Blockchain is a way in which information is stored. What makes Blockchain a unique system is the way the data is stored. It makes it almost impossible for hackers or cheaters to change the data, which is stored in the form of a Blockchain.
Blockchain is nothing but a digital form of a principal book that holds all the performed transactions. This book is then quickly made into multiple copies, and then they are given to all the computers on the network of Blockchain. Every so-called block in the chain holds an extensive list of the transactions which were performed. To make the data consistent across all the users, whenever any new transaction occurs, the information is automatically updated throughout all the ledgers of all the clients in the particular Blockchain.
The way the data, instead of being stored in a central server, is being held locally, is called DLT (or Distributed Ledger Technology). Blockchain obviously is a specific type of DLT in which all the transactions that are done are stored so that they are immutable and possess a unique cryptographic signature known as a hash.
Such a sophisticated security measure means that if hackers are told to tamper around with the data, they will have to hack their way into the Blockchain and make the same changes in each and every block of the particular change. Not only that, but they will also have to ensure that all the ledgers which are distributed over the network also share the same changes, or else all their efforts would be in vain.
Thus, the block with growing size automatically becomes more secure over time, and we, as a Blockchain development company, understand and value security. Our primary focus is to provide an intuitive way for Blockchain development and to make it accessible yet secure for the masses to use.
There is no denying the fact that Blockchain being the new guy around the block, is getting all the attention. However, the watch which is received by Blockchain is not all due to its relatively less time in the real world. The real reason will become apparent when a look is taken to the trends emerging in this space.
We, as an expert in Blockchain development, have worked on creating numerous industry-leading Blockchain-related applications, and have seen the progress of this tech in real-time. As a result, here’s some of the more widely adopted applications of Blockchain for you to understand:
- BaaS (or Blockchain as a service): Most of the tech sector giant companies have started to use BaaS and have found a way to integrate Blockchain with their daily, day-to-day functions. A wide variety of startups as well have begun to incorporate Blockchain as a service into their workflow. Blockchain, as a service, is a cloud service. Yes, it entirely depends on the internet. However, it also allows the user to write and code their own products by integrating Blockchain into each one of them. Blockchain as a service also allows the user to create things like the smart form of contracts, Dapps, decentralized apps, or any other app that might not even require the company to set up a working Blockchain solution.
- Federated Blockchain: There are many types of Blockchain networks. From public, private, hybrid, and federated, any company looking to deploy Blockchain is not lacking in terms of choice. Each one of these types of Blockchain systems has its advantages and disadvantages. In recent times, however, one of them has risen far beyond its counterparts, and hence it has gained the status of the best kind of Blockchain network. Federated Blockchain is that Blockchain network. One might see it as just a mere upgrade from the usual and straightforward Blockchain, but the simplicity works in favor of federated Blockchain. One key advantage of this system is that more than just one organization; in this, the clearance to make changes in the Blockchain nodes lies in multiple parties’ hands. Given the flexible nature of this Blockchain, it is deemed to grow in popularity throughout this year.
- Blockchain and IoT (Blockchain and Internet of Things): The main concern in any organization dealing with the Internet of Things is security. As it is known that IoT devices mine some sensitive data about the daily activities of any household or company which employs Internet of Things devices to use. Not just that, but the potential of hackers to plant exploit would mean that they will have access, the likes of which they have never seen before.
They would be able to control and monitor essentially everything. Once they are into the network via which the IoT devices are functioning, they will gain access to all the devices like laptops and mobile phones hooked up to the system. This means all the personal and professional data is compromised. Yes, such glaring security flaws have always been associated with IoT devices. To cope with the increasing number of attempts at gaining control by the hacker, Blockchain could be easily implemented into the mix. Given the decentralized nature of Blockchain and the significant robustness of an extended Blockchain network, both combined could really give a massive security boost to the Internet of things network.
- Blockchain with AI (or Artificial intelligence): No one can deny that artificial intelligence is by far the most rapidly growing field in the entire tech community. When we would successfully integrate AI technology with the existing Blockchain technology, we would benefit massively. We at Minddeft solution, which is a leading Blockchain development company, have seen what fruits it bore when these two technologies are combined. It is estimated by the International Data Corporation or the IDC that by the end of 2020, almost 51% of all the business would have opted for a Blockchain and AI combination.
The presence of Blockchain technology alongside AI will also help AI become a lot more coherent in nature. Meaning, it would become much easier to understand what is happening behind the scenes in the AI, which is implemented as a particular solution.
Not only AI but Blockchain would also benefit from this union. If we see the current trend of the amount of computational power required to do even a fundamental Blockchain task is very massive. AI can help reduce the load very significantly.
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Major Technology Stack for Blockchain Development:
We have now seen what all is going on in the tech world in terms of Blockchain. But, all eyes are on us, and what secret is brewing in our kitchen through which we can serve you with such a fantastic Blockchain development platform. This is where you will find the various ingredients together; they form our Blockchain’s secret sauce.
So, let us discuss the various enterprise Blockchain solution which we employ to serve you with some hot and tasty Blockchain:
Ethereum Network: Ethereum network or also known as just Ethereum, is by far one of the better choices if you would like to have a certain degree of flexibility which is not found in the typical bitcoin environment. This flexibility is added to this network just because of the presence of smart contracts. Smart contracts are another type of program. These programs are written in high-level languages like python or C++ and then made to work in a Blockchain’s distributed ledger system.
Here all the smart contracts which are written, they first get compiled in the form of bytecode. This bytecode, which we have found, is then taken into the Ethereum network, and then these programs are made to run. You can see almost all the smart contracts which are present in the Ethereum network are written in the language known as Solidity (This language was just written to create smart contracts).
In case the question arises of how the costs incurred during the computation of this entire system are paid for, the answer to that is straightforward. The cryptocurrency known as ether is used to pay for all the costs. We all know that cloud computing is not free. The people who are linked with Ethereum often refer to ether as gas because it would be impossible to create an Ethereum network without the presence of ether.
One major problem and why we, as a leading Blockchain development company, do not use this network while building applications like an insurance network because of data privacy. Yes, all the data in this network is shared, and as an insurance company, you would not want this data to fall in the hands of your competitor. We all know what all could happen if your company’s data would reach into the hands of your competitors. We use other networks which are mentioned below to fix this issue of data privacy.
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Corda: Corda saw the daylight when it was created by a company that goes by the name of R3 technologies. R3 tech was founded in the year of 2014, and it was not until the next year until this company and the products they sell became commonplace. The only reason our experts found in their research for this sudden surge in popularity was that an entire consortium of banks had joined with them.
In the area in which Ethereum lacked, Corda shines. Corda was made to have a considerable focus on the privacy of the data, which is present in the Blockchain network. It manages this level of abstraction by only giving out information on a need to know basis. Suppose there is a need for an individual component to know about a specific transaction that happened yesterday. In that case, only that single component will get to see the trade details and nothing else.
The architecture of the Corda system is based on a very fragmented structure. The entire database, which would contain all the information about all the transactions that have occurred, will not be present to all the Blockchain members.
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One known benefit of Corda, which we, as a leading Blockchain development company, have seen over our long career in building and doing Blockchain development, has seen that it has a very high performance. This fact should actually come as no surprise because, in Corda, we would not have to store the data of all the transactions with every member of the Blockchain because of which even linear horizontal scalability is not far from being achieved.
Another valuable and visible benefit of using Corda is the reduced costs of operations. When we compare it with Ethereum and bitcoin, all the computations related to the data stored had to be done at each and every block of the chain. Now, neither all the data present over the Blockchain network is being held in every possible node, nor is the processing done at each node. It makes Corda an ideal choice for companies to deploy.
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Hyperledger Fabric: We have IBM to thank for because IBM is the company that has contributed code for this fabric like a Blockchain system as a part of their open-source coding venture in the year of 2015. They quickly named this project a Hyperledger project. Now, this project falls under the umbrella of the Linux Foundation which, as we know, is an incredible non-profit organization in the sector of open source technologies.
The privacy of the data in this fabric, like Blockchain, is achieved with channels’ help. These “channels” allow for very private communication between two or more members present over the network. Suppose we are to take this discussion into a more academic standpoint and think about what Hyperledger conceptually signifies. In that case, we will find that this fabric of a Blockchain is supposed to be implemented as one gigantic channel. In this colossal channel, all the communications which happen privately would just be a subset of it.
Each and every subset of the Hyperledger fabric is nothing but a small implementation of a Blockchain itself. So, for any reasonable size of the main fabric, these little private channels would grow rapidly and soon would be out of hand and very difficult to manage. That is perhaps the prime reason we prefer corda over Hyperledger, and in our experience, we have found that most companies are migrating from Hyperledger to Corda.
Quorum: We see that this Blockchain solution employs the whole data privacy concept in a different way from all the ones that are mentioned above. In Quorum, there are two separate states in which the public and private data are both stored. In this implementation, we also find the presence of peer to peer encrypted messages. In all technicality, there is no space in Quroum to store private data. So, in practice, only the hash of the confidential data is stored in it In all its essence, Quorum is just another variant of Etherum or, as we geeks, would call it, “fork.” Any updates that the Etherum code base receives will automatically make its way into Quorum’s code. It was because of the investment bank, which goes by the name of JP Morgan and chase, we see the existence of Quorum.
The concept of Gas, i.e., ether, is still present in this as well. However, the prices are removed, making Quroum free to use. The reason behind this step is that Qurum does not run on a public network.
Now is where we explain and delve deeper into the various entities and how we use them to make the famous recipe that is loved and appreciated by many people worldwide.
Stablecoins: There are many ways to use stablecoins in our day to the task of Blockchain development. But first, let us understand a bit about stablecoins.
There is one major drawback of using any form of cryptocurrency, and that being the instability. You will see the prices of many currencies fluctuating very rapidly from day to day. This bubble nature of these cryptocurrency earns them a massive distrust in the entire tech community.
Here is where stablecoins come into the picture to change the game entirely. The word stable should be a colossal tell, but in case it was not clear enough, stablecoins vary significantly less in comparison to other types of online currencies out there. That is why we tend to deal with stablecoins because it gives us a certain level of confidence that tomorrow the price of the currency we have in store would not drop drastically.
A general definition of stablecoins would be that it is a type of cryptocurrency which happens to be collateralized to the value of the asset it represents. These assets might depend on the kind of coin used but in general, and these are an excellent alternative to any cryptocurrency.
Now, let us see the real-world application of these:
It can be used as a day-to-day currency: Yes, because of the dependability factor stablecoins brings into the fold, it can be an excellent alternative to dollars or rupees. If the entire world is to move into using cryptocurrency, it will be because of stablecoins. They are suitable mainly for overseas payments since they hold the same value worldwide. So, let us say that in India, a person receives a stablecoin that was bought by using dollars. Instead of converting the money into rupees and losing a significant chunk of the value in fees, they can just keep the currency and use it like they would a normal rupee.
It can help to streamline the entire peer-to-peer payment sector: Because the value of the stablecoin will not change drastically over a period of time, they can be used to enforce smart financial contracts, which can be implemented over some time. Smart contracts are just Blockchain-based contracts that can be enforced without the need of any third party. The transactions are automatic and leave a trace that could then be easily picked up later. Because of all these benefits, one can use them in various ways, and thus stablecoins are precious because they could be the bridge that was needed for a long time in the world of cryptocurrency.
It gives a fail-safe if the local currency crashes: Yes, we have all been witnessed to the great economic depression of the early 21st century. In case that happens again, stablecoins could help you shield from that repercussion. The people who have USD-backed, EUR-backed, or even gold-backed stablecoins can quickly change them for usable money and thus help them protect their savings.
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Blockchains: We have had an extensive discussion about Blockchains already, and since we are a leading Blockchain development company, we use Blockchains on a daily basis. So below, we have listed some of the real-world application which Blockchains have:
Insurance claims: The way the insurance and the claiming of the insurance system works is very complicated. There are many small details which should be very closely monitored, and thus the process of claiming insurance also becomes quite cumbersome. Moreover, the officer in charge of handling claims rarely receives thanks but is subject to many harsh words. This is where Blockchain comes into the picture. There can be two different records that could be maintained, and both could be linked with Blockchain’s help—the addition of Blockchain servers two other purposes. The first one being, providing a ledger that contains all the records in one neat place. The second benefit comes in the form of security. Blockchains are encrypted, and thus tampering with the information is that much more difficult.
Cross Border Payments: The sector of cross border payment is a very messy place. It is open to errors, it is costly, and money laundering is straightforward. It also takes a long time for any transaction to happen. Blockchain could help streamline this entire process. It is reducing the overall time taken for the transaction and making the whole process secure.
Blockchain in the Music Industry: Now, this might seem like a wild one, but Blockchain could help solve many problems in the music industry as well. The main problem that any music producer faces is ownership rights, the distribution of royalty, and the level of transparency. This sector relies heavily on making money, and in the process, the artists’ rights are usually overlooked. Blockchain could come here as well, in the form of smart contracts. Using smart contracts in the Blockchain could help the artist receive the money they are owed while allowing for a level of transparency which this industry has never seen.
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Security Tokens: There is a straightforward definition of the security token, and that is “Any crypto token which passes the Howey test is deemed to be a security token.” Now, what is this howey test?
The year 1946 saw a historic decision made by the United States of America’s supreme court. In the case of SEC vs. Howkey. That is why this test is deemed a howkey test. So, the metrics of the test are simple any transaction will be called as an investment if it checks out on the three fronts of It must have an investment of money, The investment which was made must be in a common enterprise, and finally, There should be an expectation of profit from work done by any third party.
So, any crypto, which is essentially an investment, is termed as a security token. Now, there can be many use cases in which a security token just fits perfectly. We have listed some of them below:
It can help bring some credibility back: In the space of online currency, there is a massive void of accountability that needs to be filled. As the market stands now, there is a lack of regularization, which brings a lot of distrust with it. Security tokens could help bridge the gaping hole and allow legacy financial space and the new crypto space to come close together.
It can help in improving the legacy financial space: Normal transactions are quite expensive. Here most of the money goes into paying the many middlemen who are associated with them. The use of a security token can help change this space. Instead of having a baker do everyday chores, smart contracts could be used, which completely eliminates any middle men’s need.
It can help make faster transactions: Middlemen not only do they increase the fees we have to pay but also make the transaction occur at a snail’s pace. Since there are no middlemen associated with security tokens, they are a faster and thus more lucrative option for investment of money.
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Regulations in the Blockchain:
It is true that bitcoin gets all of the attention but the underlying technology which powers it is instead left unnoticed. Unlike bitcoin, Blockchain has a variety of uses. One can argue that Blockchain can be used in almost any industry. It definitely has some great benefits and a promising future.
But, it is still a very new technology, and thus the rules and regulations surrounding Blockchains are also relatively new. As a leading Blockchain development company, we can attest to the fact that even in the US and Europe, we do not find any consistent rules that could help shape up the way we use this technology.
There is no regulatory committee that operates on a world level. It is left at the discretion of the country to decide the course of action they would like to adopt when it comes to dealing with Blockchain and its subsidiaries.
The gray area shrouding Blockchain is quite massive. There are some countries that are trying to understand the intricacies to deploy it correctly. At the same time, there are countries that are completely shunning Blockchains entirely. This disparity is also hurting the growth of Blockchain technology.
To understand the county vise framework for the regulation of Blockchain and Blockchain-based technology, you could read this article.
Future of Blockchain:
It was March of 2010, which saw the price of each bitcoin to be equivalent to pennies. It rose through the roof with each bitcoin costing about 20,000 USD. The people who saw the potential of this technology in its early stages are now reaping the rewards. It is true that due to monetary reasons, bitcoin will always be a point of discussion. The ubiquity of bitcoin brought its underlying technology (Blockchain) into the limelight.
It can be very easily seen from the data surrounding Blockchain that how important it has become. In the span of three years i.e., from 2017 to 2020, the demand for a professional highly skilled in Blockchain technology grew by over a whopping 2,000 percent. Seeing and analyzing data like this, we, a leading Blockchain development company, can safely assess the future and give you an accurate estimate.
From the years we have spent in being at the forefront of Blockchain development, we have seen its importance growing firsthand. It is those years that have revealed to us that there are certain parts of Blockchain development that we should emphasize more than the others. We are banking on the list below as the tech stack, which would be leading the development of Blockchain technology.
We also would proportionally increase the use of these tech stacks to keep on serving you with the taste you have come to expect from us.
DeFi: Defi means Decentralized finance. It acts as an umbrella to all the Blockchain-based subsidiaries, which are geared towards disruption of the status quo. The inspiration from Blockchain is unmistaken. Defi also uses a decentralized system that allows every or several different entities to hold copies of the history of transactions. It becomes increasingly important because it eliminates most of the middlemen involved in the process of transactions.
It’s the various applications of defi which made us include this tech stack on this list. Defi can be used in DEXs (or decentralized exchange), creation, and distribution of stablecoins, can act as a wrapper to bitcoin or “wrapped” bitcoin (WTBC), and it can also help in predicting the market.
Central bank digital currency: As the name fends for itself, central bank digital currency is actually the digital form of otherwise flat form of currency. So, any transaction in which you use regular currency like USD or INR, you are making use of Central bank digital currency. The benefits of this form of currency are apparent. You are just using the digital version of the paper which you use on the daily. Thus, it has the same level of dependability and the trust which we have come to know from money. It eliminates the glaring fault of reliability, which is present in the form of cryptocurrency. That is the reason why this would lead the sector of Blockchain.
Being named among the top companies for Blockchain Development, us folks at Minddeft have understood the ins and outs of the working of Blockchain and any related tech or applications. As a result, we understand our client’s requirements to the point and then offer solutions that are sure to meet their needs.
If you’d like to know more about our services and expertise, do reach out to us!