Blockchain technology has emerged as a boom in the 21st century. Blockchain came into the spotlight a few years back only. Since then, it has found its place in almost every industry. Blockchain has been playing a crucial role in mobile app development. The mobile app development industry will continue to rise with the latest emerging technologies such as Blockchain Technology and 5g Internet, and so on. Blockchain has dozens of benefits like peer-to-peer payment, security, a decentralized system, and a digital ledger system. In mobile development, Blockchain has become a quintessential add-on for the developers to build the apps more secure and save it from security threats.
According to the Blockchain experts, they believe that Blockchain technology will soon be going to reach more than $ 5.6 trillion of business before 2022. Blockchain can prompt expanded efficiency and cost reduction for many businesses and Blockchain app development companies. Blockchain is a game-changer technology as it makes life simpler and safer.
Though Blockchain can help mobile app developers in a million ways, it is still scratchy right now, and there will be many blockchain challenges in 2020 ahead. In the initial stage, some experts have believed that Blockchain can bring an exponential change in the mobile app development field in the near feature.
Blockchain: The technology that covers the Financial Services
The impact of Blockchain technology in financial services is huge. It will influence many aspects of financial services, which are:-
Financial Asset Storage
Lending Credit (bonds, mortgage, and contract)
Peer-peer Financing Identity Transactions
Funding and investing in assets
The Impact of BlockChain on the Global Market
W. Scott Stornetta and Stuart Haberthat first introduced the Blockchain technology in 1991. And later, it was developed by an anonymous group Satoshi Nakamoto in 2008. Since its inception, it has become a multi-billion dollar venture that is likely to go mainstream in the coming few years. Do you know? The government institutions and private sectors embrace it with open arms and leveraging its benefits in all the areas. Blockchain can prevent identity thefts and makes fraud, hacking, and information loss impossible.
Look at the Statistics of Blockchain Technology:
-According to the reports, the total savings by financial institutions that utilize Blockchain is $8 billion.
-The amount invested in Blockchain projects in 2016 is $14 billion.
-Blockchain market worth will be $20 billion by 2024.
-Amount raised by Blockchain startups in H1 2016- $290 Billion
-The amount invested by IBM in Blockchain-based IoT- $200 million
Here we have described how Blockchain can reshape the future of mobile app development.
How does Blockchain work?
The Blockchain has a network of inter-connected blocks where each block records information visible to everyone but can’t be changed. It is just like a digital ledger. Each block also has a timestamp of the previous block. More often than not, these blocks are storing digital assets, coins, and other stuff.
Blockchain is open to everyone and allows peer-to-peer transactions without any intermediatory party while transacting. Blockchain digital ledgers can store land documents, loans, integrity, assets, and inventory. People are storing them using blockchain technology for storing the assets strongly where they are permitted to view them but not alter them.
Blockchain is known for its peer-to-peer network and will provide faster and secure mobile payments to the users. Mobile app developers are integrating Blockchain now for peer-to-peer mobile payments in their applications. It will help developers in integrating high-level security in apps and make users more confident about their data privacy and secured payments.
Security and privacy
Security is one of the most striking features of Blockchain. Integrating Blockchain with mobile apps, developers can add multiple layers of security to protect data. Blockchain is a decentralized system that creates a database across a computer network which prevents data leaks.
Data remains transparent
Blockchain basically uses a network of blocks connected to each other, where each block consists of transaction data and a timestamp of the previous block. As each block carries the real-time access of the user’s data, it becomes challenging for the occult coders to change, destroy, or leak the data.
Reduced Transaction Cost
As we all know, Blockchain technology enables P2P transactions without the need for a middle man or third party. This means that there is no need to pay delegates fees for transactions to ensure guarantees. All you need to do is- trust the blockchain technology to complete the transaction. Instead of paying extra costs for transactions, use this new emerging technology for secure payments. Blockchain technology removes the intermediaries’ cost and facilitates users and businesses with faster payments at lower prices than banks.
Hence, the above statements prove that blockchain technology reduced the transactional costs for both users and businesses over time.
There is no third-party gateway or any person when you are completing a transaction when you are into the Blockchain dimension. It helps users to transact faster. Some believe that blockchain transactions are way faster than the third-party bank ones. Blockchain-based transactions are 24×7 open, unlike banks, and take a couple of minutes to complete.
Enhancement in Digital Advertising
As we all know, there are various challenges faced at the time of digital advertising. This includes domain scams, lengthy payment models, lack of transparency, and bot traffic. Blockchain can bring trust and clarity that is important to maintain the reliability of the supply chain.
Blockchain technology is at its highest of peaks in the current times. It is having a considerable impact on the technical fields from cloud computing, digital marketing, payment gateways to mobile development. It might be a little scratchy in the mobile development field. Still, developers are trying to integrate Blockchain and make most of its security and data transparency features in mobile applications. No doubt why the fortune of Blockchain technology is bright and shiny in mobile development. There may be many blockchain challenges in 2020 if you want to integrate it into your app. So, seeking help from blockchain technology companies can help your app a lot and assist you in integrating Blockchain for mobile apps smoothly.
If you have any queries regarding the Blockchain technology, then please ask your questions on our comment section box.
The blockchain which is also termed as Distributed ledger technology is an unarguable ingenious invention. One of the biggest buzzwords in technologies of the current times. One can easily find Blockchain as if in keynote speeches at conferences, Google search, trending video, and even your favorite gym.
Well with the innovation in evolving technology, blockchain attracts companies of every size. Real adoption of blockchain is in for insurance companies, food supply, finance, law enforcement, identify cross border transactions & many more. Blockchain technology has the potential to make transactions more secure& transparent. Despite developing unique and various use cases, there is a slew of challenges. That needs to be solved before adopting blockchain on a large scale.
Let’s have a look at the five major challenges blockchain is facing in 2020.
The Major Limitation and Challenges of Blockchain
Functional scalability issues
Brain drain because of high energy consumption
Lack of security and legal uncertainty
Regulation in the ecosystem
Low awareness and understanding
1. Functional Scalability Issues
One of the hurdles in Blockchain is implementation issues. To get a clear insight, let understand through the example of bitcoin. For example, the bitcoin blockchain is expanding at 1 MB per block every ten minutes. Currently, it has a size of 241 GB. While an Ethereum full archive node currently takes up over 3 terabytes of data.
While another issue could include time taken issues. IN the case of the blockchain development the validation takes several minutes. Because the maximum capacity of transection of bitcoin is around seven transactions per second. Blockchain networks are slow, which make it’s unviable for large scale application.
2. Brain Drain because of High Energy Consumption
Ever since its inception Bitcoin trust minimizing consensus has been enabled by its proof of work algorithm. The machine performing needs around 200 GB of storage space in every node that is part of the blockchain network. Along with that other requirements are 5 GB upload & 500 Mb download every day.
0.2% of the total electricity is used by miners presently. If it continues to increase then, Miners will take more power than the world can afford by 2020. This is the main reason many organization is avoiding blockchain.
And to control the situation, blockchain can utilize the Consensus method to validate the transitions. As consensus algorithm requires very little energy to process. And this is a genuine way to bring blockchain technology in business again.
3. Lack of Security and Legal Uncertainty
Another factor that challenges Blockchain is the lack of talent to build a decentralized application. No matter what perks blockchain technology has a flaw in coding or loophole is one of the significant challenges in it. Because of false coding and loophole, one can use this deception and can hack the system easily.
Not only that but Blockchain Decentralization can redefine data privacy. As anonymous features of the blockchain not only attract experts but criminals too. Because the nature of the network is decentralized so that no one can know your true identity. This is the main reason for targeting bitcoin, as it is used as a currency in the black market and the dark web. While many criminals use cryptocurrency to purchase an illegal weapon. To stop the increasing criminal connection halt blockchain implementation.
4. Regulation in the Ecosystem
TheFourth major key challenge of blockchain is a decentralized ecosystem. As many organization uses blockchain technology as a means of transaction. But as there is no specific regulation about it, no one follows any rules when it came to the blockchain. It results in significant risk for anyone who wants to get involved with blockchain.
A well-decentralized ecosystem consists of multiple layers, and many layers are still are under development.
5. Low Awareness and Understanding
Many professional experts in finance have less or no knowledge of blockchain. That is another challenging factor in its evolution. 99% of people failed to understand blockchain or bitcoin or cryptocurrencies. Well, you can not blame the mass, as much of the blockchain discussion tend to be technical. As in the world 0.5% of the world using blockchain technology. And in that blockchain app development companyis one of them.
To make it viable a new tact is required to skip its painful explanation. So that more people can use it and it gets a chance to fight for its existence.
Blockchain technology is still evolving. However, to implement on large scale it involves an array of serious challenges that need to be addressed. The current focus to make this new, innovative technology widely available.
Also, many of the issues get resolved based on how they get implemented.
Today, private and permissioned blockchain is being integrated. At the top, hybrid of various blockchain protocols are adopted to achieve what’s needed. This also nullifies many of the above-mentioned limitations. Hence, anything that is built on the blockchain is very transparent and everyone involved is accountable for their actions.
Since blockchain technology has drawn the curtains, there have been tons of improvements in the technology. The biggest one being cryptocurrency like Bitcoins, which has brought a new revolution in the financial world. However, there are many other cryptocurrencies like Ethereum, Litecoin, and Dash with distinctive features, but Bitcoins have set the bar way high.
While most blockchains only use nodes, masternode is a revolutionary feature in this industry. This second-tier network of servers has a real-time full copy of the blockchain all the time. Masternodes are known for better speed, faster transactions, effectiveness, and easy governance on the blockchain. Blockchain has been known for its data integrity and reliability. Many experts believe that blockchain technology may soon replace traditional database systems. But, there are many pros and cons of blockchain too. Also, there are many misconceptions about this technology around. Here, we are list down the features of the expectations and reality in blockchain technology:
1. Global Decentralized Technology
Blockchain is assumed as a global decentralized supercomputer. Came into the limelight after the Bitcoin development phase, blockchain supported cryptocurrency trading on the internet. But how does it work? Blockchain verifies the transactions by performing operations. In one block, a certain number of transactions are recorded, and the block is linked to the latest block to keep the information up to date. Blocks carry transaction records. These blocks are connected to each other like a chain. It is not managed by any supercomputer or server. In fact, the distributed network of millions of computers worldwide managed it.
2. Anonymous and Transparent for Data Privacy
Blockchain supports cryptocurrency transactions. The transaction address is encrypted codes that are not linked with personal information. Transactions are anonymous and easily traceable. But it is not purely right! Transactions taking place between acquaintances, the history of the operations can be found with the owner’s address linking up. Between companies, trade histories are visible. Contacts and sale info are on display. One can look into the transactions. So, blockchain is not private and keeps your information private.
3. Not controlled by a central authority
No individual or company controls cryptocurrency. Also, it is not dependent on any system or server. It has become nearly impossible for an individual to mine Bitcoin as a specific machine is required to do the task. Miners build mining pools and carry the mining task. It is a misconception that a central authority controls the blockchain.
4. Legal Currencies will disappear
It is well-known that cryptocurrency does not exist in any tangible form. Cryptocurrency has tons of expectations, including direct money transfer, cheap transaction fees, no complications in transactions. People expect that with the boom of cryptocurrencies, legal notes will disappear. It is a sham and nothing else!
But, there is a big catch as the cash or liquid money will not go anywhere. Transactions in trading experience a time lag that doubts the permanent usability of cryptocurrencies. Also, as the number of cryptocurrency transactions increases, the time lag increases, which means currency transfer takes longer. It does not make it a practical currency for long-term usage.
5. High Scalability
Cryptocurrency working with blockchain concepts seem to be highly scalable. As the number of transactions increases as per user, the issues of scalability will generate. The capability of the system to handle a growing amount of users and to accommodate the users’ growth is the problem here. As the number of transactions exceeds and it causes an overflow of blockchain. Further, the time lag between payment sent and received increases.
Short-term or Long-term strategies?
Expectation- After seeing the projects increasing at an unbelievable pace in weeks, people got addicted to unsustainable strategies. And, according to them, people do not find it necessary to think that all the projects are different. They just put their plan under the “cryptocurrency” tab with the same expectations for each project. Reality- Every project is different and has different goals & purposes; there is no need to put all your projects under the same tab and expecting the same growth for each project. In reality, many industries are out there that don’t work like this manner. A lot of businesses realized the importance of sustainable practices and hence profoundly care about the project goals and the tech required behind them. They focus on building a sustainable business and strengthen the brand with a long-term vision. These people would be best described as long-term traders.
And then there are some people who are in it just for the sake of money. In the world of blockchain technology, there are opportunities for people to make money with blockchain. As soon as people realize that blockchain meant to make money, they jump on it as their gold card. Without focusing much on project objectives, pressuring projects into exchange listings that only bring value to them — these people would best be described as short-term supporters.
Well, there is a place for both long term and short term strategies. There’s chaos when once one side massively outnumbers the other.
Effective Project Development is the Key
Expectation: As we all know, we humans rationalize our decision based on the trends that are happening around us. All of us. When an investment’s price rises over an extended period, then it becomes hard to tell what was impacting the bull market. And, it becomes tougher to believe that this could just be happening due to the frame of mind, not advancements of technology.
Reality: In reality, the only rational explanation is that the more you focus on your project, the better your app idea is, the better it is for people.
But this has a negative effect when the project was performing worse or doing something wrong. But, this was not the case.
Compared to other industries, Blockchain-related projects are more transparent. Always communicate and collaborate with users and supporters. This can enable them to see the development process on-hands.
Blockchain is serving many industries with its new and increasing demand in the tech world. It has not limited itself to just cryptocurrencies. But it is not going to solve every problem in the world. There are many pros and cons to the blockchain. That’s why blockchain must be implemented safely in the best possible way. There have been many assumptions made across the blockchain spectrum, and expectations are built upon those assumptions. But, all of them might come true. So, before getting into cryptocurrencies or taking any decision with blockchain tech, please get to know more about blockchain and its reality.
Blockchain has attracted the attention of the power industry with its potential to unleash an energy revolution in which both utilities and consumers will produce and sell electricity. The smart home appliances connected to an energy trading platform might endlessly explore for the top offer and mechanically alternate to a brand new energy supplier through a smart contract. This expertise can permit the shoppers to move from their home or workplace on to energy sellers.
Blockchain might provide a reliable, low-cost way for financial or operational transactions to be recorded and validated across a distributed network with no central point of authority. Similarly, the “prosumers” can sell their surplus energy to other customers in the network directly through contracts established and validated through Blockchain.
Blockchain is a foundational technology that can be used to create new business models and underpin business, economic and social infrastructure. While many Blockchain use cases have been proposed for the energy consumption industry, the one gaining the most traction at present is peer-to-peer (P2P) power trading, where owners of small-scale generation will sell excess generation straight to other consumers. Today, centralized management of distributed energy resources (DER) restricts to whom and once DER owners will sell their energy consumption back to the grid.
A Blockchain-enabled P2P model allows much greater flexibility and could be a powerful enabler for a customer-centric transactive energy consumption regime. To support the development of Blockchain-based solutions for the energy sector, a lot of organizations are setting-up Blockchain Labs with the aim of accelerating new Blockchain applications such as distributed ledger solutions and its use-cases. If the new applications are successful for mass adoption, it would have profound impacts on the business models of the entire energy sector value chain.
Peer-to-Peer Power Trade
With the potential for a decentralized model based on blockchain to reduce transaction costs, smaller electricity producers could sell excess renewable energy to other network participants, thus, in theory, bringing down prices through increasing the competition and grid efficiency. Trusted third parties, such as retailers, may play a much smaller role in a distributed P2P model and smart contracts will automate processes that previously required manual work and multiple parties. With smart contracts, trades can be made automatically using price signals and real-time renewable energy production data throughout the network.
Grid Management and System Operation
Blockchain technology allows electricity networks to be more easily controlled, as smart contracts would signal to the system when to initiate specific transactions. This would be based on predefined rules created by the platform, designed to ensure that all power and storage flows are controlled automatically to balance supply and demand. For example, whenever more variable renewable energy is generated than needed, smart contracts could be used to ensure that excess electricity is diverted into storage automatically. Conversely, the electricity held in storage could be deployed for use whenever the generated power output is insufficient. In this way, blockchain technology could directly control network flows and flexibility options, avoiding curtailment of solar and wind energy.
Blockchain systems are fully decentralized, with all transactions being arranged, executed and performed on a peer-to-peer basis. This is what makes blockchain technology potentially disruptive. The possible energy use cases of blockchain technology show a lot of promise. In addition to reducing transaction costs across the system, increasing the efficiency of processes and thus delivering cost benefits for customers, the technology can enable direct interactions between all parties involved. This ensures that the existing generation’s capacity is utilized optimally, whilst energy is made available at the best price.
Many think of Bitcoin or cryptocurrencies in general when speaking about blockchain, but this powerful technology is much more than just that, it has the potential to positively transform many existing business areas. Among the areas designed to take full advantage of the thriving technology, a major one is advertising and marketing, especially influencer marketing.
What is Influencer Marketing?
Influencer marketing is a form of marketing within which the main target is on influential people instead of the target market as an entire. It identifies the people that have influence over potential consumers and orients marketing activities around these influencers. Influencer marketing is used by brands to get their messages to a wider audience, while blockchain technology provides the necessary regulation for transactions between brand and influencer, ensuring transparency and ultimately providing security to all stakeholders. Bloggers are the people with a big number of active, loyal followers on social networks, in the blogosphere and on other media on the Internet. They often recommend products and services and their audience usually responds positively, looking for and buying the same products and services.
It is this, positive response that marketers seek. The right influencer can bring huge dividends to a brand, but the trick for marketers and advertisers is finding just that influencer for their products and services.
The decline of traditional TV and the growth of social media have given rise to influencer marketing, now one of the fastest-growing categories in advertising and projected to be a $5 billion to $10 billion market by 2020. Instagram is one of the largest developing segments of the growing influencer marketing market.
Significant trends that affect growth in the global influencer marketing market:
● Close to a fivefold increase (5X) in monthly influencer marketing interest over last six months. ● Collapsing television viewership in the demographics where marketers are spending heavily. ● Time spent on mobile apps (198 minutes) exceeded time spent watching television for the first time in 2015. ● Accompanying the decline in television viewership is the increase in digital ad spend, forecast to overtake television ad spend in 2016.
Blockchain ecosystem: Scalability approach and workflow
Different from other influencer marketing platforms in that its user base is bottom-up, starting from the very small nano influencers. A typical platform struggles with the sheer range of influencers they have to handle and reward, that’s one among the explanations nano and small influencers have fewer opportunities compared with their bigger competitors. A blockchain-based application with a self-maintained quality verification framework brings an approach that lays the foundation for a highly scalable platform that is able to maintain high-quality standards.
In reality, most influencer marketing companies can’t guarantee demographic targeting or the regular release of electronic communication to strategically insert themselves into the consumer’s expertise. Brand executives might lack direct access to the influencers, instead of having to travel through intermediaries like managers or agents. There’s also the issue of brand safety, how to ensure that an influencer’s background, behavior, and language meet the highest ethical standards. A Blockchain platform provides an opportunity to develop a solution that would leverage technology to add meaningful data and a much-needed structure to the market.