Blockchain is cryptocurrency’s underlying technology; at least, that’s how most individuals know it. But blockchain’s tamper-proof manner of recording transactions has surpassed the cryptocurrency’s sphere, coming into use by several industries and companies, including giants like Microsoft, IBM, and Walmart. Some of the many upsides of blockchain for businesses include enhanced system security, transparent transactions, and much time and cost saving. Software development greatly benefits from this technology that’s increasingly used to design immutable audit trails and improve data consistency and accuracy.
So, it becomes evident that it’s not only about digital currency. Blockchain technology is far more than looking to buy Bitcoin on a reliable platform after analysing the BTC price for once (although it has a special merit in this sense) – it’s about decentralisation, security, and trust. This technology refers to a decentralised ledger system that stores information electronically, structuring it into “blocks”. Every block comprises encrypted transactions and other types of data that connect it with the prior block in the chain. This makes it suitable for any industry, including healthcare and finance. Some of the areas benefiting from blockchain technology are eCommerce, manufacturing, logistics, retail, and supply chain management.
Software development is the area we’ll be focusing on, so read on:
Is blockchain beneficial for software development?
The high security of blockchain makes it an ideal technology for storing information in transparent ledgers and traversing data in peer-to-peer networks. An ever-increasing number of mobile applications has made their way into the market, and for them to function irreproachable, there’s a need for top-notch security. This is where blockchain comes into play. It allows for numerous blockchain-oriented apps to be used by people from all around the globe.
The primary characteristics of blockchain-oriented software systems (BOS) that support data security are:
- BOS engineering
- Public-key cryptography. Cryptography encompasses a system that uses pairs of private and public keys. Transactions on blockchains are based on public keys, so the need for securing these keys has never been greater.
- Requirement checks. BOS has the role of verifying the transaction requirements before validation processing happens.
- Transaction recording. A consensus algorithm creates a sequential log of intertwined blocks that BOS further records.
- Data replication. BOS ensures all data is safely stored and replicated in the blockchain’s thousands of systems.
Is blockchain safe in software development?
This technology’s immutable and secure character makes it safe for software development. One of the most significant advantages of blockchain, as well as cryptocurrency, is that they don’t rely on a third-party intermediary to validate transactions, so developers can proceed with designing blockchain-oriented applications without depending on a financial or governmental institution. This also reduces the risk of theft or hacking, enhancing customer trust. In other words, blockchain is safe to use – and it should be so – in software development.
How is blockchain used in software development?
Blockchain technology can record all aspects of the sometimes-complicated software development lifecycle: from code development to contract signing. One of the primary benefits of this technology is that it allows for transparency at all levels. Everyone will have a full picture of the changes, the individuals who made them, and the time and manner they were made. With everyone involved in the process knowing about any updates or modifications made, uncertainty and disputes are less likely to occur.
Software development companies can benefit from blockchain technology in the following ways:
- Smart contracts
- Supply chain management and logistics
- DApps (distributed apps)
- International money transfer
- Safe sharing of medical information
- IoT applications
- Real estate processing
- NFT sales
- Personal identity management
In the case of NFT sales, for example, blockchain technology ensures top-notch security and full control over assets among entrepreneurs and creators. NFT sales are flourishing year after year; they surpassed 1.2 billion dollars in July 2021 alone. Surprisingly or not, most of this amount came from the ever-rising request for blockchain online games.
The truth is that NFTs are a special type of digital assets, as they’re defined by uniqueness. Unlike virtual coins (BTC, ETH, DOGE, etc.), NFTs can’t be replaced with other NFTs and can’t be copied by something else, and that’s where “non-fungible” comes from. The best examples of NFTs include GIFs, in-game items like those from Axie Infinity and The Sandbox, digital art, music, tweets (Jack Dorsey’s first tweet was sold for no less than $2.9 million), real estate, digital sneakers, etc. With advanced blockchain technology in place, content creators have total control over their content and a clear picture of their permissions and rights.
DApps, on the other hand, are applications distributed on a peer-to-peer network. Their backend code can’t run on a centralised server, but the user interface and front-end code can. Ethereum is the first-ever blockchain platform to use dApps powered by smart contracts. Due to these smart contracts, developers can design, run, and program autonomous and unchangeable applications on the EVM (Ethereum Virtual Machine).
Significance of blockchain for software engineering
Blockchain has proved incredibly valuable for software development and all related processes, including software engineering. This technology helps with everything from planning and creating software to testing and maintaining it. Blockchain and software engineering have become a sort of partners, as the former highly benefits the latter. Besides cutting costs, blockchain enhances systems’ accountability, transparency, and speed.
Application of blockchain in software engineering
Blockchain undoubtedly has a recognized merit in changing how digital data are stored and shared. It entered the software development area slowly but surely, making related processes much easier and safer. In software engineering, for example, it has led to numerous breakthroughs, such as;
- Accountability and transparency – one of the most compelling characteristics of this technology
- Peer-to-peer technology – intermediaries are a thing of the past since people can transact directly with one another utilising a decentralised ledger system
- Cost transaction – since there’s no need for a third party to validate or confirm transactions, running a blockchain-based system is more reasonable than ever
- Data integrity
- Well-established transaction records
- Data replication and distribution
