The technological world was taken by storm in 2009. It was the year when the world came to know about Bitcoin.
Satoshi Nakamoto created the first digital currency in 2009, using blockchain technology. Since then, blockchain has become a popular brand in the world of technology.
The popularity has compelled several industries to shift to blockchain technology. The mobile app developing market is also considering trying their luck in this emerging technology. However, the transformation might not be that simple.
Like other technologies, blockchain has its benefits and drawbacks. In this article, we’ll try to weigh the pros and cons of developing a mobile app in blockchain technology.
What is a Blockchain Technology?
Before we delve into the advantages and drawbacks, let’s understand what is blockchain is and how it works.
A blockchain is a chain of blocks that contain information. The technology works in a decentralized pattern to make it more reliable. This is one of the features that makes blockchain a unique technology.
A group of technological scientists in 1991 started working on this technology. Their goal was to timestamp digital documents and eradicate tampering.
However, the technology became famous a decade later. In 2009, Satoshi Nakamoto created the first digital currency with the help of blockchain technology.
A blockchain is a distributed ledger that is open to every user. It contains relevant information, which makes it difficult to alter the data. A block of the chain has three features: data, hash, and previous hash.
Hash functions act as unique identifiers for blocks in a blockchain. They’re akin to individual serial numbers, serving as complete representations of each block’s content. Any modification to a block triggers a change in its hash, essentially altering its unique identifier and content representation.
Interestingly, in the blockchain sequence, the hash of a preceding block serves as the prior hash for the subsequent block. This interlinking nature establishes a crucial integrity measure: if an attempt is made to tamper with the hash of a single block, it renders the entire chain invalid. The reason being, any alteration disrupts the continuity as the previous hash of the next block no longer aligns.
This inherent property facilitates an intricate tracking mechanism, allowing users to trace the lineage and history of each block within the blockchain. Furthermore, this process guarantees transparency within the chain, ensuring that any changes or discrepancies are immediately evident, bolstering trust and accountability within blockchain-developed services.
Advantages of Developing an App on Blockchain Technology
A survey by Deloitte reveals that mobile app-developing companies plan to invest up to $10 million in blockchain technology.
It indicates that the app-developing market is willing to make the shift. Here are some reasons why some companies have opted for blockchain technology.
- It is Decentralized:
A blockchain is a decentralized ledger. It means the users also have ownership of the chain. Blockchain technology lacks central authority. It implies that no single entity can control the network. Instead, it relies on independent nodes. This feature shrinks the chances of failures in the chain. Similarly, decentralization enhances the security of data.
Therefore, the decentralized ledger is one of the reasons the mobile app market is considering blockchain technology.
- Uncompromised Security:
Blockchain technology has an impeccable security system. It is almost impossible to tamper with the information.
To tamper with one block, you have to change the hash numbers of all other blocks in the chain. The process is so lengthy that it becomes impossible to alter the information.
The creative use of the previous hash and proof–of–work mechanism makes the tampering a long game. These techniques make blockchain technology a secure and reliable database.
- Blockchain is Transparent:
Blockchain technology is decentralized which means it uses peer-to-peer networks. The feature allows any user to verify the information in the blocks. A user will know if any third party tries to tamper with the data.
This makes the flow of information transparent. So, as a result, it makes the technology trustworthy. This is one of the essential advantages of blockchain technology.
- Easy to Trace:
Blockchain technology has features that make traceability easy and smooth. The hash and previous hash features of a block make it easy for a user to trace the alteration in the chain. So blockchain has an easy traceability feature. This is another benefit of using blockchain technology.
Drawbacks of Developing an App on Blockchain Technology:
No technology is flawless. Blockchain also has its drawbacks. Here are some cons of developing an app on blockchain technology.
- Complex Process:
Blockchain technology has a complex development process. A developer must have an in-depth knowledge of blockchain technology. Moreover, the process is very different from other developing techniques.
This makes it a complex and lengthy process. This is one of the reasons why many companies are still reluctant to shift to blockchain technology.
- High Cost
The complex development process makes blockchain technology costlier. The cost of developing an app on blockchain is higher than other technologies. Therefore, the cost is one of the essential shortcomings of blockchain technology. This is one of the reasons why companies aren’t willing to adopt blockchain technology in app development.
- Slow Process
Blockchain technology relies on various operations to function. It performs signature verification, consensus, and redundancy. This multitasking process makes the blockchain slow. So, compared to other databases in app development, blockchain is slow.
- No Easy Modification
Sometimes, the strong area can become your weakness. This line perfectly summarizes blockchain technology. The unique feature; the previous hash and proof–of–work mechanism, makes it complex to make any necessary change in a block. If you need to make a change in one block, you have to rewrite the codes of all blocks. The process can be lengthy and difficult.
Blockchain technology has gained immense popularity. In recent times, several industries have shifted to this technology. The Mobile app developing market is also considering making a move. Shifting to blockchain technology will benefit in several ways, no doubt. However, blockchain has its drawbacks. So, mobile app developing companies should analyze if blockchain is the right platform.