Blockchain Technology: Things You Should Know

Recently, you may have observed that “Blockchain” has gained a lot of momentum in the financial industry. However, the potential of Blockchain technology is extremely wide and is going to be an integral part of mobile app development.

If you are a digital business preparing for the future, this article will help you clear up all your confusion about Blockchain technology, and you will readily be able to find yourself a capable Blockchain app development company.

If you have gone all fuzzy about the word “Blockchain”, let me help clear your doubt.

What Exactly Does Blockchain Mean?

No matter how odd Blockchain sounds, it could revolutionize the way we carry out our transactions online. It is a recorded digital way of keeping a track of all the transactions for everybody to access. It also stores all the nitty-gritty information and the sources are open for everyone.

The best part about Blockchain technology is no central digital head to monitor transactions is needed. This means that every transaction and bit of information can be shared on a peer-to-peer basis.

What Are the Types of Blockchain?

There are three types of Blockchain:

  • Private Blockchain
  • Public Blockchain
  • Consortium or Federated Blockchain

Private Blockchain

A private blockchain is such that a written permission is required by a central authority. The access, visibility, and rights are totally under the control of a private head.

Public Blockchain

A public blockchain is such that anybody and everybody is able to view the information and carry out transactions without the need of any centralized body. Such systems only require cryptographic verification.

Consortium or Federated Blockchain

Consortium or federated Blockchain is partly private and partly public. So, it has got the benefits of both the blockchains. The transactions happening in the ecosystem are monitored by the centralized system; however, it also has a cryptographic security attached to the system.

What are the Benefits of Blockchain Technology?

There are many other advantages of Blockchain Technology, which are listed below:

  • End-to-end encryption:

The very obvious question that might pop-up in your mind is, “If the entire system is based on peer-to-peer transactions, aren’t there any chances of data overwriting?”

Actually, no! The database that is shared with peers is encrypted and no users are allowed to make any sort of changes without achieving an agreement upon it. This way, it eliminates the security concerns and even the authority personas cannot make any implementations without a strong consensus.

  • Utmost security:

The database constructed using the blockchain technology enables the end users to carry out their transactions without a central authority system. This is the reason why any unsecured transaction can be eliminated from the system. The bigger the database, the more difficult it is to modify the data, thereby making it a fool-proof system.

  • Transparency:

The structure of the blockchain technology is such that it provides all the relevant information to the end users. This is followed by the control of the transactions. The data stays with its users and when changes are required, they can be done by anybody, thereby making it a transparent system.

  • Transactions made easy:

Since there is no central body present at every step of the transaction to keep track of it, the time to process payments reduces significantly.

Most of the blockchain transactions can be cleared as fast as within 24 hours. Such quick transactions could influence many app development firms.

  • Reduced cost per transaction:

A decentralized transaction system constructed using the blockchain technology completely cuts down any authority and the need to track the transactions. This way, their cost to keep the platform intact is eliminated from the system. The users can carry out their transactions with reduced cost of the transaction.

  • Assured quality

The blockchain technology is a completely secured system. Whenever there is any error or bug in the supply chain, blockchain technology can detect the starting point of it. This helps businesses to carry out transactions with utmost quality.

  • Agreements on the go

Agreements have become synonymous with tedious processes. However, blockchain comes with the ease of contracts. Without a central body to verify contracts at each and every step, the entire procedure becomes faster. Also, it saves a hefty amount to be paid to the mediators for the companies.

  • Effective supply management

Supply chain management is a benefit for the transportation and logistics companies but is a necessity for eCommerce businesses as well. Moreover, with on-demand solutions thriving, it becomes important for the businesses to trace the status of the service.

The Future of Blockchain Technology and Its Influence on Mobile App Development

If we foresee the future of mobile app development with the help of Blockchain technology, there is no doubt that decentralized apps are going to be the new trends in the mobile applications development arena. The blockchain app development companies are thriving at an explosive rate. With the role of admin at stake, the service providers and the customers will have a more user-friendly app ecosystem.

Let’s take an example of Uber: the on-demand service model can be built without any complexity by leveraging the traceable supply chain management system using the blockchain technology. No admin implies no underpaid drivers and, ultimately, happy customers.

Why only Transportation? Just like an on-demand solution being applied to many niches, such as Uber for gas, Uber for doctors, Uber for Food Delivery, etc., blockchain technology can assist and brighten the future of on-demand business model by building an Uber-like mobile app on a peer-to-peer basis.

However, the capability of Blockchain is far-reaching and it can be leveraged for other giants such as e-commerce, Healthcare, Banking and Finance, and even Gaming.

With the big rise of Bitcoin influencing the functioning of finance, it is obvious that the digital businesses will be affected. They will have to look for the ways to upgrade their existing business to one that leverages blockchain technology or will have to find out a way to completely build their businesses from scratch.

The future is no way out without the blockchain technology. The mobile app development companies have been in the know regarding the technology for its rapid innovation and adaptation to trends. While AI is foreseen as the new innovation to mobile app development, it is yet to be seen how AI and blockchain together can disrupt the traditional state of mobile applications.

So, it’s time to be future-ready now. It’s time to look out for blockchain app development companies and raise the standards of your business.

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