Blockchain is a promising technology that is expected to revolutionise many fields.
What is blockchain?
Mobile app development is one area that is expected to benefit the most from blockchain technology. Blockchain is a ledger that records transactions between two parties and permanently stores this data. This ledger is well-known for being decentralised and distributed. It is transparent, and all participants can see the transactions that are taking place in the chain, except that they cannot change any data. Blockchain is regarded as the most secure technology due to its high resistance to changes in the data and information it stores.
According to Statista, global spending on various blockchain solutions is expected to reach around 15.9 billion by 2023, up from 1.5 billion in 2018. This data demonstrates the growing popularity of blockchain technology. In this post, we will look at how blockchain technology can help mobile apps. So, let’s take a look at some of the advantages this technology has for mobile apps.
#1 Safe electronic payments
Digital payments are the new way to conduct transactions, and the pandemic has undoubtedly aided this trend’s exponential growth. According to reports, approximately half of all global shoppers increased their use of digital payments during the pandemic compared to previous situations. The majority of these customers say they will continue to make digital payments even if the virus is, hopefully, contained. Because most buyers prefer cashless transactions, it is critical for developers, particularly app development companies in the United States, to work on methods to make these in-app payments more secure.
Blockchain integration in mobile apps is one such trend that is expected to yield promising results in terms of providing secure payment gateways. The distributed ledger technology is fully encrypted and allows for real-time transaction authentication. The cryptographic hashing provides much-needed encryption to the data stored in the blockchain. It reduces the possibility of any type of modification in the stored data because in order to change the data, the hash must first be broken, which is a nearly impossible task. As a result, tampering with data or mingling with transactions is nearly impossible in blockchain technology. As a result, it is advantageous for developers to incorporate blockchain technology into their mobile app in order to make their payment gateways impenetrable and thus more secure.
#2 Transactions are completely faster.
The most significant advantage of incorporating Blockchain technology into mobile apps, particularly e-commerce and fintech apps, is faster transactions. Because blockchain has a decentralised structure, there are no intermediaries in the form of banks to control transactions. Traditional payment gateways typically require mediators, i.e., the users’ respective banks, to verify transactions, but blockchain technology eliminates this requirement. As a result of the lack of intermediaries, these technologies are the best when it comes to faster transactions and improved security. The incorporation of this technology into fintech and e-commerce apps is a new trend that developers should follow in order to bring a unique payment gateway to market. Those looking for app development services should look through Goodfirms’ list of top app development companies to find the right service provider to meet their needs.
#3 Improved authentication practises and privacy safeguards
Traditional authentication practises are too time-consuming, but blockchain technology can help to solve this issue to a large extent. Many banking apps require you to enter your login information every time you use them. Typically, users must enter passwords, CVV numbers, and other personal information to authenticate their transactions. Remembering passwords is a difficult task, especially when it is recommended that you use a strong one. Things become even more perplexing if you choose to use different passwords for each app you use. A self-sovereign ID protected by cryptography can alleviate these issues and is expected to replace passwords within a few years.
Blockchain can be used to generate SSI, or self-sovereign ID. This identification tool stores the user’s personal information using network cohesion and cryptography. These IDs contain each individual’s unique identification credential and allow them to control who has access to those credentials. Individuals with self-sovereign ID have complete privacy protection. It places complete control over access to user credentials in the hands of the users rather than a third party who usually has the authority to grant access to user credentials.
#4 Greater transparency
To record various sensitive information, blockchain technology employs a distributed, decentralised ledger. This decentralised and distributed ledger structure is the primary reason for a blockchain’s high transparency and visibility. This architecture provides all parties involved with visibility into all transactions taking place in the chain. Because of cryptography encryption, no party can alter any of the blocks or the data contained within them, but all transactions carried out by participants can be viewed. Any change in the data is nearly impossible, but if it does occur or has a remote possibility, blockchain has a solution for that as well.
Along with the data, the blocks contain a timestamp, which allows existing participants to see what data was tampered with and when. As a result, it is nearly impossible for any errors or data tampering to go unnoticed by blockchain participants. This is possible due to blockchain technology’s decentralised and distributed structure, which does not allow any intermediary to track details and transactions. The participants have complete control over their activities here. As a result, incorporating blockchain into mobile apps can result in a more transparent environment for users, providing them with a sense of security and control over their activities.
#5 More aggressive action against click fraud
Click fraud has become a major threat to users these days, instilling fear in them when they use apps with excessive advertising. We’ve all seen some appealing advertisements that enticed us to click on them. Users may occasionally share sensitive financial credentials with them, resulting in fraud, online theft, and so on. These types of mishaps harm the reputation of the mobile app. The incorporation of blockchain technology into mobile apps can be extremely beneficial in combating click fraud.
To detect click fraud, mobile apps can store all advertising data in the blockchain and keep track of any unusual patterns. Furthermore, this technology adds an extra layer of security to the user’s encrypted financial details. It is capable of effectively preventing the dissemination of these data to any unauthorised advertisement links or advertisers. Uber and adChain platforms are two such successful platforms that have effectively prevented click fraud.
With the introduction of new technologies, mobile apps have undergone dramatic changes in recent years. Blockchain is one such technology that has the potential to transform mobile apps into high-performance, secure platforms. Because the blockchain is fully encrypted and provides real-time authentication, it is more secure. Furthermore, the distributed and decentralised structure provides greater transparency as well as unrivalled security. As blockchain technology advances, more efficient solutions for mobile apps are expected in the future. This technology has successfully captured the attention of mobile app developers, and blockchain-powered mobile apps are likely to become the new norm in the near future.