Custom software development is undergoing significant changes regularly. One such development in the industry is the use of Blockchain technology in custom software development.
In custom software development two factors are absolutely crucial. These key factors are traceability and accountability. These are crucial because a lot of the times a project’s success directly depends upon the traceability and accountability in the development process itself.
Blockchain technology became mainstream in the immediate aftermath of the launch of the very first successful cryptocurrency, Bitcoin. Blockchain technology, thanks to its decentralized nature, is now being used in various industries. These industries include;
- Finance and Banking
- Healthcare
- Supply Chain and Logistics
- Real Estate
- And by Governments around the world to ensure data security
However, there is another industry that is significantly moving towards blockchain powered solutions. If you haven’t guessed yet, the industry I’m talking about is the software industry.
The reason for software developers using blockchain for custom software development is because it helps improve the traceability and accountability in the development process.
But why are traceability and accountability important? Let’s first understand what traceability and accountability are.
Traceability & Accountability:
In software development, traceability is the ability to trace and track the development process comprehensively. Traceability is helpful for developers as it helps them identify any issues that may arise during the development process. It also helps provide an audit trail for any future references.
Accountability on the other hand helps developers be more accountable. This fosters a sense of responsibility between the developers for their actions and decisions throughout the development cycle.
Traceability and accountability helps;
- Increase Transparency
- Improve Security
- Support Auditing Process
Before we get into the nuts and bolts of the role of blockchain technology in custom software development, let’s first understand what blockchain is.
Understanding Blockchain
Blockchain technology is a decentralized digital ledger. It is like a paper ledger in which whatever you do within that business day is recorded. However the difference is that paper ledgers can be tempered with but not the digital ledger. Which is blockchain technology.
Blockchain technology works using hash, which is data in encrypted form. Each hash is then stored within a block and that block is connected to another block forming a chain. Hence the name, Blockchain.
Once data is encrypted within the blockchain it is next to impossible to tamper with it. Even if it is changed or tampered, thanks to blockchain being decentralized, everyone who has access to it will immediately know of the tampering.
This makes the blockchain technology extremely secure. It is also the reason it is most widely being used in Fintech, which is the second most widely adopted technology in the world. Which technology is the most adopted? Can you guess what it is? No?
It is the Internet! Amazing how something right in front of you can just vanish from the memory right? But Blockchain doesn’t let that happen for the developers. That is why the top software solutions providing companies like;
- Alphabet or most commonly known as Google
- Meta or Facebook
- Oracle
- Samsung
- Accenture
- IBM
Are the ones most actively investing in blockchain for custom software development.
Benefits of Using Blockchain in Custom Software Development
Developers gain several significant benefits using blockchain technology in custom software development. These benefits include;
1- Improved Security
In the highly volatile technology driven and cyber attack prone world of technology, blockchain offers immutable data security. It is also one of the primary benefits you get using blockchain technology in custom software development.
Traditional databases being used in the development process are always vulnerable to hackers and cyber attacks. But, blockchain technology’s decentralized nature and the cryptographic techniques used in it make it next to impossible for unauthorized access. Meaning your data is always kept secure.
This is extremely helpful for industries with sensitive data usage, healthcare, finance, and supply chain to name a few.
2- Transparency and Traceability
As discussed earlier, transparency and traceability are a major part of blockchain technology. These characteristics can help and potentially transform the way businesses manage their data.
Using blockchain in custom software development offers companies to be more transparent in their business processes and operations. This allows stakeholders to easily track where data is originated and how or where it is moved with unimaginable accuracy.
Transparency and traceability is extremely crucial for accountability within any industry. Be it software development, food safety, supply chain, real estate, intellectual property management, or luxury goods, blockchain technology can be used in the development process for any industry.
3- Streamlined Processes
Implementing software in the custom software development process can help streamline processes. When the processes are streamlined it leads to reduction in overall operating costs. But how does blockchain help streamline these processes?
Developers can streamline processes using blockchain thanks to the smart contracts it offers. Smart contracts are contracts that are directly embedded into the code with the terms of agreements. These smart contracts ensure that the agreement between the parties is automated and enforced.
This facilitates transactions and also minimizes the need for any intermediaries. Leading to improved business processes, better efficiency, and reduced costs.
The benefits offered by blockchain powered software solutions are huge, but they also have their drawbacks. Let’s look at a few.
Challenges In Blockchain Driven Solutions
The benefits of blockchain technology in custom software development are undeniably huge. But there are some things that you must consider when using blockchain technology in custom software development.
1- Scalability
Scalability is a major factor to consider when using blockchain in custom software development. It is due to the fact that a high number of transactions are taking place simultaneously on a blockchain network, especially the public ones. This can also lead to performance issues.
When you are choosing a blockchain technology for your custom software, you must carefully consider your scalability needs. This will help make sure that the system can easily handle and cater to a growing user base and the transactions they make without affecting the performance.
2- Legal Requirements
The world of blockchain is yet to be fully acknowledged by the governments around the world. The regulations and legal requirements surrounding the blockchain industry are continuously changing and this poses a challenge for custom software developers.
Different governments or authorities have different approaches when it comes to blockchain technology and cryptocurrency. This means that the developers are forced to navigate through complex legal and regulatory requirements when using blockchain technology.
This can lead to unnecessary delays and uncertainty within the team. So, you have to make sure that the blockchain driven software solutions you want always adhere to the legal frameworks. This is important for you to avoid any legal repercussions or fines.
3- Integration Issues
You have to keep in mind that using blockchain for custom software isn’t an easy task. You might be using some systems that are paramount for your project and you can not let them go. Then you are left only with two options, you let them go, which is not possible or you integrate them with the technology you’re using.
Now here is the tricky part. Integrating blockchain technology in your existing system isn’t exactly a walk in the park. Especially when you consider compatibility with legacy infrastructure.
Custom software developers have to very carefully consider how they can integrate blockchain with their or their client’s current systems. And they have to assess whether blockchain can be integrated seamlessly ensuring minimal disruption or not.
You can successfully integrate blockchain technology into your custom solutions by keeping these factors into account.
Businesses in the following industries can benefit the most from using blockchain driven custom software solutions.
- Finance or Fintech
- Supply Chain Management
- Cybersecurity
- Energy
- Custom App Development
Some other ways blockchain technology can be used are;
- Product Lifecycle Tracking
- Logistics
- Data Tracking, Maintenance, and Security
- Financial Data
- Historical Data Archiving
- Location or Status Tracking
- Secure Data Sharing
Recap
You might have heard that digital currencies and blockchain are the future. If that is true, then the future is now. It is because the blockchain technology is already being used in two major industries, these industries are healthcare and finance.
Using blockchain in custom software development also offers many benefits. Benefits such as;
- Improved Data Security and Management
- Increased Transparency
- Traceability
- Streamlined Development Process
- Cost Reduction
Blockchain technology in custom software development is especially important because it helps keep our data safe. It is unlike any other database which is prone to hacking attempts. It not only keeps the data safe but also helps save money and works faster.
It also promotes traceability and transparency that fosters trust among teams. Since blockchain is a decentralized technology it means that there is no single controlling body. Everyone can see what is stored in the chain, making it very easy to identify any attempts of tampering.
Portland Software Developers is the leading custom software provider in the states. We specialize in custom software development and web and mobile application development. We provide software solutions that are tailored to your needs and help drive business growth and success.