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Software development is a high-paced, ever-changing industry. Whenever new technology surfaces, it can (and should be) implemented in your product’s development to keep it competitive, robust, and up-to-date with the latest standards.
Blockchain is not exactly new, but it’s still underused despite providing great benefits to any software project.
What is blockchain
Blockchain technology was introduced in the 2010s along with Bitcoin. Since then, it has become linked to cryptocurrencies and strongly associated with the crypto world. However, blockchain can be applied far beyond this field and provide safety and transparency across all industries.
But what is blockchain, really? It is a distributed ledger, decentralised technology that consists of an ever-growing list of “blocks” of data all linked together. Each block is assigned a unique hash (code) that sets in stone the contents of the block and the date it was modified.
This is an extremely simplified explanation, but the bottom line is – once the block is created and set – that’s it. Nobody can change the block, at least not without everyone knowing about it. Because of the countless blocks composing a chain, the technology is considered virtually impossible to hack, making it extremely secure. Hackers can’t just steal or swap your data, and if someone makes a change, there’s no way to hide it.
What are the key benefits of blockchain technologies?
Blockchain is fascinating, and the benefits it provides are pretty much limitless. Here are the key pros of utilising it in software development:
- Security – the way blockchain operates is already very secure, but it also uses tools, such as algorithms and decentralised architecture, making it resilient to attacks and disasters.
- Irrevocability of data – once it’s in the block, it’s final, and there’s nothing you can do about it.
- Transparency – the way data is stored makes it easy to track and verify.
- Efficiency – blockchain reduces the need for intermediaries and promotes automation.
How can blockchain be used in software development
Now that we’ve talked about blockchain and all its potential benefits, let’s look at some real-life examples of how this technology is applied in software development.
DApps – blockchain is the basis of many decentralised applications (DApps) that are spread across a network of servers, allowing them to withstand censorship and accidents.
Smart contracts are the second most popular use of blockchain. These are applied across all boards because they help remove the middleman while maintaining top security. Both sides add their predefined conditions to the contract, and only when all conditions are met, contact comes into force. This is used for house sales, payments to freelancers, and pretty much any other situation where an old-school contract would be required.
Immutable data storage. If you’re building solutions for legal, financial, or healthcare industries, you know how critical data safety and storage are for them. These industries are legally bound by governments to keep track of data for years or decades and to have it intact and ready if requested. Blockchain makes compliance less of a headache.
Digital token ownership. You can utilise blockchain to create tokens that would signify someone’s rights to both digital and physical products. This can be used both seriously, such as when digital art is sold, but also as a fun perk to add to the customer experience.
Digital identity protection. Implementing blockchain technology in your applications means there are fewer third parties involved, so there is less risk of fraud and identity theft.
Changes tracing. Tracking who changed what and when is rather difficult, especially when you work with large IT environments. Having blockchain implemented in your software means you can get to the root cause faster and minimise any negative consequences before they damage your product and reputation.
Loyalty programs. Today, companies use blockchain to share gifts, allocate points, and provide other benefits to their clients. Using the technology ensures only the intended person gets the rewards. Plus, blockchain makes the whole campaign cheaper and simpler to run.
Gaming. Similarly to loyalty programs, game developers rely on blockchain to provide their clients with in-game enhancements and advancements. There are also many perks that don’t offer the actual benefit but are highly regarded by gamers as status symbols.
Bottom line
Blockchain can and will transform many industries in its secure and efficient ways. It is, at least for now, unique in terms of how well-protected the solutions built with it are. Already today, people are using blockchain technology in finance, healthcare, real estate, and manufacturing. At Emphasoft, blockchain projects are one of our favourites because they are future-proof and help companies build a solid base for their ambitious goals.
