Major Types of Blockchain Projects that are emerging to decentralize the economy!

Major Types of Blockchain Projects that are emerging to decentralize the economy!
Blockchain app development
The term- ‘Blockchain’ was first coined in 2008 by Satoshi Nakamoto- an individual, or a group of people- its identity is not known till date. Blockchain was actually invented for serving as the public transaction ledger for Bitcoin cryptocurrency. But today, Blockchain solutions are solving several complex challenges for multiple industries. Blockchain Projects range from improving capital markets to data sharing/securing to seamlessly performing international payments. In this blog, I will discuss with you different types of Blockchain projects existing in the decentralized economy, along with a few basics of Blockchain technology and some vital benefits of Blockchain app development. Let’s get started.

Basics of Blockchain Technology

Simply put, Blockchain refers to the technology in which chains of blocks are created for carrying important data securely. This technology enables to timestamp digital documents so that altering or backdating them isn’t possible. Also, it helps the Blockchain app developers resolve the double records problem without requiring a central server.
This technology is also called Distributed Ledger Technology (DLT). It uses decentralization and cryptographic hashing. It is based on three concepts: Blocks, Nodes, and Miners. Conceptual working of Blockchain is explained in the below steps:
  • Transaction is initiated
  • Blocks are created for the transaction using the mining process
  • Blocks are sent to every node on the network
  • Nodes validate the transaction
  • Nodes are awarded for proof of work
  • Existing Blockchain embraces this newly generated blocks
  • Finally, the transaction gets completed

Potential Advantages of Blockchain App Development

The forward-thinking solutions provided by Blockchain app development will be virtually impacting almost all the sectors within a few years. This underlying technology is here to stay for decades to come as it offers advantages like the below:
  • Open-source
  • Easy to use
  • High-speed Transactions
  • Decentralization and Immutability
  • Elevated Traceability and Transparency
  • Lesser Frauds, Security Threats and Risks, etc.
  • Auditability
  • Top-grade Security
  • Better Accessibility to Important Data
  • Automatic reconciliation of Accounts
  • Improved Efficiency
  • Higher Integrity
  • Reliability and Trustworthiness
With the increasing demand for Blockchain technology, businesses are trying to adopt it in various forms. Different types of blockchain projects are coming up to keep abreast with the trending technology.

Categories of Blockchain projects

Blockchain Projects
‘Fear of Missing Out’ (FOMO) Projects
The FOMO projects, as their names depict, are the ones initiated by companies to be seen as a competitive organization following the current trends and does not fall behind in the business world. These Blockchain Projects are usually led by single companies, either used for in-house applications or with a few limited partners. They are mostly used as a marketing act. These companies do not have the adept knowledge on how Blockchain can be best employed for varying projects. Though they might not create much value but they are not always useless. They represent the companies as modern and futuristic, so the chance of getting prospective customers increases.
However, the companies going with such projects must be aware of ‘FOMO backlash.’ It means that if the project is poorly planned and fails in the long term, the company’s reputation can be at stake.
Opportunistic Projects
These kinds of projects are usually meant to solve issues related to record-keeping or any known problems. These projects provide long-term benefits to the companies even when they are not operating for some time. But looking at the downside of these projects, the companies may lose control over contracts and data later.
One of the examples related to Opportunistic Projects is the creation of the Australian Securities Exchange for streamlining financial trading. Another example is the project developed by the Depository Trust and Clearing Corporation (DTCC) for regulating records from credit-default swaps is for the US financial system.
Trojan Horse Projects
In this category of projects, one significant player like a dominant supply-chain participant, or a small group, or a digital giant builds a Blockchain project and invites other ecosystem participants for employing it. They come with a strong technological foundation and are meant to address the common and wide-reaching issues in a certain industry. These projects look quite attractive and are backed by a brand. But such projects may require the users to share their sensitive info, their company’s data, etc., and thus, transfer the control which may result in consolidation of the market for the main owner of Blockchain.
A food-tracking Blockchain system is a good example of a Trojan Horse project. It takes lesser time and effort comparatively to decide the point at which the food items were replaced/adulterated, the person responsible for this, and its further prevention. It allows accessing of the records to the users in real-time. But the requirement is that participants need to share their personal details on the network. This can be at times risky for the participants as they become dependent on owner’s technology and bound by their contract terms.
Evolutionary Blockchain Projects
Blockchain projects in this archetype are developed in order to evolve over time so as to utilize tokens with decentralized governance. As compared to the trojan horse project category, the business currencies in evolutionary type projects can trade at a lower risk level comparatively for the participants.
There is an example for these type of projects that comes from UEFA – the central committee for European football. This committee works with two Swiss technology companies namely- TIXnGO and SecuTix for the development of an evolutionary blockchain platform that provides a safer and equitable market for selling football tickets. In this project, token is created for each ticket so that all the purchases, transfers of each ticket can be tracked along with owner details.
Blockchain Native Solutions
This too is another kind of project that business leaders focus upon. They are a preferred choice of several start-ups or innovated even by teams of existing firms for disrupting an existing business model or for developing new market opportunities. They may start with some different facilities and perspectives, but eventually, they are expected to move in the direction of decentralized governance and tokenization. However, these solutions come with huge currency risks. As a result, businesses that are ready to experiment and manage their own data, prefer Blockchain Native Solutions.
The gaming and Education industries have been working upon such projects. Enjin is an example of this project type in the gaming sector. In the education sector, Woolf University, also known as ‘decentralized Airbnb for degree courses’, is the best-cited example.

Concluding Views:

Blockchain technology has emerged as a new-age solution to address numerous business challenges that include data sharing and workflows. Blockchain solutions are not just limited to cryptocurrency today. They are applicable to several industries like the healthcare industry for sharing the data securely, in the transportation industry for real-time operations, in real estate processing, in the voting mechanism, for cross-border payments, for tax regulation and compliance, for food safety, and much more. So if you are thinking of building an impactful software application using Blockchain app development services, this blog would prove to be useful.
This is it for now. I hope this read was insightful.
What are your views on this technology? Which type of Blockchain project have you worked upon?
Do share with us in the comments section below.

Emergence of Blockchain-as-a-Service and its Potential Benefits!

Emergence of Blockchain-as-a-Service and its Potential Benefits!

Did you know?
Global expenditure on Blockchain services is estimated to cross15.9 billion by the year 2023, which was just 1.5 billion in 2018!- as per a report generated by Statista- a renowned online market place for statistics.
These staggering numbers portray a massive growth of this technology in just 5 years. Needless to say, Blockchain is going to be a game-changer. Introduced in 2011, Blockchain-as-a-Service has already been the talk of the town and widely adopted by nearly 44% of the organizations worldwide.
So, what is Blockchain technology? What is Blockchain-as-a-service? What are the potential advantages it offers to businesses? All such queries will be answered in this write-up.

What is Blockchain Technology?

The term ‘Blockchain’ represents a digital ledger that enables writing data into ‘blocks.’ Every new block created is added to the previous one, thus creating a chain i.e. Blockchain. Every single block is secured through encryption while writing. In this system, users can access the sensitive information using a unique key code. Besides, this peer-to-peer system does not need any third-party for managing the transaction, making it all the more secure system. Also, this digital ledger cannot be altered after the blocks are added to the chain, hence this system is very authentic.
Though explained in simple terms here, Blockchain is not that easy to implement. Several businesses are struggling to leverage Blockchain app development solutions. The operational overhead and technical complexities involved in developing, configuring, functioning, and maintaining Blockchains stand as a barrier. Yet, it is one of the fastest-growing technologies today due to its key features like decentralized nature, encryption, top-level security, and trustworthiness while saving and processing sensitive data.

What is Blockchain-as-a-Service (or BaaS) all About?

Blockchain-as-a-Service i.e. BaaS has emerged as a third-party system for building and managing cloud-based networks for businesses to design powerful Blockchain-based applications for themselves. It enables them to create, host, and operate their own Blockchain applications and related functionalities.
The Blockchain as a service business model is considered to be a remarkable invention as Blockchain technology expands far beyond its most popular applications in cryptocurrency and can extensively be used for all kinds of transactions at minimal costs. Blockchain-as-a-service enables businesses to utilize Blockchain technology without the need for investing in an in-house team. BaaS acts like a kind of web host, running the back-end operation for Blockchain app development services. It also provides support activities like suitable allocation of resources, bandwidth management, data security features hosting requirements, etc. Thus, Blockchain Service Providers with the help of BaaS model can access the Blockchain services from the cloud and develop the blockchain application in a minimum cost.
Today, the giants like Microsoft, Amazon, PayStand, and R3 are known to be the best BaaS providers across the globe.

Applications and Characteristics of Blockchain-as-a-Service!

Decentralization
Here, decentralization means transferring the control over data and related decisions from a centralized authority to a distributed network. Usually, most of the data is stored in local devices and computers and single entities monitor them. In case the employees are unavailable or those devices are shut down, accessing or restoring the data in real-time becomes tedious. In such cases, Blockchain is quite useful. It has a distributed ledger database where the data is stored in blocks. Here, data isn’t managed by any single node due to which other nodes too can access and control the data even if any single node isn’t working.
Smart Contracts
A smart contract is a contract where some particular conditions and situations are specified for the automatic execution of predefined tasks. These are programmed in such a manner that actions are taken automatically when the related terms of the agreements are performed. All this drastically reduces the requirement of intermediaries, enhances the speed of execution, makes the transactions cost-effective, and more reliable, and secure.
Smart contracts are employed in several applications like voting systems, supply chain management, healthcare data processing, payment and rent agreements, identity access, personal information access, intellectual property rights understanding, royalty distribution agreement, etc.
Traceability
All the data is stored and can be accessed publically in a Blockchain system, allowing everyone to view it and make modifications to it for ensuring no false data is used. But, the whole process is governed by Blockchain consensus algorithms. Due to this, without the permission of all other participants, no one can make any alterations. Also, nodes are used for recording every single action taken. Thus, traceability is ensured resulting in effective communication and improved business relationships.
Transparency
Along with traceability, Blockchain app development services also ensure transparency in the business processes. Since Blockchain is unchangeable in nature, the data in the blocks can’t be added, modified, or eliminated anonymously. Also, it is possible to track everything in real-time due to the distributed ledger technology. All this ensures accountability, gains the trust of the clients, and thus, improves business relationships.
Data Security and Privacy
As explained earlier, all the data and content is open, accessible publically, and encrypted. However, only the users that are approved by the node manager can access the content and modify it. This property of Blockchain leads to high security and privacy of data from those outside the complete system.
Cases of data breaches and hacking crimes are on the rise and Blockchain’s security feature can tackle this problem completely. It applies several cryptographic techniques, hash keys, Merkle trees, etc. making it highly difficult to revise or steal the data. Besides, projects like Eximchain and Signal have been developed to ensure seamless and secure business communication and transactions.

Pros and Cons of Baas

Pros:
  • Ease of use due to availability of ready-made customizable templates and modules.
  • Outsourcing tasks like operations, implementation, and maintenance to the BaaS partner greatly helps in reducing the operational cost to a large extent.
  • Focused on customization
  • High security and protection from frauds
  • Owing to customizable modules and templates that BaaS provides, there is an ease of use in developing Blockchain systems.
Cons:
  • Possibility of service disruption. Issues in business continuity in case the service provider goes bankrupt
  • Low control and visibility of the owners due to dependency on BaaS service providers
  • Challenges in data compliance
  • Still in infancy. Businesses do not have in-depth knowledge of how it works. Also, finding adept Blockchain app developers is quite difficult.
 

Wrap-up:

World is witnessing emergence of various Blockchain service providers at a fast pace. Blockchain app development and BaaS solution for business are impacting numerous industries like Information Technology, Insurance, Healthcare, eCommerce, Entertainment industry, Advertising, Retail, Finance Industry, Cloud Computing, Energy, Government Projects, etc. with a wide range of applications. These are promising offerings that can revolutionize business functions and help organizations gain a competitive advantage. Adoption of Blockchain app development services can provide businesses of all categories an opportunity to emerge as a leader and pioneer amongst their peers. The organizations leveraging this technology are sure to bring a paradigm shift in the way they deal with data and perform several business transactions.
Our blog ends here.
Do you have more thoughts and experiences on this futuristic technology to share with us? Let us know in the comments section.