The blockchain technology has penetrated into almost all the industrial sectors out there. The decentralized platform without any third party involvement enables the businesses to process financial transactions through efficient backend operations.
According to Statista, the total revenue of blockchain industry was USD 2.95 Billion in 2016 and is expected to grow at a CAGR of 61.5% during the forecast period from 2017 to 2025 which will be worth up to USD 20.9 Billion by 2025.
The latest report from Markets and Markets forecasts a significant growth in the blockchain technology market to a whopping USD 7.7 Billion by 2022 at a CAGR of 53.6%. Blockchain being one of the most innovative technologies of the time leads to the creation of buzzwords like Cryptocurrencies, ICOs, and Bitcoin etc.
This article talks about how blockchain technology has influenced web development in its various forms. The decentralized peer-to-peer network helps in processing transactions without any third party interference. Not only has this it offered an efficient platform for bankless transactions. The Distributed Ledger Technology is being used by most of the businesses to process financial transactions.
What is Blockchain?
Blockchain is a distributed ledger technology that offers an efficient, secure and transparent platform to share digital transactions. Blockchain has now become one of the most sought-after technologies in web development. The Distributed Ledger Technology works on the principle of Peer-to-Peer network which helps to create decentralized networks for storing user data.
The blockchain technology has empowered the web and mobile developers to create new-age applications with a viable business model. Some of the popular blockchains for web and mobile app development are:
Bitcoin, Ethereum, Ripple etc. The innovative use of smart contracts provide an efficient way to develop decentralized applications. Blockchain technology ushers in a new era of web development which results in the creation of buzzwords like dApps, Cryptocurrency, ICOs etc.
The decentralized consensus mechanism helps to process transactions on the peer-to-peer network that is devoid of any third party involvement. Not only this, it also offers an efficient platform for bankless transaction processing with security being the prime aspect.
What are the Benefits of Blockchain Technology to Web Developers?
The blockchain technology paves the way for innovative developments and has a significant impact on web development. It helps in creating decentralized applications which work efficiently and offer security by design. The Distributed Ledger Technology (DLT) is behind most of the popular cryptocurrencies like Bitcoin, Ethereum, and Ripple etc.
Blockchain offers an efficient platform to create new applications that can handle backend operations with speed and security. The peer-to-peer network allows sharing of validated transactions in the form of blocks. Below are few benefits of blockchain technology for web development:
1) Eliminates Third Parties
The Distributed Ledger Technology removes the need for third parties which further enhances security, lower costs and increased efficiency.
2) Data Security
The immutable data stored on the peer-to-peer network is a perfect example for built in security measures. The encrypted code stored in blocks give a tough competition to conventional storage techniques.
3) Improved Transparency and Immutability
The blockchain technology stores information that can be viewed by anyone on the internet. This ensures complete transparency and makes it a cut above the rest. The blockchain technology gives an additional security layer by ensuring that no one can tamper with data stored on the network.
4) Process Transactions Faster
The decentralized nature of blockchain technology makes it easier to process transaction without involving third parties. This not only enhances speed but also saves time and cost and the added security and transparency make it a much sought after technology for web development.
5) Decentralized Applications (dApps)
Decentralized applications are one of the most popular derivatives of blockchain technology. Some common examples of Decentralized Applications are Cryptocurrencies, ICOs etc. These applications allow users to access functions of an application or a service without any hindrance.
6) Ease of Accessibility
The blockchain technology offers ease of accessibility and business operations can be simplified with the peer-to-peer network. The distributed ledger technology is open source and all transactions are process on real time basis, resulting in improved performance. You can outsource any Blockchain web development company to do this complicated task for you.
Popular Applications that are Based on Blockchain Technology
One of the most popular decentralized applications built using blockchain technology is Cryptocurrency. There are several other decentralized applications present in the market which uses this innovative decentralize ledger technology.
Here are few examples:
1) Freelance Marketplaces:
These online platforms connect employers and freelancers and help them conduct business on a peer-to-peer network. The contract agreements and transactions are stored in the blockchain which ensures efficient performance.
Initial coin offerings or ICOs is a crowd funding platform used by startups to raise funds from investors allowing them to create their own cryptocurrency. The smart contracts ensure that all conditions are met under any given circumstance. Many times, these tokens are later listed on blockchain based exchanges to trade.
3) Cryptocurrency Exchanges:
The first form of currency that was decentralized and stored in the blockchains were cryptocurrency like Bitcoin, Ethereum etc. Cryptocurrency exchanges allow trading on virtual currency and offer added features like margin trading and more.
4) Cloud Storage:
Blockchain technology has enabled the development of decentralized cloud storage platforms like Storj and Sia. These applications use blockchain technology for secure data storage.
5) Prediction Markets:
Blockchain technology has made prediction markets available for micro-payments which are peer to peer, ensuring security against manipulation.
6) Artificially Intelligent Chatbots:
Chatbots powered by machine learning and artificial intelligence are another good example for decentralized applications.
7) Decentralized Autonomous Organizations (DAOs):
These organizations exist purely in the virtual space and run via smart contracts. They generally do not have any physical existence and are conducted over a peer to peer network. The rules governing such organization is defined by smart contracts. This ensures that they are protected from external influence.
8) Crowdfunding Platforms:
Blockchain technology has enabled the development of decentralized crowdfunding platforms like Kickstarter and Gofundme. These applications use blockchain technology for secure data storage.
9) Medical Records:
Blockchain technology offers the promise of secure medical records which allow patients to share their health data with as many doctors and research institutions as they want.
What is the Future of Blockchain Technology?
The future of Blockchain is exciting and full of possibilities. Since the digital world is growing exponentially, blockchain technology will be an ideal choice in the coming years, to make things easier for web developers all over the world. Since there is no central authority controlling it, transactions are verified by every member in the network making it more secure than any other technology. In addition, it makes storage of data more secure and reliable.
The decentralize ledger technology is gradually making inroads in several industries. While it is still in its infancy, the distributed ledger technology has unlimited potential and will continue to grow over time. The future of blockchain technology looks promising as it allows exchange of funds without any 3rd party involvement.
Though blockchain technology faces certain challenges like managing data storage issues, the transparency of transactions is what makes this technology stand out. A decentralized ledger that stores data in an encrypted format brings in improved security which can further lead to faster growth in business operations.
The Blockchain technology allows for an unchangeable and secure data file that can be shared between different users. This decentralized nature of blockchain technology makes it a very attractive option for businesses and developers looking to work on web based applications.
This ensures transparency, security and facilitating quick transactions, among others. Blockchain has a lot of potential and we can expect to see more web based applications built using blockchain technology, in the future.
It is essential for all web developers to keep themselves updated with this innovative decentralize ledger technology and be prepared to embrace the next generation of web development. Just like there was a shift from client server model, mobile first to now full stack development, web developers need to start considering blockchain based technologies as the next big thing in the industry.
Web development is constantly evolving and it’s important for all web developers to keep track of current trends and learn new skills. Blockchain is an innovative group of technologies that gives you freedom from traditional models like client server model, mobile first etc.
It’s important to keep pace with this innovative technology and be prepared for the next big thing in web development.