How Blockchain is going to Change the Software Industry?
Blockchain is expected to transform the software industry as an efficient and secure technology. However, most people are only aware of its use in “cryptocurrencies,” which is just a product of blockchain technology. Blockchain is far more valuable and expected to disrupt major sectors in the near future.
According to Grand View Research, Transparency Market Research, the market size for blockchain technology is expected to reach $7.59 billion by 2024. This growth is attributed to increased technology demand across different industries and sectors, including software. Let’s find out what’s driving this change.
What is Blockchain?
Blockchain is a technology that offers to record data through a decentralized database. These records are maintained in a ledger and are unchangeable as they are shared across nodes in the network in different geographical locations. Even if a record is altered on one node, it won’t affect the information on other nodes.
Benefits of Blockchain in the Software Industry
Blockchain is being used to transform business processes across sectors like financial services, health care, retail, and software, among others owing to its many benefits.
It increases speed and traceability for organizations while reducing costs. Since the cornerstone of blockchain technology is decentralization, it promotes trust and transparency of data. These are some of the ways Blockchain benefits businesses:
Removes Control over Data
Blockchain removes the control of one single entity, organization, or group over the data. Since the information is shared across nodes on the network, the power to hold data does not lie with one entity.
Increased Transparency
Any transaction recorded on the blockchain is immutable. No changes can be made to the record once it is entered into the network. It is permanent and visible to anyone on the network.
Improves Data Security
Lastly, the biggest benefit of blockchain is the trust guaranteed by the system. Since the records are unchangeable and spread across the nodes, there is little chance of forging transactions.
How will it disrupt the Software Industry?
As blockchain technology speeds up, various avenues are expected to open up for software developers. Most systems will shift to blockchain for reliability, trust, and transparency.
In block-chain oriented software systems (BOS), data safety is ensured through:
Data Replication
Each node on the network has a copy of the data and the blockchain code. This data replication promotes data security, making it impossible for anyone to make any changes.
Transaction Recording
Transactions using BOS are recorded in a sequence of interlinked blocks created by a consensus algorithm.
Requirement Check
BOS checks the transaction requirements before it processes them for validation.
Public-Key Cryptography
All transactions are enabled through pub-key cryptography, which further secures transactions by using pairs of public and private keys.
Sectors like gaming, supply chain, oil and gas, and financial institutions are already using block-chain enabled systems and software. It has helped improve processes, offers identity verification, removes data duplication, reduces costs associated with paperwork, and removes time constraints.
Wrapping Up
Blockchain is growing rapidly and reshaping the software industry. One of its widespread uses will be in the use of smart contracts. With more companies across different industries developing software using blockchain technology, it will become a major reckoning force. This technology can potentially change businesses and the lives of end-users by adding value and offering convenience.