A blockchain refers to a digital system for executing and recording transactions. It can be visualized as a building block constructed from intelligent algorithms and gathered data and with the secure backing of cryptography. Regardless of the kind of industry: financial markets, military, or healthcare; governments and industries are leveraging blockchain technologies to redesign hi-tech paradigms. According to Gartner, blockchain is among the top 10 strategic technology trends for the years: 2018, 2019, and beyond.
Moreover, according to Statista, global blockchain technology revenues will skyrocket in the future. The market is projected to reach over 39 billion U.S. dollars in size by 2025. The financial sector has evaluated its benefits and invested in blockchain, with over 60 percent of the technology’s market value concentrated in this field.
The popularity of blockchain has increased in a short duration, but is it a viable option for the mobile application development process?
Now, we will look at the pros and cons of using blockchain in mobile app development. Shall we?
The Application of Blockchain in Mobile App Development
A recent blockchain survey by Deloitte encapsulated the responses of seven countries. According to it, half of the respondents (1000+ companies) devise to invest between one and ten million dollars in blockchain solutions in the coming years.
The burgeoning demand for blockchain is evident in a plethora of industries. In recent times, it is observed that blockchain is making inroads into the mobile app development segment. The credit goes to its decentralized architecture because of which mobile app developers are leveraging it to overcome several shortcomings. Moreover, it enables you to keep a transparent and immutable record of transactional digital details and averts the scenario of tampering with data.
To comprehend why blockchain has been slotted under the disruptive technology category for the mobile app development segment, let us unfold how it is benefiting the mobile app developers and more.
Pros & Cons of Blockchain in Mobile App Development
Before you take the plunge and hire blockchain app development services, it is paramount to look for the benefits and drawbacks of using them. In this section, we will dig into the reasons you should use it or drop it.
Security is a vital concern for both developers and users of mobile apps. People tend to avoid apps because they are concerned about data breaches on a large scale happening across the globe. When apps are built with Blockchain, data privacy is increased, making the apps more secure. Because every data is encoded and preserved with a cryptographic hash, its encryption process is considered impenetrable. Furthermore, given its decentralized architecture, there is less possibility of third-party apps causing havoc. Every transaction on the blockchain has a timestamp associated with it. It makes redefining operations and manipulating data nearly impossible.
It is a huge help to both developers and consumers of mobile apps.
Without an iota of doubt, transparency is provided through blockchain. The decentralized system keeps track of all transactions in a public ledger, which anybody can access whenever they want. It increases openness and lowers the danger of fraudulent transactions or false data. As a result, the entire system is tamper-proof. Additionally, because the solution is scalable, you can quickly grow the number of end-users if you design mobile apps using blockchain.
Furthermore, Blockchain ensures the security of mobile apps even while they are being updated with new features.
High Level of Dependability
Due to its robust and reliable architecture, blockchain can improve the stability of a mobile application.
Blockchain nodes are located all over the world and are in sync with one another. As a result, it ensures that the same copy of the data is replicated across several devices in various conditions. There is less possibility of the system breaking or collapsing because it is decentralized. Plus, there’s more. It is more reliable since the data in each block is processed in several locations.
Easy to Implement
You can’t deny that creating a new blockchain is tough, but putting it in place is relatively simple. When dealing with complex technology, it takes more time and effort to deploy and integrate, which raises the cost of app development and maintenance. However, because developing mobile-based blockchain applications is straightforward, blockchain solves the problem. It allows you to offer a feature-rich mobile app to your clients while saving time and money for mobile app developers.
Tools are easily accessible
Developers have easy access to blockchain tools and processes. Furthermore, because this technology is open-source, you can offer changes that will lead to better blockchain implementation. It can even store data indefinitely, which cannot be changed and maybe retrieved at any time and from any location. As a result, blockchain-based mobile apps can greatly benefit financial institutions as well as shipping and logistics organizations.
Since the advent of blockchain, its advocates began promulgating the technology’s capabilities over a decade ago, leaders across niches often seemed unsure what to do with it. But things turned in 2019, tech leaders recognized that it can serve as a pragmatic solution to business predicaments across industries and use cases. It is not a far-flung vision held by long-standing believers in the technology. But there are some limitations to its use and drawbacks that cannot be ignored.
As we’ve already discussed, a blockchain is a distributed ledger. It indicates the fact that for its operation a blockchain relies on multiple independent nodes and does not need a trusted authority or central server. Transactions are controlled by nodes, and the role of middlemen is eliminated.
As the outcome businesses gain:
Improved profit margin
Decreased operational costs
Easier and rapid transactions
Will it be beneficial in the long run, if we look at the distributed nature of blockchain via the prism of mobile? A 100% blockchain-based mobile app would effectively turn a smartphone or a tablet into a node, with obvious downside effects.’
Blockchain vs. Mobile Storage
Mobile has a predefined limit on how much data it can store. In a jiffy, a blockchain mobile app can quickly take up all the free space on a tablet or smartphone. Moreover, the size of the chain will define the space required.
Performance of Blockchain vs. Mobile
While modern smartphones can compete with mid-range PCs, which make up the majority of nodes on a conventional blockchain, we must accept that the vast majority of mobile devices on the market lack the necessary processing capacity to allow proper blockchain operation. Furthermore, battery capacity would be a hurdle, as frequent networking and processing operations would quickly deplete a smartphone’s battery.
Going Beyond: Standing Out Amongst Your Competitors
Some of the fascinating use cases for integrating mobile apps with blockchain-based solutions encapsulate the following:
Wallet apps for managing cryptocurrency transactions
Documenting land titles and land rights
Digital identification for services such as driver’s license, fresh bank accounts, or utilities
Cryptocurrency trading apps
If you are looking for the best blockchain app development services, then it is crucial to weigh their pros and cons. Once you choose to develop an app, make sure to hire reliable service providers to stay ahead in the cut-throat competition.