How Blockchain Development is Transforming the Future of Businesses

Financial transactions have always been the core of all types of businesses. Ultimately, all businesses strive for better revenue and ROI. This makes improvements in financial transactions one of the crucial aims of technology advancements. Blockchain development is one such technological shift that will make the future of businesses through its various applications. 

Before we discuss what new blockchain developers are doing to transform businesses and build the future, let’s first try to understand blockchain technology.

Why Blockchain?

Blockchain is an advanced distributed, decentralized ledger. Transparency and security are the pillars of blockchain-based systems. So, blockchain technology is largely used to develop robust networks or applications. Various industries are leveraging the technology to build transparent systems that offer accountability.

Finance is one such industry that started leveraging blockchain in the earliest stages of this technology. Finance is not just an industry, it is also an important part of every business. So, a trend that pushes growth in the finance industry, governs the future of businesses, worldwide. FinTech has thus been a major determinant of business success, and more so now as the financial sector is embracing blockchain.

Let us see how businesses and their users are gradually becoming a part of this huge and emerging trend.

Suggested Reading: Applications of Blockchain Technology in 8 Major Industries

How Blockchain Is Revolutionizing How We Transact

Blockchain is already becoming a part of banking and finance systems. Smart Contracts are the most famous applications of blockchain technology worldwide. However, here we will discuss how blockchain is delving into areas that could not have been imagined without this technology. 

ICO

Capital raising is a very crucial aspect for startups. As the currency is also going digital, Initial Coin Offering has emerged as the digital fund-raising alternative to conventional capital raising. Blockchain-based networks give ICOs all the required programmability, transparency, trustability, efficiency, and a lot more, that helps businesses.

After set up, fund-raising through ICO is easier to manage compared to conventional means. The best ICO companies offer end-to-end solutions with support to businesses who want to go for capital raising and do not have any prior experience with it. So, startups are embracing the ICO trend. 

ICO makes it easy for the new-age businesses to take benefit of the digital systems in fund-raising. Issuing of tokens, and token management is digital, where the businesses and their investors transact through a secured platform. As the system is based on blockchain, immutability is assured.

This is not all! ICO specialists are largely offering networking, marketing, and community management services as well, due to their strong connections in the market. So, businesses hiring ICO services for their capital raising can reach out to trustworthy and productive circles, increasing the possibility of excellent outcomes.

Startups are welcoming the ICO trend which helps them reach out to potential investors who are also showing inclination towards digital transformation. In addition to the above, the networks of the top ICO companies benefit startups that are new in the market and have no capacity to approach investor circles.

Challenges With ICO Development

There are numerous benefits of ICOs as fund-raising alternatives. However, like anything else, even ICOs have their share of challenges. 

Trust: Many businesses have adopted cryptocurrencies while some are still resistant as they are not able to build their trust in this domain. Some businesses also believe that conventional systems have been successful for a long time and so they continue to use the same. Blockchain developers and ICO professionals will have to present their grade cards to prove their success in attracting more and more businesses and making them adopt ICO.

Statutory Compliance: The legal and statutory compliance regulations are nascent, though they are being developed at a fast pace globally. We can gradually expect the ICO trend to take over, as a large number of businesses are opting for it. The hurdles will slowly be overcome and we can expect ICOs to be the future of fund-raising.

Costs: Blockchain development, dealing with cryptocurrency, and going further to launch ICO require expenditure on various tools, technology, and skilled professionals. Businesses must have the awareness and assurance of outcomes to be willing to accept that the costs will turn into ROI. In the future, as blockchain and ICOs have already taken over the market, and the problems and challenges with these are settled with experience, the costs can be managed better. 

Suggested Reading: Blockchain Development - Trends and Technology

Private Blockchain

Businesses are increasingly adopting private blockchain networks because such networks offer higher transparency, security, and only authorized access. The network tracks all the activities and flags any doubtful transactions while notifying the participants about any such threats.

Private blockchains allow more control with permission access only to authorized participants. Many organizations are going for such networks as they want to build their businesses on a strong network backbone. 

Challenges With Private Blockchain 

Private blockchain networks also pose challenges for businesses.

Standardization: Private blockchain networks configured specifically for business needs. So, such networks are not easy to integrate with other networks, if required at any stage. 

Inside Attacks: Private blockchain networks are restricted to authorized users only and so they are perceived to be secure. However, hackers can still intrude through the participants or their vulnerable channels. The participants also can access sensitive information on the network, so security is still a challenge. 

Scalability: Private blockchain networks, customized to certain requirements and configurations, at times become so rigid that they are difficult to scale.  

Expense: There are various types of costs associated with private blockchain networks. Initially the cost of development and set up of these networks is very high. Further, maintenance is very costly. So, businesses who have the financial capacity to deal with the cost challenges go for such networks.   

Cryptocurrency Exchange Development

Cryptocurrency exchanges are platforms for cryptocurrency trading, as we have conventional trading exchanges for regular stock trading. Crypto exchanges are blockchain-based platforms that are secure and transparent means for buyers and sellers to engage in trading. 

Cryptocurrency exchange development is a high-demand area for blockchain developers and offers lucrative opportunities with the growing cryptocurrency trading trends. Technology advancement is offering opportunities for building efficient, safe, trustworthy, and robust blockchain-based crypto-exchanges.  

Cryptocurrency exchange development is lucrative for developers who have the right skills and experience with blockchain and crypto development. Various cryptocurrency clone scripts are also available in the market that make the job of developers easy. However, customized cryptocurrency exchange development is in high demand as it caters to specific requirements.

Challenges With Cryptocurrency Exchange

Development: Starting with the initial development, cryptocurrency exchanges are not easy to develop or maintain. Blockchain technology as well as cryptocurrency is going through so much advancement in trends that it is very difficult to identify and learn the best framework or tools suitable for your needs. The developers are also comparatively inexperienced as the domain itself is new. 

Maintenance: Post-development maintenance and security assurance in cryptocurrency exchange development is not easy. However, as it deals with the trading of digital assets, security is a grave consideration for cryptocurrency exchanges. If the users can’t trust the network, the business through it will be affected. The possibility of hacking and cyber-attacks has to be completely annulled to make the network trustworthy, which is not possible with any digital systems. 

Regulatory Compliance: Cryptocurrency exchanges are going through a transformation, including the regulations and compliance requirements that are added very speedily by regulatory authorities. It is a challenge to keep updated about these and implement them time and again. Any negligence or miss-out on this front can lead to serious legal complications. 

Tools & Technologies in Blockchain Development

Blockchain developers now have advanced tools and technologies for developing complex projects. The popular blockchain development platforms are helping blockchain developers take up lucrative projects. 

Ethereum, a decentralized blockchain, is gaining popularity among blockchain developers. Ethereum developers are experimenting with high-level applications such as Decentralized Finance (DeFi), Non-fungible tokens, etc. 

Suggested Reading: Ethereum Development Insights for Blockchain Application Developers

There are many such solutions, frameworks, tools, and resources for blockchain application development. Let us discuss another example.

Hyperledger is an umbrella project of open-source blockchains. There are various hyperledger projects worldwide that are expected to bring some revolutionary development in this field. The craving for innovation in blockchain is also seen worldwide and businesses are trying their best to take advantage of the trend. Hyperledger developers are also taking benefit of the growing community and trying to go beyond the basics and explore further opportunities in blockchain application development.  

The technological advancement in blockchain development is growing at a fast pace, and the number, as well as the quality of tools and technologies, will improve considerably in the future. So, blockchain development is not just lucrative, but a preferred domain for FinTech developers as they can expect a lot of business with innovation in the future. 

A variety of tools and technology are also a challenge for beginners in blockchain development. They will have to learn and master many, to identify the one that fits best into their project. So, businesses going for advanced projects must prefer developers with knowledge of different tools, and those who have worked on a variety of projects. 

Wrapping Up!

Blockchain technology is delving into various industries, becoming a part of human lives like never before. Money and currency have for long been the core means of b2b or b2c transactions. However, as everything is going digital now, so is currency! This blog discusses cryptocurrency, its applications, and how the systems are changing for adopting cryptocurrency.  

Previously the stock-trading and fund-raising domains were ruled by conventional currencies while now the trend is shifting towards digital cryptocurrency. So, the means of transaction or trading are also going digital. As a result, cryptocurrency exchange development, ICO, and private blockchains are some lucrative areas that blockchain developers are trying to explore and master. In summary, the top blockchain developers will rule the tech world!