Cryptocurrency has been making headlines in recent years for dramatic highs and soaring lows in value. Some have hailed it as the future of global currency, making billions off their initial investment, while others are too scared to convert their “real money” into it for fear of loss.
At what point should we consider using it within our business apps?
What Is Cryptocurrency?
Cryptocurrency is a decentralized digital currency that ensures high levels of security, operating on blockchain technology. Since there is no element of centralization, cryptocurrencies are considered to be highly secure against hackers and other nefarious forces.
Cryptocurrencies exist outside the control of any centralized body, including Financial Institutions and even governments.
As the name implies, “Blockchain” is a chain of blocks connected by a cryptographic hash. Transaction information is stored on these blocks and cannot be altered without affecting all the subsequent blocks.
A copy of the blockchain is kept on all computers involved in the “chain” (nodes). For all changes, it is required that all the nodes need to agree. This consensus is what makes the blockchain highly secure.
A hacker can’t gain access to the chain unless they have enough computing power to attack and penetrate all the nodes simultaneously!
Advantages Of App Integration
Cryptocurrency applications have many advantages that can be directly tied to the blockchain methodology.
- Cryptocurrency transactions are generally quick and straightforward, requiring a PC or phone to complete the transaction.
- Every cryptocurrency transaction is recorded in a public blockchain list, making it possible to trace the history and stop people from spending coins they don’t own, making copies, or undoing transactions.
- Blockchain cuts out intermediaries, such as banks and online marketplaces, which means there are no payment processing fees.
- Cryptocurrency payments are becoming more widely used amongst large organizations and sectors.
Disadvantages Of App Integration
There are also many disadvantages.
- The value of cryptocurrencies can fluctuate significantly, so some people don’t feel it is financially secure.
- A positive in some ways, the cryptocurrency market is not regulated, so there are no rules to protect your business.
- If companies or consumers move to a new cryptocurrency or stop using digital currencies entirely, it could lose value and become worthless.
- Cryptocurrency exchanges are targets of cyber attacks, which could lead to an irreparable loss of your investment.
- Cryptocurrency can be vulnerable to scams or used as a payment mechanism for fraud, making people generally distrustful of their use.
So Should I Do It?
It’s not a simple yes or no. Using Cryptocurrency in your app can make transactions more straightforward and efficient, but the world of Cryptocurrency is still very much being discovered. Early adopters will benefit from their bravery, but the risk is a business decision. Remember, the market is unregulated.
If you’re happy to go ahead and include this, speak to an app development company that offers custom app development services to ensure your app is secure and trusted by your customers.