Mobile App with Blockchain: Pros and Cons

Since the first public blockchain that enabled bitcoin transactions first emerged, blockchain technology has made significant advancements toward the optimization of business processes across numerous industries.

The idea of using blockchain in mobile apps still sparks some interest, despite all the hype surrounding the technology.

As they work to realise the potential of this technology, our partners frequently ask us questions. How will blockchain impact our mobile strategy, and specifically the top mobile app development?, is the most frequent question.

In this blog post, we'll look at some advantages and disadvantages of applying blockchain technology to the mobile industry.

What Is Special About Blockchain?

In conclusion, a blockchain, a distributed digital ledger, automatically replicates data among various nodes. The so-called consensus, a verification process that takes place on each node separately before a new data block is added to the chain, involves all nodes equally.

The blockchain, which can be programmed to record practically anything of value, is an irreversible digital ledger of economic transactions, according to the statement.

Don and Alex Tapscott, authors of the Blockchain Revolution (2016)

In situations where there is no trust between parties, a blockchain emerges as the best option for storing an uncompromised secure log of all transactions that is transparent and verifiable by all participants.

Blockchain Technology and Mobile App Development

Blockchain technology is having a significant impact on companies that Sartphone app development agencies. Many industries use it frequently to offer a dependable setting, secure data access, and open payment transactions.

Blockchain mobile apps have already significantly altered the landscape of sectors like finance and banking, insurance, healthcare, supply chain management, and IoT.

For instance, it is typical in the insurance and financial industries to use multiple signatures on various contracts or documents. In this case, blockchain-based apps enable dependable access to a crucial database. They additionally offer safe access for numerous users.

Mobile blockchain: advantages and disadvantages

In seven countries, Deloitte recently conducted a blockchain survey, and the results showed that half of the respondents (more than 1000 companies) planned to invest one to ten million dollars in blockchain solutions in 2019.

Let's examine the advantages of this revolutionary technology, on which blockchain investment companies are placing their bets.

Distributed

As we've already mentioned, a blockchain is a distributed ledger. This indicates that a blockchain doesn't need a central server or reliable authority to work; instead, it depends on a number of independent nodes. Nodes manage transactions, doing away with the need for intermediaries.

Businesses gain from higher profit margins, lower operating costs, and faster transactions.

But will it stand up to scrutiny if we look at the distributed nature of blockchain through the lens of mobile? A smartphone or tablet would effectively become a node if a mobile app that is entirely built on the blockchain were to exist, which would have obvious negative effects.

Compared to portable storage, bitcoin

Mobile devices have a naturally limited capacity for data storage. A blockchain mobile app can quickly occupy all available space on a tablet or smartphone.

As of March 2021, the Bitcoin blockchain was over 330 gigabytes in size, which means that as the chain grows, it will require more space on a mobile device. You do the math.

Blockchain performance versus that of mobile devices

However, we must admit that the vast majority of mobile devices on the market lack the processing power required to support a blockchain's proper operation. Modern smartphones can certainly compete with the mid-range PCs that constitute the majority of nodes on a typical blockchain.

Since a smartphone would quickly run out of power due to constant connectivity and processing operations, a battery's capacity would also create another bottleneck.

Safe and Unalterable

Every block of data added to the blockchain is verified by all nodes involved. Each new piece of data is encrypted and timestamp-signed, protecting the blockchain database from hacks.

For mobile solutions, data immutability could undoubtedly be useful, but prolonged verification would be useless. The availability of biometric authentication, which is already a trusted security measure, is another feature found in many modern smartphone models.

Transparent Blockchain gives every participant in a system real-time access to their data while removing any chance for a single entity to covertly change the data in a specific node.

Any network user has access to see any data manipulation, if you will. Without disclosing any personal information, blockchain technology enables the ability to see what information was changed, by whom, and when. Therefore, it is forbidden to falsify data or transactions.

When an app needs more data transparency and control, blockchain seems to be the best technology to use.

Effective and prompt

Many financial institutions develop and use mobile apps to improve customer experience and streamline business operations. The traditional approach to handling transactions entails many steps and verifications.

With blockchain, the procedure can be streamlined and automated, eliminating the need for a middleman to take part in or complete a transaction. Mobile apps can now function quickly and effectively around-the-clock with the aid of this technology.

So there isn't a blockchain on mobile devices?

Not quite. Blockchain has a chance to take off in the mobile space. Simply browse the various mobile wallet applications that are offered. With a digital wallet app, managing cryptocurrency transactions is easiest.

Simply put, we must comprehend that a mobile wallet is not a mobile app built on a blockchain. Such a wallet actually only functions with a blockchain, which is run by desktop computers as would be expected.

You might be surprised to learn that most apps function in this manner. The processing of data and formulas is done by the server. Mobile apps typically only let you interact with data that they have downloaded from a server.

Uber is a great example because the server chooses the best route and sets the fare rather than the app. The extensive back-end infrastructures of Apple and Google's mapping services provide this information to the Uber app.

We want to be clear that blockchain technology does not fundamentally alter the principles oftop mobile app development agencies; it merely adds another integration point. An app that integrates with a blockchain can offer a mobile interface into it.

Because a smartphone or tablet that has a blockchain-integrated app does not store or verify blockchain data, as a desktop node does, it does not contribute to the operation of the blockchain. The data can be shown in an app instead by integrating an API.

Future of Blockchain Integration in Mobile Apps

Although there are currently no compelling arguments in favour of developing a blockchain system that is only geared toward mobile devices, these solutions may add value by giving mobile interfaces to blockchain-powered systems.

The most intriguing use cases for fusing mobile apps with blockchain-based solutions include the following:

Wallets are among the apps used to manage cryptocurrency transactions.

• Apps for trading cryptocurrencies, etc.; • Digital identity for utilities, new bank accounts, and driver's licences; • Recording land rights and titles;

Are you interested in learning more about the benefits of fusing a mobile app with a blockchain or do you plan to develop a distributed blockchain app for clients of smartphone app development agencies? If you let us know, we'll perform an audit to help you identify the challenges and opportunities for carrying out a project at the nexus of mobile and blockchain technology.