The blockchain technology that was envisioned to disrupt the current business enterprises at a staggering rate has been witnessing some resistance from the business owners. It is because there are few bottlenecks that prevent blockchain from becoming the digital backbone of the organizations.
By overcoming these challenges developers can re-kindle their hopes on this technology once again. Let shed some light on those challenges.
Biggest barriers to blockchain adoption
( Image: fao.org)
Rising numbers of blockchain user, investors, tokens, and startups the blockchain is facing serious issues with scalability. Bitcoin blocks were originally hard-capped at 1MB or around 2,020 transactions, but in reality, the market demand is for infinite numbers. Besides, that bitcoin can handle only 3 or 4 transactions per second. For full-scale blockchain operations ( between consumer and business), it should be able to process hundreds or thousands of transactions per second. Even ethereum can only handle 15 transactions per second. One way to deal with this issue is to increase the block in the chain, but there is one more obstacle. It could become an expensive affair for blockchain users with more blocks and less transaction speed; the whole idea of decentralization would become meaningless.
2) Legal and compliance issue
Blockchain resides on a computer or nodes located anywhere in the world. It does not fall under any jurisdiction boundary; if there is any fraud, there is no one you can blame. Take bank example, if your cheque bounces, the bank is liable to answer you. It can even take action against the defaulter. Here there is no governing law and jurisdiction to determine the rights and obligations of the user.
3) Network speed and transaction cost
Network nodes store the UTXO database in RAM, and naturally, RAM is a limited resource. As the database grows, it becomes more expensive to maintain. Bitcoin can handle approximately 60 transactions per second, which is very less when compared to Visas 47000 transactions per second. In order to match Visa speed or any fiat currency, the transaction speed needs to be improved. To handle more users and more transactions, more nodes are required to process them. And maintaining and running those nodes are not cheaper. On top of that, transaction fees levied by miners could escalate with more users.
4) Immutable data
A blockchain is immutable. It means that we cannot correct the mistake if there is any. It can only be fixed by adding another block to the chain with the agreement of all the participants. It can be a time-consuming and expensive process. One cannot wholly deny human error while updating blockchain data, and the risk of wrong interpretation of data stays with Blockchain.
5) Lack of professionals
In the midst of the controversy about blockchain viability, a released by LinkedIn suggests that the blockchain is one of the top 10 most in-demand hard skills in 2020. But it is also true that blockchain positions remain unfilled as there is a shortage of qualified IT workers.
6) ICO (Initial Coin Offerings) investment
Though ICO is envisaged as a future investment, there is a lot of risks associated with it. Currently, it is unregulated. Investing in an ICO is risky whether you choose an Ethereum ICO or a Bitcoin ICO. Also, if some fraud or scam takes place, there is no authenticated regulatory body to conduct the investigations. Also, the existing regulations don’t cover blockchain smart contracts. It could inhibit investment in blockchain, which eventually prevents the rolling of blockchain technology in the real world at his full capacity.
7) Illegal Trading
If blockchain ensures secure transactions without relying on the third party, it also opens the gate for illegal trading. “Silk Route” is the best example of it. The website enables users to browse the site without being tracked and make illegal purchases in bitcoins. There are no defined rules in the system to prevent or monitor such unlawful trading.
8) Protecting IP ( Intellectual Property)
One area that shows the clear application of Blockchain is towards IP property ( Copyright) Currently, you can find owner names, registration dates, and titles in the Copyright Office online records. But not about what is actually registered without going to the Copyright Office. This could be solved by blockchain. Some countries’ jurisdictional courts are positive about the blockchain significance in protecting IP. However, it will take a long time for its full-fledged adoption in law. Also, due to slow ticking transaction processes in Blockchain, IP experts will still be required for legal matters and examinations. One of the major concerns with blockchain is copyright information that was entered incorrectly.
9) Smart contract limitations
In some scenarios defining smart-contract would be difficult. For example, to define rules to pay insurance to the farmers on the failure of crops owing to excess rain or drought. The smart contract would collect weather data and plant growth information, and based on that, they will pay out the insurance amount. The data in the smart contract are immutable, so the question is whether the data gathered would be accurate. Also, for highly populated countries, would it be feasible to pay a large number of farmers through blockchain.
10) Blockchain Interoperability
One might not charge Apple phone with a Samsung charger or vice versa because their chargers are designed for specific devices. Similarly, each blockchain provider has a specific language and rule that could work only for that particular platform or blockchain. Like Bitcoin cannot work in Ethereum or Ethereum cannot work in Ripple and so on. For consumers, the blockchain could add meaning if these blockchain starts talking with each other. The businesses that are residing on the different platforms can share all their documents or info easily without worrying about the platform’s building blocks.
11) Blockchain audit
Traditional audit methods use readily-available, historic data ledger, or audit trails. Blockchain environments are real-time and do not supply historic ledgers that allow for audit.
Blockchain is a revolutionary technology. We live in an era where cybersecurity has become a crucial challenge for personal, corporate, and national security.
Two of the most vital qualities of blockchain technology are:
Why can Blockchain Technology not be hacked?
There are various reasons which make blockchain technology immune to hackers. Let’s have a look at some of them below:
Blockchain technology is an integrated network of different techniques combined to deliver applications and results. It is an open code technology that can be customized in distinct formats. The core of blockchain technology is a decentralized digital ledger of transactions, however its details keep on varying. These transactions are further verified in the best possible way for a particular blockchain application.
Conclusion: Is Blockchain Safe?
Making changes to a blockchain is next to impossible once a transaction has been sealed into a block and added to the Blockchain.
You would need to reverse engineer the hashed block and modify the transaction data over at least 51% of the copies of the ledger held on various nodes. This makes it practically impossible to ‘hack’ a Blockchain.
C++ is one of the most popular programming languages which is known to retain its superiority even in the blockchain technology. You would be amazed to know that the first even implementation of blockchain was written in C++ languages, initially. It offers you complete control over advanced multi-threading capabilities, memory, core object-oriented features, and move semantics.
Who doesn’t know about Java? It is one of the oldest programming languages which is also used in . It is more like C++ in terms of the object-oriented approach. Programs written in Java language are portable across different computational devices.
Blockchain Technology is assumed to cover a lot of industries in the future, and Digital Marketing is one of them. We already know that the most significant aspect of blockchain is that it enables decentralized communication between various parties. Moreover, and every aspect of this technology is documented and verified. Both of these facts could help blockchain accelerate the digital marketing domain.
Let’s have a look at some of the collective points about how blockchain technology could help in digital marketing.
In digital marketing, there is a “Middleman” involved, who monitors the territory between the advertisers and users. However, by leveraging blockchain technology, the need for this ‘Middleman’ can be eliminated. This process would save not only your time but also the capital, and would also increase your efficiency to focus towards other goals.
For instance, let’s consider the process of SEM, where websites might choose to display Google ads. Google also controls the processing of transactions so that the website owner is paid relatively for clicks generated on the advertiser’s ad. Google serves as the middleman between the advertiser and the website owner here and takes a cut of the profits.
In the same situation utilizing blockchain technology websites would directly be validated and verified without involving Google. The advertisers would know the exact amount they are paying for genuine clicks, and site owners can also ensure that they are getting paid fairly.
All these processes would result in a reduction in extra costs and an increase in the profit margin of your marketing campaign.
One of the major problems faced by enterprises today is trust in consumers.
The consumers are becoming more skeptical in deciding what to choose from a variety of options available to them. Hence, the most challenging part for companies today is to gain trust through transparency and clarity. By implementing blockchain technology to their businesses, enterprises can provide central transparency to their clients and consumers. Another advantage of blockchain is that everything is extensively verified and documented.
The consumers can get a detailed outlook of all the processes taking place during production. This clarity helps the consumers to trust the brand for their future requirements.
CSR (Corporate Social Responsibility) is another critical term. The clarity and documentation of blockchain can be utilized to produce digitized contracts. These digital contracts could be kept open for the public to view and address the company accountable in case of deception.
The future of digital marketing could get the best by balancing advertising with identity concerns. We can identify many such services already in the market that allows users to manage their identity and transaction history, like uPort, MetaMask, and Keybase. Implementation of blockchain technology to the digital marketing campaigns enables the consumers to charge for their contact information and attention.
Conclusion: There are infinite possibilities for a digital marketer that is innovative and efficient to look for different alternatives for advertisements. Blockchain technology can be very beneficial to digital marketers as it helps acquire more customers at a lower cost. Apart from digital marketing, blockchain technology will agitate multiple industries in the coming years. By implementing this technology, the concept of middleman can be thoroughly removed by allowing different players to collaborate through smart contracts.
Several organizations have already started leveraging blockchain technology to increase transparency and reduce friction.
Not just well-established but startups have also planning to invest in the . Many people have this misperception that blockchain technology is only ideal for well-established organizations. But that is not the case. They are several good reasons for startups to invest in blockchain technology. Let’s discuss some reasons why a startup should use blockchain technology.
How to raise capital is one of the biggest challenges faced by startup organizations. The blockchain technology works as a life-saver for startup businesses to gain access to the capital and that too without any restrictions. It works in a way that gives the chance to organizations to raise funds for the idea only if digital currencies operate independently irrespective of geographic location.
One of the most important reasons why startups look to invest in blockchain technology is because of its accountable and transparent nature. All the transactions that are observed occur on a public ledger secured and encrypted and that too without even giving any authority to anyone to manipulate it. Since it is not possible for business owners to track each and every transaction, the blockchain technology allows them to validate the information.
When it comes to supply chain, blockchain technology helps startups immensely. The technology helps businesses to know about the vendor’s supplies. For example, if a product is not working, the business owner can know who was the original supplier using blockchain technology. Not just this, it can also help in attesting things like avoiding counterfeits parts and ethical sourcing.
So, these are some of the few reasons why startup organizations look to invest their time and money in blockchain technology. However, there are more such things as identity protection and fully automated legal agreements offered by blockchain that allow startups to use this technology. Not just this, . So, now you have plenty of reasons why being a business owner of a startup, you should look to go for blockchain technology.
On the cusp of technology evolution, the industries are experiencing a paradigm shift in their infrastructure and process handling. One technology that is persistently playing a prominent role in this transformation is “Blockchain Technology.”
Despite critics defaming it as one of the most overhyped technology and labeling it as “the new tech-bubble” it has emerged as the dark horse, and in the year 2020, it seems industries will be looking forward to adopting blockchain in their processes.
Blockchain is one type of distributed ledger. In other words, it is a type of database that is shared, replicated, and synchronized among the members of a decentralized network. Initially, blockchain technology was envisaged as the public transaction ledger for cryptocurrencies. But beside cryptocurrency, the profound attributes of it make Blockchain a strong contender to replace the traditional methods of how business processes or operations are conducted. Blockchain could fundamentally change the financial sector, manufacturing, government, and energy and a few others to add in the list.
Industries on Blockchain's Radar
Claim processing is a lengthy and complicated process. It requires the participation of several stakeholders and intermediaries before considering the claim request final and proceeding with the payment. This complicated process could bring to an end with Blockchain. By integrating all the stakeholders around a distributed ledger infrastructure and implementing the smart contracts for all necessary checks and verifications, the claim process can speed up including, calculation and validation of the amount to be paid.
The mobile phone or oven you use in house detours an entire supply chain cycle before it reaches you. A supply chain involves transporting the raw materials from a supplier to a manufacturer and eventually ends by dropping the final product to the customer. However, a traditional supply chain has certain drawbacks like a single shipment of goods involving around 20-30 people or organizations in the process. It may lead to unnecessary delays and complications. Blockchain can help avert unnecessary delays and disputes by preventing goods from getting stuck in the supply chain. The chances of misplacements become less as each product can be tracked in real-time. It also provides transparency in documenting the paperwork as everyone will be on the same page, and any discrepancies could be easily identified. Besides contributing to tracking orders, receipts, and payments, it helps to track digital assets such as warranties and licenses in a unified way.
Banking and Financial Sector
The modern banking system has embraced technology with their open hands. However, their key concern for cyber attacks cannot be overruled. In 2016, $81 million was stolen from the Bangladesh Central Bank through cyber-attack. After failing with all other security measures, it seems blockchain could be the answer to this. It can act as an armor against cyber attacks. The financial institutes can share security infrastructure to each other over blockchain, so all have robust and uniform security measures against cyber-attacks. All in the network can participate in enhancing security. Besides security, blockchain can also validate customer information like KYC in the most secure way and handle customers’ data on behalf of the entire financial ecosystem. The tampering of data in the blockchain is almost impossible, and 100% transparency in the transaction can be achieved. In fact, the speculations are made that Blockchain has the ability to replace the entire banking system someday.
( image source: pwc.com)
Did you know that a commercial aircraft is made up of 300,000 parts? If any of these parts are not in shape, it could lead to a life and death situation for travelers. With current technology, it is not possible to track each and every component. But blockchain can track the provenance of individual components and see the condition of these parts in real-time. The manufacturers can identify the deformities in the parts early-on and thus reduce the risk of mishaps. Note that they can even improve the product in their production plant to last longer. It will also help to reduce the cost of after-sale services. This is not just for aircrafts manufacturers; it could be applicable to any manufacturing industry, maybe its automotive, electronics, chemicals, textiles, and so on. However, there lies one challenge for manufacturers. They might have to overhaul their existing infrastructure, which may be a lengthy process.
As per one of the reports, the energy firms are observing the higher energy cost and increased revenues. To deal with this energy sector, it needs smart management and decentralized control. It even includes advanced communication and data exchanges between different parts of the power network. They have seen these possibilities within the blockchain technology. The early blockchain developers are establishing transactional digital platforms that can be completely decentralized and can enable P2P energy trading. It means consumers can interchange surplus energy to each other, pretty much like you share food with your neighbors. It can also generate automated billing for consumers and stand as a pay-as-you-go solution. Apart from this, with the help of artificial intelligence (AI), blockchain technology can identify consumer energy patterns and propose a value-added energy product provision. Energy grid laced with IoT and Blockchain could further help to reduce energy consumption, for instance, smart meters, advanced sensors, network monitoring equipment, etc.
( Image source: researchgate.net)
Blockchain has wide use cases in the Government sector. It can be used for building smart cities, central banking, payroll tax collection, validation of education and professional qualifications, tracking vaccinations, tracking loans and student grants, holding elections, etc. The Election Commission of India joined hands with the Indian Institute of Technology to create a blockchain system for voting. The new system enables Indians to vote even when they are away from their hometowns. It helps the government sector to eliminate tax fraud, bureaucracy, and confusing regulations.
Lack of innovation has least done to improve the overall health of the patient. The healthcare industry works more or less the same way as it used to work two decades ago. One of the grey areas of health care is unmanaged clinical data. Today, the patient data is found scattered all over the places such as labs, doctor’s clinics, pharmacies, and hospitals. There is no common record or place to find all detail with pin-point accuracy. During an emergency, the doctors have to turnover a stack of files to check the patient’s history and medication to proceed with the treatment. Any lapse in patient information could risk patient life. Also, patient’s detail all over the place could compromise their confidentiality. To manage healthcare data at one place securely and improve the life-span of patient Blockchain-based ecosystem is envisioned as the door to hope. One such example is UK based MEDICALCHAIN, which has developed a blockchain through which doctors, hospitals, and laboratories can all request patient information that has a record of the origin and protects the patient's identity from outside sources. One more example, more recently, amid the Coronavirus outbreak, the Chinese government has used blockchain technology to archive medical data, track the supply of virus prevention materials, and consult the public.
In the past, we have seen technologies complementing each other to enhance the end-user experience. It seems IoT and Blockchain have the same camaraderie. IoT’s ability to connect all your devices and to command them with a couple of sensors is incredible. However, the risk of data theft always remains with IoT. To this, Blockchain could be the solution. Pavo, the IoT & blockchain solution for the agricultural sector, believes that farmers can achieve optimal agricultural efficiency with it. The data gathered from Pavo’s IoT hardware device installed on farms gets stored on the blockchain in a secure environment. It allows farmers to optimize farming techniques by looking at the captured information, while retailers, distributors, and consumers can make informed decisions about buying a specific crop or food item. Also, the Pavo marketplace enables farmers to pre-sell crops through blockchain smart contracts, which means farmers don’t have to wait for payment after harvest. Just as blockchain, the IoT has a broad spectrum of industry for its usage. Together, they can impact logistics & supply chain, health care, pharmaceuticals, and so on.
Besides the above industries, Blockchain has shown a strong affinity towards other sectors like real-estate, international trade and commodities, law, media and entertainment, sports & esports.
Blockchain technology is the best-in-class technology to address the common pain-points of a start-up. Maybe that is one of the reasons startup entrepreneurs are so passionate about the blockchain technology.
They have explored the technology capabilities in various sectors, including banking, capital markets, governance, healthcare, and pharmaceuticals, among others.
Blockchain is a peer-to-peer series of locked digital data repositories (the blocks). These blocks are linked together (the chain) and continuously checks each other for error. It is essentially a shared database filled with entries that must be confirmed and encrypted. It is designed to record transactions or digital interactions. It makes technology the most secure way to store sensitive information.
Also, there are added advantages of blockchain that propel the momentum of the existing business operations.
Why startup uses blockchain technology,
Most people see blockchain technology as a cryptocurrency, but very few know that blockchain technology has far more applications than mere cryptocurrency. Blockchain technology is centralized around a token-based system, and based on it; new avenues are explored for its implementation.
Here are the courageous few who have implemented blockchain technology for their start-ups.
1) StaTwig Technologies
This India based company is focusing on transforming extended supply chain management in the food and life sciences sectors. They are the two sensitive areas were tracking the expiry of the product as well as fake products are essential. StaTwig’s blockchain cloud platform allows customers to monitor products in the extended supply chain. They can continuously track the product's health information in a tamper-proof data registry, provide permissioned access to the information on-demand, and prevent third-party interference to data or contracts.
2) Hedera Hashgraph
Hedera Hashgraph is a public ledger- it means a secure, shared database that everyone can read from and write to. The public ledger is stored on the main nodes initially run by the Hedera Governing Council. “Acoer” developer of blockchain-enabled applications recently used Hedera Hashgraph technology to release updates on the Coronavirus outbreak with its HashLog data visualization engine. It helps healthcare and life sciences clients to easily track the progress and condition of the deadly virus or any crucial information related to epidemics.
High-interest rate of credit cards is a significant concern for all the users. Besides that, the customers having a good track record can only posses the credit card. To solve this issue, Colendi has a new micro-financing idea. It is a Fintech company that introduced a blockchain-based democratized credit scoring evaluation method. It offers instant credit with optimized rates and lets you enjoy financial freedom anywhere in the world. Colendi’s credit score provides a novel alternative for the current financial technology landscape.
ODEM is probably making the Blockchain worth. It is the world's first decentralized on-demand education marketplace. It enables professors and students to interact directly and participate in the exchange of education and learning, without the involvement of intermediaries or high-end institute. It means education becoming cheaper.
Authenteq allows customers to verify their identity through any channel without compromising their privacy. A blockchain-based, self-owned & controlled digital ID. It is fully automated, and it works seamlessly throughout your mobile and desktop channels.
6) Photo Chain
It is a decentralized stock photography platform built on the blockchain. The technology enables photographers to claim up to 95 percent of their potential earnings. The company's Digital Copyright Chain (DCC) solution ensures all copyrights and protections are in place. It helps to eliminate the copyright issues currently observed in the stock photography market.
7) Ship Chain
This start-up wants to take logistics to a new level. They have integrated blockchain to track the entire freight process from start to finish. It allows for an efficient logistics process across the whole supply chain. Every shipment is federated & validated in transparent blockchain contracts. The business owners have complete control over who & how their data is queried.
8) Buzz Show
Buzz shows incorporate blockchain technology to the music industry. It is a decentralized social video ecosystem with a full economic cycle and rewards for viewing, sharing, creating and curating videos. The most exciting thing about this platform is that it rewards viewers each time they watch something on Buzz show or invite friends.
The blockchain technology is not just influencing the business regimes but also leaving their footprints to government affairs. Recently, leading South Korean politician Ahn Chul-soo that their new party would use a blockchain-powered platform for voting, accounting, and budgetary matters – in an effort to boost transparency.
There is a lot of confusion among the blockchain enthusiasts relating to Bitcoin and Ethereum. This may be because they may have come across a few tech-news headlines saying “Ethereum, the cryptocurrency has long been the clear No. 2 to Bitcoin”.
Though both Bitcoin and Ethereum are regarded as cryptocurrencies, they differ in purpose. But before we discover the difference between these two, it is essential to know the difference between Bitcoin and Blockchain.
Bitcoin Vs. Ethereum
Blockchain has grown over the period, and now it is catering to even small transactions across various industries. While bitcoin is the most widely used and well-known use case of blockchain, Ethereum may be the killer app that facilitates the blockchain to discover its full potential. Digging a little bit into the technical aspect, Ethereum uses a Turing Complete programming language and a Turing Complete internal code. It means it is capable of calculating anything and everything with sufficient computing power and a particular time period.
Some more details on how both use the blockchain.
Bitcoin (UTXO) vs Ethereum (Account/balance model)
One of the significant differences between bitcoin and ethereum is how a transaction is processed.
UTXO (Unspent Transaction Output) works well with bitcoin as digital wallets facilitate most of the tasks associated with transactions. Basically, UTXO is the amount of leftover cryptocurrency change that you receive from each transaction.
Note that to buy any goods through bitcoin (UTXO) you need to transfer the entire bitcoin value and the remaining balance will be sent back to you. It is the same as when you go to the grocery store to buy goods worth $37, and you give a $50 note to the store owner, and he returns the balance of $13. In bitcoin there is no $20, $5, or $10, they can only use $50 block.
They might not have currency options, but the blockchain transcribes $50 somewhat similar to our currency notes. It uses the combination that could be anything ($25+$1+$24), or ($35+$15) or ($22+$3+$25), from this block they can pick any combination, to sum up, $37. For instance, from the combination ($35+$15)=> it can take $32 from ($35 block) and rest $5 from ($15 block).
If the paying amount is more than $50, let say $87 they have to send two $50 notes with more combinations. The blockchain will deduct $87 from two blocks of $50 ( again using the combination) and return the remaining balance.
Now comes the second part, after buying goods worth $37 in bitcoin, the balance left is $13. In bitcoin, this $13 balance is known as unspent transaction output. Based on this remaining balance or output, the future transactions are done (see image below). The only difference to cash transaction and bitcoin is the amount in bitcoin you received at the end had also deducted their transaction fees.
( image source: blockonomi.com)
Like Ethereum, bitcoin does not store account balances but it is derived by using blockchain transactions ever recorded. With bitcoin, a user simply holds the private keys to one or more UTXO at any given point in time.
Ethereum (Account/balance model)
Ethereum is basically an open software platform built on blockchain technology. It empowers developers to build and deploy decentralized applications besides cryptocurrency.
In the current blockchain world, there are two ways to record and save state.
In the account model on which the ethereum is based, the world state is stored on nodes locally, not transferred with blocks. ( See image below for “STATES”)
( image source: vas3k.com)
A full Ethereum node is composed of three essential parts.
It will take a separate session to explain node components in detail, which is not feasible here. So let’s go straight to the basics. Ethereum is designed around three concepts- Accounts, smart contracts, and transactions.
Accounts are basic units of Ethereum protocol. In order to interact with the ethereum network (blockchain), you need an account, just like bitcoin that uses a “bitcoin address” to store and send bitcoins.
Ethereum has allocated 2 types of accounts or addresses for this. Both types of accounts can either be used for digital payment or perform operations using Smart Contracts.
Two types of Ethereum Accounts
You can make an ETH transfer or payment by signing transactions with a private key in this account. The main purpose of these accounts is to serve as a medium for users to interact with the Ethereum Blockchain. Through this account, users can send ether(cryptocurrency) and messages from it.
Smart contracts can only be activated by sending ETH into it. After the smart contract has been coded and uploaded, it will sit in this account and wait to be activated.
Ethereum enables the development and deployment of custom code(smart contracts) into the blockchain. A smart-contract becomes like a self-operating computer program that automatically executes when specific conditions are met.
Every contract that populates on the ethereum blockchain is stored in a specific format called EVM (Ethereum Virtual Machine) bytecode which is an ethereum specific binary format. The Ethereum virtual machine is the engine in which the transaction code gets executed and activates the contract.
So basically, Ethereum blockchain stores your data, stores the code and also runs the code in the EVM (Ethereum Virtual Machine). Besides cryptocurrency, developers can code “Smart Contracts” for any business applications.
( Image source: edureka.co)
Every transaction in the Ethereum only needs to make one reference and signature that produces one output, contrary to UTXO design. Ethereum transactions are signed data packages, containing a host of information. The ethereum block includes the following information and processes the transaction when all the requirements are full-filled.
The Ethereum blockchain verifies to see if the transaction contains all the data listed above, and has a valid signature. If the nonce ( number of transactions sent by the account) also matches, the transaction moves on to the second step. When you interact with the Ethereum blockchain, you are executing transactions and updating its state. ( Below is the image showing the change in the state)
( image source: oreilly.com)
There are more technical details on Ethereum, that is not possible to explain here like passing message calls, transaction trie, DAO, Ethereum exchange rate, etc.
I hope the above information was useful to get an overview of how both ( Bitcoin & Ethereum) have explored blockchain technology in their own way.
Keeping it short - what Bitcoin does for money, Ethereum does for contracts. Bitcoin is used to buy goods on popular websites like Namecheap,Overstock.com, or Tesla. Meanwhile, the Ethereum is mainly being used by developers building applications (dApps) on top of it.
Ethereum was not as popular as bitcoin, but gradually, it is gaining momentum in the Blockchain world. It is expected that as more and more apps will be developed on the blockchain, the value of Ethereum will rise.
The innate ability of software developers to craft their imagination into a ground-breaking product is impressive. It has influenced the lives of many on this planet. It would be interesting to know what’s next on their radar that could change the world progressively.
The blockchain is the latest thing to happen after Big data, cloud computing, autonomous vehicle, and IoT cemented their position in the IT realm.
Time and again, all these discoveries have been put through the litmus test and have come out successfully. The same is expected for blockchain, but this time the creator itself is the challenger asking, “What is the future of blockchain technology for a developer?”
The “decentralize” property of blockchain has kept it going strong so far, and software developers are optimistic that their future will have far brighter strokes on the Blockchain canvas.
Let’s see what aspects of blockchain make their belief so strong.
1) Protects against data theft
During software development, many of the data provided by the client are confidential. A breach in their data could leave them vulnerable. With blockchain technology, the client’s data can be securely stored, and the risk of data theft is reduced remarkably. It also reduces a lot of work for software developers that follow strict guidelines and processes to ensure everything is performed in a secure environment.
2) Integration of Devops Tools
DevOps is a set of software development practices that combine the development (dev) and operations (ops) parts of the software lifecycle. Devops concept came into existence for quicker development of software products. By integrating devops tools to the blockchain, the devops tools can further increase the speed of the software development, while blockchain can add more transparency to the development process. The blockchain network can be even used to buy devops tools through tokens.
3) Inbuilt software testing tools
Software testing tools are one of the expensive assets for the software industry. The software industry sees a great advantage of using blockchain, not just for software development but also for testing. Blockchain platform like Corda provides built-in testing tools to help the software testers. It does not only save cost and removes the dependency from third-party tools but also enhances the quick release of the software product.
4) No single point of failure
To make your website go live, you need to choose a hosting service. With blockchain, there will be no intermediary between your website and consumers. Everything is managed through blockchain, and issues related to hosting are resolved by itself. Unlike traditional web-app, your backend is supported by many servers; it means whenever there is a failure of a single node, it will be quickly replaced by others in the network. With blockchain, there will be no interruption while hosting the website.
5) Mobile app approval by Appstore
Currently, there are two Appstore which approves mobile apps for sale on their stores - Google’s play store and Apple store. The approval system is considered quite arbitrary and not convincing to the app developer. By using the blockchain model, the app approval process would become fair and better, as it would be performed through a transparent developer reputation system.
6) Secure your code
Writing, editing, and securing the software code is a cumbersome job. But if you have distributed databases like Blockchain, you can easily manage your code. In case you want to share the software code with someone else, then you can make it private and share it with whoever you want to edit it from or make changes.
7) Easy detection of bugs or loopholes
Since the software development project on the blockchain can be made open-source, the global developer community has their back. The bug or loopholes in the code is identified and fixed quickly.
Industries like real estate, banking, education, security, healthcare, supply chain have started applying blockchain technology into their business. It means the developer’s scope in dapp development has widened.
Since the technology is replacing each other as quickly as the rippled waves, it is quite obvious the app developers have to keep a tap on its development skills and some of the technologies shaping the blockchain like Geth, Solidity, Solium, Solc, Truffle Framework, and Remix IDE.
However, being at the forefront of blockchain technology, the expert believes there is still room for improvement in the technology before the software programmers completely switch to the blockchain development environment.
A blockchain developer is someone who takes upon the responsibility of developing and optimizing blockchain procedures. The developer should also be highly equipped with tools and technologies to design the architecture of blockchain systems, create smart contracts, and web apps.
To become an efficient blockchain developer, one must possess a combination of a few skills, such as:
If you wish to become a blockchain developer, you should have in-depth knowledge and understanding of its functionalities and its architecture. You need to get your hands on concepts like cryptographic hash functions, consensus, and distributed ledger technology. It would be great if you also were well versed with bitcoin blockchain whitepaper. You can even sign up for various courses available online. Taking the complete course may be a bit time consuming but it has a lot to offer at the end.
Secondly, core understanding and applicative sense of data structures is prerequisite if you want to become a blockchain developer. Ideally, a blockchain developer is continuously playing around and realigning the existing data structures such as Merkle trees, Patricia trees, and others to fulfill their network requirements. Blockchain utilizes a surplus amount of data structures in combination with advanced cryptography to design a secure and stable system.
Cryptography is equally crucial for a blockchain developer as we know that it is a combination of data structures and algorithms to secure communications across devices. Different cryptographic functions such as hash functions, for instance, SHA256, and KECCAK256 are used in blockchain. Asynchronous cryptography for generating digital signatures is also used for becoming a blockchain developer.
Since the smart contracts concept is launched, it is a success, and in every blockchain project, this functionality needs to be implemented so that business logic can be effectively applied to the blockchain. It is vital for blockchain developers who are putting efforts to get in this field to gain knowledge of smart contract development. For this one should be prepared to learn network-specific languages such as Solidity, Viper, Chaincode, and others.
To become a blockchain developer, it is also necessary to possess complete knowledge of web development. The basics of both the front-end and back-end web development are required if you want to begin your career as a blockchain developer. This knowledge covers all the aspects such as designing interactive graphical user interfaces for Dapps, API handling, request handling, and more.
Conclusion: Gaining an edge on the above-mentioned skills, you can easily become a blockchain developer.