The blockchain is an underlying technology behind bitcoins. It is also the most commonly used synonym for cryptocurrencies. Blockchain has potential in many sectors including logistics, healthcare, public administration, banking, etc. Moving data incrementally in a peer-to-peer network is possible with blockchain transactions. The technology has brought a change in how enterprises approach data, and also changed the way the software is written, marketed and sold by developers and software development companies.
Blockchain development company across the globe provides a smart system that allows users to store, verify, and execute the code. Several ongoing projects hold the potential to replace, traditional storage, processing, and computing elements. However, with several new regulations and standards coming up, blockchain standards are still not fixed. Meanwhile, with the rising popularity of blockchain, new standards on blockchain are likely to offer better results as compared to the conventional method of programming and is likely to transform the software development.
Blockchain uses a distributed database where everyone can access data records but protects against unauthorized access. The database is robust and secure and eliminates middleman provider. The user with access to the application developed using blockchain technology can view and add data to the database, but cannot modify or delete any data record. Such databases can improve the integrity of the entire process manifold. It provides protection to sensitive information, where even a minor change can have a big impact.
Majority of the industries are looking for the possibility of integrating the blockchain database in their core system. Hence, an increasing number of companies are providing blockchain development services, in order to help companies manage various tasks with integrity and high-level of transparency. There has been an innovation in the blockchain that allows the user to add blockchain layer to the existing database such as RethinkDB and MongoDB. With this, management can gain various benefits of blockchain database without uprooting their old system.
Blockchain also offers improved functionality and cost-effectiveness. The blockchain is proving to be beneficial for small players. Small companies can compete effectively with big players. The blockchain also facilitates between customers and developers, eliminating the middleman. The end result of this is individual developers and small teams, thereby, altering the hierarchy of the software industry. The blockchain development company are also providing various resources facilitating de-institutionalization and decentralization of the transactions.
How Companies are Using Blockchain?
Majority of the companies are moving towards using blockchain technology by acquisitions and strategic investments. However, most of the companies have not yet put blockchain in various large-scale processes and production. Companies are increasingly investing in research work. Companies across the globe are also focusing on if the blockchain technology can be used to enable new capabilities.
Challenges and Consideration for Companies
Various challenges and questions are being faced by companies while considering the adoption of blockchain technology. Moreover, technologies developed by companies providing blockchain development services are still not ready or tested for implementation on a large scale. Along with technical and implementation challenges, companies are also facing other problems such as lack of blockchain knowledge and developer talent.
Companies are also working with customers and suppliers along the value chain, a lot of blockchain use cases involve connecting and sharing a database with these parties. Moreover, in some cases, these parties work together to use new technology. There may be a critical and unresolved assumption of trust, and if data is not correct than blockchain may represent erroneous information.
If the company has decided to adopt blockchain technology, then it must answer some important questions like
What level of security, speed, privacy, and scalability is needed?
Is there a need to employ enterprise-grade blockchain platform?
Which blockchain to be used- a private blockchain or public blockchain?
Is there a need to join the consortium?
Blockchain development company worldwide provides both private and public networks. Majority of the companies are choosing blockchain solution in private networks rather than public networks. As private network ease some concerns around transaction and data privacy. Also, most of the companies testing blockchain are using enterprise grade development and platform such as Microsoft Azure. Meanwhile, several companies have joined blockchain consortia. Moreover, more companies are likely to participate in consortia and formation of some new consortium is also expected in near future.