Technology now allows us to store data in previously impossible ways and significantly improve current systems. Currently, most data storage platforms function similarly to Microsoft Word documents where you write the necessary information in your document, send it to your colleague for their input, and wait for them to send it back to you. However, this can often be a time-consuming process since you’re unable to make any changes while the document is with your colleague. This process is similar to how many institutions, such as banks, operate. They lock access to perform a transfer and wait for the other end to update it before reopening access to data.
Luckily, blockchain technology offers a quicker and more streamlined process, functioning a lot like Google Docs where several users can access the document and make changes simultaneously, thus eliminating those periods of waiting and inactivity, enhancing security, and improving efficiency.
How Blockchain Technology Can Help
- Tracking changesAs explained above, blockchain technology allows for multiple users to work on the same document at the same time, but it also synchronizes data, captures updates, and logs different versions, ensuring access to old changes and edits. That way, no one loses track of any changes while also allowing them to go back and take the information they need from previous versions.
- Increased securityCurrently, most data is stored electronically through the cloud or on private servers, which can be vulnerable to increasingly sophisticated hacking attempts where individuals can break into a server and release sensitive information to the public or other hackers. Fortunately, blockchain technology is designed to add more protection to computer systems, shielding them from attacks and reducing the chances of severe data breaches. Blockchain technology has made custom software solutions more secure and better than ever, helping companies develop top-tier digital products with high levels of protection and a better user experience
How Blockchain Technology Works
Blockchain technology depends on three components, which software development companies focus on balancing for optimal performance.
- DecentralizationDecentralization is the most important component in blockchain technology because it ensures that there is no primary node that is in charge of making decisions in a blockchain system. That means users can work independently while collaborating in one network. This feature prevents a third party from making transactions or requiring another institution’s approval to perform one. It accelerates the process, reduces costs, and establishes a higher level of trust among users.
- SecurityThe digital solution must be trustworthy enough for people to use it and feel confident that their data won’t be lost or leaked due to a vulnerable system. Such protection comes in different forms. For example, a notable cryptocurrency uses crypto wallets with a digital address to facilitate safe and private transactions. Blockchain is also more secure because it prohibits any changes to the blocks in a system, ensuring it stays stable and reliable. Nevertheless, each network architecture has its benefits and tradeoffs and so a blockchain network is only as secure as its infrastructure.
- ScalabilityThis component determines the ability of a blockchain to expand its capacity and improve its performance. Scalability must be high enough so that the system remains steady, maintains an excellent performance level, and continues growing while increasing the load it can support.
How Blockchain Differs from General Apps
The main difference between general apps and blockchain technology is the back-end, which use a different kind of database with a peer-to-peer connection, are decentralized, and are more secure. However, these components also require software developers to build unique back-end architectures which usually require more time to develop and launch.
Blockchain technology offers more security and convenience than general apps, making it the technology of choice for custom software development. By exploring what blockchain technology has to offer, you can create high-performing applications that will generate more revenue and recognition for your business.
Ascent Core provides custom programming services and software solutions in a broad cross-section of industries. We empower companies to scale, disrupt, and accelerate by architecting new products and redesigning existing ones. Contact us today to find out more about what we can do for you!