Most of the people know blockchain only by one of its popular by-product i.e. ‘Bitcoin”.
Blockchain technology was developed in 2009 as the supporting infrastructure of Bitcoin currency.
While blockchain is far more capable than just producing cryptocurrencies and should get the equal importance if not more.
The blockchain is a distributed digital ledger technology that does peer-to-peer exchanges without the need of any intermediary. Removing intermediaries reduces the cost of transactions and complexities.
A global network of computers on the internet jointly manage the database using the blockchain technology. These concrete computers in a network record transaction between two parties and verify it throughout the network without any outages.
In the blockchain, the database is immutable and tamper proof. Since the database lives on the internet (means on the distributed ledger), all members of that financial market in the network has access to the information. And because everybody in the network has access to the information, so it can be thought as a single source of truth that is virtually impossible to alter. Which makes this technology versatile in its own ways.
As per the Monetary Authority of Singapore, “Distributed ledgers may be applied in any area which involves contracts or transactions that currently rely on trusted third parties for verification.”
The blockchain may be either public or private that is it can be made accessed by everyone or can be made restricted to a defined group of users in a network. And can be authorized on permissioned and permissionless networks, where anyone can offer their services to add blocks to the chain without the need of any permission or can be made available to a specific group of users with required permissions. Example: Bitcoin functions on the public and permissionless model of Blockchain.
Smart Contracts are self-executing contracts presented in the digital form. These smart contracts work like “if 'A' happens then 'B' must happen” and we can code this type of rules into blockchain and these rules execute as the transaction happens.
The Smart Contracts are intended to improve the current traditional legal contracts by validating and enforcing the outcomes through the predefined universal code. The smart contracts in blockchain technology were introduced to provide an extra layer of security and reducing the transactional costs that we are currently spending on traditional contracts.
Smart contracts are the modern day alternatives to the traditional form of contracts like wills, online money transfer, and asset transactions. Which possess high-security issues, frauds and are prone to cyber attacks.
Benefits of Using Smart Contracts for Business
There are many tasks, processes, and business operations that can be automated with smart contracts. Smart contracts provide a much simpler, affordable, highly secure way of doing transactions than the governmental and traditional form of doing financial transactions. Some of the core benefits of smart contracts are as follows:
No Intermediary Required
Smart contracts completely eliminate the need for involvement of third-party intermediaries. (excluding some rare cases)
The decentralized process in blockchain technology eliminates the risk of any security breach or hack. Since the complete process are managed by the whole network rather than a single user.
Reduced Cost of Operation
As the name suggests itself Smart contracts are “Smart” and are based on software code, therefore the whole process is automated that does not need any manual interaction and manipulation.
Smart contracts are made and managed digitally with universal code which ensures high accuracy no manual intervention.
Why Choose Webisoft for Blockchain Development Services?
We are among some of the early adopters of the blockchain technology. We are specialized and always committed to providing blockchain development services that aim to solve the real-world challenges faced by big enterprises and startups globally. From integrating applications to deploying the product to the cloud environment, our team of senior developers is well capable of handling it from scratch to the finished product. We aim to provide solutions that are affordable, simple and highly customized and tailored to your organizational needs.
- Blockchain Consulting
- Blockchain Application Development
- IoT Application Development with Blockchain
- Smart Contracts Development
- Blockchain as a Service
- SaaS App Development with Blockchain Technology
- Custom Blockchain Development
- Application and data science engineering using Python
Why Smart Companies Adopting Blockchain for their Business Applications Development
Since blockchain wasn't only developed for cryptocurrencies, it opens up multiple opportunities for businesses and technology startups.
There are a lot of blockchain news cases around financial services. But today we are seeing businesses expand out a little bit further and using the capabilities of blockchain in many other areas. Such as supply chain or transferring information like education qualifications or even identity and here in the Webisoft we work closely with our clients in identifying how these capabilities of blockchain can be used for their industries and really impact their business models.
- Blockchain provides a trusted medium for a transaction between parties and devices.
- Reduce overall cost of the transaction by eliminating third-party authentication.
- Negligible settlement time compared to traditional third-party authentication services that took days.
- Security is based on “cryptographic hash function” which is identified by its own “hash” key, which prevents data duplication and “double spending in Bitcoins”.
Industries Adopting Smart-Contracts and Blockchain Technology