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Soon, we'll be talking about how blockchain technology is changing the software industry. Players will be able to move into adjacent segments in the value chains, powered by blockchain, extending their platforms to the overall ecosystem and reducing costs drastically. Many believe blockchain technology will become a prerequisite for the software industry, particularly SaaS models. It can be of great value to software companies developing digital products that take advantage of groundbreaking technologies and are delivered on various channels. The blockchain is a technological advancement, so it should bear more weight than other business instruments.
Why Precisely Blockchain
The blockchain is an incorruptible digital ledger of economic transactions maintained and updated by independent nodes. It strives to reduce the level of trust participants must place in one another and discourages authority or control that would degrade the functionality of the network. The database is monitored by everyone and owned or controlled by no one. The blockchain leverages two types of cryptographic algorithms, asymmetric-key algorithms and hash functions, to secure data from unauthorized access. Cryptography is mainly used to protect user privacy and transaction information, meaning that it maintains the integrity of the blockchain.
The software industry is undergoing transformative change and fierce competition, and it has the potential to become one of the most valuable high-tech industries. The coronavirus pandemic has caused an increased demand for as-a-Service solutions, so all companies need to be flexible, fast, and responsive to the requests of both customers and market demands. Everything as a service is the trending theme. The products developed must meet users' particular needs, as opposed to off-the-shelf applications, and overcome unforeseen obstacles. The advantages that blockchain technology can bring to the table are numerous, and businesses should get ready for the future by increasing revenue on their investments.
How SaaS Companies Can Use Blockchain to Move Forward
Stimulating The Software Development Process
Software evolution is an inevitable activity and is necessary for society to thrive. New requirements emerge as the software is deployed, the business environment changes, errors must be fixed, and performance or reliability need to be improved. As an ever-increasing number of enterprises adopt blockchain frameworks, evolving a software system to integrate blockchain is of the essence. A private blockchain can be integrated into a company's digital systems for improved performance, internal data control, transparency, and auditability. DApps usually function as part of the chain and have different use cases like finance, social media, etc.
Improving Billing Cycles for SaaS Products
Billing is crucial to a stable, predictable, and healthy bottom line, which explains why it's a point of concern for all SaaS subscriptions. There's been a transition from licensed, on-premise products to cloud-based SaaS products that follow the pay-per-use model. Needless to say, businesses face challenges in managing the complexities for varied audiences while maintaining transparency. The blockchain has a solution that eliminates disputes. At the center is the network that serves as a single point of truth, so every data element is mastered (or edited) in one place. The engine that drives the solution is automation, powered by smart contracts and agreed-upon terms and procedures.
Making Customers Trust in Next-Generation Products
Although new technology appeals to some, most people prefer the familiar. Software products collect a lot of information, including names and email addresses, to get a sense of users' behaviors and patterns. As far as next-generation products are concerned, information is collected via mobiles, desktops, and wearables. Many consumers don't trust the way businesses handle their data despite regulatory oversight in this area. Blockchain promotes transparency and trust owing to the traceability of the data shared. Not only is information secure, but also it's used only when necessary. Once the blocks are collected in the chain, they can't be changed or deleted.
Public Vs Private Blockchains
Blockchain networks fall into two categories: public and private. A public blockchain is completely open, so everyone is free to join and take part in the core activities. Bitcoin is a good example. The identity of the people involved in the transactions is kept hidden. A private blockchain isn't available to everyone, so interested parties can join only through an invitation, where identity is verified. The restricted access to the system makes it more appealing to enterprises who want to keep some of the transaction information private. Since the public blockchain isn't completely decentralized, it's less transparent.
Up-and-coming enterprises can benefit from public blockchains because they feature apps and websites with sharing functions. The likelihood of manipulation, hacks, and attacks is low because it's impractical to alter and effect changes on all copies of the database. By acting responsibly, businesses can reap the benefits of this powerful technology, restoring trust between consumers and enterprises. Distributed ledgers are very useful in software products where multiple entities are involved, and approval is required for third parties; a token can approve the third-party user or a smart contract to make transfers.
To sum up, while blockchain is a revolutionary technology, that doesn't mean SaaS businesses are seeking ways to put it to good use. Nonetheless, we can expect to see more blockchain-as-a-service offerings in the future. By leveraging blockchain, enterprises can increase and expand their functionalities without taking many resources or a lot of time to adapt. It's recommended for software companies to think out of the box and reconsider the way products are designed, delivered, and managed.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
