How Blockchain is Transforming the
Software Development Process
Blockchain is a popular technology that is now becoming the strength behind technological interference to all industries. Blockchain has emerged for security reasons, which has evolved to crypto-trading and made it clear way towards healthcare, automation, and many other industries.
Many startups are rising and swiftly adopting the new technology in different ways. Banks are finding blockchain a secure way to save data. Healthcare is devising new tools for making telemedicine services more popular. Today, the IT industry has raised more than $5 trillion and is expected to grow higher in near future. The blockchain industry has risen to a newer pace and the software industry has taken a new leap forward, with the advancement proposed to the software development lifecycle.
Blockchain took its place in 2008, and since then this technology has amplified a lot, so are the number of blockchain development companies. Blockchain provides significant security and due to such characteristics, it offers numerous possibilities. Usually, blockchain is considered as the second name for cryptocurrency Bitcoin by non-tech-savvy users. This is the marketing of cryptocurrency which is now seen as the future for software development company. The proliferation of cryptocurrency also stabilizes the popularity of blockchain, for being the foundation of any Crypto. Cryptocurrency uses blockchain for distributed databases, where proof of work is an important consensus.
Blockchain doesn’t only give an alternative but a strong solution to traditional technology. Today, blockchain has got its grip over various industries, where secure data is the biggest requirement and blockchain excels in it.
Blockchain acts as an alternative solution to standard technology. To this day, blockchain has found extensive application in many areas – from finance to hospitality and medicine. The reason for this is the security features of the blockchain. Blockchain offers the potential transformation of the business processes regardless of the industry.
Here, in this article, we will understand the role of blockchain in software development and its benefits over the software development life cycle.
Let’s understand the simple meaning of blockchain and its development services-
What is Blockchain?
The concept of blockchain was first introduced in 2008 in the white paper produced by Satoshi Nakamoto. The new technology is the system for recording the information in a certain pattern which makes it almost impossible to cheat or hack the system. Blockchain is a digital ledger system of transactions that are distributed all over the blockchain network. Each block of the blockchain contains a few transactions, and every time a new transaction happens, it is appended to the transaction list. This makes it impossible to cheat the data because the copy of the transaction is distributed already.
The decentralized database is managed by multiple participants and is known as Distributed Ledger Technology. The digital ledger system transactions are kept in the record using the hash. Bitcoin was introduced on behalf of blockchain. It is an anonymous, decentralized, and distributed network of payment. The whole payment system is based upon the PoW.
For creating a new amount, it is necessary to solve the mathematical problem. This mathematical problem is verified by a single system and later approved by miners. If the transaction is accepted by more than 51% of the miners, the transaction is recorded in the distributed ledger.
The cryptocurrency Bitcoin was designed and invented to enable efficient, safer, and transparent digital transactions. Blockchain-enabled cryptocurrencies are more popular because of no intermediaries. This is the first time when we can make digital transactions without informing any intermediary such as a bank. Looking at some subsidiary sources of income, it seems a lucrative option to hire blockchain developer.
Why Should You Use Blockchain for Software Development?
Blockchain technology is a highly secure system, where adaptive software development is leveraged. The data storage is done on ledgers with peer-to-peer networks. Mobile technology is rising with high speed, where the security of mobile apps becomes more important. The optimum security of the data is guaranteed using blockchain technology.
The key importance of Blockchain in software development services:
Data Replication: The data is secure way more than other systems, because of being present there in multiple copies.
Check: The blockchain system checks the transactions for validation. Every transaction is accepted after accepting the proof of work.
Data Recording: The blockchain system sequentially records the data. Custom software development service often demands such features.
Cryptography: All the transactions recorded over Blockchain are cryptographed using the public key.
Above mentioned features of blockchain give a huge benefit to ensuring data safety.
Opportunities for Amateur Developers in Blockchain Development Service:
The intermediate level of developers stays dependent on middlemen. These developers stay underfunded because the middleman and client usually eat out the major part of commissions. A blockchain is an appropriate tool for eliminating the commission part and warding off the interference of middlemen.
Many companies play the role of middlemen between the service provider and consumer. Blockchain provides a peer-to-peer software development network that is possible with smart contracts only.
Examples of Blockchain Changing Business:
- In the banking system, the blockchain system is used for trading. Cryptocurrency is the most vivid example. Few famous cryptocurrencies are Bitcoin, Litecoin, and Ethereum, etc.
- Blockchain eliminates the boring computational requirements of Insurance companies. Using paperwork, it is possible to face any fraudulent claims. But using blockchain, insurance companies can avoid fraudulent behavior. Blockchain gives an independent and secure infrastructure.
- Combining blockchain with IoT, custom software development companies can manage a lot of things digitally. With blockchain, you can make a secure and safe system with greater ease.
- For financial transactions, Blockchain is used for bringing assurance and safety.With smart contracts, the encoding of data is easy, and any member can track the transactions. Patients can share their health situation confidentially using blockchain.
- Blockchain is also available in the form of NFT which is used for proving ownership using the decentralized system. Governments are also showing their interest in blockchain for improving the election system and build a reliable infrastructure for voters.
- Including all the above uses, nowadays, governments are showing their keen interest in blockchain technology to improve election systems and make them more reliable for the voters. Blockchain technologies such as distributed databases, smart contracts, Defi, and NFTs open up a space for bettering software development services. Benefits such as data replication, transaction management, encryption of transactions, and requirement gathering are some common outputs of Blockchain.
Benefits of Blockchain:
Blockchain is transforming the business model and giving a fantastic development over financial service, supply chain, government departments, retail, healthcare, and other industries. Blockchain adds worth to basic operations and brings benefits.
Blockchain Is Improving Software Development Services
Blockchain is almost impossible to break, highly secure technology. The transaction can be accessed using data traversal over the peer-to-peer network. Data is stored in transparent ledgers and the mobile app has adopted blockchain-enabled apps, which ensures greater security. Software firms hire blockchain developers for various projects, be it financial, or data survey, or whichever industry is willing to have some robust & secure technology.
The main features of Blockchain oriented software system are:
- Data Replication: In blockchain development services, data is safely replicated over thousands of systems that ensure data safety. Each node contains the blockchain code.
- Transaction Recording: A blockchain software system records the transactions over the sequential log of interlinked blocks, developed by the algorithm.
- Requirement Check: Blockchain-enabled systems checks the transaction requirements before processing for validation.
- Public Key Cryptography: Here all the transactions are based upon public-key Cryptography, where the public and private key pair is used to save the data.
- Blockchain Engineering: BOS engineering is based on OS.
Data Integrity and Transparency
Data security and data transparency are two opposite terms in traditional software development. The data you want to save, need to be kept hidden whereas the data you want to show needs to be shown and put in public access. These two are contrary forces, where it is not possible to maintain the balance. Data transparency negatively impacts security through high visibility and makes it riskier to be breached while flowing between the organizations. This imposes a serious risk of data integrity in software development.
Blockchain on other hand manages the balance between security and transparency in custom software development. Every transaction is shown to every node, while the data breach is impossible due to the complex hash algorithm evolved by the software development service industry. The industry is looking for blockchain-based solutions, for storing and managing security-sensitive information. It is one of the best ways to keep data safe and it fixes the background for future software development.
Financial Stability for Software Development
Software development companies stay not only concerned about security but also financial stability. From the start of the project development to the completion of the resources, financing the software development project is a considerable task. For financing the software development, companies are capitalizing the Bitcoin mining. Blockchain technology is affordable to bring a new source of earning to your business. Though Bitcoin mining is not the direct way of earning, but a crucial one looking at the features.
A blockchain is a powerful tool for the fintech industry, for facilitating affordable and secure transactions. Smart contracts are widely used by blockchain development companies for being implemented in real business. The smart contracts are software protocol, which enforces the contract without requiring the interfere of the third party.
Smart contracts demand both parties to meet predetermined conditions and post that smart contract is automatically built, which sends payment or digital proprietorship. This is the perfect tool for getting paid for the work while keeping both parties safer.
How to Start with Blockchain Software?
Let’s understand how to start with blockchain app development. A perfect app is started with the proper research and goes on for iteration.
Identify the Goal and Idea
It is the first task to identify the problems. Find out the problems and identify the goals. A blockchain solution must be started after the proper analysis of the existing project. Identify the problem and decide whether you want a new solution or willing to migrate the existing one over the blockchain.
Choose the Right Software Development Service Platform
A new blockchain platform requires months for complex development, node designing, API creation, and interface creation, etc. A blockchain platform needs to comply with your exact business requirements. It is therefore important to choose the right platform.
Token economics is the new term rolled out recently. It is related to the token application, supply, validation, and whichever way tokens are used in the economy. Token economics represents the study, design, and implementation of ecosystems built over the blockchain. The tokens possess some financial value; therefore, people tend to invest their money in cryptocurrencies, where the value depends upon the number of investments.
Proof of Concept
It is the method for representing the applicability of the blockchain development services. The proof-of-concept can be anything, either theoretical build-up or design prototype. The theoretical build-up is an important step in blockchain development, where each project is tested over hypothetical cases, where users can understand the practical viability of the project. After the theoretical build-up, the design prototypes are created. Once the proof of concept is accepted, the visual design is created.
Visual and Technical Design
While providing web development Services, developers conduct evaluation, prioritization, and formulation for the experiment. Here, it is necessary to have a complete plan and build the visual design for every component. Visual designs give the feel and look of the application whereas the technical design tells the complete technological architecture of the app.
Once you are prepared with all the required components of the solution, it is the right time to start the blockchain software development process. Either you need to integrate the working APIs, generate key-address, work over data authentication, and retrieve.
Blockchain is the distributed system of secure transactions. The peer-to-peer network-enabled technology applies to a variety of industries. Blockchain tools are most viably seen in financial technology whereas it has shown its timely significance over different industries. In the software industry, data integrity and security are the biggest concern, where blockchain development companies are capable to meet the requirements.
However, there is a lot to be addressed in blockchain yet, but it seems the future of technology undeniably. Above you have got all the required details about the role of Blockchain in the software development process. These are enough to know if you want to take a step further in this direction. Hope it will help!
Rohan Singh, Chief Executive Officer at SemiDot Infotech, Top rated multi award winning Mobile App Development Company providing a full suite of services and solutions to small, medium, big enterprises, product companies & new-age start-ups. I have extensive experience working for multinational companies and know what it takes to take a company to the next level.