5 Different Types of Blockchain Projects In The IT Sector Currently

Blockchain app development is the latest innovation ruling the IT industry today. However, it has taken centuries for us to get here.

If you think, record keeping has always been an integral part of human evolution. From the early instances of maintaining public records in early civilizations to until now, we have been maintaining records for analytics, references and history purposes. But the fundamental flaw with the conventional way of record keeping was that it was prone to intrusions, modifications and tampering.

There was no way to seal them completely and make them secure of unauthorized accesses. Such intrusions and tampering have been plaguing several industries for decades and it was not until the early 1990s that a solution to this was actually developed.

A Quick History of Blockchain Tech

One of the earliest mentions of using cryptographically secure blocks (and series of them) was made by Scott Stornet and Stuart Haber. More than a decade later, Satoshi Nakamoto envisioned blockchain development services in finance that would not involve the dependence of banks for individual financial purposes. The idea was to develop a decentralized, tamper-proof system that restored trust in the minds of individuals who wanted to use banking services.

He revealed the first Bitcoin tech that was nothing but a series of blocks or records, each with transactional data such as time, date and amount stamps, that are secured by cryptic e-addresses. Every person (or node) involved in this peer-to-peer network had a hand of authority in approving transactions. So, even when it was just two people transacting money or money’s worth, every person in the network will verify and process the transaction. Thus the development of cryptocurrencies.

If this was for cryptocurrencies, companies are implementing this technique to store and retrieve medical records, voting results, contracts and more.

This empowering technology is what we call blockchain and the process of developing apps that support the securing blockchain app development. Blockchain also fosters smart contract development and allows industries like retail, fintech, healthcare, supply-chain, real estate and more to rethink ways to secure their transactions and documentation processes.

A Slice of the Blockchain Pie

It’s 2020 and blockchain technology is gradually moving ahead from being a buzzword to an actional concept that actually proves beneficial to consumers and companies. To throw in some numbers, over 90% of the banks in the US and Europe are exploring the potential of blockchain.

In the next couple of years, over $20bn will be spent by corporations in implementing blockchain technology into their operations and processes. This is not a surprise as the blockchain technology could dynamically reduce the expenses involved in companies’ infrastructure by 30%. And in less than two years, the global spending in blockchain technology is expected to hit $11bn.

What Does This Point Out?

Primarily that companies are waking up to the potential of this technology and are looking at ways to leverage its potential to their benefits. However, this does not hold true for all companies that are working on implementing blockchain in their processes.

Yes!

Not all businesses out there are opting for such a digital transformation because of what it could offer to them. And that’s exactly why we wanted to shed light on this topic as well.

A lot of companies are deploying blockchain projects that are not meant for them in the first place. From our research and observation, we have curated five different types of blockchain projects that are common in the IT sector today.

So, let’s look at them, shall we?

5 Types of Blockchain Projects Companies Are Deploying Today

The Bandwagon Projects

For a lot of businesses, it is not about how a technology helps in their vision, mission and goals. It’s not about how the implementation of something new impacts their productivity, boosts their profits or helps them scale up. It’s all about not missing out on something that’s trending.

That’s the first type of blockchain projects companies are indulging in currently. Such companies don’t want to be left behind in the line when their competitors are embracing something new like blockchain. They want to implement the same without giving an iota of thought on how it would impact them.

Such companies simply want to appear as innovative and agile in their operations and cash in on the buzz. Hardly any research goes into this transformation and because of the same, the employees and stakeholders gradually start experiencing the burden in the longer run. What was supposed to uplift them ends up pulling them down.

The I See Business Projects

The next in the list of blockchain project types are the opportunistic projects, where blockchain is deployed to come up with solutions for all sorts of problems. Such projects offer solid value to companies even when they aren’t operational for a prolonged period of time. If there’s one shortcoming with this type of project, it is that companies might gradually start losing their grip on contracts and data after a while.

Trojan Horses

The city of Troy fell because of a Trojan Horse. Attractive, real-like and malicious, several projects in blockchain resemble trojan horses. Reputed companies back them, they offer solutions to a wide range of niche-based problems and are immensely resourceful. But in the end, such projects require the transfer of ownership of data and confidential information from consumers to blockchain owners. Again, third-party elements are involved in the processing of such data.

These projects are effective but throw concerns when they grow because such companies start out small and gain authority when they have tons of user-generated data in hand with them.

Evolutionary Projects

Like the name suggests, such blockchain projects evolve and get better with time. They are rolled out with minimal functionalities and objectives and newer systems, modules and features are added as and when demand arises.

As far as evolutionary projects are concerned, the example we could think of is the implementation of blockchain technology by UEFA. To make the ticket sales market safer and more secure, UEFA collaborated with two Swiss-based blockchain development companies. Each blockchain app development company rolled out an app that allowed consumers to buy tickets for their favorite sporting events. In this, tickets are tokenized, where records of every purchase is identified and stored.

This has helped UEFA keep illegal brokers and middlemen at bay by allowing ticket owners to engage with the two applications for their sales and transfer of ownership purposes. Through the app, consumers can transfer their tickets to their friends or families or even sell in the market with marked-up prices.

Blockchain-Native Projects

These are the final type of projects companies are indulging in 2020. Powered by startups and bigger organizations, the deployment of such blockchain technologies are designed to bring in a disruptive environment in the market and pave the way for newer opportunities. Such projects can be seen across the education sector, the sports sector and the gaming sector.

Because of the considerable amount of risks involved, this project sees ownership by those who completely understand the concept of blockchain and those who can autonomously manage their data and decentralization aspects.

Wrapping Up

So, these were the five different types of projects currently in the blockchain sector. Like you saw, each comes with its own set of risks and benefits. From our side, we recommend understanding what the technology could do to your business and its niche and then take a suitable project type to get started.

But if the entire concept of blockchain technology makes you feel frustrated and too complicated, we recommend you get in touch with a solid blockchain app development company like us instead.

We take care of all your blockchain app development needs. So, regardless of whether you are looking into bitcoin trader app development, e-wallet app development, cryptocurrency wallet app development or more, our expertise would help you make the most of this decentralized technology.

Reach out to us today.