Blockchain Fundamentals To Know Before You Approach A Blockchain App Development Company

Blockchain is the future. We have heard people telling this. On social media, tech articles, panel discussions and more, experts and tech enthusiasts are all in for blockchain implementation. Driven by their insights and advocacy, you and I wouldn't think twice to join the blockchain bandwagon. This impulse would make us approach a blockchain app development company and avail their blockchain app development services. Once implemented, we would wait patiently until we get to see the actual results of the technology.

In a lot of cases, most businesses never get to experience the true potential of blockchain. Why?

Because they have not been guided properly.

Whenever we talk about blockchain technology, we only swim on the surface with statistics and numbers on how much the industry would be valued at in the next couple of years. Or, we would get to read insights on the percentage of companies preferring blockchain development solutions. Our research ends there. With half knowledge, we tend to get excited and start with blockchain implementation.

We hardly analyze if our business needs it, the pros and cons of blockchain application development services for our niche and market, the RoI we could expect and more. That's why we felt it was extremely important to address this concern and shed light on the fundamentals.

So, if you are an entrepreneur seriously looking to deploy blockchain technology for your business, read this post and get a systematic idea of how you can go about doing it. This is what you need before you think of approaching a blockchain app development company.

Like always, we will take a ground-up approach.

Let's get started.

World Wide Spending On Blockchain Solutions From 2017 to 2023

What Is Blockchain?

Immensely popular in the world of finance, blockchain is increasingly gaining momentum across all industries and sectors. With businesses around the world coming up with newer use cases of the technology, diverse niches are looking at implementing the technology and reaping its benefits.

In simple words, blockchain is a tamper-proof technology that is a unique type of database. However, in this database, data or information is not stored collectively but in blocks. A series of blocks chained together is what we call blockchain.

Cryptography lies at the fulcrum of blockchain technology, adding a solid layer of security.

To refine the process further, a blockchain app development company would develop and roll out a unique blockchain app for your business. Once you have your app, you would have the credentials to use the secure app. The key you possess is extremely important and unlike your other credentials, there is no way to recover your key with ‘Forgot Password’ or other techniques.

This is one way blockchain adds credibility. With your teammates on the blockchain network, transactions and entries happen on a regular basis. The new transaction is initiated and transmitted to everyone via peer-to-peer communication. Whenever a new transaction happens, everyone in your network solves a mathematical equation or a puzzle to validate the new transaction. What is happening here is that every stakeholder involved has an idea of the transaction that is entering the network.

When the transaction is successfully validated, the new information is compiled with previous information and clustered into a single block. As you make more transactions, all the blocks are chained together, forming a blockchain. This way, you have a decentralized system where everyone is a regulating authority and have a record of every single transaction happening in your network.

Use Cases Of Blockchain

Now that you have understood what blockchain is, let's look at some of its diverse use cases. Full stack blockchain development can be implemented to:

• monitor supply-chain networks and eliminate fraudulent transactions and contracts
• eliminate service and other charges banks levy on users and pave the way for faster peer-to-peer money transfer
• have a transparent and a tamper-proof election process
• process insurance claims with the help of smart contracts
• protect the copyrights of intellectual properties like music, art, cinema and more
• tackle the concern of counterfeit medications and pharmaceutical products
• go completely paperless for all transactions
• maintain electronic health records and more

What Benefits Can A Blockchain App Development Company Ensure?

Blockchain offers tons of benefits to its users. There's a reason why several companies around the world are approaching a blockchain app development company to get a blockchain app rolled out for their businesses. To give you a clear idea of what the advantages are, here's a quick rundown.

Blockchain Is Transparent

Like we saw, blockchain is completely transparent. There is nothing a stakeholder can do under the hood. When a new transaction happens, everyone in the network immediately gets to know about it. An ideal analogy to explain this better would be this.

Consider you have a paper-based system and you have all your crucial business documents locked in a particular room. When you need to make a new transaction, you intend to make a new modification in one of the documents. Since the room is locked, you pull out your key and try to open the lock. But once you unlock it, all the other stakeholders of the room arrive in que with their unique key to unlock the door one after the other. Only when the last associated person unlocks the door, the document can be modified.

This system ensures you have a transparent relationship with your clients, vendors and other stakeholders and there is no unnecessary reporting involved. It is clearly what you see is what you get.

Blockchain Is Seamlessly Traceable

When you maintain a normal database or a tool, the owner of the database is usually a small team or a single person. Others are only contributors with limited access. This makes it difficult to track and maintain entries and modifications. Due to this, tracing back transactions to one person becomes extremely time-consuming specifically when discrepancies are massive. That's why a custom app from a blockchain app development company would ensure every transaction is traceable instantly.

Blockchain Is Swift

Paper-based processes are always time consuming. From initiating a contract, getting it reviewed from legal teams and getting them approved to archiving them, offline methods are strenuous. However, with blockchain, everything is digital and swift. Your app would instantly give you a notification on your smartphone, which you can verify, validate and approve. Within minutes, an entire process could be completed without any hassles.

Blockchain Eliminates Third Party Expenses

When you have a non-blockchain system, you need to bring in third-party officials such as legal teams and auditors to verify bulk transactions, retrieve old documents and verify details and more. Everytime you call in a special team outside of your company, you incur expenses. With blockchain, that's totally not the case. You don't need third parties in your business as you have a solid, decentralized system in place, where everyone is an auditor. In the longer run, blockchain offers ultimate RoI.

Are There Different Types of Blockchain?

Yes! There are three different types of blockchain in fact. Let's look at them quickly.

Public

An open network that does not have any permit restrictions. Anyone can be part of the network and become a node. Though public, it does not take away the core essence of blockchain – which is decentralization.

Private

It is a closed network very much similar to the one you would have if you had an app built by a blockchain app development company. Only the members or approved stakeholders are part of this network. As far as accessibility and permissions are concerned, it is in the hands of the business that implements the technology.

Consortium

When more than one business or organization shares a blockchain network, it is a consortium.

How Do I Know If I Need Blockchain Technology For My Business?

Before you approach a blockchain app development company, you need to ask yourself a few questions and consider a few crucial factors to actually know if you need blockchain for your business. For the uninitiated, blockchain is highly beneficial but extremely purpose-driven at the same time. It's not a fountain that you can install in your workspace lobby. It's the pipe system that keeps the water flowing. That's why we have compiled a few aspects you should consider. Let's explore them.

• Blockchain is ideal if your business deals with a lot of data – confidential data. Typically, blockchain is a fool-proof database and if you hardly have any data to store, this wouldn't work for you. On the other hand, if you have tons of data to be maintained and shared with multiple stakeholders, blockchain is perfect.
• If you have redundant processes that are time-consuming or if you suspect activities that you feel are stalling your business and operations, you need blockchain to improve organizational efficiency, productivity and credibility.
• Blockchain is decentralized. If you have a central authority moderating all transactions and there are multiple third-parties involved in the process, now would be a good time to eliminate them and make everyone accountable.
• Blockchain is perfect for partnership businesses, where transparency and mutual trust decide the future of your business.

How Much Will A Blockchain App Development Company Charge For A Project?

Well, this is where we generally run out of answers because honestly, there is no rule of thumb or a formula to give an exact estimate that is also objective. Whenever you approach a blockchain development company, the expenses involved in availing blockchain application development services would depend on the following factors:

• the specific blockchain app type you need for your business
• the complexity of the app and its underlying purpose and idea
• the competency of the team at the blockchain development company
• the development methodologies deployed
• scalability and more

Wrapping Up

So, this was our extensive take on blockchain app development for your business. If you notice, getting an app developed is a Herculean task. That's why we recommend you approach a solid blockchain app development company for your needs. Define your purpose, have a clear goal and reach out to blockchain experts like us to handle your projects.

We are pioneers in blockchain app development services and we would deliver an app that is extremely powerful. All you have to do is get in touch with us today.