First, let’s look at the technology itself. A blockchain is a network that stores the data it receives in blocks, collected chronologically. As soon as transactions pass through the web, they become visible to all participants in the system. Data blocks are stored in the chain, and they cannot be changed once they are added. This makes the blockchain extremely difficult to hack or steal data from it.
Blockchain applications are often referred to as decentralized. They are based on decentralized peer-to-peer networks and have unique features that are different from traditional applications. In the blockchain game development service, no central governing body would play the role of an intermediary between users exchanging data or money.
In developing a regular application, you must run the backend on centralized servers. And the backend of decentralized applications runs on a peer-to-peer network.
The user does not see the differences between blockchain and centralized applications since their interfaces are created according to the same principles. Therefore, blockchain applications do not scare beginners; people use them as ordinary digital products.
Types Of Blockchain Applications
As we have already found out, blockchain is a useful modern technology used in banking, logistics, business, and many other industries. Applications compete in terms of the number of users; therefore, to stand out from the competition, best blockchain technology companies are introducing new blockchain solutions. Let’s look at specific areas where blockchain can be applied.
Financial Blockchain Applications
DeFi applications, abbreviated from English decentralized finance (decentralized finance), are tools for making money transactions. These include decentralized exchanges, exchangers, and other applications and blockchain platforms designed for cryptocurrency transactions. The most famous types of DeFi applications are:
Auctions. Transparency is the most critical factor when conducting online auctions. Decentralized applications make it possible to guarantee the invariability of rates and strictly fix the time of their completion, excluding the possibility of any manipulations. Auctions can work with non-fungible NFT tokens, and platforms can create their auctions and place bids in real-time.
Prediction markets are exchanges where the object of trade is not a product but the result of an event, such as a sports match, competition, or even a presidential election. Let’s draw an analogy with a futures contract: when trading futures, you bet on the rise or fall of the price of an asset, and in the prediction market, on a win, loss, or score. In a decentralized application, users can vote on the results of events offered by the blockchain platform and make their predictions.
Gaming and gambling. In blockchain-based play-to-earn (p2e) games, users can receive tokens with real value while playing, so gaming and gambling can be classified as part of DeFi.