Learn how Blockchain Is Transforming the Mobile App Development Industry
Technologies are businesses’ way of life. The importance and significance of Blockchain technology can be compared to the importance internet held more than two decades ago.
Across global supply chains, this technology is debatably becoming one of the greatest and revolutionary inventions ever since the introduction of internet technology. The ever-expanding technology of blockchain is transforming traditional business models when it comes to the mobile app development industry. Some of the prominent industries and sectors that are making optimum use of blockchain are government, automotive, healthcare, financial services, etc. Blockchain offers some ground-breaking benefits to several sectors like insurance, healthcare, banking, finance, and real estate. The world of mobile apps will be able to take advantage of blockchain to deal with some discrepancies, which have become evident in recent years. Moreover, it is becoming a game-changing core technology for mobile app development industries.
Understanding ‘Blockchain Technology’
The term ‘Blockchain’ literally implies a chain of blocks, but in a real sense, it is the digital information (the “block”), stored in a public database (the “chain”).
Blocks are digital pieces of information, comprising:
- Storing information about transactions;
- Storing information about entities participating in transactions; &
- Storing information that distinguishes itself from other blocks
Therefore, blockchain consists of multiple blocks bound together, having details of transactions made.
How it works — Process
Further, so that a block gets added to the blockchain, the following must take place:
- The transaction must occur or happen;
- The purchase must be verified;
- The transaction must get stored in a block;&
- The block must be given an identification code called a hash. Once this is done, the block is added to the blockchain.
Once the block is added to the blockchain and transaction becomes a legitimate component of the public domain, which can be viewed in detail.
Blockchain’s Application
Blockchain is primarily useful in monetary transactions, but it is equally reliable when it comes to storing data about other types of transactions, such as property exchanges and others.
Banks
For both, the Bank Users, i.e., the customers and for the financial businesses amongst a chain of banks or between two banks, the blockchain plays a significant role in convenient transaction mode. It enhances the reliability and reduces the time-factor ensuring efficient operations.
Cryptocurrency
Blockchain technology is the backbone of cryptocurrency operations, the world over. By spreading its services across a network of computers, it allows cryptocurrency to operate without a central authority requirement. It will enable the economies with unstable currencies to work with the more stable currency having wide-spread acceptance and applicability.
Healthcare Sector
Blockchain Technology can be used to store a patient’s medical information securely to ensure the privacy of medical records. These could be encoded and stored on the blockchain with a private key, which provides its accessibility by specific individuals only.
Property Records Keeping
Blockchain technology plays a significant role in nullifying the human error factor in record keeping. It is done by verifying and storing all property-related information efficiently.
Smart Contracts
It is a computer code that can be built into a blockchain for entering into and execution of a contract agreement. Smart Contracts operate as per terms and conditions as set out by the parties to the transaction. A particular code is generated for a specific operation to be carried out by each party, and the contract is accordingly carried out.
Supply Chain
Every aspect of the supply chain in any business can be efficiently monitored by entering the requisite data on a blockchain. The best example is a farm-to-user journey in the food industry, where the path and safety of food can be tracked and rectified.
Uses in Voting
The majority of the global economies are today working on the principles of a democratic form of government. The fundamental foundation of this type of system is secret voting by its adult population. The blockchain provides a tamper-proof system to maintain transparency and accuracy of the electoral process.
Why is Blockchain Technology important for the mobile app development industry?
Benefits of blockchain technology
Efficient Transaction Process
The financial transactions carried out through Blockchain technology are considered to be productive. When a user enters into a public transaction, their unique code called ‘public key’ is recorded in the blockchain, and the personal information, though linked, is not accessible. It prevents hacking of the operations.
Accuracy of the Chain
Blockchain technology, through its network, ensures no human interference in transactions as a network approves these of thousands or millions of computers.
Cost-effectiveness
For all business ventures, a reduction in its cost component is a priority. In Blockchain Technology, the need for third-party verification and the associated costs, in the form of the transaction fee, is eliminated because there is no central authority, such as in Bitcoin.
Decentralization
This blockchain is copied and disseminated across a network of computers and not stored in a central location for adding a new block. This process of storing information is thus, decentralized and arduous to tamper.
Enhanced transparency
Although the personal information on the blockchain is kept private, the technology is itself almost always remains open-source. It implies that the users on the blockchain network can modify the code, as long as they have the requisite permissions. Keeping data on Blockchain open source is also counter-effective. For example, with millions of computers on the blockchain network at any given point of time, it is unlikely for anyone to effect any changes, without being noticed.
Greater traceability
Brands that deal with services operated through a composite supply chain are recognizable with how daunting it can be to trace an item back to its origin. When goods and services exchanged and are recorded on blockchain technology, businesses end up with an audit trail that displays where an item came from and every spot it went through in its journey. This historical transaction data helps in effectively verifying the genuineness of assets and prevent fraud.
Improved security
In Blockchain technology, once a transaction is made, the blockchain network must verify its authenticity. Millions of computers rush in to confirm the details of such transactions on the blockchain. After validation of such a transaction, it is added as a block. Each block contains a unique hash along with a unique mixture of the previous block.
Upon editing information on a block, its hash code changes, but that of the previous block remains unchanged. This discrepancy triggers the attention to the changes made to a block without authentication.
Convenience at its best
Blockchain has the advantage of convenience in its operations. The dissemination of information is faster in the absence of third-party involvement. Besides, Blockchain technology operates round-the-clock with efficiency, accuracy, safety, and in a time-bound manner. Blockchain technology works on around the clock basis, which means any day or any time, transactions can be made speedily and safely.
Summing Up
The inclination of the popular mobile app development companies towards blockchain technology is newsworthy. Trending statistics say that as per the ongoing market scenario, this technology is going to capture all the marketplaces shortly. The technology will open new ways of advancement and development for all the sectors of the economy. It is high for growth-striving brands to understand the usefulness and significance of blockchain technology in any mobile app development project.
