The Worldwide Blockchain Spending Guide, published last quarter by IDC, revealed that the use of blockchain will reach $6.6 billion in 2021, up 50% as compared to 2020, according to Intelligence CIO. This study also argues that blockchain will impact the market for ten technologies in servers, hardware, software, IaaS, external storage systems, IT, and business.
The prominent value chains in the software industry, powered by blockchain, will extend their platforms to their entire ecosystem, reducing costs by 35 percent.
According to Oracle CTO David Uribe, “We must first understand what blockchain is and how it works, to talk about the evolution of software from blockchain’s impact’.
Generally, blockchain is linked with cryptocurrencies, in particular Bitcoin and financial transactions. But in terms of technology, blockchain is a distributed journal where daily transactions of various processes are recorded.
How will the software industry evolve from the impact of blockchain? With more entrepreneurs realizing why businesses should adopt new technologies, it’s crucial to understand how blockchain affects the software sector.
Enhances Security
Unlike traditional technology, the blockchain prevents any information from being changed by replicating data and distributing it among multiple participants. This makes blockchain a perfect solution for preventing hackers from getting access to any data.
For example, if the information is hacked on a single copy, it will be incompatible with the other documents. As a result, you will be unable to access and change the information throughout the network.
This is one of the characteristics making blockchain popular in the cryptocurrency world. Ideally, when users want to transact Bitcoins or other cryptos, the transaction is controlled and tracked without an intermediary. That’s because every transaction is reflected with the blockchain technology on the network.
Builds Resilience
In addition to being secure, blockchain technology is more powerful than most technologies out there.
The Bitcoin network is estimated to have a computing power of 43,000 times more than the 500 supercomputers on earth combined. Due to this, investing in projects linked to blockchain technology is advisable.
Not only will they provide solutions to problems in the IT industry, but their cryptocurrency value is likely to increase significantly in the future.
Boosts Interbank Transactions
Compared to other technologies, blockchain, also known as chains of a block, guarantees the possibility of reaching high levels of security. That’s why its application is desired in the development of cryptocurrencies and improving interbank transactions.
Today’s banks and credit card providers leverage blockchain technologies like Bitcoin, ether, and dogecoin for payments. Users can also harness the power of blockchain for transaction tracking, information recording, and digital assets.
If you’re looking to invest in digital assets, note that there are two types. Resources that represent real assets like title deeds to real estate property are digitized for financial security. Then there are digital assets that are created digitally and have a monetary value. To make the most of digital assets, you need to understand their characteristics. Some of the unique qualities of digital assets include ownership, meaning they belong to you entirely. Digital assets are also negotiable, traceable, and cannot be duplicated.
Provides Financial Solutions
The impact of blockchain technology on payment solutions has been critical in that it’s being used in financial services to update and create new solutions to tackle industry challenges.
Blockchain is a secure, transparent, and decentralized technology that can solve the biggest challenges in financial services, including fraud, data integrity, and tech integration. It is cheaper than existing technologies as it eliminates overhead costs dedicated to teams hired to confirm authenticity. As a distributed ledger, blockchain enables everyone on the network to confirm transactions effectively and simultaneously.
During authenticity confirmation, users on the blockchain network monitor who’s transacting, confirm digital contracts, tax transactions, and store information. For instance, if you’re trading cryptocurrency, parties involved in the transaction can identify who’s moving the money. They can also monitor tax payments made for Bitcoin, Ethereum, or other cryptocurrencies.
So, whether you’re trading cryptos or aspiring to become a trader, it’s wise to understand the taxation process of cryptocurrencies. Since the IRS defines cryptocurrencies as property rather than currency, they are taxable. This means you must pay tax on Bitcoin, Ethereum, and Ripple when using them to pay for goods or services. If you own Bitcoin and decide to sell at a high profit, you’ll have to pay capital gain taxes.
Improves Data Integrity and Transparency
Over the decades, data security and transparency have been opposing forces during the software development process. In a common software development process, data transparency interferes with security negatively through high visibility. How data moves between the teams and the entire organization also creates room for security risks, affecting data integrity.
But with blockchain technology, data security and transparency co-exist together. Because creating blockchain software and mobile apps for storing sensitive information is a sure way of keeping data safe. You’ll also set a solid foundation for future software development projects without interfering with data visibility and security for the developers.
While blockchain technology is still in its infancy stage, it can revolutionize the software industry. Given the blockchain is a decentralized system and unbreakable electronic ledger, it guarantees data security and integrity. This also promotes interbank transactions, improves payment methods, and offers visibility throughout the software development process.
Most importantly, individuals and organizations can leverage blockchain for digital assets and payments using Bitcoin and other cryptocurrencies.
Final Word
Blockchain technology offers innovation for transparent transaction mechanisms in various industries. The features of this technology enhances security through transparency and traceability of any transaction whether data, assets or financial resources.
Despite doubts, large corporations (and some governments) started to look into adapting and improving the technology across various application domains.
There is still much to discover and explore so stay tuned for more Blockchain updates.