Blockchain is emerging as a promising technology and is expected to revolutionize many areas. One such area that is expected to gain the most from blockchain technology is mobile app development. Blockchain is a ledger that records transactions taking place between two parties and stores this data permanently. This ledger is known for its decentralized and distributed nature. It is transparent, and every participant can see the transactions taking place in the chain except that they can not alter any data. Blockchain is considered the most secure technology due to the strong resistance against any alteration in the data and information it holds.
Blockchain technology integration in mobile app development is expected to create more powerful and secure mobile apps. According to Statista, global spending on various blockchain solutions is anticipated to reach around 15.9B by 2023 from the recorded 1.5B in 2018. This information is an evidence of the growing popularity of blockchain technology. In this post, we will highlight some ways that blockchain technology will benefit mobile apps. So, let’s move forward to look at some of the benefits this technology holds for mobile apps.
#1 Secure digital payments
Digital payments are the new trend of performing transactions, and the pandemic has certainly helped this trend to grow exponentially. According to reports, approximately 50% of worldwide shoppers increased making digital payments during the pandemic compared to previous situations. The majority of these shoppers say that they’ll continue to make payments digitally even if the virus is, hopefully, contained. As most buyers choose cashless transactions, it has become essential for developers, especially app development companies in the USA, to work on methods that can make these in-app payments more secure.
Blockchain integration in mobile apps is one such trend that is expected to offer promising results when it comes to providing secure payment gateways. The distributed ledger technology is fully encrypted and offers real-time authentication of transactions. The cryptographic hashing provides much needed encryption to the data stored in the blockchain. It mitigates the possibility of any kind of modification in the stored data as to be able to alter the data it’s important to first break the hash which is nearly an impossible task. Therefore the possibility of altering any data or mingling with transactions is almost impossible in blockchain technology. Hence it is fruitful for developers to integrate blockchain tech in their mobile app for making their payment gateways impenetrable and, therefore, more secure.
#2 Faster transactions
Faster transactions are the best benefit of Blockchain tech integration in mobile apps, specifically e-commerce and fintech apps. Blockchain has a decentralized structure; thus, there are no mediators in the form of banks to control the transactions. Usually, traditional payment gateways need mediators, i.e., respective banks of the users, to verify the transactions, but with blockchain technology, such necessity is eliminated. Hence the absence of mediators make these technologies best when it comes to faster transactions and better security. Integration of this technology in fintech and e-commerce apps is a new trend the developers should follow to bring a unique payment gateway into the market. Those seeking app development services must check the list of top app development companies cataloged by Goodfirms for finding the right service provider to meet your needs.
#3 Better authentication practices and privacy protection
The traditional authentication practices are too cumbersome, but this problem too can be overcome by blockchain tech to a large extent. Many banking apps ask for login credentials every time you use them. Usually, users must enter the passwords, CVV, and other personal credentials to authenticate their transactions. Remembering passwords is a bit of a challenging task, especially when you’re recommended to add a strong one. Things become more mind-boggling if you choose to keep different passwords for every app you are using. A self-sovereign ID secured by cryptography can ease these problems and is expected to replace passwords in the course of a few years.
Blockchain can be used to create SSI, which stands for self-sovereign ID. This identification tool uses network cohesion and cryptography to store the personal information of the user. These IDs hold every unique identification credential of the individual and allow them to control who gets access to those credentials. Self-sovereign ID allows full privacy protection to an individual. It gives the total power to control the access to the credentials into the hands of the users instead of a third party that usually holds the rights to grant access to user credentials.
#4 Improved transparency
Blockchain technology employs a distributed, decentralized ledger to record various sensitive information. This decentralized and distributed ledger structure is the main reason behind the excellent transparency and visibility in a blockchain. This architecture grants visibility to all the transactions happening in the chain to all of the parties involved. Due to cryptography encryption, no party can alter any of the blocks or the data in them but can view all transactions carried out by participants. Any alteration in the data is a near impossible thing, but if it occurs or has a slight possibility, then blockchain has a solution for that too.
The blocks, along with data, contain a timestamp that allows the existing participants to see what data was tampered with and when. Hence it’s pretty impossible for any malpractices or tampering of data to go unseen by the blockchain participants. This is possible because of the decentralized and distributed structure of blockchain tech, which doesn’t allow any mediator to track details and transactions. Here the participants hold full control of their activities. Hence blockchain integration in mobile apps can result in a more transparent environment for the users that gives them a sense of security and the control over their activities.
#5 Better action against click fraud
Click fraud has become a massive threat for users nowadays, bringing a sense of distrust in them while using apps that feature too many ads. All of us might have come across some attractive advertisements that we end up clicking on. Sometimes, users share sensitive financial credentials with them, resulting in fraud, online theft, etc. These types of accidents end up hurting the reputation of the mobile app. Blockchain technology integration in mobile apps can be very useful in combating click fraud.
Mobile apps can store all the data regarding the advertisements in the blockchain and keep track of any unusual patterns to detect click fraud. Moreover, this technology adds an extra layer of protection to the encrypted financial details of the user. It can efficiently prevent the sharing of these data to any unauthorized advertisement links or advertisers. Uber and adChain platforms are two such successful platforms that have helped avert click frauds efficiently.
Mobile apps have seen drastic changes in recent years with the advent of new technologies. Blockchain is one such technology that holds the power to transform mobile apps to deliver powerful performance and better security. The blockchain is fully encrypted and offers real-time authentication, which makes it more secure. Moreover, the distributed and decentralized structure offers better transparency along with impeccable security. As blockchain technology keeps evolving, it’s expected to bring more efficient solutions for mobile apps in the future. This technology has successfully caught mobile app developers’ attention, and, likely, blockchain-powered mobile apps will soon become a new norm.