Just like every other emerging technology, there is a lot of hype surrounding blockchain technology but does all that hype really justified or is it just a tech bubble that is about to burst very soon? Let’s look at some numbers.
According to Blockchain statistics, the Blockchain market is expected to reach a $20 billion mark by 2024. Global spending on blockchain technologies was $2.1 billion in 2018 which increased to $2.7 billion in 2019. 69% of banks are already experimenting with blockchain technologies and some of them have even reported savings of anywhere from $8 billion to $12 billion per year.
All these statistics clearly point towards a bright future for blockchain technology. You might have a common misconception that blockchain technology usually finds its application in the financial sector. Can it impact other industries in the same way as banks and financial institutions? What about mobile app development? Can blockchain impact app development? If yes, then how?
If you are looking for answers to all these questions, then you are in the right place. In this article, you will learn about how blockchain technology can benefit mobile app developers and enhance the mobile app experience of users.
1. Distributed Management and Control
Thanks to its distributed architecture, there is no single point of failure. It is basically managed by a distributed entity powered by a vast global network of computers. The distributed network serves as a server delivering service to clients.
When your network delivers service to your clients it means that your mobile apps will act as a customer who is accessing the server. Your mobile app is less likely to crash when you use blockchain technology to develop it — thanks to its distributed nature.
Another advantage of decentralization is security. By removing a centralized entity from the picture, it gives control in the hands of multiple blockchain participants. Each transaction is recorded in a distributed ledger and verified by multiple nodes on the network.
The recorded action makes blockchain financial transactions much secure than traditional ones and adds a level of trust to the data. Due to added level of trust — blockchain technology is harder to hack for cybercriminals. The blockchain even offers encryption and validation facilities to make your financial transaction even more secure.
App developers can also use private blockchain technology to limit access to specific users. Best of all, you do not have to comprise on peer to peer decentralization network capability for this.
Private Blockchain forces users to authenticate their identities before getting access to privileges. App developers can also implement limits on the number and types of transactions a user can make.
Are you worried about your data getting into the wrong hands? If yes, then blockchain is for you. With only authorized users allowed to access your data and make changes to it, you don’t have to worry about your data getting stolen or tempered.
Best of all, every blockchain participant can see the changes made ensuring transparency and reducing the chances of fraudulent transactions. Since it uses a computer network, which transmits data continuously, as soon as the changes are made to the ledger or block, everyone is notified about the changes.
Mobile app developers can take advantage of this and build trust and make their mobile apps more transparent while improving customer satisfaction at the same time. By implementing blockchain, app developers can resolve network congestion and load balancing issues as well. This also allows them to transmit information faster and deliver an exceptional user experience.
Blockchain’s unique architecture makes it an ideal choice for mobile apps. It is not only more robust but also delivers on the scalability and flexibility fronts. As the data move through multiple blocks linked to the blockchain network, the risk of data compromise is much lower.
The open-source nature of blockchain makes the technology and tools more accessible. It not only grows with your business needs but also give you more flexibility as compared to other technologies. Developers can take advantage of customization options and develop a solution that is tailor made to fulfill the business needs.
5. Small Learning Curve
As a mobile app developer, we usually stick to tried and tested tools and technologies. Did you know why? Because we hate the steep learning curve of sophisticated tools and technologies. First, you must spend time in mastering different options and features provided by the tools and technologies before you can take full advantage of it.
Thankfully, that is not the case with blockchain technology. It is simple and easy to understand, which encourages app developers to try their hand at it. Due to this, it has become a preferred choice for many app developers as they can learn it quickly and has a cost-effective app development approach. Since most sophisticated technologies take more time and money for successful implementation, blockchain can serve as a great alternative.
Since blockchain data is protected by the cryptographic encryption, hackers will find it difficult to hack it. A blockchain network uses both public and private keys. Users have a private key while the public key is available on the network. To make any transaction, the user requires both the keys, which is known as the digital signature. A digital signature is used to verify and record the transaction. All of this can help app developers when debugging apps.
7. Frequent Updates
Just like the mobile app industry, the pace at which blockchain technology is evolving is mindboggling. The evolution means that we might see frequent updates coming out every few months.
The updates help app developers to keep their mobile apps up to date and even ensure that their apps will meet all current standards and also satisfy the future needs of businesses.
Moreover, blockchain app developers share user data to improve mobile applications. The sharing of data allows developers to constantly refine and improve the app user experience.
How will blockchain technology impact mobile app development in the future? Share your thoughts with us in the comments section below.
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Fintech Kennek raises $12.5M seed round to digitize lending
London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.
According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.
The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:
“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”
The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:
“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”
The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.
The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.
Featured Image Credit: Photo from Kennek.io; Thank you!
Fortune 500’s race for generative AI breakthroughs
As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.
Goldman Sachs’ Cautious Approach to Implementing Generative AI
In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.
According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.
One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.
To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.
Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.
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UK seizes web3 opportunity simplifying crypto regulations
As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.
Streamlining Cryptocurrency Regulations for Innovation
To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.
The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.
Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.
The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.
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