Blockchain technology has already created a massive progression into industries like real estate, healthcare, legal field, education, and soon it is be having a significant impact on the entire economy encompassing mobile apps. Its decentralized architecture imparts some of the fantastic benefits which practically all the industries can take advantage of, and along with that, the world of mobile apps to correct shortcomings that still prevail.
It may seem that the mobile app development is just unstoppable since it is expected to become valued at about $6.3 trillion by the year 2021 because there are millions of apps available currently and million being developed all the time. However, a few problems need to be solved if the industry wants to continue experiencing fantastic momentum.
What is Blockchain?
Blockchain is nothing but a growing list of records known as blocks, which are also interconnected by the cryptography. So, each block contains a cryptographic hash of a previous block as the timestamp and transaction data. Besides, Blockchain can also help for storing data across the peer to peer network, where everyone can see, but cannot do any alteration. So, Blockchain will keep a record of all the data which is exchanged called ledger, where it utilizes a distributed system for verifying each transaction.
How Does Blockchain Technology Works?
Blockchain is a collection of blocks where each block contains data with a hash, and the data stored also depends upon the types of Blockchain such as crypto-currency, bitcoin, etc. These types of blocks are used for storing and for sharing digital assets, coins, etc. Blockchain also facilitates transactions without any involvement of mediators and intermediaries when transactions take place between two parties. So, it is a vast database of application which is used for sharing all types of transactions in the network and an individual which does own it as it is available in each computer of the member. Therefore it continually gets synchronized, thus keeping all the transactions up to date.
Now, let’s have a look at how Blockchain technology is reshaping the mobile app economy:
- Helps for in-app purchase
One of the significant issues is the process required for making the in-app purchases even though most of the population owns a smartphone. However, still, numerous users lack the means for making the in-app purchases as the required payment method like credit cards are unavailable to them. Even if the users have a credit card, then the whole process is subjected to the possibility of fraud, card processing fees, app store fees, and bank transfer fees, gateway fees, and so on.
If blockchain is used, a developer will receive nearly 70% of the amount paid for the app by using the decentralized model of the Blockchain, where app coins will be used for funding to the app store, and 85% share would then go to the developer. So, by making an in-app purchase is much easier for the end-user as well, as they will have the app coins to use as a payment method which remove the need for all the credit card process.
- Removes all traditional passwords
Numerous technologies are making use of problematic password-based on a system for validating users’ account credentials. Still, Blockchain doesn’t require a user to enter the password for the same. So, with the help of this innovative technology, mobile app builders will be able to validate users, transactions, devices without asking a specific password. Thus, Blockchain authentications systems are built on the top of an undeniable, fixed, and highly-secure identity verification system that uses digital signatures based upon public-key cryptography, where private key acts as a master password for unlocking all the digital assets for the involved parties. So, this helps in facilitating a seamless sign on as well as eases the transaction process for mobile app users.
- Improves advertising model
Advertising is a different area that can be transformed entirely using a Blockchain model. Currently, numerous developers are bound to invest in cost per installment advertising campaigns for reaching their audience. This advertising scheme involves multiple middlemen to get part of the proceeds from sales thus a small amount is returned to the developer. If the price per attention strategy replaces the cost per installment approach, it will use app coins to reward users for the time they spend using the app.
- Provides real-time product traceability
Blockchain technology can help mobile app builders to record everything, so that they can easily track any information in real-time. The whole Blockchain system is designed in such a way so that it can easily detect an issue and fix it then and there. It not only helps mobile app developers to verify the authenticity of assets, but it also plays a vital role in preventing the creation of fake exchanges and misinterpretation of actual data.
- Increases speed and efficiency
Blockchain technology does not require any mediator for completing the transaction, so by streaming or automating the entire process gives the faster and efficient transactions settlement. There are various reports which show that Blockchain-based transaction is ten times faster than the usual bank as the bank takes a few days for settling a deal. On the other end, Blockchain-based transactions take a minute to complete the task. Besides, it is available for 24X7 which in result reduces the overall transaction processing time.
- Helps in reducing the cost per transaction
Blockchain technology processes peer to peer transactions without involving a middle man, so there are no intermediaries’ fees for ensuring guarantees. So, instead of paying fixed money for transferring the cost to the third party like a bank; Blockchain technology facilitates a transaction without using a mediator. The elimination of mediators helps in reducing the transactional costs for enterprises as well as users over the time.
- Enhances data protection
Blockchain technology is known for its inaccessible security, so this allow developer for adding multiple protection layers to their data, as well as making them assign private keys to the user. So, it makes it impossible to decrypt the key inside or outside of the network to manipulate the user’s transaction-specific data.
Moreover, being a decentralized system, Blockchain always keeps a database to all the networks of the computers, which can help for reducing the risk of data loss to a great extent. So, protecting sensitive data is a challenging task, but Blockchain offers an opportunity for protecting user’s data against unauthorized activities.
- Give protection of mobile app infrastructure
Blockchain enables developers to store DNS entries on a secure platform, where it completely eliminates the risk of hacking to the mobile application development infrastructure. Therefore, Blockchain provides a developer complete transparent and distributed DNS, so that they can have full control over their domain records which can’t be changed without permission.
So, these are just a few ways of how Blockchain technology is impacting mobile application development. However, given unmatched efficiency, transparency, and security, which Blockchain provides to the developers, can hold a bright future for the mobile app development industry. As a result, given technology is not only helping developers for building secure and transparent mobile apps, but it is also creating a whole new world of opportunities for both mobile app developers and end-users.
Panacea Infotech is a leading blockchain solutions provider specialized in using modern technology so for improving enterprise to stay in the competition. We offer the best solution for helping clients to achieve the desired results in 2020.