Why Should You Use Blockchain? It's Benefits

Blockchains power cryptocurrencies like Bitcoin or Ethereum. Bitcoin is especially popular and dominates the stock market. Digital currencies like Bitcoin have the advantage of low-cost transaction fees as well as being decentralized from government-issued currencies.

A block in a blockchain signifies the digital information or data that is recorded. Blocks are linked together using cryptography which is essentially a means of keeping information discreet and secure. The cumulation of these blocks creates a chain equivalent to a public database.

The digital information contained in each block consists of three parts.

Information about the blockchain transaction such as the date, time, and dollar amount of the transaction is recorded.
More specific information is recorded related to who is participating in the transaction. The purchase is recorded without using identifying information and relies on digital signatures.
A cryptographic hash function (CHF) distinguishes the current block from the last block. This is a mathematical algorithm that maps data into a unique code composed of a hash distinctively set apart from the hashes of other blocks.

A single block on a Bitcoin blockchain can store approximately 1 MB of data. In other words, a single block can hold the information of thousands of transactions.

For a block to be attached to the it, a couple of things must happen. Of course, the transaction must occur. It is then verified through thousands of computers distributed across the net.

The transaction data is stored in a block with the information from the first two steps listed above. And lastly, as per the third step, a hash is created. The distinction of one block from another is very important.

If you, for example, make a purchase on Amazon and make a nearly identical purchase just five minutes later, blockchain is equipped to distinguish the two transactions.

Each member of the network has a copy of the chain, hence the term distributed ledger. Blockchain networks also provide smart contract (chain node) services to applications.

Smart contracts generate blockchain transactions in the first place which are distributed to peer nodes within the network where they are recorded.

It is considered to be extremely secure. This is because the data in a block cannot be modified; only subsequent blocks can be modified. To do this, there must be a consensus between the network majority. Any malicious activity would be detected immediately.

To add, it is virtually free. There is a cost for the infrastructure but not transactions themselves. For this reason, businesses can save the bother of paying small fees for every other financial operation.

Overall, it is a budget-friendly means of building trust between two parties. For businesses who have to make transactions with unestablished clients – whether that be financial or otherwise – having a secure system to do so can be very useful, if not necessary.

Your use for blockchain isn’t limited to money either. There are a multitude of situations where it can be handy including copyright protection, digital voting, reward programs, medical archiving, and more.

What Is a Blockchain Developer?

Blockchain developers are those responsible for developing blockchains. As simple as it sounds, there are actually two types of its developers – core blockchain developers and blockchain software developers.

Core Blockchain Developers

Core blockchain developers are responsible for the architecture of the blockchain system. This involves high-level decisions like the design of it and the consensus protocol. Part of such a task is also handling security conventions.

Blockchain Software Developers

Blockchain development companies simply create its applications. These developers are alternatively called decentralized application developers because they build decentralized apps or dapps.

This role is not unlike that of a typical software developer. But dapp developers must be able to develop smart contracts using tools such as Truffle and Solidity. Dapp developers may also use languages correlated with mobile or web app development like React Native or Java.

Reasons to Hire a Blockchain Developer

The notion of software development is probably what brought you to this page, but the tech industry goes beyond making mobile and web apps. For example, if you’re a new business on the brink of setting up an online store you may not have put much thought into how to handle your finances.

Asking for credit card information is easy enough but how will you make sure that no one can access a user’s confidential information, or worse, hack your entire system? It is a real-world solution for your payment processing snd//or money transfer needs.

Withal, it isn’t just some app on the app store. It’s an entire system and methodology and professionals who have expertise in this business have spent precious time learning it.

Core blockchain developers can build a blockchain system for your technology to utilize and Dapp developers can help you build a decentralized app like Bitcoin to service other businesses and hopefully top the markets as well.

Advantages of Using Blockchain

Most people tend to associate it with Bitcoin. But this is just one example of how this technology can be utilized. And utilizing blockchain for your own business carries a number of advantages.

Decentralized

This technology doesn’t depend on an intrusive middle man. This means no government currency and also no third parties for verification.

In addition, transactions are spread across thousands, or perhaps even millions of computers – although only your this network can access it. Thanks to this decentralization, data is never lost.

Immutable

The data structure of it uses an append-only format. Ill-intentioned parties can not alter or delete data that has already been recorded. Naturally, this provides an extra layer of security.

Secure

Cryptography has Greek origins tracing back to the words hidden and secret. Even its modern denotation signifies a method of secure communication. Blockchain uses cryptography to encrypt the data stored within blocks, keeping everything extra secure.

Blocks can only be attached to the chain after going through a verification process that requires a consensus between ledger participants.

Transparent

As blockchain is a distributed ledger, everyone in the network has access to the same documentation. These digital copies all root back to the same digital information so you don’t have a dozen individual copies of sensitive information.

Efficient

Cost-efficiency is a basic tenet of this technology. But it is efficient in more than one way. When you trade using your traditional pen and paper, it slows down business operations.

Digital transactions are much faster, and therefore more efficient. At the same time, digital information makes it much easier to store and record important business assets, ensuring traceability.