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Many people often associate blockchain with virtual currency such as bitcoin, but mobile apps can benefit from this secure technology, as well.
Here, we'll delve into some use cases for blockchain in mobile apps.
How blockchain technology works
Blockchain is a distributed ledger technology that serves as a decentralized database for recording transactions between two or more parties.
Blockchain technology adds transactions to a ledger chronologically and stores them in a series of blocks. Each block contains transactional data from the preceding block to form an interconnected chain.
Only designated computers within the blockchain network will receive the transactional data. Each node maintains a complete copy of the ledger, which eliminates the need for a central authority or third-party verification service. The blockchain automatically synchronizes and validates the data across all the nodes, allowing each member to view and track all the transactions.
No one can alter transactional data without the approval of the majority of the members and, even then, the member must modify the target block and all the subsequent blocks in the chain across all the nodes.
Blockchain technology makes it nearly impossible for anyone inside or outside of the network to manipulate transactions, tamper with ledgers or shut down the system. To protect data against leaks and cyberattacks, blockchain also uses cryptographic technologies, including private key encryption, which provides users with unique digital signatures.
Benefits of blockchain in mobile apps
Blockchain's distributed and secure architecture makes the technology suitable for a wide range of enterprise mobile apps. Any organization that uses mobile apps to record and share transactional data can benefit from blockchain in mobile apps.
For example, an organization can use blockchain in mobile apps for supply chain management, making it easier to track a product's history and movements from manufacturing to sales. End users can use a mobile app with blockchain to access transaction details such as quantities, change orders, serial numbers, shipment notifications and warehousing specifications.
The financial sector can also benefit from blockchain in mobile apps. For example, a stockbroking company can provide a mobile app with blockchain for its clients to securely and quickly carry out transactions.
Blockchain may be a good fit for the real estate sector, too. Title or mortgage companies, for example, can implement blockchain in mobile apps to help streamline buying and selling processes and ensure that documents such as deeds, liens and titles are accurate and verifiable.
Healthcare companies can benefit from blockchain in mobile apps to process insurance claims, share patient records or conduct medical trials. Government organizations can also benefit from blockchain technology, making it possible for individuals to access public records, pay property taxes or vote from their mobile devices.