What Are Blockchain Development Services & Their Benefits?
You have probably heard about blockchain. This technology has become a popular choice for many industries and organizations thanks to its security, transparency, and effectiveness. However, some of you may still don’t know what exactly blockchain is and why everything is talking about this technology.
Even though blockchain has already established its name in the market, experts believe the Golden years of Blockchain adoption are still ahead. The increased use of mobile apps, people sharing their information online, and increased numbers of hacker attacks only drive the popularity of blockchain. Market experts say that Blockchain technology will become mainstream by 2028, so companies should strongly consider blockchain development services.
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What Is Blockchain?
First things first, what blockchain means? If you are not a newbie in the field, you have already heard about much-hyped Bitcoin. It is a tokenized currency located on Blockchain. However, even knowing what Bitcoin is, it can be difficult to understand what blockchain means and how it works.
Let’s explore the most basic level of Blockchain. It is considered a manner or format where digital information is stored. The data is stored in blocks that are interconnected through chains. These blocks are all interlinked, and new blocks appear when new information starts to be stored in the chain.
How Does Blockchain Work?
You can learn how exactly Blockchain works by defining a few terms first:
- Block: As we already mentioned, blockchain consists of blocks that create a chain. To be more specific, blockchain is technically a chain of data blocks. Each block stores information on transactions and its hash and a hash pointer to the previous block in the chain.
- Public and Private Keys: Another vital term in the blockchain sphere is public and private keys. These terms identify blockchain users. A public key refers to the public identity of a user, while a public key works as the wallet id. To put it simply, a public key is like a “Bank Account Number” of a person, which needs to be known before making any transaction. A private key is like a user’s auto-generated code required for a transaction signing.
Real-World Uses Of Blockchain
Blockchain has quickly become a great choice in the healthcare industry. From storing patient data security to helping users to find information about medical products on the blockchain network, the healthcare industry seems to benefit from blockchain the most.
For example, users are now able to find all information about drugs they need, like the manufacturer, date, and standards, all within minutes. In addition, clinics can store sensitive information on blockchain since it provides the highest security level. Therefore, blockchain software development services can help bring order to the Pharmaceutical supply chain and make medical products easily verified by any interested party.
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Internet Of Things (IoT)
IoT is also a new evolving trend in the tech world. It represents a group of interoperating smart devices that are connected via wireless technology. Think of smart homes, where a brand new alarm wakes you up and sends the command to turn on the light or start a coffee machine with no need for you to stand up and do it by yourself. All these devices also collect and share data.
The IoT space can get many benefits thanks to blockchain. Therefore, the information that devices share and store can be broadcast to other nodes in the ecosystem for storage and examination. Thanks to its decentralized features, IoT infrastructure will become more scalable to accommodate much more devices and features.
As can be expected, this space can also benefit from blockchain. While file storage software is customarily centralized, cloud solutions have several decentralized systems. And these centralized systems usually become the most appealing target for attackers.
Using blockchain allows these files to be distributed to several encrypted storage systems, while accessing blockchain information is next to impossible due to very sophisticated encryptions.
An Introduction To Decentralized Applications (Dapps)
Now you know what blockchain means and how it works. Let’s talk about blockchain development services. One of the services that blockchain companies offer is dApp development. That is because it is also the most popular need for many organizations.
Decentralized Apps are like regular mobile apps that we use in our day-to-day life. However, the difference is no one is the sole owner of the app in the case of dApps. In addition, with dApps, there will be no centralized database or cloud server hosting the app.
To put it simply, when you download any application from Google Play Store or Apple App Store, this app will be hosted on the respective company’s server. And these apps also store your data on the server of the app creator.
Types Of Dapps
dApps can be divided into three groups based on their functions and how they utilize Blockchain:
- Type 1: Decentralized apps are dApps that contain and manage their Blockchain. For example, Bitcoin and Ethereum are two most bright examples today.
- Type 2: Decentralized apps that run on type 1 blockchain ledger, but they also come with their own protocol and generate their assets to incentive network participants. Omni Protocol is a great example.
- Type 3: Decentralized applications are dApps that use type 3 protocols to issue their assets. For instance, you can take SAFE Network, which uses the Omni Protocol as an example.
Blockchain is a buzzword in the modern world. Even those who are far from the tech world have already heard this term at least once. However, this technology has already established its name in lots of industries. Thanks to its security, speed, and transparency, blockchain is an emerging technology that many organizations are considering adding to their businesses. However, companies need to find a trusted provider offering blockchain development services to succeed with this tricky technology.