking functionality (lending, cross-asset conversion, and so on) but on the blockchain.
2. On-chain games. Blockchain-based games are video games that leverage cryptocurrencies as payment methods or use non-fungible tokens (NFT) tech as a way to create, store, and transfer in-game assets.
3. NFT marketplaces. These platforms are designed for storage, demonstration, and trading of non-fungible tokens (NFTs).

Other categories of DApps include on-chain (non-custodial) crypto wallets, metaverses, blockchain casinos, decentralized social media platforms, and so on.

Why are DApps popular?

Thanks to the increased popularity of blockchain technology, DApps have witnessed a notable inflow of users and liquidity in recent years. Here’s why decentralized applications have become so popular:

• Censorship-resistance: As all key operations in DApps are executed on-chain, i.e., between users’ wallets and smart contracts, governments, regulators, and malefactors can’t control the funds and accounts. By contrast, centralized exchanges can voluntarily “freeze” your assets at any time.
• Profitability: The majority of DeFi applications offer more impressive yield opportunities compared to their centralized competitors (TradFi and CeFi). Also, during the NFT euphoria and bull run of 2021, a number of top NFT collections rocketed in price.
• Flexibility: The segment of DApps expands to new spheres very fast: new protocols with various use cases launch here and there daily. So, decentralized applications can address the “pains” of the market faster than traditional web2 apps can. 

As a result, more and more Internet users are interested in buying their first cryptocurrencies to interact with decentralized applications of various types.

What are RPC nodes?

A remote procedure call or RPC is a request-response communication protocol designed to initiate processes on remote systems like a local system.

In blockchain development, an RPC node is a server with installed software clients. It takes part in validating transactions and, therefore, is able to read and write information in blockchain networks. As such, RPC nodes can be used to connect decentralized applications to programmable and non-programmable blockchains. 

Technically, DApps can be connected to blockchains via RPC nodes’ API endpoints. In this case, the developer just takes the URL of the RPC API endpoint and integrates it into blockchain-based software.

Also, RPC nodes represent a specific type of blockchain node that works alongside other classes of nodes.

As such, RPC nodes are a combination of software and hardware elements necessary to interact with blockchains in an automated manner.

Private RPC nodes: Why do you need one?

There are various types of RPC nodes available for blockchain developers in 2023. First of all, you can set up your own node on a leased or private server. To do so, you will need to obtain a hardware server, install a software client, and wait for the node to be synchronized. Once these operations are finalized, you can start using nodes for working with blockchains immediately. However, this scenario takes too many resources: specific skills, money, a DevOps team for monitoring, and so on.

Thus, developers can work with ready-made “Blockchain-as-a-Service” nodes. Public RPC nodes are deployed and maintained by the largest blockchain themselves, including Ethereum (ETH), BNB Smart Chain (BSC), Polygon (MATIC), and so on. They are available for free but do not offer quick enough speed or bandwidth. As such, it is only recommended to use it for experimental or research purposes. Free public RPC endpoints are too slow for commercial usage.

Meanwhile, private RPC endpoints merge the benefits of decentralization and mature SaaS platforms. With them, you can connect your DApp to blockchain nodes at a competitive speed. Typically, private RPC node providers charge their clients with operation fees for packages of requests or periods of unlimited usage. 

Setting up private RPC node: Step-by-step manual

To start using a private RPC node, you need to register an account with its provider, set up your dashboard, choose preferred nodes, top up the account with money (for paid packages users), connect your DApps, and start sending requests to the blockchain.

In this manual, we’re going to demonstrate the process of setting up private RPC endpoints on GetBlock, one of the largest RPC node providers. While GetBlock will be used as our example, the procedure of setting up private RPC nodes looks similar for all top blockchain node providers including Alchemy, Infura, Quicknode, and so on.

Here’s what to do:

1. Register an account. On major RPC node providers, you can sign up with either an e-mail address, MetaMask wallet, or Google’s identification kit. In case of e-mail registration, you will be asked to validate your address. Should you register with MetaMask, be ready to authorize the interaction with your provider. 
2. Get your endpoint address. Basically, API endpoints to blockchain nodes work not unlike URLs on the Internet. Thus, you just need to choose the blockchain network you would like to use (Bitcoin, Ethereum, Polygon, and so on), the type of network (mainnet or testnet), and authorize the creation of an API endpoint.

3. Choose the type of API interface you’re interested in working with. Blockchain node providers typically offer JSON-RPC, REST API, WebSockets (WS), and gRPC interfaces. 
4. Top up your account. This step makes sense for the users of paid tariff plans.

That’s it! Developers can take newly-created API endpoints and start integrating them into decentralized applications to connect their codebases to blockchains. The usage of API endpoints can be tracked in the “Statistics” module of the user account.

Private RPC nodes for DApps development: First steps

Now, all you need to do is connect some on-chain logic to the blockchain endpoints of the preferred network.

First, you can write your application’s codebase from scratch. It will take solid expertise in software development, time and money resources, testing, deploying, and so on. In this case, you will just need not to forget to copy the address of your RPC API endpoint before deployment and running the application.

Then, you can create a simplified copy of this or that DApp via OpenAI’s ChatGPT, an AI-powered chatbot. Should we request ChatGPT to write for us a Uniswap-like automated market maker (AMM) contract with a private RPC node utilized, it will provide us with the following code (simplified example):

// SPDX-License-Identifier: MIT

pragma solidity ^0.8.0;

import “@openzeppelin/contracts/token/ERC20/IERC20.sol”;

contract UniswapCloneWithPrivateRPC {

    IERC20 public token;

    address public owner;

    constructor(address _token) {

        token = IERC20(_token);

        owner = msg.sender;

    }

    function swap(uint256 amountOut, uint256 amountInMax) external {

        // … (same as previous example)

    }

    function getAmountOut(uint256 amountIn) public pure returns (uint256) {

        // … (same as previous example)

    }

}

Then, in order to interact with a private RPC node, we need to deploy this code using Truffle or similar framework and use web3.js or ethers.js libraries to interact with the contract.

ChatGPT provides you with the following instruction to do this:

const ethers = require('ethers');

const contractAbi = require('path_to_contract_abi.json'); // Replace with the actual ABI

const provider = new ethers.providers.JsonRpcProvider('https://your-private-node-url');

// Connect to the contract using its address and ABI

const contractAddress = '0xYourContractAddress';

const contract = new ethers.Contract(contractAddress, contractAbi, provider);

// Call contract functions

(async () => {

  const signer = provider.getSigner();

  const tokenBalance = await token.balanceOf(await signer.getAddress());

  console.log('Token balance:', tokenBalance.toString());

  const swapTx = await contract.swap(10, 100);

  await swapTx.wait();

  console.log('Swap completed.');

  const amountOut = await contract.getAmountOut(100);

  console.log('Amount out:', amountOut.toString());

})();

In this example, “https://your-private-node-url” should be replaced with the actual address of your RPC endpoint. This methodology assumes that you have the contract’s ABI (Application Binary Interface) available as a JSON file (contract_abi.json) for interaction. However, this variant lacks security instruments released in the “real” Uniswap and can only be used for demonstration and research.

Last but not least, you can take the logic of a software app from GitHub if its copyright allows you to do so. For instance, in the following thread, Ethereum and Gnosis veteran Martin Köppelmann demonstrates the example of an interesting trading bot built with private RPC endpoints

At the end of the day, all mentioned methods require a basic understanding of Solidity, Ethereum’s programming language, development frameworks, and libraries.

How can you use private RPC nodes for DApp development?

Private RPC nodes can streamline the DApp development process and save resources for web3 teams. With these nodes, developers don’t need to run blockchain nodes on their own or use slow public RPC endpoints.

In order to get the API endpoint of a private RPC node, users should sign up with a blockchain node provider and choose the name of the network, interface, and network type (testnet/mainnet). These RPC endpoint addresses can then be integrated into various software logics – forked or written from scratch.

Frequently asked questions

About the author

Deen Newman is the project manager at GetBlock and a renowned crypto tech writer with a vast knowledge of blockchain technology and its potential applications. He has been writing for crypto media for more than five years. His in-depth analysis and expert commentary have made him a respected voice in the crypto community, with a reputation for delivering high-quality content that is both informative and engaging.

Deen’s passion for technology and his dedication to staying up-to-date with the latest developments in the field make him a valuable asset to anyone seeking to understand the complex world of cryptocurrency.

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