How Blockchain is Reshaping Enterprise Software Development

The term blockchain although commonly used as a replacement for cryptocurrencies, it is actually the underlying technology behind cryptocurrencies such as Bitcoins, Ethereum with a potential open in many sectors from banking to logistics, from healthcare to public administration, and more. Blockchain technology allows data sharing with transaction records kept in encrypted ledgers. The technology holds immense potential to change the way businesses approach data and information and how software developers write, market, and sell software.

Blockchain technology also allows smart contracts that allow parties to store, verify and execute code on a blockchain. Blockchain Developers Dubai have undertaken the task of producing applications and software utilizing this technology. Such projects hold the potential to replace the traditional processing, storage, and computing elements of the computing stack. The soaring popularity of the blockchain means these new blockchain standards, offering infinite greater possibilities compared to conventional programming will soon become the norm in software development.

Blockchain software adopts a distributed ledger system where the data are although accessible to everyone but cannot be altered without any unauthorised access. Any user with access to the data on a blockchain built application may view or add data in the record but cannot change or delete anything. This makes the databases built on blockchain very secure, robust and eliminates the need of any third party or ‘middle man’ in data transactions. The benefits of such robust databases are huge especially when it comes to protecting the integrity of information in several industries.

Third party invasions in business transactions are to ensure reliability and trust between the parties involved. Similarly, software development largely takes place either through software development firms or through third-party portals such as Upwork. It’s quite difficult for small software developers or creators in any field to establish trust and integrity within their industry without the help of a middle man.

Blockchain technology removes the need of a third party allowing smaller players to get involved on an equal level. The peer-to-peer network of blockchain enables self-executing contracts, which facilitate payments between customers and developers, eliminating the middleman. The net result is an encouragement of small teams and individual developers, radically altering the hierarchy of the software industry.

How Blockchain Is Revolutionizing The Banking Industry

Invented back in 2008, Blockchain technology is making waves not only in the tech world but financial sector as well. 24% of the world’s population is already familiar with the concept of blockchain technology. In 2015, 13 different blockchain companies secured $365 million in funding. And by 2016, they had raised well over one billion dollars to drive their operations. However that speed of development isn’t always in the companies’ benefit, banking sector for example is particularly susceptible to getting overwhelmed with all the potential that blockchain technology offers for change, iteration, and development.

And that is why according to 70% of financial service leaders the speed at which blockchain technology is gaining traction concerns them. Blockchain developers Dubai say the technology is here and is already affecting the banking industry. Some of us are ready to adopt it, most are not. Think of blockchain as a mathematical model for processing, securing, and finalizing transactions which is why it has the potential to change banking industry forever.

There are two main reasons that blockchain technology is going to revolutionize the banking industry in the next decade.

1.      It’s Far Less Expensive

Banks have a cheaper option to conduct their operations, will they take it? Of course they will. If they can spend less money, they will. There are three major factors pushing banks to raise their costs and lower the efficiency: 1) An uncertain regulatory environment, 2) historically low interest rates, and 3) digital disruption. These three factors can cost financial companies around the globe $300 billion by 2021. Businesses each year send about $150 to $300 trillion for payment across national borders and for those transactions the fee averages around 10% and 2-5 business days for the transactions to complete. That’s a lot of fee and a lot of time. This, of course is one of the many reasons blockchain technology appeals the banking sector so much, they can increase their efficiency while reducing their costs and hence gain more customers.

2.      Transactions Are Significantly Faster

The wait times on deposits in personal banking are often wildly frustrating. It takes around 2-5 business days for a usual bank transaction to complete. With blockchain on the other hand? It’s way faster and easier to make a bank transfer which is not only definite but secured as well. To test the proof of concept on how fast you can make a cross-country payment using the technology, SAP, ATB Financial, and Ripple collaborated to send the first ever international blockchain payment from Alberta, Canada to ReiseBank in Germany and in a matter of seconds the transaction was complete.