Technology has further advanced into new territories, and it’s rapidly changing how we live our lives. According to the World Economic Forum, we are now in the fourth industrial revolution, marking a new chapter in humanity.
From bartering goods when there was no notion about money to buying and selling products and services using silver, gold and precious gems, we have evolved into using cash to provide us with the things we need.
In recent years and with the pandemic still ongoing, the need for contactless and digital transactions have become the norm. And from businesses starting as brick and mortar institutions, most have now shifted to doing business using a digital platform.
Recently, decentralized finance has gained so much attention. With prominent people such as Elon Musk showing support to Dogecoin, it has piqued the interest of many people. So what is decentralized finance?
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What’s Decentralized Finance?
Decentralized finance (DeFi) is a relatively recent and emerging financial ecosystem that exists online. People can use this system to transfer, trade, borrow and lend cryptocurrency. And built-in protocols run this system. It uses an advanced technology called blockchain as its foundation.
DeFi is a computer-controlled market. No person or institution regulates decentralized finance because no brokerages, exchanges or banks are involved. So there is no need for trust, mediators or third-party entities to accomplish transactions.
The system is entirely built on the trust of users towards the system and its protocols. Therefore, this kind of system reduces the risks brought about by human greed—problems like fraud, corruption, and mismanagement of your assets.
So how does it work? Scroll down for more details!
What’s a Blockchain?
A blockchain is an unalterable digital distributed ledger. Therefore, it’s nearly impossible to change or delete records on it. In addition, automated systems prevent decisions made from human emotions, thus decreasing the chances for error.
It’s an online system that is capable of doing several things such as:
- record financial transactions
- track the flow of goods and payments
- optimize supply chain management
- store medical records
- and many more
When you incorporate blockchain technology in your business process, you can speed up your transactions, optimize your business’s processes and at the same time establish trust with your users.
So you might ask, how can you introduce blockchain technology into your everyday business operations. This is where decentralized apps (dApps) come into play.
What are Decentralized Apps?
DApps work the same way as your mobile apps. Programmers develop codes to run these applications. And these applications will serve as a platform so you can interact within the blockchain.
These are open-source applications distributed on their respective platforms—making it easier for users to transact with each other and with the system itself.
Smart contracts are the core of blockchain application development. Why? Once an agreement has been made between two or more people, The system will release a smart contract in a computer code.
For example, the smart contract can be programmed to release payment to someone once the receipt of delivered goods has been completed and confirmed.
And with the use of blockchain technology, the possibilities of bringing your idea to life is limitless. However, blockchain app development is quite complex. It will take a lot of time, money and effort to turn an idea or a concept into a working blockchain app.
But we have great news! You do not need to have the technical know-how to create and start your blockchain app. There are dedicated blockchain development services online to help you out.
Once you have found a good blockchain development company, you can check out the list below to start creating your blockchain app!
7 Steps to Blockchain App Development
Creating your blockchain app from scratch can be overwhelming. Most of the time, you don’t even know where and how to start. But with the proper guidance, it’s doable. So you go ahead and check out these simple steps:
Everything starts with an idea. Planning is when you sit down with the people involved in the development of the app. This is the best time to understand the details of your project idea. Furthermore, it’s a safe space where you can discuss how to achieve your goals.
The design is your visual identity. It is how your app will look in the eyes of your users.
Establishing the architecture
This is the invisible structure that will ensure that your app will run smoothly. Moreover, it will guarantee that the foundation of your program is 100% secure. Engineers will be working on the architecture of your app.
Software developers are in charge of this step. Your app’s build must follow strict codes and guidelines to ensure that it will work well.
Having dedicated tests to see how the app is running will allow you to make the necessary changes to make it better. Bugs and glitches are common, so have it tested multiple times to ensure that everything is functioning the way you want.
When your app has gone through the testing phase, and everything is working as planned. You can prepare for its deployment. Also known as a launch. A good blockchain app allows users to have a positive experience the moment you deploy it.
Always remember that a good user experience will always build brand presence and loyalty.
And when your product is live, you need to improve so you can be at the top of your game all the time. You may get feedback from your users and use this information to improve and be better than the competition.
Even though blockchain is a relatively new kind of technology, it has already changed how we live. It has given us a robust platform that will allow us to store and transfer money, data and items of value with the utmost transparency and security.
It has revolutionized the way we live, and since it’s an evolving technology, the possibilities are endless.