Blockchain has recently gained some striking popularity in the corporate world and earning a place in the service category of almost every app development company.
Blockchain is a chain of blocks that contains information. This technique was originally described in 1991 and was intended to timestamp a group of documents to make it impossible to tamper with them, but it went unused until it was adapted by Satoshi Nakamoto in 2009 to create a digital cryptocurrency – Bitcoin. Each block contains data, a hash of the block, and the hash of the previous block. The hash is always unique and identifies the block contents. Changing something inside the block changes the hash and hence makes it very secure.
Blockchain has recently gained some striking popularity in the corporate world and earning a place in the service category of almost every professional mobile app development company. Let us throw some numbers and statistics your way which speaks for itself.
- Global spending on blockchain- solutions is expected to reach $11.7 billion, $15.9 billion, and $20 billion by 2022, 2023, and 2024 respectively, as 50%global organizations prioritize this.
- 23% of companies, majorly U.S accounts, are expected to invest between $5 million and $10 million in the blockchain during 2021-2022.
- Reports of around 20 countries incorporating or researching national cryptocurrency have been stated where 32% of these are in the development stage and 84% already in use.
- The potential of blockchains is being recognized by the U.S and European banks, especially the private segment type and the SME segment, and is expected to hold the largest market size in this field.
- With almost 5000 registered blockchain startups, a growth rate of 67.3% and an increase from $3 billion to $39.7 billion is expected in the blockchain market in 5 years.
What exactly is Blockchain?
Blockchain is a method of transferring information using blocks that are linked using cryptography. The data gets chained together once a block attaches to the previous one. For any inter-node communication, they adhere to a specific protocol without communication.
It does not contain a centralized system for the whole chain on the other hand the ledger is distributed and connected to the chain via nodes. Blockchain stores data on millions of computers and databases without letting others peek at the information from others’ entries on the network. With no room for modification, blockchain is considered safe as it allows digital information to be distributed without being copied.
Why blockchain is in red hot demand?
In a world where computers and cloud are used for day to day activity, how do we trust the activities online? Blockchain keeps a record of everything that happens, exactly as it occurs. The chain then seeds that data into encrypted blocks that can never be modified and scatter the data across a worldwide network of distributed computers or nodes. Because of this, the data that has been entered is kept very safe and immutable.
Blockchain solutions for social networking problems
Data breaching possibilities are high on any social networking site, but blockchain technology enables users to have an enhanced privacy setting when using social media. Blockchain distributed nature eliminates control by a single entity or third party to prevent data from breaching.
Interoperability among various Blockchain networks
The ability to share data across various networks as well as multiple blockchain systems is interoperability among blockchain networks. This would make it easier for people to see and access a multitude of data across various blockchain networks.
Some trends to look out for in 2021
Blockchain as a service by big tech companies
BaaS is a cloud-based service that enables users to develop their own digital products by working with blockchain. These work without any setup requirements of the complete blockchain-based infrastructure. It ensures setup cost reduction and safety.
Blockchain incorporation in governments agencies
Every agency has its separate database and hence they need information continuously about residents from one another. Blockchain technology can be implemented for effective data management that will enhance the functioning of government agencies.
Blockchain with artificial intelligence
Blockchain used with artificial intelligence can make it easier to understand and make it more coherent. Artificial intelligence can accelerate the efficiency of blockchain and improve it further.
Blockchain with the internet of things
Blockchain can reduce the vulnerability of IoT networks. It can focus on the security of the network with an improved complexity of challenges by having a very diverse and a distributed network rather than having a centralized network.
Blockchain and mobile app development companies
Under the blockchain model, apps developed by mobile app development companies would be approved by a transparent developer reputation system, because the decentralized public ledger and ranking system for specific developers will be consulted.
Blockchain network applications in economy and finance
Many financial institutions are considering adopting blockchain and cryptocurrency after the development of bitcoin in 2016-2017. Blockchain network technology would reduce bureaucracy and conduct faster transactions with improved security at a reduced cost.
Demand for Blockchain experts will drastically increase
As blockchain technology is becoming widespread and fast improving and increasing technology, it is creating a situation for many people to develop the required skills and experience about blockchain technology.
Multiple authorities and selected groups control pre-selected nodes of this type of blockchain instead of a single entity. The federated type of blockchain gives more privacy and improves security.
The pandemic has accelerated blockchain transactions as the global Blockchain market has been predicted to grow exponentially. This was easier as the long term strategic DLT projects were put on hold due to the pandemic
Blockchains are considered to be secure by design as it helps reduce risk and stamp fraud. It brings transparency to a multitude of users. Blockchain is so versatile that besides recording data and financial transactions, it can be used for storing medical records, concluding binding agreements, tracking the flow of goods, storing personal credit records, tracking the provenance of artwork, verifying payments through a supply chain, and much more.
Despite its many advantages and room for growth and profits, it was quite costly and time consuming for building and establishing which made the startups and smaller companies hesitate before taking the leap. But with the evolving technical services and developments, the usage is widely accepted and incorporated nowadays. The Blockchain technology market is rapidly growing and is being implemented in various fields, aiming at the growth and development of companies. Get in touch with DianApps, a leading app development company, and brew a technological storm with our efficient and expert team.