The blockchain is the new buzzword that has disrupted the financial and technical landscapes around the globe. While people hear it around 3-4 times today, they hardly know what it means and how it works. A lot consider it as a bubble and the other lot is favoring it by adapting to the changes. There is an existing knowledge gap in the ecosystem about Blockchain. This article is trying to bridge the gap as a comprehensive end to end guide.
What is Blockchain technology?
There is no one line answer to it because blockchain technology is:
a) A decentralized network of computers which cannot be hacked
b) The transactions conducted on blockchain are anonymous and secure
Today almost every business giant or small business owner wants to leverage the potential of blockchain technology for the business. They are partnering with on-demand mobile application developer but they are still not aware of the technology. To make a business idea or an App successful, it is important that the entire fraternity must be aware of what the blockchain technology is all about.
What does Decentralization mean?
We hear a lot about the decentralization aspects of Blockchain technology that has made it gain so much of traction. You may create an iPhone app, web project or Android app, decentralization will always be needed. Decentralization is the fact that no one owns the network of computers on which the blockchain technology runs making it resistant to hacks and single point failure.
Transaction Entries are made to a blockchain ledger that cannot be altered and reversed. This makes blockchain the technology of the future where people want freedom from the banks and other centralized organizations to trade and send money. This is a huge part of its existence but as the technology is evolving, blockchain is being used to digitize the contracts, physical products and more. If you plan to hire iOS developer to build a blockchain based App, make sure he must have the knowledge of the technology and how the ecosystem works.
What is a Hash function?
A decentralized network of computers has a ledger that keeps a record of all the transactions. The ledger is open to the public that is why it becomes important to encrypt the entries using a hash function. A Hash function is basically a program that turns the transaction entries into a set of numbers and letters called a hash. Effectively each entry in the ledger equals to the record + hash. If anyone tries to alter the transaction the record, entire hash changes and depending on that all previous hashes need to be changed which is not possible.
What is a block?
It is the individual blocks that connect to make a Blockchain. Every block is made up of a fixed number of transactions as soon as the limit is met; the network creates a new block. Once an entry is made to the block, it cannot be altered.
Technology perspective of Blockchain Ecosystem
Blockchain has evolved into an ecosystem which is supported by multiple interfaces to make it usable for the traders and the common users. Cryptocurrency is one such use case of Blockchain. Many entrepreneurs are hiring developers to create iPhone Apps that serve as a wallet or exchange between the fiat and the cryptocurrency.
What are blockchain protocols?
Each Blockchain network has a specific protocol that resolves the transaction and makes its entry into the block. It is the primary responsibility of the protocol to control the operations of the transactions that go through a blockchain. Multiple protocols are:
a) Proof of work
b) Proof of Consensus
A Proof of Work protocol works on miners while proof of consensus is conducted by the stakeholders.
What can be the use cases of Blockchain?
Blockchain found its use in the real market by what is known as smart contracts. The smart contract is basically a rule book that binds the sender and receiver with a set of policies. The smart contracts are released only when the set of conditions they stand for are met.
1. Insurance and loans
The insurance and loans are disbursed only when a set of conditions are met. Insurance organizations and private lenders hire iOS developers and offer their users Apps that work on blockchain technology. The user needs to submit the claim which is digitized and is verified before the claim is released. The smart contracts of the blockchain process the claims and disburse it rapidly in a secure and anonymous manner.
The developer community is receiving lots of requests from the business fraternity where identification of clients has become a challenge. These organizations hire PHP developers and are building customized Apps where the identification data is stored and verified in case of every transaction. As blockchain anonymous and secure, the clients also do not deter from sharing identity information with the organization.
3. Supply Chain Management
Blockchain and Artificial intelligence are working together to make supply chain management easy, quick and secure. You may hire web developer to come up with a good SCM product, based on blockchain. Blockchain helps my converting each document or term of the contract into a smart contract and once the shipment reaches a point, the smart contract is released. This reduces the effort that goes into documentation and ensures the security of the entire information.
Blockchain and its ecosystem with on demand mobile applications are fueling the growth of IoT. When the devices pass on smart contracts, the data and information generated in the process remain secure, which is the main challenge for the IoT ecosystem. With a decentralized system in place, IoT will be up and running all the time.
5. Social media
Blockchain offers a lot of opportunity to the social media users where their personal data can be digitized and sold without the risk of privacy issues.
6. Elections and polls
Elections and polls are an ideal use case of blockchain and its smart contracts. The on-demand mobile application development backed by blockchain for a different type of election can encourage more voters to vote in an anonymous and secure ecosystem.
Blockchain ecosystem is evolving across the globe. It is bringing a wave of disruption across financial and technology landscapes. The blockchain is the spine of the cryptocurrency system and is the reason for it to exist. If you are willing to enter blockchain-based businesses, you need a solid solution and a unique concept to succeed. Contact Xtreem Solution for Cryptocurrency and blockchain development services, if your idea needs execution.