Blockchain App Development Archives - Page 2 of 6

With technology creeping into our professional and personal lives, data security has become of paramount importance. Statistics suggest that about 6 billion confidential files have been stolen just between the years 2017 and 2018. We again seek technology to solve the issues related to data security, which have been aroused by technology itself. Blockchain cybersecurity is the perfect solution. Blockchain development has solved many other industry problems related to business transactions. It provides greater data security with strong encryptions, minimal vulnerabilities, and effective data ownership. It is now being used across every industry including food industry, financial services sector, healthcare, oil& gas industry, and shipping & logistics. Every industry that deals with data and transaction is looking forward to Blockchain as a solution for data security.

What is Blockchain?

Blockchain is shared ledger that records and tracks the transaction in any business network. It also tracks the tangible and intangible assets to ensure the authenticity of every transaction. It is a fast and transparent platform of information, stored on an immutable ledger that can only be accessed by authorized members of that business network. The entire platform is very transparent and members have the access to the information of end-to-end transactions. One single person cannot make changes to the Blockchain system, making it tamper-proof.

Characteristics of Blockchain

The use of Blockchain technology in multiple industries is primarily because of its security-based features. Key characteristics of Blockchain are:

Digital ledger: Copies of all the information are shared with all the members. Participants validate information independently without any central authority. Any error by one member at one node does affect the other nodes in the network.
Digital platform: Completely digitized framework eliminates the need for manual paperwork which is susceptible to errors and damages.
Chronology: Information about every transaction is stored in blocks and each block is connected in a chronological chain. Thus, the system of records is maintained with a time-stamp.
Cryptographic security: The blocks are cryptographically sealed, making them resistant to edit, delete, and copy actions, creating a high level of trusted business network.
Consensus–based: Any transaction requires unanimous approval of all the parties of the network. This makes Blockchain a very transparent framework.

How Blockchain Improves Data-Security

Data security is one of the leading Blockchain use cases in every sector. The distributed ledger is based on a dispersed public key infrastructure model that secures every stored data.

Data encryption

All the information of a transaction is stored in blocks using cryptography. Every participant of the network is given a private key to be used as a digital signature. Each block is time-stamped and contains the cryptographic hash of the previous block. These hash values are unique to maintain the integrity of the system. Any alternation in the record makes this personal signature invalid and the peer network gets the notification that there has been an undesired altercation, raising a red flag for the malpractice. Every data in a transaction is very secure. This security makes unauthorized data modification very difficult.

Decentralization data storage system

The decentralized system makes Blockchain independent of association with any centralized system or organization. It runs on a peer-to-peer network without involving any central server. This reduces the dependency and trust on the other members of the network. This also cuts down any chances of any one member getting authority over the system. The creation and storage of any data in Blockchain is only dependent on the tamper-proof technology and not individuals.

Enhanced trust with smart contracts

Smart contracts in Blockchain ensure that the programs only run after the predetermined conditions are met. The execution can be automated to ensure no third-party interference. This increases the trust in the system and the transaction. The contracts and assets are tested using access control, business logic, authentication to instill greater confidence in the participants.

Data portability

Blockchain offers decentralized identifiers that help the users in retaining control of their identity. They can move their digital identity from one blockchain system to other. The user can reuse the uploaded data at their discretion. The user can directly connect with the service provider and address the issues of ‘switching costs’ in data portability. Blockchain is a perfect solution for personal data management where the user can change the location of the data without losing its integrity.

Secure Communication with Blockchain

All other network communication frameworks have community interactions with the dependency on intermediary institutions which is susceptible to failure. A Blockchain based-framework offers communication security with data encryption, distributed ledger, smart contracts, and other security features. There are many other security features such as pattern-matching schemes to detect inappropriate files. Every transaction and asset including data is time-stamped to trace its chronology. Blockchain is about a higher level of authentication, non-repudiation and integrity.

Blockchain Security and Implementation Tips

Blockchain framework is of different types and their application depends on the infrastructure of the organization. Certain factors need to be chalked out before choosing a Blockchain framework.

The governance model of the organization
The data for each block
Relevant regulatory requirements and methods to meet them
Identity and keys management
Disaster recovery plan
Minimal security posture for the participants
Mechanism to resolve block collisions in Blockchain

The risks of the Blockchain security model need to be identified to reap maximum advantage. A risk model should be prepared to address all the challenges in governance, business, process, and technology. Next, a threat model should be prepared to evaluate the threats to the desired blockchain security framework. The security controls to manage these risks and threats should be established to start with the implementation of private Blockchain.

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Conclusion

There are certain challenges that Blockchain faces with its implementation across the complicated internet-based infrastructure. However, it cannot be denied that it can serve as the standard solution for standing cyber security issues. Blockchain has immense capability to mitigate cyber security vulnerabilities. The IT decision-makers should keep inculcating the appropriate and latest developments in Blockchain to get the best results from its implementation. They also have to keep a tab on the industry and application framework for proper implementation of Blockchain. We are one of the established software development companies with long list of clientele for Blockchain application. We can help you in building the best Blockchain application for your enterprise. Contact us today to own a robust and sustainable blockchain application.

The term- ‘Blockchain’ was first coined in 2008 by Satoshi Nakamoto- an individual, or a group of people- its identity is not known till date. Blockchain was actually invented for serving as the public transaction ledger for Bitcoin cryptocurrency. But today, Blockchain solutions are solving several complex challenges for multiple industries. Blockchain Projects range from improving capital markets to data sharing/securing to seamlessly performing international payments. In this blog, I will discuss with you different types of Blockchain projects existing in the decentralized economy, along with a few basics of Blockchain technology and some vital benefits of Blockchain app development. Let’s get started.

Basics of Blockchain Technology

Simply put, Blockchain refers to the technology in which chains of blocks are created for carrying important data securely. This technology enables to timestamp digital documents so that altering or backdating them isn’t possible. Also, it helps the Blockchain app developers resolve the double records problem without requiring a central server.

This technology is also called Distributed Ledger Technology (DLT). It uses decentralization and cryptographic hashing. It is based on three concepts: Blocks, Nodes, and Miners. Conceptual working of Blockchain is explained in the below steps:

Transaction is initiated
Blocks are created for the transaction using the mining process
Blocks are sent to every node on the network
Nodes validate the transaction
Nodes are awarded for proof of work
Existing Blockchain embraces this newly generated blocks
Finally, the transaction gets completed

Potential Advantages of Blockchain App Development

The forward-thinking solutions provided by Blockchain app development will be virtually impacting almost all the sectors within a few years. This underlying technology is here to stay for decades to come as it offers advantages like the below:

Open-source
Easy to use
High-speed Transactions
Decentralization and Immutability
Elevated Traceability and Transparency
Lesser Frauds, Security Threats and Risks, etc.
Auditability
Top-grade Security
Better Accessibility to Important Data
Automatic reconciliation of Accounts
Improved Efficiency
Higher Integrity
Reliability and Trustworthiness

With the increasing demand for Blockchain technology, businesses are trying to adopt it in various forms. Different types of blockchain projects are coming up to keep abreast with the trending technology.

Categories of Blockchain projects

‘Fear of Missing Out’ (FOMO) Projects

The FOMO projects, as their names depict, are the ones initiated by companies to be seen as a competitive organization following the current trends and does not fall behind in the business world. These Blockchain Projects are usually led by single companies, either used for in-house applications or with a few limited partners. They are mostly used as a marketing act. These companies do not have the adept knowledge on how Blockchain can be best employed for varying projects. Though they might not create much value but they are not always useless. They represent the companies as modern and futuristic, so the chance of getting prospective customers increases.

However, the companies going with such projects must be aware of ‘FOMO backlash.’ It means that if the project is poorly planned and fails in the long term, the company’s reputation can be at stake.

Opportunistic Projects

These kinds of projects are usually meant to solve issues related to record-keeping or any known problems. These projects provide long-term benefits to the companies even when they are not operating for some time. But looking at the downside of these projects, the companies may lose control over contracts and data later.

One of the examples related to Opportunistic Projects is the creation of the Australian Securities Exchange for streamlining financial trading. Another example is the project developed by the Depository Trust and Clearing Corporation (DTCC) for regulating records from credit-default swaps is for the US financial system.

Trojan Horse Projects

In this category of projects, one significant player like a dominant supply-chain participant, or a small group, or a digital giant builds a Blockchain project and invites other ecosystem participants for employing it. They come with a strong technological foundation and are meant to address the common and wide-reaching issues in a certain industry. These projects look quite attractive and are backed by a brand. But such projects may require the users to share their sensitive info, their company’s data, etc., and thus, transfer the control which may result in consolidation of the market for the main owner of Blockchain.

A food-tracking Blockchain system is a good example of a Trojan Horse project. It takes lesser time and effort comparatively to decide the point at which the food items were replaced/adulterated, the person responsible for this, and its further prevention. It allows accessing of the records to the users in real-time. But the requirement is that participants need to share their personal details on the network. This can be at times risky for the participants as they become dependent on owner’s technology and bound by their contract terms.

Evolutionary Blockchain Projects

Blockchain projects in this archetype are developed in order to evolve over time so as to utilize tokens with decentralized governance. As compared to the trojan horse project category, the business currencies in evolutionary type projects can trade at a lower risk level comparatively for the participants.

There is an example for these type of projects that comes from UEFA – the central committee for European football. This committee works with two Swiss technology companies namely- TIXnGO and SecuTix for the development of an evolutionary blockchain platform that provides a safer and equitable market for selling football tickets. In this project, token is created for each ticket so that all the purchases, transfers of each ticket can be tracked along with owner details.

Blockchain Native Solutions

This too is another kind of project that business leaders focus upon. They are a preferred choice of several start-ups or innovated even by teams of existing firms for disrupting an existing business model or for developing new market opportunities. They may start with some different facilities and perspectives, but eventually, they are expected to move in the direction of decentralized governance and tokenization. However, these solutions come with huge currency risks. As a result, businesses that are ready to experiment and manage their own data, prefer Blockchain Native Solutions.

The gaming and Education industries have been working upon such projects. Enjin is an example of this project type in the gaming sector. In the education sector, Woolf University, also known as ‘decentralized Airbnb for degree courses’, is the best-cited example.

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Concluding Views:

Blockchain technology has emerged as a new-age solution to address numerous business challenges that include data sharing and workflows. Blockchain solutions are not just limited to cryptocurrency today. They are applicable to several industries like the healthcare industry for sharing the data securely, in the transportation industry for real-time operations, in real estate processing, in the voting mechanism, for cross-border payments, for tax regulation and compliance, for food safety, and much more. So if you are thinking of building an impactful software application using Blockchain app development services, this blog would prove to be useful.

This is it for now. I hope this read was insightful.

What are your views on this technology? Which type of Blockchain project have you worked upon?

Do share with us in the comments section below.

Blockchain App Development, Page 2 Category

Blockchain: Data Security solution for every Industry