How Blockchain Is Transforming the Software Development Industry
The software development industry has witnessed a significant shift to cloud-based products. Cloud technology facilitates the decentralization of digital assets, which forms the backbone of Blockchain.
Blockchain technology is growing by leaps and bounds, addressing the various challenges faced in the software industry. Its purpose is to ensure productive testing activities, enhance collaboration within teams, and increase the use of smart contracts in software development.
What Is Blockchain Technology?
Blockchain is a time-stamped sequence of unchangeable recorded data managed by a cluster of computers as opposed to a single entity. It is a decentralized and unbreakable electronic ledger used to record economic transactions and is a highly reliable technology for transparent data transfer.
It follows the basic principles of a chain, where each block is tightly secured.
For example, when an application is developed using blockchain technology, the user has the authority to view and add a record to the software database.
They can’t modify or delete any data records, which improves the integrity of the entire process.
Why Use Blockchain for Software Development?
As I stated, Blockchain software is highly secure. It’s used to store data in transparent ledgers and for data traverse in peer-to-peer networks.
The increase of mobile applications with enhanced security and higher quality has led to the rise of blockchain-oriented apps.
The key features of blockchain-oriented software (BOS) systems are as follows:
- Data Replication: The data is replicated and stored in thousands of systems, which ensures data security. Each node has a copy of the blockchain code.
- Requirement Checks: BOS checks the transaction requirements before processing for validation.
- Transaction Recording: BOS records transactions in a sequential log of interlinked blocks that are created by a consensus algorithm.
- Public-Key Cryptography: Transactions are based on public-key cryptography.
These features make blockchain software a huge benefit in ensuring the safety of data.
How Blockchain Is Used in the Software Industry
Anyone using an application developed using blockchain technology can view and add a record to the database but can’t delete or modify the database record. Limited access ensures robust databases, which improve data integrity as well.
Blockchain uses a distributed database to store records to make them accessible and secure. This technology is safe and protects against unauthorized access. Built on peer-to-peer technology, it eliminates the need for a centralized data repository. It is a robust and secure technology that is used for developing software applications. You say it is accessible to everyone, and right after that it protects against unauthorized access.
Blockchain technology acts as a propeller in software quality assurance, ensuring security, which is vital in the finance industry.
Many renowned companies are exploring opportunities to integrate blockchain technology into their databases to ensure their security. For instance, General Electric is planning to implement blockchain-developed databases in their Aviation Division plans. They’re also working on software that could manage sales, tracking, record-keeping, inventory details with high-end security, transparency, and integrity.
In conventional development methods, transparency counters integrity, as transparency of data increases the chances of someone tampering with it. But with blockchain technology, they exist together and are offered as an added advantage to the companies.
Empowerment of Newcomers in the Industry
Security threats are always possible when using third-party applications that act as a middleman during financial transactions such as shopping. Every application is passed through stringent testing, and testers make sure they fix the bugs logged in their bug tracking tools. Still, there are immense security threats involved in using third-party applications.
Blockchain gives you the authority to execute a financial transaction without paying a third party. It has a peer-to-peer network with self-executing contracts that ensure safe payments between customers and application.
New platforms such as BigchainDB and Hyperledger can be used by blockchain developers for scalability and permissions benefits. BigchainDB solves scalability issues faced while implementing blockchain technology. Hyperledger offers creation of private permission for blockchain.
Companies are leveraging blockchain benefits with cloud-based implementation. Leading companies such as Amazon, IBM, and Microsoft are providing cloud-based development spaces to software companies. Blockchain as a service (BaaS) offers various benefits to the companies and helps them in creating viable solutions to cater to business needs.
Blockchain in a Financial Institution
Banks and other financial institutions have numerous divisions that allow them to execute transactions within various divisions. They are responsible for transacting loans, mortgages, and other financial services as well. Banks are using blockchain technology to create their cryptocurrency based on smart contracts and other network features.
What Are Smart Contracts?
A smart contract is a software protocol that enforces a contract such as the performance of credible transactions without the need for third-parties. The smart contracts are stored on the blockchain, and they execute automatically as certain predetermined conditions are fulfilled.
Once the customer’s identification and details are verified, the bank executes the payment, and it is sent to the seller of the property. They will also activate the automatic repayments from the buyer’s account until fully repaid. The smart contract ends automatically after the full reimbursement of the loan. BOS could save millions every year, which would lead to efficient transactions. Smart contracts also reduce the risk of fraud and mistakes in loan delivery.
Blockchain Plays a Vital Role in Software Development
Blockchain has overcome a lot of challenges posed by current application development. Few things need to be addressed about the distributed system. It can be used to create secure and highly productive applications.
Using blockchain in the software industry can bring great value and convenience to the lives of end users.