Blockchain is a decentralized platform that offers various benefits such as transparency, optimum security, data ownership, etc when it comes to software development. It is a breakthrough in the Cloud computing era with a decentralized database. That is why businesses have already started offering Blockchain as a service.
The enterprise software development market has seen a significant alteration to cloud-based products. In addition to technology advancements, we have also seen numerous unseen potential of enterprise software applications. Just like, cloud technology facilitates the decentralization of digital assets, which forms the backbone of blockchain. When blockchain technology is clubbed in the development process, it offers numerous features and advantages of software development that ensures productive testing activities, increases the use of smart contracts in software development, and enhances collaboration within teams.
Blockchain is an alternative solution to classic technology that has found extensive application in many areas whether it is in finance, hospitality, or medical. Before we discuss the importance of blockchain technology for software development, let us first revise what blockchain development technology is.
What is Blockchain Technology?
Blockchain technology is defined as a decentralized, digital ledger of transactions and tracking assets in a business network. An asset can be tangible or intangible. It seems complicated, but its core concept is quite simple and easy that works across the entire network of computer systems. Virtually anything of value can be tracked using blockchain network, data security, reducing risk, and cutting costs for all involved.
Each block in the chain comprises several transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralized database maintained by various members is known as Distributed Ledger Technology.
In simple terms, it is a type of database that first helps to understand what a database actually is. A database is a collection of information that is structured in a tabular form to allow for easier searching for specific information.
What is the importance of Blockchain technology for software development?
1. Improves the advertising model
Developers are willing to invest in the cost-per-installment advertising campaigns to the extent of the largest possible audience. Advertising schemes include several middlemen who get a part of the wages from sales, diminishing the amount repaid to the developer. With blockchain solutions, this cost-per-installment program is replaced by a cost-per-attention approach that eliminates the middlemen. Users are appreciated with app coins for the time they spend on the app. They can use these coins to make in-app purchases efficiently.
2. Empowerment of newcomers in the business
The two main factors of third-party applications are trust and reliability that act as middlemen when it comes to shopping, financial transactions, and more. These apps are chargeable to you for a business transaction done through their platform. Blockchain authorizes you to perform a financial transaction without repaying a third party. It has a peer-to-peer network with self-executing agreements that guarantee payments between consumers and applications.
Hyperledger and BigchainDB are two new platforms that are used by Blockchain developers to gain permission benefits and scalability. Hyperledger allows you to create private permissions for blockchains whereas BigChainDB helps you to solve scalability issues that take place while implementing blockchain technology.
3. Solve in-app purchase issues
The usage of smartphones is increasing day by day and almost all humans use them, but not all users make in-app purchases. For instance, a user does not have a credit card, or if a user has it, they don’t feel secure to use the process as there are chances of fraught with security issues or any other reasons.
Keeping all this in mind, a developer gets around 70% of the amount paid for the app. In different circumstances, by considering a decentralized model, app coins will be used to pay the app store, with the developer gaining a satisfying 85%.
4. Blockchain enhances reward programs
The demand for Blockchain development is increasing as companies start to use blockchain for their reward programs. Users will find it easy to earn tokens for loyalty to individual companies. We can assume earned tokens to be relevant for other kinds of services than for what they were earned. For instance, you can earn airline travel tokens for reaching a specific mileage total, and the reward could be free shopping at a coffee shop.
5. It streamlines app approval making it transparent
Google store and Apple Apps are the two major app stores that are mostly used by users today. They make their own decisions that require which apps need to go for sale in their stores and which should not. This selection process is unacquainted, private, and in many cases unfair to newer developers trying to sell their apps. Using the blockchain model, approved apps consist of a clear developer reputation system, by referring to a decentralized public ledger, along with the user ranking system for specific developers.
To summarize, we can say that Blockchain development has overcome a lot of challenges posed in the field of software development in terms of security, decentralized databases, independent payment platform, and more flexible framework. It is highly secure for data traversal and storing data in transparent ledgers. A blockchain oriented software allows the user to view and add a record to the software database. They cannot modify or delete any record, it improves the integrity of the entire process.
Atlast, it is easy to say that the future of Blockchain technology for the software development industry is going to be bright. So, what are you waiting for? Go and grab the best software developers and start your project today!