In recent years, blockchain has become a “boom” among developers and businesses looking to streamline operations, ensure security, and improve visibility. But there are a lot of misunderstandings or ambiguities about blockchain benefits, use cases, and categories. In this article, VNEXT Global, a top blockchain development company in Vietnam, will dive into what blockchain is, benefits of blockchain development, applications of blockchain in different industries, and more.
What is blockchain development?
Blockchain development is the process of building a shared, immutable distributed ledger technology (DLT) that safely records transactions and tracks assets inside a network, whether those assets are actual, like money or real estate, or nonphysical, like copyrights.
Because it makes information transmission possible so rapidly, accurately, and securely, it is useful for a wide range of sectors. For members of a permissioned network, a blockchain network offers transparent delivery and storage regardless of whether you're tracking orders, accounts, payments, production, or other data.
The emergence of blockchain technology has a number of advantages, but you must first comprehend it in order to take advantage of its potential.
Why is blockchain development important?
Implementing enterprise blockchain solutions can provide the following advantages for businesses and the freelance developers that work for them:
- The network must validate transactions as they happen, which means that everyone must concur that the data associated with the transaction, notably the hash, is accurate and, as a result, the transaction is valid. This increases transparency. All network participants can thus see the complete history of each transaction within the distributed ledger. The information is always correct, secure, and transparent to every member because any change to one record affects all subsequent records.
- Reduced risk of fraud: Regardless of what a corporation buys or sells, transactional histories can be complicated, especially if an asset is transferred regularly between different owners or locations. When all of the information is stored on a blockchain, you have immediate access to a thorough audit trail that provides insight into an asset's past. The blockchain's prior, unalterable records of transactions deter fraud and confirm authenticity.
- Increased speed and efficiency: You're probably squandering valuable time that you should be using for higher-value tasks if you're still handling transactional records manually, using obsolete techniques like paper documents, spreadsheets, or third-party systems. These archaic procedures are prone to error and demand time-consuming duplicating work to ensure accuracy. Blockchain streamlines and automates the procedure, removing workflow bottlenecks and guaranteeing that everyone is using the same, current ledger.
- Cost savings: Cutting back on wasteful spending can promote faster growth and improve your bottom line. Without compromising accuracy and trust, blockchain eliminates the need for other third-party middlemen. By reaching a consensus, network users check everything, saving you the time it would take to carefully read through trade documentation.
What are blockchain applications in different industries?
In the digital era, especially during and after the pandemic Covid 19, the healthcare industry worldwide has been facing numerous problems, some of which are
- Ineffective interoperability
- Counterfeit drugs
- Data management in clinical trial
The Covid-19 pandemic has caused a number of emerging ideas in the healthcare sector, including blockchain-based electronic health records (EHR), telehealth, artificial intelligence (AI), 3D printing, and others. Therefore, blockchain serves as a viable technology that can address a number of issues in healthcare, such as:
- Identifying patients and sharing information with them using blockchain-based healthcare solutions
- Integrating blockchain technology with mobile apps for drug tracing
- Managing clinical trials in the healthcare industry using blockchain-based technologies
Nowadays, more and more people utilize online purchases. Thanks to the development of e-commerce, especially global e-commerce platforms such as Shopee and Lazada, commodities have been transported worldwide with faster time and larger numbers. However, supply chain management involving digitalization has had many significant problems such as:
- Ineffective data management
- Lack of synchronous in systems among parties
- The lack of resiliency and process automation
- Integrated transport and logistics operations
During and after the pandemic Covid 19, blockchain has assisted logistics industries to validate history of ownership, custody and origin of a specific product instance such as a lot, a batch, or a serial number. It also applies to a pallet which may contain more than one product as well.
- Quick and exact provenance
- Online payment and invoicing
- Digital documentation
- Efficient identity management
- Global-spreaded logistics marketplace
Online payment or e-wallet are not the only applications of blockchain in finance. In other words, blockchain is one of the most significant factors when mentioning finance in recent years. This is because it aids finance in:
- Cross-border transactions
- Trade finance platforms
- Clearing and settlements
- Digital identity verification
- Credit reporting
The Covid-19 pandemic has sharply changed education. The traditional education has been replaced by online, virtual classes and lessons. However, any evolution, in nature, must face a lot of challenges. Digitized education is now facing many obstacles, some of which are:
- Ineffective methods of recordkeeping
- Insufficient ways to establish teacher-student accountability
- Methods for monitoring learners' ineffective performance
- Management issues with transcripts
In the changing world, blockchain technologies have proved their important role in education via a lot of solutions, helping learning and teaching activities to continue smoothly. Some significant blockchain-based applications in education are:
- A thorough and open record-keeping process
- Smart contracts improve the responsibility of students
- Platform for file storage and partnerships
- Smooth payments
- Copyright and digital rights protection
4 types of blockchain network development
Public blockchain network
A public blockchain, like the one used by Bitcoin, is one that anybody may join and use. Potential drawbacks include the need for a lot of computational power, a lack of privacy for transactions, and shoddy security. These are crucial factors to take into account for blockchain use cases in businesses.
Private blockchain network
A decentralized peer-to-peer network, a private blockchain network is analogous to a public blockchain network. A single organization, however, controls the network's governance, executing a consensus procedure and managing the shared ledger. Depending on the use case, this can greatly increase participant confidence and trust. Running a private blockchain behind a company firewall and even hosting it on-site are also options.
Permissioned blockchain network
Businesses that create a private blockchain typically create a network that is permissioned. It's crucial to remember that public blockchain networks can have permissions as well. As a result, there are limitations on which transactions and who can participate in the network. To participate, participants must get an invitation or authorization.
A blockchain's maintenance might be split across several companies. Who is permitted to submit transactions or access the data is decided by these pre-selected organizations. When everyone involved in a business transaction needs to have permissions and share ownership of the blockchain, a consortium blockchain is the best option.
Blockchain, in short, is a crucial element of all industries in this digital era. Your business, in both long-term and short-term, should carefully prepare blockchain development resources as a core growth strategy to stay competitive and sustainable.
If you are looking for a trusted IT blockchain development company, VNEXT Global is the ideal choice. With 14+ years of experience, we surely can help you to optimize your business digitalization within a small budget and short time. Currently, we have 400+ IT consultants and developers in Mobile App, Web App, System, Blockchain Development and Testing Services. We have provided solutions to 600+ projects in several industries for clients worldwide. We are willing to become a companion on your way to success. Please tell us when is convenient for you to have an online meeting to discuss this further. Have a nice day!