Blockchain is a term still closely associated with Bitcoin, right? Well, though this cutting-edge technology did begin as part of the first cryptocurrency system, now it acts as a separate platform for multiple software solutions. Just like a traditional ledger, blockchain implies a network of digital records saving information about transactions. In turn, they don’t always mean the movement of money from one user to another. The transacted items may include protected data or goods purchased at a local store.
So, what’s the genuine value of blockchain technology? To be precise, this system allows for the secure storing of sensitive information that can’t be virtually edited or removed from the network. Any attempt to change the initial record will be quickly disclosed by other users. While most modern transaction systems are strictly regulated and verified by some principal authority, be it a credit card clearinghouse or government, blockchain technology offers a decentralised solution. That’s exactly where the concept of trust comes into view. Why trust blockchain? Thanks to cryptography and transparency, this technology helps store, order, and move data safely between two or move users.
Nowadays, if you’re an ambitious entrepreneur, trust is more than just a word in a high-flown talk. The target audience will appreciate and favour your product only if people trust the brand itself. With the help of blockchain technology, not only your transactions but also the app development process becomes safer as well as more reliable. Already in 2018, the international blockchain market was estimated to cost almost $1.6bn, foreseen to be valued at $163bn by 2027. Sounds like an industry worthy of investing in, does it? Moreover, this solution is most frequently preferred in the area of cross-border settlements and payments, constituting 16% of the entire blockchain technology market. Jump into the rabbit hole after DashDevs to learn how blockchain technology can broaden your customers’ experience and multiply their trust as you build your software product!
What Is Blockchain Trust?
If you bet on transparency in your approach to business, blockchain trust is unquestionably a concept to go for. Without a doubt, B2B solutions already exist, and some of those channels are sufficiently secure to rely on in the long run. However, what if someone told you that your partners can interact with you directly without intermediaries as well as the fees they charge for this opportunity? Amazon on par with eBay provides such trading venues, yet the trust they offer still costs a lot of money. What blockchain trust presupposes is that you and your partners have equal access to all digital records inside a shared blockchain node. No fees and no third parties — just a win-win scenario. Want more perks? Simply read on!
Types of Blockchain
In a broad sense, blockchains can also be managed by a single authority, which marks the flexibility of this solution. They can be permissionless, permissioned, or hybrid. Essentially, the types of blockchain include public, private, consortium, and hybrid variants.
First and foremost, a public blockchain is wholly decentralised. These are most often used to mine and exchange cryptocurrency. You’re probably already familiar with Ethereum and Litecoin — they serve as public blockchains to manage related cryptocurrencies.
Secondly, a private blockchain can be managed and controlled by a certain organisation to ensure its absolute integrity as well as security. In this case, public access to private nodes is severely restricted, meaning that this solution perfectly fits into the B2B currency exchange model. One of the most famous projects employing private blockchain technology is Hyperledger.
Thirdly, a consortium blockchain is the most corporate-friendly option for large conglomerates of organisations whose activity is associated with storing and processing highly sensitive data. This variant guarantees the strongest security but requires the smoothest coordination within a group of companies owning a part in the blockchain network. CargoSmart (shipping) and R3 (finance) account for enterprises built over a consortium blockchain solution.
Finally, a hybrid blockchain is used when an organisation requires a controlled network but wants to retain a certain level of public monitoring. IBM is the most world-known example of a company to rely on this technology. Weigh your decision carefully to choose the best option to uphold your business model.
How the Use of Blockchain Technology Can Increase Human Trust?
Data Privacy and Security
Customer experience, as well as trust, constitute the fundamental pillars on which large-scale brands carry out their activity. That’s why privacy and data security, their closest ‘relatives’ in the digital world, are the most treasurable assets for entrepreneurs. Both a tech-savvy Zoomer and technically inexperienced Boomer will equally comprehend the value of data privacy or security. If you operate in the EU and deal with personal data, your activity needs to comply with GDPR. Regarding the US, abide by the principles prescribed in the Privacy Act. Don’t forget to consider this aspect before laying out a new blockchain project.
There’s no secrecy in the value of consensus decision-making methods. By ensuring the supermajority’s agreement on a particular issue, the consensus system allows companies and entities to keep clear of ineffective decisions. This concept is at the heart of blockchain technology because group decision-making is what makes this solution trustworthy and reliable for corporate activities.
As another use case of blockchain technology, data storage is a never-ending issue for many companies that either own their servers or take advantage of third-party options. Therefore, information becomes more protected when it’s stored in the unused space of a hard disk belonging to users connected to a single blockchain network. This decentralised structure is the opposite option for those who don’t trust cloud storage services. Nevertheless, precisely this aspect is questionable for large businesses. Given that information stored via blockchain technology is immutable, it can’t be removed or edited, entailing certain implications regarding the amount of disc space required for corporate activities. But this issue is of little importance for small- or medium-sized organisations.
Due to immutable and open digital records, blockchain technology enables you to conduct payments or verify transactions transparently. Monitoring the history of transactions within a blockchain network is a noteworthy thing when it comes to the long-term use of the technology. With myriads of scams and fraud schemes in mind, customers are becoming huge fans of data transparency. You’ll build your audience far faster and more sustainably if your business activity can be checked any minute by all potential or actual clients. Not to mention that this approach helps you create a strong and reliable relationship with business partners.
What Are the Advantages of Using Blockchain Technology in App Development?
In view of software development, there are many advantages of blockchain technology. Let’s consider the most significant ones.
- Reliability. By relying on a robust blockchain infrastructure, you can build apps inside nodes that are perfectly synchronised with other systems. This enables you to access the current version of a project from different sources and locations because it’s replicated across a high number of devices. Because blockchain is decentralised, the system is unlikely to crash or pose a threat to your project.
- Security. As one of the advantages of blockchain technology, cryptography allows you to protect your application from black-hat hackers. Thanks to a system dependent on interconnected blocks containing data, blockchain encodes data and saves it with a cryptographic hash. Thus, instead of worrying about cybersecurity, your developers can direct their attention to an app’s performance, UI/UX, and value.
- Simplicity. Of course, building a new blockchain system from scratch is a complex undertaking, and this game isn’t always worth the candles. Conversely, availing yourself of the already-made and available blockchain technology saves maintenance costs as well as precious time. For instance, a mobile blockchain-based app is relatively straightforward to develop with the use of already existing solutions.
- Long-term perspective. Taking into account forecasts and statistics, blockchain is going to be a ubiquitous future replacing multiple present-day platforms. Hence, it’s opportunistic and profitable to look ahead to the future benefits this system will provide in years to come. Just remember Bitcoin, NFTs, and metaverses. The future will definitely depend on these frightening words.
- Transparency & customer trust. Since blockchain technology records all transactions on a publicly accessible ledger, your development process will be more transparent for stakeholders. Staying away from fraud transactions and incorrect information, you’ll gain more trust and respect from partners as well as customers. Scalability is another feature built into a blockchain so that your app development ambitions will never face limitations!
Examples of Blockchain Technology in Fintech and Other Areas
As one of the best blockchain technology examples, BitPay serves as a Bitcoin payment service provider located in Atlanta, US. Founded in 2011 by Tony Gallipi and Stephen Pair, this cryptocurrency software solution satisfies a continually growing demand in the industry. After internal bootstraps, this startup was funded by angel investors, indicating its initial importance for the future of cryptocurrency transactions. You can register your own BitPay account, get a cryptocurrency wallet, and even convert Bitcoins into dollars. With this solution, your payments are protected from the tracking and monitoring of third parties.
Anyone can easily receive the BitPay card to carry out transactions within the Mastercard network, which enables businesses to accept Bitcoin payments. Nonetheless, you can’t use this solution as a credit card. At any event, BitPay is already a titan of the industry, allowing Warner Bros., Microsoft, and other corporations to use Bitcoin as a payment means. Why can’t you become one of them, huh?
IBM and Maersk
As for blockchain, fintech and IT players aren’t limited to the banking industry only, right? That’s what IBM thought when they cooperated with Maersk in an attempt to elaborate on a breakthrough solution to make supply chains more visible. The lack of transparency is a serious problem for importers, though. Having partnered, IBM and Maersk developed the TradeLens platform to build an open system to increase visibility across the international shipping industry.
Barclays and Ornua
In case you still wonder where blockchain technology can be used, why not combine digits with milk? In 2016, Ornua became the first company to conduct a trade transaction through the blockchain platform in collaboration with Barclays. Interestingly, this system was developed by Wave, a fintech organisation. Therefore, blockchain helps innovate international trade. What an inspiring case to learn from and borrow the same core idea to use it differently!
Know your customer. Tradle is perfectly aware of this concept, inasmuch as the company develops blockchain solutions to provide global trust for retail, SME, and other financial segments. In addition, the startup elaborates on a blockchain solution to improve customer identification systems. According to their philosophy, blockchain allows businesses to transfer not money or other assets but trust.
R3, Ipreo, Credit Suisse, and Symbiont
These organisations partnered in 2016 to finalise the project dedicated to the employment of blockchain technology in the syndicated loan market. As a result, in 2018, this product united 7 global banks to endorse Fusion LenderComm, which served as a platform for syndicated loans. Blockchain is an innovative technology since it’s capable of reshaping multiple business fields.
Simplicity, transparency, reliability, and cost reduction account for the most fundamental features that are almost guaranteed if you go with blockchain in your business enthusiasm. The above use cases are only the tip of the iceberg, and you can become one of the pioneers to raise this concept to new heights. Do you have what it takes?
Is Blockchain Technology Worth the Risk?
Like any other new technology, blockchain is packed with chinks in armour. The choice is yours whether to mount a restless steed and be ready to get kicked out of a saddle or ride a slow yet stable horse that will certainly bring you to the destination point. Concerning blockchain, this technology may prove both a reliable horse and a restless steed, depending on the approach.
If you suspect that your app development process requires a boosting solution but you’re hesitant to take risks, there’s at least one thing you can do without losing anything. Contact DashDevs to get quality research-based consultation touching upon all aspects of fintech, and even more!