Blockchain: powerful technology for your startup

Blockchain emerged in 2008 as Bitcoin was introduced. At that point, nobody knew it would turn into the world greatest technology in the nearest future. 10 years after, blockchain market share accounted for $1,2 billion. In 2021, it reached $7 billion and is expected to grow to $40 billion by 2025. Though blockchain’s gone viral, some may still not know what it is actually.

What is it?

Blockchain is a decentralized database that is simultaneously stored on multiple computers. It is a cutting-edge technology used for storing, processing, and identifying personal data. Blockchain contains all the deal records and unlike traditional databases, they can’t be removed. It’s not only a database but also a method of encryption and data transferring.

In simple terms, the development of Blockchain mobile applications offers a network protected from unauthorized access for businesses of any kind and size. Any company executing external and internal transactions can benefit from effective monitoring, reliable data protection, and nearly 100% security of the whole blockchain-based process.

Statistics

According to Techjury, by 2022, worldwide spending on blockchain solutions have reached nearly $12 billion. The global blockchain technology market is projected to exceed $20 billion in revenue by 2024. The number of registered blockchain wallets in the second quarter of 2021 was more than 70 million.

Nevertheless, blockchain remains a new and uncommonly used technology. Only 0.5% of the world’s population or around 40 million people are using blockchain. According to even the most conservative estimates, this number is expected to quadruple in 5 years, and in 10 years, 80% of the population will be involved with blockchain technology.

Large companies considerably influence the market growth rate. However, M&A (mergers and acquisitions) activities with blockchain startups are lowering now. This means the shift from purchasing new technologies along with its developer to the strategy of making one’s own solutions.

To date, the innovations of blockchain-based solutions are led by IBM, Oracle, Deloitte, Microsoft, Altoros, Linux Foundation, and others. In May 2021, Ernst&Young announced its intention to invest $100 million in exploring and developing blockchain technologies.

The key fields implementing blockchain involve finances (Fintech, banking, insurance), healthcare (pharmacy, hospitals, med records exchange), real estate, jurisprudence, state administration, logistics, and manufacturing. The list is much longer as any industry can use blockchain for the following benefits.

Advantages

Data accessibility

The data owner decides whether to make it accessible to everyone or private. When developing a blockchain-based product, the decision is fundamental and inviolable.

Security and durability

Cybersecurity and data protection are some of the major problems for any business. Blockchain technology addresses the risks making the data highly protected from hackers.

Immutability and Transparency

This is one of the key trends of 2021. Blockchain is a perfect tool for granting transparency for any organization as it provides credible information about each process, transaction, or system change.

Flexibility

The digitalization epoch contributes to business adaptivity — simple scalability and reduction, correction, and innovations for apps. Blockchain offers the flexibility many companies frequently lack. It concerns any process like developing mobile apps of blockchain.

Challenges

Private keys

Blockchain uses cryptography with a public key (asymmetric encryption) in order to provide users with the ownership of their cryptocurrency share. Every blockchain account has two respective keys: a public one that can be shared and a private one that should be confidential. Users need a private key to access their finances which means it serves as your own bank. If a user loses their private key, the money is lost as well.

Data modification

After submitting data to blockchain, it’s hardly can be modified. Though its stability is one of the advantages, it’s not always good. Changing data or blockchain code, normally, requires much effort.

Integration with legacy systems

In most cases, if they decide to use blockchain, organizations are required to completely restructure their previous system or design a way to successfully integrate the two technologies. One problem is that due to the lack of skilled developers, organizations do not have access to the necessary pool of blockchain talent to engage in this process.

Top blockchain tendencies

BaaS (Blockchain as a service)

Blockchain is still not generally recognized. Many companies, particularly, enterprises, realize the true value of the technology but have no idea how to apply it. The bunch of decision a company has to make (platforms, smart contracts, integration, tools, etc.) overloads the business and, basically, decelerates the whole development process.

Thus, loads of businesses need some help with blockchain solutions. That’s why providing blockchain services is likely to remain a sustainable trend in Canada, the US, Europe, and Asia in 2022.

Cloud support

Data violation is one of the severe problems when implementing cloud-based technologies. By transferring all the processes and data storage to the cloud, the company does improve its security terms. However, cloud are still exposed to cyberattacks and data leaks, so they are far from perfect data storage sources.

The blockchain framework with data encryption, seamless system flows, and decentralization enables businesses to provide security of cloud storages and operations. Besides, it increases the data accessibility for authorized users.

E-wallet payments

Only 10 years ago, there were no people with e-wallets. Today, they are commonly used by both businesses and individuals. In February 2021, there were nearly 70 million users of e-wallets.

The mobile apps developers have to implement new payment solutions with the help of cryptocurrencies, as more and more people are likely to store their assets in the virtual space. This tendency is particularly important for financial and medical companies since they are especially exposed to fraud and data security violations.

Smart Contracts

This term is used for a code stored on the blockchain platform. Its parts are performed automatically and at the same time. Smart contracts can be an addition to paper-based contracts or an independent agreement. The main reasons why this blockchain function is helpful include:

• The lack of a mediator for verifying the contract;
• Reliable reserve copying on blockchain;
• Protection from any breach thanks to the security encryption;
• Automative verification;
• High accuracy.

Conclusion

The real power of blockchain technology is still underestimated and underinvested in many industries. The concept of a secure and reliable system of financial transactions and the exchange of personal data has been around for quite some time. By now, the world is already familiar with the real advantages of blockchain implementation. Many companies are interested in using blockchain in the development of their mobile applications, but the truth is that many will fail.

Failure occurs due to many problems when the industry is still going through an era of formation. Provided that you use the blockchain correctly (under professional supervision and gradually), you will succeed, as this is one of the most trending topics for 2021. However, be careful that blockchain is still a dark horse that can either drown you or exalt you to the skies.