Blockchain technology is getting a lot of attention right now in the startup world. While Bitcoin currency can still be considered one of the most prominent examples of the application of blockchain, many startups are rushing to find ways to build apps based on blockchain technology, collectively known as decentralized apps (Dapps).
Given that $1.67 billion has already been invested in blockchain projects via initial coin offerings (ICOs), the market for Dapps is only expected to continue to grow. Clearly, blockchain technology has some very useful applications for a variety of industries, including finance, healthcare, defense, government, law, and energy.
Despite the promise that this technology offers, the truth is that it may or may not be the right solution for your business. Here are the advantages and disadvantages of blockchain that you should consider to help you identify whether your app project is well-suited to blockchain technology.
Blockchain has the potential to disrupt many industries which is why it is getting so much buzz. To provide a general overview of what blockchain has to offer, blockchain technology offers some key benefits for apps, namely:
While blockchain technology has some incredible potential, there are also some very real hurdles to building Dapps. As a relatively new technology, the infrastructure to build Dapps remains underdeveloped. There are no stacks in place so blockchain developers must rely on their own custom tools and standards. As of right now, there are still no widely adopted security standards or best practices for developers to follow, although there are projects underway to combat these issues.
Therefore, before you begin building a blockchain app, it is important for you to consider whether your app is really a good fit for the technology. Your needs might just be as well or even better served by traditional relational databases, such as MySQL. Testing and debugging a blockchain app is also infinitely more difficult than performing these actions for a traditional app which could potentially make developing, testing, and supporting a Dapp a lot more expensive than you might think.
In addition, there are also legal ramifications to consider. Traditional apps that involve contractual agreements or financial transactions currently rely on banks, other heavily regulated organizations, and governments to guarantee the integrity and legality of those transactions.
In contrast, there is no such level of legal backing for blockchains. As a result, most of these compliance-related expenses will fall on your startup. You’ll then have to determine whether or not the potential return on investment will justify these expenses.
App development for a blockchain app begins with the same questions that you would have about developing any other app. What problem are you trying to solve? Who are your users? Who is the competition? How will you stand out in the marketplace?
As a result, when you choose to build your app on blockchain, it is really just another implementation choice akin to making security, performance, and programming language decisions.
Developing an app on a blockchain generally involves three main approaches:
If you’re just getting started, it may take some time for you to evaluate all of the potential options and approaches to building a blockchain app. You’ll also need to determine whether or not your app project meets the criteria that make it a good candidate for blockchain.
With such a wide-range of possibilities, it’s no wonder that blockchain has the potential to become a revolutionary technology that will change the way that apps are built. However, building a blockchain-powered app requires a high level of expertise. As a result, hiring app developers who have experience with blockchain technology is the best choice.
At Achievion, we have blockchain app developers with solid experience in designing and building distributed software and apps. Our team can guide you in recognizing new opportunities for your business with blockchain and help you to determine how to best implement your app project idea.
If you’re ready to explore the possibilities of the blockchain for your app, contact us today and let’s schedule a time to discuss your project.
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