Impact of Blockchain on the Software Development Industry
With digitalization taking over the world, the trends in the software development industry have started to witness a great shift to products that are cloud-based. The cloud technologies enable the decentralization of digital assets, which ultimately creates a backbone of Blockchain. Blockchain is a fast-growing technology that bounds and leaps by addressing different challenges that are faced by techies in the software industry. The main purpose of this technology is to enhance collaboration with software teams, ensure productive testing activities, and increase the usage of smart contracts in the software development industry.
In this blog, we will learn more about blockchain and its impact on the software development field.
What is Blockchain Technology?
Blockchain is a technology with a time-stamped sequence of records that are unchangeable. These recorded data are managed by a cluster of computers. It is an unbreakable and decentralized electronic ledger that is used to record various economic transactions. In addition to this, blockchain is considered a highly reliable technology because of its transparency in the data transferring process.
Besides, blockchain technology follows the basic principles of a chain, which means that each block in this technology is tightly secured. For instance, when a developer creates an application with the use of blockchain technology, the user will get the authority to view and add a record to its database. But they won’t be able to delete or modify any data records. This approach helps in improving the integrity of the entire process.
Why Blockchain in Software Development?
Blockchain being the highly secure technology for any system is every software developer’s priority when it comes to traversing data in a peer-to-peer network and storing data in a transparent ledger. And the increasing use of the mobile app with higher quality and enhanced security has led to the growth of blockchain-based applications.
Some of the key features of blockchain-oriented software (BOS) are –
- Data Replication: When the data is replicated and stored in various systems, it ensures data security. And this is why each node has a copy of the code that the blockchain has.
- Transaction Recording: BOS records all the transactions in a sequential log. And this log is a part of interlinked blocks that are developed with the use of a consensus algorithm.
- Requirement Checks: Blockchain-oriented Software are capable enough to check the transaction requirements before the validation gets processed.
- Public-Key Cryptography: All the transactions in the blockchain-based application are based on public-key cryptography.
All these features of blockchain offer a huge benefit to all the software by ensuring the safety of data.
What is the Impact of Blockchain on Software Development?
Here are the points that prove that blockchain technology has a positive impact on the software development industry –
1. Empowering Small Sellers in the Marketplace
Nowadays, the majority of software developers use third-party payment systems in their client’s software for selling services and products directly to consumers and companies. And in recent times, the payment standard is PayPal. This is what all the business sites use as their preferred mode of transaction. To offer its services, PayPal takes 2.9% of every transaction that happens by using its system.
To avoid this, the online software marketplaces have started using blockchain technology in their payment modules. For instance, Game Protocol, a gaming ecosystem that is decentralized offers crowdfunding and development tools and hosts for a game marketplace. And these systems accept cryptocurrency transactions and enable software development companies to sell their services or products directly to the market.
This proves that self-executing contracts enable payments between developers and customers without any middleman. So, when small development teams or individual software developers use blockchain technology for transactions, it offers the right potential towards changing the hierarchy of the software industry.
2. Hiring and Training Professionals
The growth in blockchain technology in various industries is very constant and rapid. And makes it difficult for developers to keep up with the updates and trends. Besides, when it comes to expert developers who understand the process of preparing legacy systems or create new blockchain systems, the deficiency of human capital is serious. As a result, platforms that require almost null technical knowledge have started to appear in the market. Because of such platforms, newbies or even non-technical personnel can create their own blockchain programs. But the only issue is that these platforms are not robust enough to keep a hold on the full potential of blockchain technology.
As a result, organizations must hire professionals who have experience in creating blockchain-based platforms and who can also help companies to train the current employees in becoming excellent blockchain developers.
With blockchain becoming a common technology with high-security features, it will be important for software companies to employ staff who are experts in this technology.|
3. Multi-Functional and Transparent Databases
Blockchain is a technology that doesn’t just ease up the transfer of money, but also raises possibilities for its use in different databases. For instance, GE’s Aviation Division is seeing if it can revolutionize the aviation aftermarket with blockchain technology. With the help of proof-of-concept testing, the company’s senior digital program manager determines the process of how specific standards would need to be set and how legacy systems would be required to get updated. So if the blockchain-based software is perfectly structured, it could easily manage the inventory, record-keeping, and sales tracking of GE’s aviation.
This shows that blockchain-based databases are not only perfectly functional but are also cost-effective in nature. Therefore, the companies must consider managing and organizing their legacy systems to make them ready to port to databases that are blockchain-based.
As seen in this blog, blockchain is a well-known technology for various industries in the market. It can perfectly handle fields like database management, IT, and cryptocurrency. Besides this, it is said that blockchain technology is further saturating the market and will quickly become the most essential technology for developers and companies in every industry. This proves that blockchain has a great impact on the software development industry.
- Impact of Blockchain on the Software Development Industry - September 15, 2021