Currently, blockchain is one of the hottest and most exciting technologies on the market. Even though the name is well-known, most people have no idea what the technology is. Cryptocurrency is built on top of it, but it’s also a lot more than that. Here, in this article, we are going to answer the trillion dollar question – should you integrate blockchain development solutions in your business? Continue reading.
The Idea of Blockchain In Nutshell
You may hear the term “blockchain” a lot in the near future. However, most of us lack a thorough understanding of the technology or blockchain development solution. Most people confuse Blockchain with Bitcoin, and the other way around. It isn’t true, though, Bitcoin is, in fact, a digital currency or cryptocurrency that is based on Blockchain Technology.
Token blockchain technology was created by Satoshi Nakamoto. Blocks of data are linked together in a chain on the blockchain, hence the name. Transactions are stored in the form of a Hash in each block. Each block is given a hash, which is a one-of-a-kind address, when it is first created, and which changes if the block is modified in any way.
A Block of Blockchain consists of three crucial parts
- Data: This section contains the transaction information
- Hash: Unmatched Block ID
- Previous Hash- Block ID of the previous hash
Every block in a Blockchain contains the hash of the preceding block, therefore anyone who attempts to alter the contents in a block will have their hash tampered with. As a result, the ‘Previous hash’ of the next block will need to be changed. The next block’s hash will likewise change as a result of this. Once the hacker has changed the hashes of every block on the Blockchain, it will be impossible. As a result, the data stored on the Blockchain is impervious to manipulation and remains true to its origins.
Should You Integrate Blockchain in Your Business?
Data Storage
If your business solution does not necessitate the storage of a large amount of data, then a database is not necessary. As a result, blockchain has no application in this scenario. With blockchain development solution, you can utilise one shared distributed ledger to store huge amounts of data. With blockchain technology, you can have a single transparent view of the updated ledger that is shared by all network nodes, rather than keeping several databases.
Data Dynamicity with Auditable Background
Paper-based documents, notwithstanding their resistance to counterfeiting, have a short lifespan. Maintaining transactions on paper can take a long time if they need to be updated and exchanged regularly. Blockchain development solution that allows multiple parties to write entries into an incorruptible system can be necessary if your business relies on the integrity of your data and its history.
Centralised Control
Third-party authorities might lead to distrust because of a lack of openness and accountability. In contrast, a consensus algorithm is used by numerous parties to validate blockchain data. You may be able to grant read-only and write-only access to a certain party utilising blockchain development solution if you are concerned about your personal privacy. central authority dependency will be reduced:
- Higher Fees
- Time-consuming
- Only one point of failure
Safety of the Environment
Doing business, especially in a partnership, necessitates a high level of trust amongst all parties involved. Banks and business companions must be trusted to keep our money safe and to uphold our contracts. Can the faith be shattered? Sadly, confidence is being eroded on a daily basis, and it’s a major problem.
So, how do you determine when it’s time to adopt blockchain? As a decentralised ledger, blockchain allows parties to work together without fear of the ledger being corrupted. It employs a variety of consensus techniques to ensure that all transactions are properly validated. Because of this, the system is more equitable.
Consider these scenarios and try to find the answer for each of the segments. Based on that you may want to decide whether you should invest in a blockchain development solution or not.
Ivan Infotech 