Blockchain has revolutionized the way businesses use, handle, and protect data in today’s digital world.
Blockchain represents a transparent and decentralized ledger to track assets and record transactions in the business world.
What is blockchain technology? Blockchains are distributed databases that are shared among multiple nodes of an entire network of a computer system. Blockchains store information of different transactions in digital form. It is the backbone of digital currencies like bitcoin.
Blockchains store each transaction document conducted by the participants or nodes in digital format. Here I am breaking down some of the qualities of a blockchain to help you understand better.
- Shared: Blockchain is a shared database among its participants. It receives complete transaction histories of every participant and stores them in digital form.
- Transparency: Transparency is one of the key features of a blockchain system. A participant can join blockchains anytime he wants and view all the data and transaction records present in the network. But it allows the participants to remain anonymous so that the identity of the owner remains unknown.
- Decentralized: The blockchain system is decentralized. It means that there is no central authority to control it. Instead, it is decided by the participant nodes through voting. A transaction only requires 51% votes to get approved.
- Replicated: This feature ensures that all the latest updates inside the blockchain get automatically updated and synchronized with the participating nodes.
- Secured: These are the security measures that make blockchains so successful. Any participating node can see the transactions, but no one can alter the transaction information or hack it.
For example, if a user tries to tamper with bitcoin information, other participants can cross-refer to each other and easily point out the culprit.
What does a Top Blockchain Development Services company do?
A wise and simple answer: they develop blockchains. But the overall process is very much complicated. The overall blockchain system seriously measures how a blockchain development company is performing. Let us understand what a Top Blockchain Development company does.
A Blockchain development team consists of two completely separate teams. One is core blockchain developers and the other one is blockchain software developers. Their role of development is completely different.
A core developers team designs the overall architecture and security mechanisms of the system. They build the foundation of the overall blockchain development. Developers can build platforms both from scratch or pre-existing blockchain platforms. Thus it means developers can also create a new platform that other developers can use as a base.
The blockchain software developers will use the core architectures and build decentralized applications and software. If your business requires solving some specific problems like data analysis, then hire a Blockchain company to build a decentralized application for you.
It is the full responsibility of a Top Blockchain Development company to provide solutions to challenging problems with high integrity. They also need to perform some of the complex activities like system analysis, software debugging, etc
The daily responsibilities of blockchain developers are:
- They have to design blockchain protocols.
- Perform blockchain development based on the blockchain protocols.
- Then develop front-end designs depending upon client requirements.
- Designing the network architecture.
Benefits of blockchains:
Blockchains add numerous benefits in today’s digital world. Some of them are described below.
- The transactions that run on the blockchains network are done by hundreds and thousands of participating nodes present in the network. Thus it almost removes every human involvement in the transaction process and makes it error-free.
- Blockchain removes the need for any third-party verification. And so, you do not need to spend a portion of the transaction payment with other companies or organizations. For example, banks charge a small fee for transactions using credit cards because they need to pay different companies for the processing. On the other hand, bitcoin does not need to pay any central authority for transactions. Thus it is cost-effective.
- Since blockchains have no central authority, they do not store any information in a central location. Instead, they spread the information across the network of nodes. Thus they remove dependency over a central location and become more difficult to tamper.
- Transactions through blockchains are very secure and efficient. The authenticity of a transaction is verified by the blockchain network. Thousands of computers verify that the transactions are valid or not.
- Blockchains are open-source software that ensures anyone can see the codes. Anyone can join the network and view transaction details. Thus they create transparency in the network.
Setbacks of blockchain:
Though blockchains come up with multiple benefits, it also has some setbacks. Some of them are discussed below
- Blockchain is famous for saving users money on transaction fees but the technology itself is costly. These systems consume a large amount of computational power. This increases the overall maintenance cost of a blockchain network.
- As these blockchain networks have no central authority, many governments are showing concerns. To bring things under control, the governments of several countries can announce it as illegal. It will prevent the citizens from participating in any of these networks. Recently India is talking about banning bitcoin which is the perfect example of that.
- The transaction rate per second is very low compared to other systems.
Skills blockchain developer company must have:
The blockchain developer company you want to hire should have a full understanding of how blockchain architectures are built and function. They should have a proper concept of hash functions, cryptography, consensus, etc. In case you are willing to create a private blockchain platform for your company.
Summary: The concept of blockchains was introduced back in 1991 to support cryptocurrencies like bitcoin. But now it is spreading its roots to other industries. Other sectors like healthcare, telecommunications, real estate have also recognized its potential. Companies like Amazon, Microsoft, Walmart are promoting the use of blockchains. Hire a Leading Blockchain Development company to avail this technology in your company.
About the Author:
Hermit Chawla is a Marketing Manager at AIS Technolabs which is Web design and Development Company, helping global businesses to grow by top responsive web design services. He loves to share his thoughts on Social Media Marketing Services and Game Design Development etc.