Mobile apps are changing the face of the financial industry and accelerating the transition to a time of accessibility and convenience. Mobile apps that facilitate digital transactions are already an everyday experience.
In the latest mobile banking survey, 89% of people who took part in the survey said they already used mobile banking. This figure is even higher for young people, with 97% saying they use the same method.
Financial transactions shift toward mobile applications, but security remains an ongoing concern for consumers and businesses alike. The delicate aspect of banking transactions and the possibility of negative consequences have led to certain people being skeptical about technologies in the financial sector.
Benefits of security offered by blockchain
Blockchain technology is poised to bring significant improvements in mobile financial technology. Blockchain technology can solve the main issues surrounding financial inclusion, cost, and security.
Blockchain is a technology that has the potential to bring mobile applications to the next stage of accountability and security that is vital in the fields of financial technology (fintech) or healthcare.
Blockchain technology could change the structure of institutions, from insurance companies to banks or credit unions. The adoption of blockchain technology will not only allow businesses to retain the competitive edge. However, it could also give businesses an edge over their competitors by adding a protection layer to mobile applications.
Security experts can enhance the security of mobile apps with technology thanks to these advantages of cybersecurity:
Blockchain’s decentralized design offers a variety of advantages to mobile applications. There’s not only one source of error within the system, which means that any issue in the upper rungs of the chain has no impact on the system as a whole.
The client-server model used in the decentralized apps is entirely distributed. Protocols and data stored on blockchain are secure. These apps are generally open-source, and tokens are issued to network users as rewards. The overall governance of the network is handled through an algorithm.
Mobile apps rely on a standard server and user-side technology where the mobile phone and application act as the user, and the central server shares data on the request. When multiple users try to access data wirelessly, some of the data may disappear.
Due to decentralization resulting from blockchain adoption, advanced data streaming and storage capabilities are incorporated into mobile apps that create more opportunities for security experts.
Transparency in data
With blockchain technology, information is stored so that users easily track it. This makes it virtually impossible to alter data or make fake transactions, which assists security professionals in their fraud prevention and loss efforts. This makes the system invulnerable to any form of manipulation that is of vital significance, particularly for mobile banking.
The blockchain is a robust checking and balance system with complete user control. In the blockchain ledger system, classification and information storage can be monitored and verified and then secured simultaneously. As entries are added, the blockchain expands, and more data is included in the database.
The encryption process using blockchain technology is so complicated that it makes access almost impossible for anyone without an encryption key. This is a benefit to any system that requires access to many users and requires confirmation of data that needs to be modified.
The challenges of blockchain adoption
Limitations of the blockchain network: Because it is a network-based technology, it is essential to make assumptions about the size of the network, which calculates the return on investment issue for companies.
Costs: The Blockchain system is dependent on a high level of computing power and requires a large amount of energy that racks up the prices.
Performance: Blockchain can be slow compared to conventional transaction processing systems that can process many thousands of transactions every second. This makes its use in large-scale applications up for debate.
Interoperability: Many blockchain networks operate in silos and do not connect with other peer-to-peer networks. The diversity of protocols, algorithms, and programming languages hinder interoperability in the blockchain. The lack of standardization hampers communication between different networks.
There is a constant effort to address these challenges and speed up the development of blockchain-based applications. Despite the difficulties of blockchain’s decentralization capabilities, security, and transparency, blockchain provides can be an asset for cybersecurity experts working to protect transactions and mobile apps from cybercrime, fraud, and other scams.
Blockchain integration in mobile apps could change the way we do business, such as banking and finance, insurance, and healthcare. We only see the beginning of the revolution, but there is an extensive way to go.