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    Home»Business & Startups»LangChain: A Comprehensive Beginner’s GuideĀ 
    LangChain: A Comprehensive Beginner’s GuideĀ 
    Business & Startups

    LangChain: A Comprehensive Beginner’s GuideĀ 

    gvfx00@gmail.comBy gvfx00@gmail.comDecember 28, 2025No Comments10 Mins Read
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    Large language models are powerful, but on their own they have limitations. They cannot access live data, retain long-term context from previous conversations, or perform actions such as calling APIs or querying databases. LangChain is a framework designed to address these gaps and help developers build real-world applications using language models.

    LangChain is an open-source framework that provides structured building blocks for working with LLMs. It offers standardized components such as prompts, models, chains, and tools, reducing the need to write custom glue code around model APIs. This makes applications easier to build, maintain, and extend over time.Ā 

    Table of Contents

    Toggle
    • What IsĀ LangChainĀ and Why It Exists?
    • Installation and SetupĀ of LangChain
      • Step 1: Install theĀ LangChainĀ Core Package
      • Step 2: Setting API KeysĀ 
    • Core Concepts of LangChain
      • Working with Prompt Templates in LangChain
        • Chat Prompt Templates
      • Using Language Models with LangChain
      • Chains in LangChain Explained
      • Tools in LangChain and API Integration
    • Agents in LangChain and Dynamic Decision Making
    • Creating Your First LangChain Agent
    • Memory and Conversational Context
    • Retrieval and External KnowledgeĀ 
    • Output Parsing and Structured ResponsesĀ 
    • Production ConsiderationsĀ 
    • Common Use CasesĀ 
    • ConclusionĀ 
    • Frequently Asked Questions
        • Login to continue reading and enjoy expert-curated content.
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    What IsĀ LangChainĀ and Why It Exists?

    How Does LangChain Work?

    In practice, applications rarely rely on just a single prompt and a single response. They often involve multiple steps, conditional logic, and access to external data sources. While it is possible to handle all of this directly using raw LLM APIs, doing so quickly becomes complex and error-prone.

    LangChain helps address these challenges by adding structure. It allows developers to define reusable prompts, abstract model providers, organize workflows, and safely integrate external systems. LangChain does not replace language models. Instead, it sits on top of them and provides coordination and consistency.

    Installation and SetupĀ of LangChain

    All you need to useĀ LangChainĀ is to install the core library and any provider specific integrations that you intend to use.Ā 

    Step 1: Install theĀ LangChainĀ Core Package

    pip install -UĀ langchainĀ 

    In case you intend on using OpenAI models, install the OpenAI integration also:Ā 

    pip install -UĀ langchain-openaiĀ openaiĀ 

    Python 3.10 or above isĀ requiredĀ inĀ LangChain.Ā 

    Step 2: Setting API KeysĀ 

    If you are using OpenAI models, set your API key as an environment variable:Ā 

    export OPENAI_API_KEY="your-openai-key"Ā 

    Or inside Python:Ā 

    import osĀ 
    os.environ["OPENAI_API_KEY"] = "your-openai-key"Ā 

    LangChainĀ automatically reads this key when creating model instances.Ā 

    Core Concepts of LangChain

    LangChain applications rely on a small set of core components. Each component serves a specific purpose, and developers can combine them to build more complex systems.

    The core building blocks are:Ā 

    Core Concepts of LangChain

    It is more significant than memorizing certain APIs to understand these concepts.Ā 

    Working with Prompt Templates in LangChain

    A prompt can be described as the input that is fed to a language model. In practical use, prompt canĀ containĀ variables, examples, formatting rules and constraints. Timely templates ensure that these prompts are reusable and easier to control.Ā 

    Example:Ā 

    fromĀ langchain.promptsĀ importĀ PromptTemplateĀ 

    prompt =Ā PromptTemplate.from_template(Ā 
    "Explain {topic} in simple terms."Ā 
    )Ā 

    text =Ā prompt.format(topic="machine learning")Ā 
    print(text)Ā 

    Prompt templatesĀ eliminateĀ hard coding of strings and minimize the number of bugs created by manual code formatting of strings. It is also easy to update prompts as your application grows.Ā 

    Chat Prompt Templates

    Chat-based models work with structured messages rather than a single block of text. These messages typically include system, human, and AI roles. LangChain uses chat prompt templates to define this structure clearly.

    Example:Ā 

    fromĀ langchain.promptsĀ importĀ ChatPromptTemplateĀ 
    
    chat_promptĀ =Ā ChatPromptTemplate.from_messages([Ā 
    ("system", "You are a helpful teacher."),Ā 
    ("human", "Explain {topic} to a beginner.")Ā 
    ])Ā 

    This structure gives you finer control over modelĀ behaviorĀ and instruction priority.Ā 

    Using Language Models with LangChain

    LangChainĀ is an interface that offers language model APIs in a unified format. This enables you to change models or providers with minimum modifications.Ā 

    Using an OpenAI chat model:Ā 

    fromĀ langchain_openaiĀ importĀ ChatOpenAIĀ 
    
    llmĀ =Ā ChatOpenAI(Ā 
    model="gpt-4o-mini",Ā 
    temperature=0Ā 
    )Ā 

    The temperature parameter controls randomness in model outputs. Lower values produce more predictable results, which works well for tutorials and production systems. LangChain model objects also provide simple methods, such asĀ invoke, instead of requiring low-level API calls.

    Chains in LangChain Explained

    The easiest execution unit ofĀ LangChainĀ is chains. A chain is a connection of the inputs to the outputs in one or more steps. TheĀ LLMChainĀ is the most popular chain. It integrates a prompt template and a language model into a workflow reusable.Ā 

    Example:Ā 

    fromĀ langchain.chainsĀ importĀ LLMChainĀ 
    
    chain =Ā LLMChain(Ā 
    llm=llm,Ā 
    prompt=promptĀ 
    )
    
    response =Ā chain.run(topic="neural networks")Ā 
    print(response)Ā 

    You use chains when you want reproducible behavior with a known sequence of steps. You can combine multiple chains so that one chain’s output feeds directly into the next as the application grows.

    Tools in LangChain and API Integration

    Language models do not act on their own. Tools provide them the freedom to communicate with external systems like APIs,Ā databasesĀ or computation services. Any Python function can be a tool provided it has aĀ well definedĀ input and output.Ā 

    Example of a simple weather tool:Ā 

    fromĀ langchain.toolsĀ import toolĀ 
    import requestsĀ 
    
    @toolĀ 
    defĀ get_weather(city: str) -> str:Ā 
    """Get the current weather in a city."""Ā 
    urlĀ = f"http://wttr.in/{city}?format=3"Ā 
    returnĀ requests.get(url).textĀ 

    The description and name of the tool are essential. The model interprets themĀ toĀ comprehendĀ when the tool is to beĀ utilizedĀ and what it does.Ā There are alsoĀ a number ofĀ built in tools inĀ LangChain, although custom tools are prevalent, since they are often application specific logic.Ā 

    Agents in LangChain and Dynamic Decision Making

    Chains work well when you know and can predict the order of tasks. Many real-world problems, however, remain open-ended. In these cases, the system must decide the next action based on the user’s question, intermediate results, or the available tools. This is where agents become useful.

    An agent uses a language model as its reasoning engine. Instead of following a fixed path, the agent decides which action to take at each step. Actions can include calling a tool, gathering more information, or producing a final answer.

    Agents follow a reasoning cycle often called Reason and Act. The model reasons about the problem, takes an action, observes the outcome, and then reasons again until it reaches a final response.

    To know more you can checkout:

    Creating Your First LangChain Agent

    LangChainĀ offers high level implementation of agents without writing out the reasoning loop.Ā 

    Example:

    from langchain_openai import ChatOpenAI
    from langchain.agents import create_agent
    
    model = ChatOpenAI(
        model="gpt-4o-mini",
        temperature=0
    )
    
    agent = create_agent(
        model=model,
        tools=[get_weather],
        system_prompt="You are a helpful assistant that can use tools when needed."
    )
    
    # Using the agent
    response = agent.invoke(
        {
            "input": "What is the weather in London right now?"
        }
    )
    
    print(response)

    The agent examines the question, recognizes that it needs real time data, chooses the weather tool, retrieves the result, and then produces a natural language response. All of this happens automatically throughĀ LangChain’sĀ agent framework.Ā 

    Memory and Conversational Context

    Language models are by default stateless. They forget about the past contacts. Memory enablesĀ LangChainĀ applications to provide context in more than one turn. Chatbots, assistants, and any other system where users provide follow up questions require memory.

    A basic memory implementation is a conversation buffer, which is a memory storage of past messages.Ā 

    Example:Ā 

    fromĀ langchain.memoryĀ import ConversationBufferMemoryĀ 
    fromĀ langchain.chainsĀ importĀ LLMChainĀ 
    
    memory =Ā ConversationBufferMemory(Ā 
    memory_key="chat_history",Ā 
    return_messages=TrueĀ 
    )Ā 
    
    chat_chainĀ =Ā LLMChain(Ā 
    llm=llm,Ā 
    prompt=chat_prompt,Ā 
    memory=memoryĀ 
    )Ā 

    Whenever you run a chain, LangChain injects the stored conversation history into the prompt and updates the memory with the latest response.

    LangChain offers several memory strategies, including sliding windows to limit context size, summarized memory for long conversations, and long-term memory with vector-based recall. You should choose the appropriate strategy based on context length limits and cost constraints.

    Retrieval and External KnowledgeĀ 

    Language models train on general data rather than domain-specific information. Retrieval Augmented Generation solves this problem by injecting relevant external data into the prompt at runtime.

    LangChain supports the entire retrieval pipeline.

    • Loading documents from PDFs, web pages, and databasesĀ 
    • Splitting documents into manageable chunksĀ 
    • Creating embeddings for each chunkĀ 
    • Storing embeddings in a vector databaseĀ 
    • Retrieving the most relevant chunks for a queryĀ 

    An average retrieval process will appear as follows:Ā 

    1. Load and preprocess documentsĀ 
    2. Split them into chunksĀ 
    3. Embed and store themĀ 
    4. Retrieve relevant chunks based on the user queryĀ 
    5. Pass retrieved content to the model as contextĀ 

    Also Read: Mastering Prompt Engineering for LLM Applications with LangChain

    Output Parsing and Structured ResponsesĀ 

    Language models provide text, yet applications typically require structured text like lists, dictionaries, or validated JSON. Output parsersĀ assistĀ in the transformation of free form text into dependable data structures.Ā 

    Basic example based on a comma separated list parser:Ā 

    fromĀ langchain.output_parsersĀ importĀ CommaSeparatedListOutputParserĀ 
    parser =Ā CommaSeparatedListOutputParser()Ā 

    More challenging use cases can be enforced with typed models with structured output parsers. These parsers command the model to reply in a predefined format of JSON and apply a check on the response prior to it falling downstream.Ā 

    Structured output parsing is particularlyĀ advantageousĀ when the model outputs get consumed by other systems or put in databases.Ā 

    Production ConsiderationsĀ 

    When you move from experimentation to production, you need to think beyond core chain or agent logic.

    LangChain provides production-ready tooling to support this transition. With LangServe, you can expose chains and agents as stable APIs and integrate them easily with web, mobile, or backend services. This approach lets your application scale without tightly coupling business logic to model code.

    LangSmith supports logging, tracing, evaluation, and monitoring in production environments. It gives visibility into execution flow, tool usage, latency, and failures. This visibility makes it easier to debug issues, track performance over time, and ensure consistent model behavior as inputs and traffic change.

    Together, these tools help reduce deployment risk by improving observability, reliability, and maintainability, and by bridging the gap between prototyping and production use.

    Common Use CasesĀ 

    • Chatbots and conversational assistants which need reminiscence,Ā toolsĀ or multi-step logic.Ā 
    • Answering of questions on document using retrieval and external data.Ā 
    • Knowledge bases and internal systems are supported by the automation of customer support.Ā 
    • Information collection and summarizationĀ researchesĀ and analysis agents.Ā 
    • Combination of workflows between various tools, APIs, and services.Ā 
    • Automated or aided business processes through internal enterprise tools.Ā 

    It is flexible, hence applicable in simple prototypes and complex production systems.Ā 

    ConclusionĀ 

    LangChainĀ provides a convenient and simplified framework to build real world apps with large language models. ItĀ utilizesĀ more trustworthy than raw LLM, offering abstractions on prompts, model, chain, tools, agent,Ā memoryĀ and retrieval. Novices can use simple chains, but advanced users can build dynamic agents and production systems. The gap between experimentation and implementation is bridged byĀ LangChainĀ with an in-built observability, deployment, and scaling. As theĀ utilizationĀ of LLM grows,Ā LangChainĀ is a good infrastructure with which to build long-term, flexible, and reliable AI-driven systems.Ā 

    Frequently Asked Questions

    Q1. What is LangChain used for?

    A. Developers use LangChain to build AI applications that go beyond single prompts. It helps combine prompts, models, tools, memory, agents, and external data so language models can reason, take actions, and power real-world workflows.

    Q2. What is the difference between LLM and LangChain?

    A. An LLM generates text based on input, while LangChain provides the structure around it. LangChain connects models with prompts, tools, memory, retrieval systems, and workflows, enabling complex, multi-step applications instead of isolated responses.

    Q3. Why are developers quitting LangChain?

    A. Some developers leave LangChain due to rapid API changes, increasing abstraction, or a preference for lighter, custom-built solutions. Others move to alternatives when they need simpler setups, tighter control, or lower overhead for production systems.

    Q4. Is LangChain free to use?

    LangChain is free and open source under the MIT license. You can use it without cost, but you still pay for external services such as model providers, vector databases, or APIs that your LangChain application integrates with.


    Janvi Kumari

    Hi, I am Janvi, a passionate data science enthusiast currently working at Analytics Vidhya. My journey into the world of data began with a deep curiosity about how we can extract meaningful insights from complex datasets.

    Login to continue reading and enjoy expert-curated content.

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