Anybody that is in the business of creating applications has a choice. Build it in the cloud or on the blockchain. Now that blockchain technology is getting more sophisticated, the more popular decentralized blockchain apps are becoming.
The blockchain is a ledger that is mainly known for being the platform on which cryptocurrencies are made. However, blockchains like the Ethereum one are built in a way that allows for many other applications to be created in addition to being used for cryptocurrencies.
In this article, we will go over the reasons that the blockchain is the most logical place to be creating apps.
Since the blockchain is a ledger that is hosted on millions of computers, it is very difficult to hack into. The cloud, for instance, is a single server somewhere that is far more vulnerable. Cloud security can be very good, or it can be weak depending on who is managing the cloud.
The blockchain is inherently more secure, but that doesn’t mean that it is completely risk-free. For example, early on in the development of the Ethereum chain, there was a breach and millions of coins disappeared. This led to one of the first Ethereum hard forks which branched off from the original chain to be more secure.
The decentralized apps being built now are on the new forks that have a more robust security system and better technology to get the most out of these new apps.
Benefits of blockchain apps
Besides being more secure, there are other benefits to building an app on the blockchain. For instance, transparency is far more evident for an app on the blockchain. This is much different than apps on a cloud or other system that don’t allow users to see or understand how they actually work.
While not every app user has access to the data, a copy of it is stored on the network and can be accessed by some. Also, any updates to the app or transactions have to be verified before they are registered on the ledger and all of this is visible to anybody on the blockchain.
Anonymity is much easier to achieve on a blockchain-based app. It is counter-logical that a decentralized ledger in which every transaction is visible would be more anonymous. The reality is that a user doesn’t have to give up any personal information because of the decentralized nature of the blockchain.
This allows for far more privacy and less risk of having your personal data stored, shared, or even stolen.
No or low fees
Transactions on the blockchain are not going through a third party or central authority so the costs are far less than a traditional app. In the case of it being a mobile application, a user can buy just about anything using cryptocurrency and not have a lot of fees to pay.
Merchants using these apps also save a lot of money since the payment gets processed on the blockchain and not by a bank.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.