Offshore software development services emerged for businesses looking to reduce operational costs while having access to a global talent pool. Recently, the US tech job market has been saturated, which resulted in companies looking for more options.
If you want to get ahead of the crowded offshoring market, check out this guide on offshore software development. Learn why it has been considered reliable and profitable among CEOs and stakeholders.
What will you find in this guide:
What is Offshore Software Development?
Benefits of Offshore Software Development
Lower Operating Cost
Access to Diverse Talent Pool
Focus on Core Business Goals
Augmenting Offshore Developers with Your In-House Software Development Team
Finding the Best Offshore Development Company Partners
Prioritize Quality Over Quantity/Costs
Are They Reliable?
Is Their Time Zone Going to be an Issue?
Where Can You Find Offshore Software Developers?
How CEOs Manage an Offshore Software Development Team
Impart Your Vision
Managing Cultural Differences
About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.
Since the advent of civilizations, trust has been the driving force of every interaction, and the invention of currency paved the way to manage this and enabled organized finance. But probably the greatest revolution in this field since the Romans introduced banking is Blockchain – a technology that automates trust.
Initially started as an alternative currency, Blockchain soon proved that it’s much more than that, an ecosystem that supports all sorts of human and machine interactions and transactions, being a distributive network-based technology, it makes trust a collective term, and responsibility an objective value.
Today, Blockchain is not just a buzzword or a coin token, but a practical feature of many mainstream industries, ranging from economics, legal contracts, healthcare, anti-counterfeiting, art and media, video games, and many more.
So let’s dwell a little deeper into blockchain uses and how our current world is affected by it.
Blockchain Applications in Financial Services
Evolution of currency from the Barter system of the Bronze age, metal coins of the Iron Age, and paper currency of the pre-modern era, we moved to Digital transactions. Then in 2009, A whitepaper was published, which in upcoming years changed the perspective of the general populace on the currency. It was this whitepaper that later emerged as Bitcoin, the first cryptocurrency, and marked the beginning of the era of Blockchain. Since then, there have been numerous applications of blockchain for businesses and finance implemented all across the globe.
Cryptocurrency exchanges (Trading)
Cryptocurrencies, often abbreviated as Crypto, are digital tokens, a digital representation of these tokens and an ownership identification is needed, this was solved by the use of virtual accounts called Wallets, analogous to a bank account, and just like in a traditional pocket wallet one pushes banknotes, here, one can convert fiat money to cryptocurrency and push it into a crypto-wallet, and this conversion is managed by a Crypto-Exchange.
Similar to how we have a plethora of banks, with numerous ways of banking, we have a wide array of such Cryptocurrency exchanges, and a gazillion ways to trade with this money, all backed by the trust of Decentralized Blockchain.
Some of the most common Cryptocurrency exchanges are – Binance, Coinbase, Kraken, Bithumb.
Such exchanges allow common users to switch and experiment with Blockchain, provide many more features above simple coin ownership, this includes – User-friendly interfaces, reliability, lower risk factors, and extend the functionality of Blockchain.
There are even Decentralized exchanges (DEX) that use blockchain for its proper functioning, this further adds a feature of better privacy and security.
Money laundering protection
Cryptocurrencies transactions being completely anonymous are often linked with ungoverned and possibly illegal money movements, and declaring it to be a false claim would be a complete lie. But just like how diamonds cut diamonds, the best tool for detecting and preventing dirty money to enter finance is also Blockchain. Blockchain for businesses can solve this problem by automating/hardcoding the ue-case of a certain allotment of an asset.
Anonymity in Cryptocurrency is not an invisibility cloak, Blockchain being practically unhackable makes it immutable, a perfect unalterable record, that can never be erased, thus every transaction can be verified, and traced with complete trust, a trust which even conventional banking systems cannot fathom.
Blockchain transactions are stone-etched, with rigid identification and uniqueness, thus completely removing any possibility of ambiguity and loopholes once such a detection is made, and can be quickly and easily legally confirmed.
Such an Anti-Money Laundering technology based on Blockchain can detect and confirm any “dirty” money movement and can help monitor any form of such immoral acts using CryptoCurrency.
Blockchain provides a seamless coordination system, and any system which demands a smooth coupling between multiple agents can be implemented using this technology, and that too with improvement beyond traditional methodologies.
Insurance is one such business, which foresees an ever-increasing use of Blockchain-based applications.
Verification and Risk Mitigation – Insurance claims are sensitive matters and often involve legal entities, fake claims cost up to 40 billion dollars each year, and bottlenecks flow of the economy, Blockchain offering permanent ledger records and granular cooperation among insurers and their customers, thus helps in verifying suspicious transactions and mitigate fake claims.
Property Insurance – Anything can be a property, from real estate to a car, or even an original piece of art, this increasing heterogeneity makes defining and valuing more and more complex, but blockchain offers something called Smart Contracts. Smart Contracts are equivalent to any paper contract but are much easier to manage, maintain, and process, making insurance claims automated and much more trustworthy.
Reinsurance – Reinsurance in simple terms means insurance for insurance companies, useful especially in situations of some nation or global level catastrophe as we all witnessed in the form of COVID-19, and this being a transaction between two business entities requires a lot of legal paperwork and other overheads, Blockchain, and smart contracts are so efficient in performing the same task, that the issue can be made non-existent.
P2P & Cross-border transaction
Any sort of international transaction involves a great number of overheads, both financial and temporal, thus a verifiable, intangible, and quick way of such transfer of money, securities, and various sorts of funds, can bring the world much closer and prevent the need for questionable modes of such transactions.
Blockchain for businesses is such a solution, and probably the best one currently present. It’s the only candidate that can serve as the implementation of a truly global currency.
Crypto-Currencies and Smart Contracts, a combination of these two technologies has already made it true, and now even governments worldwide are slowly recognizing the authenticity of Cryptocurrency and its growth potential.
Paying a seller on the other end of the globe is now as easy as paying your neighbor next door. A huge number of Cryptocurrencies have flooded the market and the transaction is completely anonymous and private, Point-to-Point, some of the most popular ones are – Bitcoin, Etherum, Steller, Cardano, Uniswap, Dogecoin, etc.
Crowdfunding is one of the miracles of the Internet along with Blockchain because it enables a democratic way to raise funds, run charities, and get donations. Crowdfunding has been successful in powering many startups, helping underprivileged people, and making the world more human.
But, most crowdfunding sources are centralized, which turns this into a business. While this approach has its own merits and demerits, Blockchain offers quite a different prospect to look at this problem.
There are majorly 2 ways Blockchain and specifically, Cryptocurrency can be used for crowdfunding.
A simple upgrade over the current approach is to simply switch from classical currencies to Cryptocurrency for getting the funds, it’s simple, it’s point-to-point and it automatically removes the need for centralization except for marketing.
Another slight radical approach, but being proven successful now a couple of times is using ICO for fundraising, ICO stands for Initial Coin Offering and is a parallel of Public offering in terms of shares, in very simple terms – an organization or even an individual can host it’s own CryptoCurrency and provide an Initial Coin Offering, and interested parties can directly invest in the coin, providing a completely independent way of crowdfunding.
Borrowing + Lending services
CryptoCurrencies encourage fluidity in an economy by enabling transactions as freely as legally possible. A conventional fluid market is backed up by securities and actual physical entities like real estate, and these come into playfield through loans and mortgages.
But a market that involves Cryptocurrencies has something more to offer, with the possibility of immutable ledger records and flexible transactions there are essentially two additions.
Smart Contracts for Securities – Security trading becomes much smoother, even international trade of securities can be made true.
Digital assets – Blockchain makes Digital assets possible since now even a piece of digital art is as “real” as a physical painting. An innovative approach popularized in recent days is Non Fungible Tokens or NFTs these are Digital assets completely backed up by Blockchain for authenticity and can be traded just like physical entities in a marketplace
With the involvement of both these methods, a completely digital economy running on Cryptocurrency, backed by cryptic digital assets, and that as well supports the classical ways and is capable of incorporating a diversity of resources and funds is what Blockchain is capable of creating.
Blockchain applications in Healthcare
The year 2020 Marked the beginning of an era of revelation, a revelation about how important health is, and how much our seems-to-be-perfect society is lagging, but it also lit up the path to incorporate an alternative lifestyle that can be much better.
While technology has changed our lifestyle drastically, it also has the potential to improve it and in this interconnected world, apart from obvious things discussed before like insurances, the medical industry, as well as individuals both, can take advantage of various contributions of blockchain and smart contracts.
Secure Medical records
Every individual has a unique body, a running breathing chemistry lab, and has a unique medical history ranging from genes, allergies, anatomical features to chronic diseases and exposure to other external factors.
But this information being so important also makes it a huge privacy risk, because it can be used against a group or individual very easily. Medical records are often used by scammers to target gullible selves, for marketing purposes and even personal harm.
If the medical history gets stored in a decentralized and secure manner, such as a Blockchain ledger – it can provide a very easy and flexible way for patients and medical workers to keep track, update and utilize this information to improve the life of a patient. Even simple things such as Blood groups or possible allergies are very important information, which we cannot leave vulnerable.
In cases of emergency, due information about medical history can be life-saving. Like if information regarding someone’s blood group is readily available, in case of an accident, the blood transfusion can be started instantly.
Blockchain offers a simple way to implement this. Each medical test, every visit to the hospital, and every piece of information can be uploaded to a secure, immutable blockchain, which can thus provide a securely updatable way to verify this information anytime anywhere.
Fake Medicine detection
Fake and Adulterated Pharmaceuticals, substandard medical equipment, and production of low-quality raw materials, all these activities are not only illegal but also immoral and inhumane. And unfortunately, this still is a lingering truth.
Blockchain with its trust factor and flexibility can be used to tackle this.
A recent approach to this is being slowly implemented by various industries – A simple unique identification for each product or object can be used to view, verify and confirm the qualitative and quantitative parameters of the product provided, such as a QR code.
Companies can upload all the relevant information on a blockchain ledger, a data structure designed to store temporal but rigid information, and a simple scan of the QR code provided with the product can help one get this information readily.
BlockVerify is one such tool – it’s an anti-counterfeit tool that can be used with any sort of supply chain, at any level of the supply chain, vendors, and consumers everyone can use it.
The medical industry is one of the most vulnerable sectors to fake products and dirty tactics, and with huge requirements in recent times has been quickly trying to adopt such a model, while BlockVerify is a general-purpose tool, its use in medicine can be a strong strike to break stereotypes and increase trust within the industry.
Blockchain uses for Government
Efficient governments are designed to provide smoother work and life environments and accommodate diversity, rather than hindering performance and homogenizing the society. Governments run on trust, trust on the one running the institutions, trust among the real participants, and on the people of a jurisdiction. And the best solution for ensuring trust is blockchain. Blockchain maintains the legitimacy and authenticity of information and can be used to back everything ranging from money to policies and legal matters.
Blockchain can simplify governance and bring society closer.
Voting is a process that requires huge amounts of resources, manpower, and time. An election is a costly periodic task that includes so many factors associated with risk at a scale that is unimaginable for any other system.
But it is the fuel of Democracy, it drives a country and directs those in power.
An alternative approach that is not only fast and resource-efficient but can be proved secure and fail-safe is not an improvement but a need of the hour. Blockchain has been viewed ever since its inauguration in the form of Bitcoin as the perfect choice for this.
Each vote is a transaction, thus it’s easy to implement and scale using Blockchain, or as some have suggested direct use of current Cryptocurrency chains for the same like Etherium.
It prevents the possibility of fraud, fake votes provide ease of access, and voting from the comfort of home is also made possible.
Uniquely identifying individuals is an important task for governance, for safety and security of the public, and running welfare schemes as well, but it carries a privacy and security risk at a scale no other application has. Since its effects can encompass populations of a whole country.
Centralized servers, even with the best securities cannot be considered invulnerable
But a blockchain spanning the population of a whole country can be secure enough to solve this issue, this is because it’s decentralized, encrypted, and can only be hacked if resources equivalent to at least 51% of the included systems are used, which is not possible at anything in millions.
Blockchain can put a globally unique identifier to each individual, and this information can be stored on its immutable ledger, individual identity and all sorts of associations can be implemented in a blockchain-based application, which can be used by the government for implementing its schemes, without having the user compromise its privacy.
Digital Will and Inheritance
Legal issues related to inheritance and will are some of the most common problems caused mainly due to ambiguity in information. This ambiguity could arise due to various involved sources of information and no way to verify authenticity unless rigorous legal consultancy is performed. And the core of this problem is because individual identification and assignment of ownership is a difficult process.
Blockchain solves both problems of individual identification and ownership that pertains to inheritance and will. Immutable ledger makes sure the possibility of information mismatch and ambiguity is reduced, also not just allows to store data related to will which can be legally verified, it can also be implemented to automate the whole process without the need of much intervention. Hence saving time on the court as well.
Transparent blockchain-based budgeting
Budgeting is a big deal for every government because it reduces resource wastage and promotes the right investments. Take, for example, the New York City Council. The mayor has given a budget of $89 billion and the city council has requested a thorough investigation into the request.
Needless to say, the mayor was unable to provide suitable land and there was plenty of space. This is not a completely new scene. In addition to this, every year, governments lose money due to corruption and poor management. Moreover, it becomes too late for people to realize where their taxes are going. And so when there is a lot of waste in the government, blockchain for such systems can shine in this case. Blockchain for government use cases will provide transparent budgeting where citizens can see where their money is going.
The budget designing process itself can be benefited from blockchain as well, since prevention of policies from external factors to prevent any sort of biases is required in this process, and blockchain has the potential to provide such a service.
Furthermore, it will also increase overall efficiency and, not to mention, reduce waste and corruption. Before accepting any budget request, authorities can know exactly when and where they plan to spend the money.
Registry of land ownership
Another major blockchain initiative is the digitization of the real estate sector that can simplify the sale of land. The advent of smart contracts in blockchain platforms now allows assets like real estate to be tokenized and traded like cryptocurrencies such as bitcoin and ether.
Legal advisors, investors, lawyers, agents, and customers, everyone has a say in this ecosystem of real estate. However, according to a report from Deloitte, blockchains could soon usher in a shift in their role and involvement in real estate transactions.
New platforms could eventually take on functions such as listings, payments, and legal documents. By cutting out the middlemen, buyers and sellers get the most out of their money by saving on the commissions and fees charged by these middlemen. It also makes the process much faster because the back and forth between these intermediaries are cut down.
One of the prime examples of blockchain uses in this domain includes the case of the Dubai Land Registry. They’ve implemented blockchain into their infrastructure and their government will soon transform the way people buy and sell real estate.
Traceability: Blockchain-based tracking in Supply Chains
NFC-enabled tagging solutions are used in different products. Through a simple tap on the product label through a smartphone, you can read about products traceability, exclusive content, videos, stories, tasting notes, origin, and personalized messages. Today, consumers are increasingly concerned about where the product they purchase comes from. The conscious consumer expects brands to be more transparent and products to be sourced ethically and sustainably.
An immutable ledger of transactions throughout companies’ supply chains, a blockchain solution, allows stakeholders to prove their claims of authenticity, legality, and sustainability. Other applications include digital platforms aimed at speeding the flow of data and goods and data in ocean transportation.
Agreements in the shipping sector are required aimed at connecting cargo owners, vessel operators, ports, and logistics companies through digital platforms that use blockchain technology. Blockchain allows trusted participants to share information as goods move through supply chains. The system promises to reduce the cost of administering shipped goods, cut down on paperwork and speed the flow of goods by letting companies transmit information quickly and reliably. The Electronic Bill of Ladings (eBLs) aims to replicate the essential functions of a paper Bill.
The International Group approved Global Share S.A. edoxOnline platform (“edoxOnline”) on 11 June 2019, WAVE on 23 December 2019, and CargoX Smart B/L™ (“CargoX”) on 11 February 2020. As with Bolero, essDOCS, and e-Title™, the legal frameworks for this new generation of eBL providers’ systems were scrutinized by the IG to ensure that eBLs created on them are capable of performing the three functions of a bill of lading, namely as a receipt, a document of title and a contract of carriage. Liabilities arising in respect of the carriage of cargo under eBLs created on these systems are now covered by the IG Clubs as if the bills of lading had been issued in traditional paper form.
The key difference with these second-generation eBL systems is their reliance on blockchain technology. Unlike three years ago, blockchain is today no longer just a buzzword but has many real applications.
A blockchain may be a public or a private digital network used for recording transactional events in encrypted form, storing the same in a distributed ledger (i.e. the computers). A private blockchain network can feature a level of centralization. Access is limited by a governing body to a number of participants only. Public blockchain networks however run on thousands of computers and do not have a ‘central administrator’. It is not possible to shut down, block or limit access to a public blockchain network. edoxOnline’s, Wave’s, and CargoX’s products are based on the Ethereum blockchain; the best known public blockchain which also enables the use of smart contracts. The publicly distributed ledger contains a permanent record of all transactions, providing transparency and enabling auditability of all events. Without a central registry, there is no central point of attack for hackers. edoxOnline is the first eBL system created implementing blockchain technology. The company was set up in 2007 by a group of international trade experts to provide the industry with a collaborative digital platform to streamline the issuance of shipping and commercial documents. On edoxOnline’s system, all the participants trade from shippers.
Blockchain has proved itself as a revolutionary technology in the last decade and established itself as the new driving force of the world of security, credibility, and trust. Blockchain-based applications often called DApps or Distributed Applications, are used in many industries and have successfully upgraded and improved many existing workflows.
The domain of its usability knows no bounds. Every major industry in every significant sector has benefited from this or is going through a phase of change to accept Blockchain as a part of the ecosystem.
And we’re proud to say that we, at ZirconTech, have helped such industries in setting up and utilizing this amazing technology.
One of the most recent examples is – Development of an E2E solution for automotive insurance based on using blockchain.
We all know, there is a high distrust in the insurance industry because of the existing conflict of interests. Since the companies’ profits increase if less is paid to the users, or it is possible to charge them more money. This solution allows transparency to the scoring calculation that defines the policy’s value for this particular case. We used Hyperledger Fabric as a Blockchain platform.
It is developed following these chain codes:- Information tracking (to track vehicle information and store it in the blockchain) and Scoring (calculation of scoring from data received from vehicles). As part of the project, the development of two APIs, three SPAs, and one mobile application had been done. And all the products were designed keeping both factors in mind, user-friendliness & functional completeness. Our aim was, and still is, to provide the best quality service to the customers and users possible.
In the context of the Blockchain world we have identified that in recent years it has been necessary to resolve certain common requirements as part of our global customers’ demands. As a response to the market ZirconTech is announcing the launch of its Notarizer seeking to use Blockchain technology as irrefutable proof of the existence of complex data types, such as documents, or in general any type of file.
Notarization plays an integral role in any legal transaction and negotiations. Notarized documents are an indication that the parties involved are genuine and can be trusted. In other words, the notary public provides a security level that prevents us from becoming victims of fraud.
With the emergence of technology in the business landscape, blockchain entered the picture to automate notarizations. The blockchain serves as storage for notarized records and documents. In this way, any unauthorized user will not be able to edit nor delete portions of the document.
Notarization blockchain technology ensures the integrity of data as soon as it enters the chain. It provides functionalities, including tampering-resistance, non-repudiation, and traceability.
In particular, a network like Ethereum’s is not suitable for handling large volumes of data or storing files, therefore a feasible solution is to calculate a hash that represents this file in a plain text format. that it can be stored as part of a block. Then, it will be the job of a centralized system to make sure to maintain the consistency that this hash saved in the blockchain corresponds to with its original file.
One of the main objectives, therefore, has been the implementation of a software product that provides the necessary functionalities to solve this problem, as well as other additional functionalities, in such a way that it is adaptable to multiple use cases.
What are the Benefits of Notarization with Blockchain?
ZirconTech Notarizer is a blockchain based product and brings a private, remote notary channel to address all your notary needs. This channel allows organizations to acquire notaries without having to step out of their homes or offices. Thus, ZirconTech Notarizer leverages notarization with blockchain to provide notary solutions to organizations across different industries. Notarization blockchain technology testifies to the documentation of proof of ownership to protect owners of their rights. Notarization via blockchain can also establish agreements across multiple parties. These documents can only be accessed and signed on the blockchain.
Notarizer main functionalities
The product offers a set of services and scales to add additional layers of integration.
Smart Contract and API Rest
Considering that the objective of this product is to achieve the notarization of documents in Blockchain, a series of Smart Contracts have been developed capable of processing the references to the documents together with their owner and other eventual additional information. ZirconTech offers a solution on the Ethereum network that can be extended to other Blockchains. On the other hand, the public functions of this Smart Contract are not accessed directly, and has been built an additional logical layer that interacts with these contracts and offers access to them in the form of REST services as well as other complementary functionalities that facilitate the data usability. Users must register in the system to use the functionalities. Communication with the API services can be authenticated through the use of API KEYS that the user will obtain after registering.
A web interface allows users to register and use the product, prioritized by registering files and viewing that they have been notarized.
As an anonymous user you can register a new account in the system using an email and password. For this, there is a REST endpoint that allows the registration of new users. It is also possible to egister in the web interface.
The system persists this information in the database and creates an API KEY / API SECRET pair for the new user. The key pair is required in each request made to interact with the system.
The Notarizer also associates a new data set in the Smart Contract for this new API KEY, that is, the data is federated by user.
Users could access through a web interface to configure the following options:
Signature type: it can be Centralized, where the backend uses its own Wallet to sign all its notarizations on behalf of the user, or Client-side, where the users could connect their wallets using Metamask and other options to be defined and must sign and authorize the documents to be processed.
A maximum gas price limit that you are willing to pay for your transactions (help texts are displayed to the user).
A switch to persist the files, in which case it is decided if the files that are uploaded for notarization should be stored by the system and made available to the user or if, on the contrary, the file is not stored and simply its hash is calculated.
Optionally, it is allowed to enter an email address where you will be notified when a new document has been registered. It is also possible to granulate these types of notifications in greater detail.
As an existing user, you could “notify” a new document or file, that is, to create a record in the Blockchain of its existence.
The Notarizer provides an endpoint that allows users to receive a file and from it create a hash that will be entered into the blockchain for this user. At the same time, this mapping is also entered in the database for easy access.
The response to the user is the hash of the transaction that contains the information that represents the original file, and optionally, the user can send additional data to identify the document that will also be added to the block as part of the transaction.
This functionality is available through the web interface.
Getting my notifications
A user can access the list of their previously created notifications. The configuration section shows information about the processed documents and a link to view them in the Blockchain explorer and, if they have been persisted, download them.
Additionally, a summary of the ETH expenses of the transactions is shown. The Notarizer provides an endpoint to access this information-
The Notarizer offers an endpoint in its API to validate that a document exists in the Blockchain as well as a web interface that allows uploading the file and visualizing if it exists in the blockchain. The Notarizer receives the file, calculate its hash and search for the corresponding record in the Blockchain. The answer is an error if it does not exist or the transaction if the document is valid and exists.
Payment of transactions
Since the insertions in the Blockchain network have an associated cost, it is assumed this cost in one of two ways:
If the user has selected the option for the system to centralize the notarizations, the associated expenses are calculated and accumulated in the user’s account. This involves integration with a payment system, also accepting cryptocurrencies as a form of payment. Users must select a cost control so as not to generate excessive consumption outside of what was planned. The Notarizer incorporates a cost optimization mechanism.
Alternatively, users bear the costs associated with signing client-side notarizations using an electronic wallet such as Metamask or similar, or even an HSM device.
How does notarization with blockchain help businesses flourish?
Notarization with blockchain has several benefits to organizations, but here are key points on how they helped businesses flourish:
Secured Storage of Notarized Documents
The primary goal of notarization is to certify the authenticity of any document. Notarization blockchain technology leverages various automated tools to carry out this goal seamlessly and quickly. On top of that, users can secure the storage of notarized documents on the blockchain. This organized and infinite storage process allows them to retrieve the agreement when needed and detect any changes made through the timestamps attached to every document.
Encrypted Documents Providing Users With Private Access
A majority of notary services require user information for creating an account and proof of ownership. This security measure happens on their system database for your notarization needs. The transaction ID and the user account information in the database often reside outside the blockchain. This measure gives security to the users considering that most authentication services happen on the blockchain system. They would only take a hash of the document to verify the proof of ownership of the user to notarize documents.
Moreover, the transaction ID integrates encryption to documents for easy retrieval. User account information helps perform cross-checks of the document’s ownership before its release.
Transfer Document Ownership Seamlessly
With notarization service blockchain, organizations can transfer ownership of documents seamlessly. The system would first verify the ownership of a specific form through the user account that acted. Blockchain technology locates the certificate authority system that confirms the blockchain’s bounded blocks’ data.
Users can quickly transfer document ownership by following these steps:
Like modifying any legal record, the system identifies the user through the previously recorded transactions used for verification.
The transaction identification verification will then create a signature for the user in the data field.
Notarization blockchain technology prompts the hash verification and signature storage on the duration of deploying the contract.
Global Share is a company dedicated to the continuous improvement of business processes, providing innovative solutions to companies to add up value and competitive advantage by improving their processes productivity. As a major milestone in Global Share/edoxOnline history, the company launched a service for the preparation, issuance, signing, transmission, negotiation and presentation of the electronic Bill of Lading (e-BL). Zircon Tech has been a key partner implementing blockchain technology in the solution architecture.
Zircon Tech helped Global Share in the implementation of the solution that tracks the changes in the documentation over time and ensures tamper proof and no possibility of modifying the information of the same. Zircon Tech proposed to identify the documents through hashes (SHA256) and then leave the same “notarized” in the Ethereum blockchain using a document ID and the mentioned hash. Each change in the document is registered using the corresponding ID and hash update. For this project a smart contract was developed using Solidity and an API using Node JS.
Global Share’s edoxOnline electronic Bill of Lading (e-BL) meets its customers’ expectations and business needs, going paperless and efficient. Particularly, in the midst of the complications that the coronavirus has presented for the trade of products linked to agriculture, these Argentine’s developments facilitated the electronic transmission of documents through the digitization of processes representing a great advantage, and has been used by firms like Cargill, Bunge and Dreyfus. In COVID-19 times, this application helped a lot to avoid obstacles to the agricultural trade.
Prova Technology is a US technology company working with universities in the process of certification of diplomas. Prova Technology has partnered with ZirconTech to implement the notarization services to start engaging with United States universities to issue diploma certifications for the graduated students.
ZirconTech has developed a Notarizer version based on Hedera Hashgraph (https://hedera.com/), a proof-of-stake public network, powered by hashgraph consensus.
Throughout the evolution of technology, we, by the nature of our being, have always challenged the existing system. At the core, we are problem solvers who never rest until we are done with our issues. Blockchain can also be understood as a great solution for an entire spectrum of predicaments. It is an open, decentralized ledger that can efficiently and permanently record transactions between two parties. The fundamental need to initiate and complete a transaction gave birth to the concept of a public key and a private key per user.
This course of action gives way to the thought that since we are doing a transaction, and we are also using two cryptographic keys, “Is there a way to keep all this metadata secure and ready to use at a moment’s notice?”
Indeed. It is called a blockchain wallet.
What is Blockchain Wallet?
Necessity is the mother of invention. In this case, slow centralized traditional banking systems gave way to blockchain technology. Earlier systems used to have a central point of failure which made the data susceptible to manipulation and corruption. This is where blockchain wallets come to the rescue. It is very convenient to set up and use. Just like how you use a PayPal wallet to transfer money, a blockchain wallet deals in cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc.
You name it, they have it.
It provides a hassle-free interface that works on both web and mobile interfaces. The redeeming quality of this system is transaction security and privacy. Both of these points are enforced via cryptographically generated keys, namely a public key and a private key.
Trends and Stats
Blockchain.com started offering blockchain wallets in November 2011 and now has reached an all-time high of 75.9 million wallets.
At the advent of blockchain, there were not a lot of providers offering blockchain wallets. During that time blockchain.com was one of the first to offer systematic blockchain wallets. Over the last 10 years, it has observed an exponential growth rate as the user base increased.
In January 2021, Coinbase achieved the highest ever daily active users (600,000) in the US. This was 10 times more than blockchain.com
Coinbase is one of the most popular providers in the industry. At the end of 2020 and early 2021, there has been a substantial increase in the crypto user base. This has caused the daily active users of most platforms to essentially double.
Coinbasereceived VC funding of $251M between 2014 and 2017
Blockchain figures can sometimes reach hundreds of millions of dollars. Coinbase received venture capital funding of more than 250 million dollars between 2014 and 2017. During these three years, they successfully transformed huge investments into a trading market used by millions of people around the world.
Blockchain market value in South Korea started from around $20.1B in 2016 and will reach approximately $356.2B by 2022.
Blockchain’s growth was always predicted to be huge, but no one could have predicted that the market will grow by more than 150 billion US dollars in just two years, only in South Korea. Even more surprising is that this market is expected to double in just four years to 356.2 billion U.S. dollars.
How does a Blockchain Wallet work?
The best part about blockchain wallets is, they are easy to use. As discussed earlier, the blockchain wallet works around the concept of public keys and private keys. These are akin to the credentials that you may use at a social media site or on your mail. Your public key is analogous to your username while your private key is your wallet’s password. Unless you have both of them, you can’t access or transfer your possessions. Whereas, for receiving funds, the sender only needs the recipient’s public key. Both the public and private keys are generated when you create your blockchain wallet and this wallet is persistent regardless of whether the user can or can not access it. The most important thing to remember is that the private key is supposed to be treated as a top secret. Anybody with access to your public key and private key can easily access your wallet and in layman terms, results in depleted deposits.
Why should you go for a Blockchain Wallet?
Now that we have a fundamental understanding of how a blockchain wallet works, let’s dive deeper to understand why you should go for it. A Blockchain wallet functions similarly to any other piece of software or wallet you use for day-to-day transactions. It’s simply a matter of safeguarding your private key.
It allows for cross-border transactions to be completed instantly.
They are also barrier-free, with no middlemen.
Transaction fees are kept to a minimum.
The cost of transferring funds is significantly lower than it is with traditional banks.
It allows for the exchange of multiple cryptocurrencies.
It also enables you to perform basic currency conversions.
Another thing to take a mental note of is that your wallet is a gateway to your assets. It doesn’t contain your assets. In case you lose your private key, you will lose access to your wallet and by extension to all your assets.
Types of Blockchain Wallet
Inherently, blockchain wallets can be classified into two types: hot wallets and cold wallets. Hot wallets are like normal wallets that we carry for day-to-day transactions, and these wallets are user-friendly. Whereas, Cold wallets are similar to a vault; they store cryptocurrencies with a high level of security.
Hot wallets are the most commonly used blockchain wallets simply due to the virtue of being easy to set up and easy to go. They are dynamic in nature and are meant for your everyday cryptocurrency users who regularly deal in crypto. Hot wallets are connected to the internet and are conveniently accessible through web and mobile interfaces. As such, the private keys are stored over the cloud for swift access. The only chink in their armor is that of security. Storing large amounts of digital assets in a hot wallet is not recommended as it is left vulnerable to potential cyber security breaches. There are a plethora of hot wallets available in the market, each providing the baseline service along with their additional quirks.
A user must understand the terms properly before selecting a wallet suitable for their needs. Examples of hot wallets are Coinbase and Binance.
A cold wallet is an offline digital wallet that is homologous to vault storage. In this methodology, the transactions are signed offline and it needs to connect to the internet to disclose them. High security and reliability are the perks of maintaining the wallet offline. Some popular categories of cold wallets are hardware wallets and paper wallets. The essence of security provided by cold wallets lies simply in the fact that they are inaccessible over the internet due to their physical nature. Their only flaw is that due to the cumbersome transfer process, this type of wallet is not suitable for daily crypto exchanges. Some examples of cold wallets are Trezor and Ledger.
Hot vs Cold Wallet
Hot and cold wallets form the yin and yang of the blockchain wallets. Both of them have their unique features but they simultaneously represent the best practices available to us.
Hot wallets are dynamic in nature whereas cold wallets are static.
Hot wallets are suitable for regular and daily trade but cold wallets function more as a safe vault.
Due to high availability, hot wallets are at greater security risk than cold wallets which are simply isolated to external connections for a majority of the time.
The user has the liberty to choose between either of the wallets. A simple question that can help one to select the right wallet is, “What is my purpose in getting a blockchain wallet?”. For everyday trading, the user would find a hot wallet more convenient and a cold one for scenarios that favor security and low-frequency trading.
Custodial vs Non-custodial wallets
Once one enters the realm of crypto trading, they have to decide on which type of wallet they need, i.e. either custodial or non-custodial. In the case of a non-custodial wallet, the users are the overseer of their private keys. They are in charge of managing their private keys and by extension, their cryptocurrency portfolio. There are no third parties involved and they need to take precautions towards protecting their own keys and funds.
A custodial wallet, on the other hand, requires a trusted third party who will manage your private key. Most of the web-based crypto wallets are custodial wallets and your first crypto purchase will likely end up in a custodial exchange crypto wallet. It is imperative to have a trusted and reputable custodial wallet where the majority of customer funds are stored with high security in cold storage hardware wallets. While a custodial wallet may be considered less secure, at the same time it waives the customer’s share of responsibility in managing the key and funds. Not only that, the exchange may provide sufficient support in case you lose your password. Contrary to this, for non-custodial wallets, losing your password or the private key might have a catastrophic effect.
Software Wallets (Hot)
Software wallets are generally web, mobile applications, or desktop software, downloadable on a device that can be accessed through the internet. Software wallets are inherently hot in nature, i.e. they are dynamic, can be used anytime, and are always connected to the internet. Some of the popular software wallets are Exodus, Jaxx, Copay, etc. Software wallets can be further categorized into 3 types:
Mobile Wallet: Mobile wallets come in the form of smartphone applications that are easily installed and easy to use. These wallets are geared towards accessibility. Since accessing and using a mobile device is more convenient, these wallets are gaining widespread popularity. One major drawback is that mobile devices are usually more vulnerable to malware, viruses or simply getting lost. This could prove very detrimental in many cases, hence additional caution is required. Example – Mycelium.
Desktop Wallet: Desktop wallets are software that stores cryptocurrency metadata on a personal computer. It is only accessible to the owner of the PC and private keys are stored on the desktop only. Desktops are usually protected by a denser layer of security which makes them a secure device option to use as a wallet, at the cost of reduced mobility. Having a decent firewall, antivirus, and antimalware are some of the crucial requisites which must be met. Example – Electrum.
Online/Cloud Wallet: These are the hot wallets that run on the internet and are accessible from a wide range of devices, including mobile, desktop, tablets, etc. Your private keys are stored over the cloud and are managed by a third party. This facilitates password recovery in case it is lost. The security of the wallet is managed by a trusted third party and hence it is one of the most popular choices. Example – GreenAddress.
Hardware Wallet (Cold)
A hardware wallet is a type of cold wallet that employs an independent and encrypted hardware device, like a USB thumb drive, hard disk, etc… to store the user’s private key. The most important aspect of Hardware wallets lies in their plug-and-play utility. These devices can be attached to any desktop and in some mobile devices to access the wallet and perform the desired transaction. Due to the isolated nature of the hardware, the probability of the wallet being corrupted by malware is greatly diminished. One must practice caution against buying a second-hand hardware wallet. Some of the popular hardware wallets are Trezor and Keepkey.
Paper Wallet (Cold)
The only data which cannot be hacked by cyber means is the data that doesn’t exist digitally. This could be considered as the key philosophy behind a paper wallet. A paper wallet is an offline process of printing the public and private key on paper and removing any digital traces of the same. In this way, there is only a printed copy of keys left which can be used to access the wallet by either directly entering the keys or by converting them into a QR code to scan. It is very popular among users who deal with large quantities of cryptocurrency over the long term. The only drawback is that additional precautions need to be placed in preserving the paper. Some of the popular paper wallets are BitCoin paper wallet and MyEtherWallet.
Blockchain wallets provide an expedient and pragmatic way to deal with cryptocurrency. There is an entire pantheon worth of wallet providers, each providing something extra than others. Even after that, the key point remains that every person’s objective to use a blockchain wallet may be different, hence proper study is an essential prerequisite before entering the crypto market. We have covered all the major blockchain wallet types, along with their pros, cons, and how they fare relatively amongst them. A user should consider all these options as an exquisite buffet and derive a tailor-made solution that works in their favor.
Finally, security is the key to any transaction. However secure a system may be, the user must exercise caution from their end. This is especially applicable for blockchain wallets.
Come and be a part of the alluring future of Blockchain.
The world has become a global village that offers a variety of opportunities for
companies to experiment, execute, explore and grow. In a capitalistic market, it becomes really important for any
company or service provider to stay and compete well. For most of us, 2020 has been uncertain, and it reduced the
chances for individuals to learn and grow. The business processes saw a major setback in terms of development,
collaborations, partnerships, and providers.
Nearshoring is a type of outsourcing that requires businesses to appoint certain
processes, such as development and testing, to make them efficient and reduce costs. Companies based closer to the
same time zones will share similar working hours and similar cultures. By being geographically nearer, a foreign
company or a service provider can offer a reliable and stable connection to the parent company.
Cost measures have always been really important and with the delegation of major
activities to neighboring countries, companies can shift their focus on other business activities and turn the table
towards exponential growth.
What is Nearshore Outsourcing
Nearshore Outsourcing is a practice to get the work completed using a set of services
provided by the neighboring countries and not the organization’s native country. For example, any North American
company would move some of its operations to Mexico or Uruguay for getting access to a wider pool of talent, cultural
similarities, skills, and lower salary costs. Factors like lower language barrier, time zone compatibility, and mutual
cultural understanding would enhance productivity. And this adds up to the company’s profile and offers amazing
The Rising Trend in the Global Market
Outsourcing follows the logic and economic principles of Adam Smith who changed the
horizons by studying the divisions around labor. When we chunk a set of complex tasks into specific skills and assign
them to individual workers, they specialize in that particular area and become more productive. Adam Smith with his
productivity and economic theories turned out to become ‘The Father of Capitalism’.
The recent global pandemic forced several people to build their companies in-house and
realize the importance of outsourcing, specifically nearshore outsourcing. The future of work is
digital and the bots are automating most of our daily tasks. Social Media management would grow leaps and bounds, and
according to a report generated by Forrester, it would experience a hike of at least forty percent. The current global
situation demands the Business Process Outsourcing (BPO) partners and IT partners to possess hybrid
“What organizations are looking for now is a flexible partner,” said
Barbara Hodge, principal analyst and global digital editor at Shared Services and Outsourcing Network (SSON), a professional
network. “Critically, that means the ability to move seamlessly from traditional office environments to
There would be some key points that nearshore clients and providers would look after
which would add up to the future trends and charts. Let’s have a quick look into them:-
Company’s Culture and Diversity
Culture defines the ambiance that any company would carry. The more
cross-culture/similar-culture diversion exists, the more openness it generates. Nearshore clients should actively
engage with the outsourced teams to build an interactive cross-funcional objective towards a shared mission. It paves
the path for the creation of better communities and safer workspaces that cherish both, the culture and work
Cost-reduction strategies and price benchmarking should be the primary goal for
nearshore clients in the upcoming years. Everyone is shifting towards automation and artificial intelligence nowadays.
All the BPO and IT services have shifted to automation mostly. Machine Learning and Data science have made the market
more cost-effective and super reliable. Regular benchmarking provides a platform for nearshore outsourcers to explain
their value to clients and build significant relationships.
Distributed Computing and Secured Solutions
Freedom from the location is the ultimate goal for the nearshore providers, and they
have started investing in cloud technologies to achieve that. The exponential trend would be a decentralized framework
with multi-cloud technologies. Nearshore providers are looking for a decentralized data model, instead of central data
providers, that are moving towards a less network congested area, with a potential towards apt data clients.
Enhanced cybersecurity in the nearshore would help in data security and business
management at an outreaching scale as well. These technical advancements and approaches would help the nearshore
outsourcers to achieve the maximum nearshoring benefits and profits.
Software outsourcing has proven to improve quality and increase focus and reduce costs
within the company. Most successful companies in the world used the principle of outsourcing to excel, whether that be
a data service or web development. The top companies that are competing extremely well are doing so simply because of
Let’s look at some examples:-
The ubiquitous search engine earned a revenue of $26 Billion from 2016 to 2018, however,
most people don’t realize that the foundation of their outrageous profit margin is outsourcing. In 2014 the
company was outsourcing most of its nonessential IT functions to various countries. Google used a strategy to utilize
resources from abroad via the method of outsourcing. This helped Google to achieve maximum developers output in its
team and attain the highest potential of itself as a company.
Millions of users use Github as a collaborative tool to share codes and build products.
Microsoft acquired Github for $7.5 Billion in stock because they used the maximum benefits of outsourcing to create
their network. They conducted this IT outsourcing to achieve the highest talented potential. They filled their
company’s skill gaps by hiring experienced professionals who built their entire backbone.
Whatsapp relied heavily on outsourcing software for its core development. The office
maintenance was done in the United States but the complete app development was outsourced. They hired a whole team for
iOS development via outsourcing to enhance the existing skillset. iOS app development helped the app cross milestones
and it contributed to the company’s success as a whole.
It is a popular communication app used by maximum workspaces when a task like
app-designing is outsourced. By nearshore software outsourcing their logo creation and marketing design, the company
streamlined its imperial product. Slack was able to establish a brand because of outsourcing of the app and web
design. It helped them raise a $250 million round of investment with a valuation of $5 billion.
There are several examples like Opera, Alibaba, Skype, and many more who used the power
of nearshore software outsourcing to upscale their company. They realized the execution of the principle which added a
crest to their company valuation in the long run and helped them become a gigantic name in the industry.
Difference between Nearshore, Offshore, and Onshore
Nearshoring simply means outsourcing business processes to nearby nations. Business
development needs smart solutions and nearshoring helps them to create a better pool of services using global talent.
In contrast to offshore development, crucial nearshoring benefits are – seamless communication, better deals, and
fewer cultural differences.
For example, USA-based companies would prefer nearshoring with Latin American countries
such as Uruguay, Costa Rica, and Colombia. It is less expensive and provides effective working relationships. You can
visit your team from time to time to those places and ensure whether the process is being taken care of in an
organized manner or not.
The operational activities are transferred to another country via offshoring. It has two
Nearshoring (in the nearby countries) and
Farshoring (to distant countries)
Reducing personnel costs is the primary goal of offshoring. Technical barriers such as
poor internet connection present a major challenge in these types of situations. It is vital to note that the
contractors’ location is a major difference between nearshoring and offshoring.
Offshore software development yields successful businesses over time since it is located
on another side of the globe, which is cheaper. Companies can hire an expert team at lower costs and access a global
pool of talent. The right offshore company can assure you a wider range of services and deliverables provided under
Onshoring is the process used to relocate any business to a new place inside its
nations’ borders. It results in the quickest possible services and improves agility and cost structure within
the organization. Product management becomes a flexible process, from manufacturing to supplying. For instance,
a company located in California will onshore to New Jersey. Here, the states are different but the country is the
same. Communication, language, timezones would fall in one place, however, if you plan to reduce the development
budget, then this won’t help.
Easy traveling due to close distance
The close proximity of the country makes it more feasible for the teams to meet, which
helps in building business relations, improving coordination, and creating social bonds. Also, these kinds of
collaborations help businesses to build good relationships with neighboring countries and governments.
The cultural similarity is the key to nearshore development and partnerships. Because
having almost the same lifestyle and spoken language enhances the belongingness within business teams. Instead of
having teams with various cultural beliefs and language barriers, companies can opt for nearshoring to similar
countries to theirs. In addition to that, this also creates a sense of trust between both the parties in their
Reduced Operational Cost
Nearshoring reduces operational costs as we hire resources at low charges but with the
same skillset and work efficiency. This eventually leads to maximization of the profitability of the business instead
of having business with a country that is far away from your current location. To some countries, the traveling cost
is high as the distance is larger, but in the nearshoring, the distance is less, which leads to lower cost of
traveling, considering we’re paying lower wages for the same work, which leads to maximization of profit.
Time Zone compatibility
Having close proximity with the neighboring country makes it easier because of lesser or
no difference in time zones. In the case of offshoring, the time difference makes the work less efficient and creates
a difference of almost 12-24 hours. However, with the neighboring country, it is easier to communicate and work
accordingly because of similar working hours.
Improved Code Quality
Nearshoring helps in improving code quality as you are hiring a professional and
high-quality development team with comparatively less price, which is very hard to find in your native place, due to
the developed economy.
Saves Time and Energy
When you hire a nearshore development team, they start working within days, sometimes
hours, which helps you to save your time, money, and energy instead of recruiting candidates natively. In Nearshore
development, teamwork with professionals is smooth and it gives better quality results because they were hired for
that specific task. This helps in scaling up the product quality and improving the overall productivity of the team.
Compensation of staff shortage
Whenever any company faces a staff shortage, Nearshore development teams are the best
option available to fill the requirement. It takes lesser time, lower cost, and more proficient work delivery to the
clients. This leads to the upliftment of the company and helps in the shorter run to grow fast.
Improving company efficiency
Nearshoring helps in improving efficiency and saving time for in-house employees and
helps them deliver the projects faster. An outsourced team can take care of the mundane tasks while the core team can
focus on the bigger picture and improving product quality. This enhances the efficiency of the company because the
outsourcing team plays a vital role in software development which helps in distributing the large projects.
Access to global talent
Nearshoring means access to global talent and skills. When you hire a nearshore
development team, you get to know their previous work and achievements. Connecting with them creates a bond that helps
you to grow your network worldwide. Directly or indirectly, it helps you and your company to see things differently
and find new and creative solutions to your problems.
Management and consistency are the keys to nearshore software outsourcing. A poorly
managed outsourced resource would not be beneficial to the company, instead, it would add towards a higher risk of job
loss within the organization. The organizational trust would be at risk if the employees feel that their jobs are
threatened because of outsourcing.
Transparency should be kept intact while outsourcing – whether it be nearshore or
Nearshore outsourcing can offer at least 30% of growth to markets by the end of 2022. It
has broken European charts with a fine curve and reaching substantially larger audiences. The Nearshore development
service market has enhanced standards in terms of quality and quantity. Companies can now involve themselves in
innovations and build across strategic partners and teams.
Cryptocurrencies may seem like a mysterious puzzle to an average person, and especially
in this decade, when we keep hearing about its different sagas. But most are still not aware of the potential this
revolutionary technology possesses. We know it offers us much more than Bitcoins, but exactly what?! One of
those gifts is Decentralized finance!
Decentralized Finance, or Defi, provides a way for the general public to interact with
the financial instruments and products on a blockchain network, regardless of their geographical location, race,
gender, or any other discriminatory factor. It usually eliminates the need for an intermediary, like a bank or a
broker, to facilitate a transaction between two parties. Currently, almost 41 Billion US Dollars are in the form of
DeFi contracts on different blockchain networks across the world. Although, due to low liquidity and volume, this
figure might vary.
Since DeFi is still in its maturity phase, mishaps, scams, and cyber hacks are not
uncommon. To prevent such scenarios, companies prefer to use long-established protocols to reduce risks and
vulnerabilities in their systems. In addition to that, our current legislative system does not take a fully autonomous
financial system into account, so dealing with these new sets of problems is relatively difficult.
What is DeFi?
DeFi is the technology that enables the transition from our current centralized
financial infrastructure to a P2P (peer-to-peer) decentralized system built on top of mainly, but not exclusively,
Ethereum blockchain. It represents a cumulation of several protocols and standards that enable the creation of DeFi
Apps, which can range from a simple insurance application to complex financial instruments like derivatives and
options. It covers a huge spectrum by just working with the contracts and applying a wide range of use cases for the
institutions and various developers as well. Blockchain enables the users to have direct transactions. The whole
system has its nodes and distributions. While this technology provides transparency, it provides us with duplicate
copies of our transactions at the same time. With this, the security increases, and the chances of hacking decrease.
Here, we work with two types of keys, the public key, and the private key. If the private key is lost, you cannot
recover your data or your wallet systems.
This is what is DeFi in layman’s terms. Now, let’s move to its components to
understand what is decentralized finance and its web app layered stack.
Components of DeFi
There are four layers in the DeFi stack. The whole framework is designed in a way that
it structures and shapes the complete set of the system. Knowing the concept of the token is important to understand
how the framework works into the layers. With components, there are protocols that we need to keep in our minds. Once
we get hands-on to layer analysis we will progress towards the protocol system.
The settlement layer, also known as Layer 0 or the base layer, serves as the foundation
for DeFi transactions on the blockchain network. This layer includes the network itself and its corresponding
cryptocurrency. For example, Ethereum and its native token called Ether (or ETH), that make up the settlement layer
using which all the trades and transactions take place. This layer may also have tokenied assets that are backed by
physical real-world entities, like US dollar, real estate, or gold.
The asset layer is known as Layer 2 of the whoe framework of our five-layered tech
stack. Any asset that is above the main asset, which is known as our settlement layer, would add up to this layer. If
any additional asset is taken on this, it will take care of that as well. Primarily it will focus on the native
protocol asset and any token (issued blockchain) would be counted under this.
DeFi protocols are interoperable which means that multiple entities would have access to
them. Protocol Layer is Layer 3 in this framework. The areas to be dealt with under this are – market derivatives,
debt markets, other real-world institutions, and on-chain asset management. A standard set of smart contracts is used
for the implementation. An example of the same is Synthetix, which is a derivative used for a real market situation for a trading protocol on
If you have any real-world assets, you will use this to create their corresponding
As the name suggests, the abstraction of other layers is done over here, so real-world
usable applications can be built using this. This is our layer 4 and it works upon the creation of user-oriented
applications. It would then be connected to the individual user protocols. By using simple consumer-focused services,
such as front-end web development, we can do abstraction over smart contracts. For example, lending services,
cryptocurrencies, exchanges are built using this layer and we access them through a web app or mobile app.
The aggregation layer has aggregators for connecting several applications using the
application layer. This layer 5 is the extension of our application layer discussed above. Combining and performing
complex tasks are done in this layer to get ourselves a concise and clear approach. We connect several protocols and
applications that are completely user-oriented.
We usually see a seamless transfer happening between two investors, which are at the
topmost layer, although several parts are involved under the hood. For any transaction to occur properly, the process
involves a set of physical setups, coordination, and any digital or paperwork requirements. All the crypto wallets and
other digital net banking services that we use today are possible because of this aggregation layer. They majorly
provide us with maximum tools to carry out transactions between several protocols.
Benefits of DeFi
Now that we have understood what decentralized finance is and discussed its components, let’s see what are the
properties which make DeFi apps beneficial in general. There are six major points that we will be exploring, which are
Transactional transparency and security is a pivot in any decentralized system that we
use. When we wish to see some transactions, we tend to require an intermediary and this property enables us to access
and view different blockchain networks. It creates an ecosystem with the ability of various networks to build
communication within themselves. For example, the tech stack of Ethereum provides us with protocols and applications
that will support and complement each other respectively. Execution of smart contracts becomes user-friendly.
“Everyone is dependent on physical goods’ ability to move across all
participants in the global supply chain with minimal friction. We need the same ability to move a digital asset from
one blockchain to another without creating redundant data or a new market for intermediaries. This is why blockchain
interoperability is critical.” Rasmus Winther Mølbjerg, Director, Deloitte, Denmark.
Fiat money and our traditional transaction methods require a set of permissions to be
fulfilled. But in the world of DeFi, there is the involvement of blockchain, which makes it a completely secure
transaction without any restrictions. There are no funds or minimum funds required for us to carry forward with this
transaction. You can access your crypto wallet globally anytime. Financial inclusion gets a leeway.
Easy accessibility and permissionless innovation are encouraged. Anyone can join as a
validator and transact. The copies/duplicates are stored across the globe nodes, making it difficult to hack or tamper
Also, Utility tokens or monetary tokens are used within this for digital assets to have
transparency and decentralization. No additional infrastructure is required for permissionless blockchains, but they
are relatively more energy-consuming.
Blockchain provides us with a completely decentralized architecture, which means, the
data cannot be changed on it. It becomes tamper-proof or immutable, which makes transactions and financial procedures
easy to carry out. No entity can manipulate or tamper with the data, may that be a government or a huge organization.
In addition to that, the auditing process becomes quick and cost-effective.
“Immutability ensures integrity”, making it the best possible feature for
the DeFi ecosystem.
This property gives you absolute control over your wallets and personal data. That means
you’re the sole responsible party to protect your private keys and other sensitive data. Using
Web3 wallets like Metatask, you can achieve this. It has several advantages over traditional banking
systems, primarily, no hacker or a person with access can view or modify your bank details due to decentralization.
You require no cut, no financial intermediaries, for any investment you want to make.
This property of DeFi allows you to create new financial instruments and digital assets
in the form of smart contracts. All the smart contracts tend to be highly programmable using which, you can create
automated processes. They came into existence with the advent of Ethereum Blockchain, in the form of smart contracts.
Peer to peer value movement saw an increase in programmability. More smart contracts mean more programmability in the
All the Ethereum addresses are termed as encrypted keys that lie in a phase of
pseudo-anonymity. The codes of Ethereum are open source making it a tool of public accessibility. Anyone can view,
save, fork, or edit the code. The requirement of blockchain came so that all the distributed ledgers could have a
certain amount of transparency unlike the fiat ecosystem provides. Rich data analysis with amazing network
connectivity becomes a profitable source of research for any end-user.
“The foundations of new economies start with borrowing and lending. In 2019,
the blockchain industry enabled these necessary primitives in what has become DeFi.”– Collin Myers,
Global DeFi Product Strategy Lead, Codefi
Applications and Advantages of DeFi
The use of blockchain technology in finance is not new. Most financial institutions use
it to facilitate and manage transactions. However, its role is limited as a facilitator, nothing more. Companies still
have to manage jurisdictions and competing markets. But DeFi, unlike traditional systems, lets technology lead the
pack. It is now changing horizons with its magnanimous properties that are helping financial services to upscale and
upskill. New technology frameworks are regularly added for developers to stay updated. Few glaring benefits of DeFi
that are enabling the advancements in this field are:
Provides open-source workability
Using blockchain and working over ‘Decentralized’ systems.
Traditional systems are removed and there is zero involvement of any current ‘Central Entity’.
Provides better leverage and High Liquidity
Self-custody or full control over funds
Displays productivity with the cost and provides asset management.
Data Security and no fraudulent activities or crimes.
We have curated a list of advantages of DeFi, that has majorly impacted this industry.
It will help you better understand what DeFi is and specifically, what are the benefits of DeFi in those particular
It is important to have a basic understanding of how tokens work. Recently, it has
gained a notable interest and eyes of people around it. All the crypto tokens are our current digital assets. They
have different features and use cases.
For example, we have real estate tokens and security tokens. Real estate tokens give us
fractional ownership over physical properties, whereas security tokens help us effectively work within digital shares
and the management of wallets. They are all crypto-synthetic assets that are collateralized by the Ethereum smart
contracts backing something substantial.
The latest DApps use protocols that enable you to remain the sole owner of your own
funds. Crypto wallets such as Metamask, Agent, and Gnosis safe lets you securely interact with DApps
and help you with buying, selling, and trading with no cost or low-cost management.
Your private keys are locally stored on your device so that only you have the access to
them in the DeFi space. All your phrases, passwords, personal data are safe with you. This use case is profitable and
makes this technology the crux of DeFi space.
Lending and Borrowing
Peer to Peer services is the pivot aim of the whole architecture. Lending and borrowing
offer sustainable and profitable solutions to its end users. A maintained and well-integrated smart contract is
introduced while we deal in the sector of lending and borrowing. The verification of intermediaries is completely
blocked, unlike the traditional system. It ensures safeguards for any other counterparty. The compound
has become a popular platform that allows lenders to exchange crypto assets in several pools. The interest rate
depends on the contribution made by the lender during the process. The liquidity of crypto assets is crucial to
determine the internet rates in the Defi space.
As mentioned earlier, lending platforms are enabling users to generate revenue through
interests, which subsequently opens up the doors of savings apps. For example, if you lock any asset in any lending
protocol, like Compound, you would get interest benefits at a mushroomed rate. And this can further go into your
“Yield farming” is currently the trending term that can be used over here.
It means that users can move across various lending platforms to generate maximum interest through their investments
Compliance and KYT
In our traditional banking services, KYC (Know Your Customer) guidelines are extremely
important. They provide a link to track or prevent any money laundering activities. The decentralized infrastructure
offered by Ethereum enables us the next-generation compliance analysis. This Know Your Transaction (KYT) mechanism
provides us an upper edge to judge any real-time risk or threat to our wallets.
Margin Trading means that you can use leverage to make trades by borrowing funds from a
broker, who in turn takes funds from other investors, who have invested their money to gain interest. In the
decentralized system, this intermediary step is eliminated where a broker is involved. It has non-custodian lending
protocols in place which facilitate the transactions without the need of a middleman. These are implemented using
smart contracts which automate the brokerage process, making it “autonomous money markets” in the DeFi
To understand how coins or tokens work in a better way, you can term them or relate them
to the synthetic asset. It is possible to peg crypto to another basket of assets like fiat money, gold, or any other
commodity. Stablecoins were developed to reduce the volatility of the crypto rates so that we could use them as an apt
option for payment. Now it is used widely across the DeFi spaces to lend, borrow, or remittance of payments. Value
maintenance of other cryptocurrencies is done by over-collateralization and stable mechanisms.
Probability and prediction have always played an important role in any market. When any
market fluctuation takes place, the indicators have an important role to play. In any blockchain-based predictive
market, depending upon the crowd wisdom, the users cast the vote and trade the value based on their predictions.
Augur is a famous platform used in this market for betting purposes. Results of games, elections, events
revolve around the same principle and they can be integrated with such platforms.
Synthetic assets are a subset of Stablecoins. They are also related to other cryptos and
provide exposure to gold, fiat money, and other currencies. They are locked into the Ethereum based smart contracts
where the terms and agreements are pre-programmed. Protocols like Synthetix enable networks to absorb sudden price
shocks because the ratio of collateralization can reach up to 750 percent.
DAO is the abbreviation for Decentralized Autonomous Organization. Automation of
processes is done with the use of smart contracts. It uses an interconnected web of smart contracts to automate
effective processes. DAO is currently more of an on-paper model, and the implementations are ongoing with various
experiments all around the world.
Practically speaking, DAO’s business benefits are numerous. For example, a novelty
stationery store would have its inventory on the unique ledger that will be able to create a smart contract that would
work through each contract’s unique or specific demand. The smart contract on its own would generate an invoice
for the supplier and the buyer. It will send the invoice and also mention the issued date and the date of delivery.
Upon the arrival of the shipment, the smart contract will be notified using scanners or IoT and then the CRM database
would get updated.
Maker and Compound have launched DAO to manage financial ops,
fundraising, and decentralization of the community management.
Data and Analytics
The discovery of financial opportunities and risk management requires data and analysis.
Due to the transparent nature of DeFi, gathering data about transactions and other activities is not that difficult.
The DeFi applications have set a milestone by sparking the development of mosaic tools such as Codefi data
and DeFi pulse. The users can track the value locked in the DeFi protocols and compare the yields, interests,
Future Of Digital Assets and Decentralized Finance
“A global paradigm shift” is the sole purpose of Decentralized Finance. It
is in a mode to achieve the same by creating seamless transactions and ease within the financial services. As more
people put their brains into understanding the concept of decentralized services, the more they will realize that the
regulations are not needed to have access to their desired resources.
With regular clarity and a strong investor appetite, one would be able to achieve
significant profits in the current markets. A Decentralized Financial structure needs more transparency and financial
awareness. And as they are increasing day by day, through internet blogs like this one, the market cap of
decentralized finance is growing exponentially. In the upcoming years, everyone would be focused on the same as it
will become a crucial part of our lifestyle.
Decentralized finance has a future that is beyond what we can see or imagine.
Technological advancements are making us techies, knowingly or unknowingly. Inefficiencies in our current financial
system are obvious and now we have an alternative available to us. A decentralized fintech industry, that is
permissionless, would make us reshape the financial services we are familiar with, and help us broaden several advents
attached to it.
It is a productive industry with subtle paces. If your token has sufficient liquidity
and volume, then you are ruling the roost. DeFi systems are borderless which reduces a significant amount of risk of
failing and falling under crimes. It offers exciting opportunities, lesser threats, high interoperability, and
numerous applications. Financial services are providing an upper edge towards a better tomorrow. The distributed
ledgers are changing horizons. Blockchains ensure a seamless transfer through which we can create a network-friendly
For now, security risk and unintended usage are something that we need to take care of.
The points which we have discussed above would help the community uproot deep vulnerabilities into their system, and
contribute to this ongoing improvement. Reiterating the same would potentially contribute towards a better
The world’s financial system is going through a lot of changes today. You must have felt its heat during the crashes of the crypto market, or through the promises of blockchain applications. It’s not new, and it all began almost a decade ago. Most of us were unaware of this ongoing revolution but, there are few, who looked under the hood, and became contributors to this world-changing technology.
In an interview, Andres Zunino, COO of ZirconTech, told that he and his team were looking for innovative ideas to invest in since 2013, and at the end of 2015, they finally found blockchain, as their worthy candidate. They wanted to build something on top of this emerging technology and chose the blockchain insurance application, which later got presented at a prestigious blockchain competition.
As you may have heard time to time, our current financial infrastructure is “centralized” and has a lot of problems and loopholes in it. There are people who abuse their power, systems that fail from time to time, countless scams, public frauds, and a lot more day-to-day hassles that consumers go through. What if we tell you that we can replace each and every segment of this huge system with blockchain technology, and you will never see such problems ever again!
We have a long way to go but, it is possible. Let us elaborate …
What is Blockchain?
The applications of blockchain can be tricky and difficult to understand, but its underlying concept is pretty simple. According to CB Insights’ definition, “Blockchain technology offers a way for untrusted parties to reach consensus on a common digital history”.
You might ask, how can I trust this so-called common digital history? What if it has tampered with?
The reason people trust this common ledger is that it lives on the blockchain, which makes it unhackable. This is the beauty of this technology, where it shines the most. It provides immutability, transparency, and, of course, decentralization.
Nobody can tamper with its data or took over the control because blockchain’s architecture distributes “data and control” over a network of computers (also called nodes). Changing data on one or a few nodes will not affect the entire blockchain, and hence the modified or malicious transaction will not be approved, assuring the integrity of the data. This way, it protects its assets and the credibility of transactions happening all around the world.
In comparison to this decentralized mechanism, centralized storage systems are highly vulnerable because there is a single point of failure. One misconfigured security setting can collapse the databases and the entire system of control. Unlike blockchain, there is no way for us to trust that all the transactions are valid in a centralized infrastructure. We just have to believe that the transaction history is not yet hacked.
In addition to the inherent security feature that decentralization provides, blockchain uses cryptographic hashing techniques to protect the personal information on the network. Only the right person with a valid private key can access certain associated information, and no one else.
Let’s take an example to understand how a typical currency transaction takes place:
Say there are two parties, Alice (the sender) and Bob (the receiver). Both, Alice and Bob, have their respective wallets, and each wallet has 2 keys, one public key, and one private key.
Supposing that initially both have zero funds in their wallets and Alice wants to send 1 ETH to Bob. To do so, she accesses her wallet using her private key and initializes the funds from, let’s say, the bank. To receive the payment, Bob provides his wallet’s public key to Alice to use as an address. Alice can now initiate the transfer and once the transaction is completed, updated funds get reflected in Bob’s wallet.
In this process, there is a small gas fee involved. That means, to transfer exactly 1 ETH to Bob, Alice needs to pay some extra fee on top of the principal amount. This fee is necessary to power the blockchain network. It serves as an incentive for the miners who use their computational power to validate transactions.
Mining and its Mechanism
Mining is the process of adding new coins into circulation and it is also important for the maintenance and development of the blockchain ledger. Miners provide their enormous computational power to solve an abstract mathematical equation, a cryptographic hash generated by each transaction. For every valid transaction that is solved, a new block is added to the blockchain. The hash value of this freshly generated block is dependent on the hash value of its previous block and the details of the transaction. This is called the “proof-of-work” mechanism, on which most of the famous cryptocurrencies operate, like Bitcoin, Ethereum, etc …
So as you can see, in the whole process, there is no centralized entity involved who is making the decisions. It is a self-sustaining system that can power the entire financial system of the planet.
Cryptocurrencies: The Bloodline of Decentralized Applications
According to Investopedia, a cryptocurrency, as the name suggests, is a cryptographically secured virtual/digital currency that is impossible to counterfeit or double spend. Usually, it is based on blockchain technology, which is simply a distributed ledger. No government or central authority has controls over it, and it is famous for its portability, transparency, and inflation resistance quality.
There are different types of cryptocurrencies present in the market, bitcoin being the most famous among all. Bitcoin is considered the father of all cryptocurrencies and every other variant comes under the category of “Altcoins”. Combinedly, the value of all cryptocurrencies adds up to 1.5 trillion dollars (USD), where BTC captures more than ⅗ of the market.
So let’s have a look at the top cryptocurrencies in the market:-
Back in 2009, a mysterious person with the pseudonym, “Satoshi Nakamoto”, released a whitepaper containing a revolutionizing concept, which later resulted in the creation of Bitcoin. That whitepaper came with the promise of lower transaction fees than the traditional payment gateways which were controlled by the banks and huge private organizations. It offered a decentralized solution to the banking that nobody controls, an incorruptible infrastructure, that can power the global financial markets.
Consequently, Bitcoin became super popular and it triggered the development of hundreds of other cryptocurrencies. Today, it is often abbreviated as BTC in the trading markets and referred to as “digital gold”.
Like Bitcoin, it is also a blockchain platform, with the associated currency called Ether (or ETH). Currently, It is also working on the proof-of-work concept and they’re planning to shift it to a proof-of-stake mechanism in later 2022. The new version will be called Ethereum 2.0.
This blockchain is famous among decentralized application developers because it allows them to deploy smart contracts using the Solidity programming language. In terms of market value, it is around 266.83 Billion dollars in capital, right next to Bitcoin. Most of the tokens that you see on the exchanges are built on top of Ethereum, which powers a variety of DApps (Decentralized Applications) in the industry.
Stablecoins is a category of cryptocurrency that aims to provide a stable market price on the exchanges. Unlike their other volatile counterparts, they are backed by some reserved assets, called collateralization, so their value is derived from an external reference. For example, a stablecoin can be pegged with the US Dollar, or with some commodity like gold.
Examples of Stablecoins include,
Binance USD (BUSD)
True USD (TUSD)
Paxos Standard (PAX), also knows as PAX Gold
The term, Altcoin, refers to every cryptocurrency other than Bitcoin. It is a combination of 2 words, “Alt” and “Coin”. Stablecoins, utility tokens, security tokens, etc…, all come under this category.
Collectively, Altcoins captures around 2/5th of the total cryptocurrency market, with more than 9000 variants listed on the exchanges. As of March 2021, ETH and BNB had the largest market capitalization and they’re still growing. This term will most probably refer to the mining-based cryptocurrencies only, in the future, as we move towards other than proof-of-work-based technologies.
How to become a Blockchain Company?
Implementing Smart Contracts
Smart Contracts are the programs that are deployed on the blockchain network. They get executed when some predetermined conditions are met, for example, to automate a legal agreement or a financial transaction. Smart contracts are being popularly used in certain Voting Systems, Financial Services, Healthcare, etc …
Since they don’t need any intermediary, malpractices by third parties can be avoided and the whole process can be automated, saving a lot of business hours. Apart from that, all the documents are backed up automatically and the strong encryption of the blockchain algorithm takes care of the safety from any kind of infiltration.
ICOs: Initial Coin Offering
ICO is the new IPO, but with much less hassle.
The term ICO stands for “Initial Coin Offering”. It is similar to a real-world IPO (Initial Public Offering) of the company but, it happens entirely on a blockchain network. It is mainly used by technical people for raising funds for decentralized projects that have some potential in the future.
In the interview, Andres Zunino briefly pointed out his initial struggles as,
“We needed to dedicate a lot of effort to research, test, and develop competencies. We are happy with the point reached today thanks to the initial funding, the support from the Research and Innovation Agency in Uruguay, and all the dedicated effort”
Today, several startups are opting for ICOs for fundraising, instead of sharing a piece of their company with venture capitalists. Launching an ICO requires only two things: a spectacular announcement, and a digital campaign. In return for the money that is invested, the blockchain company provides utility tokens, that can be used in the future for using their decentralized service.
NFTs: Non-Fungible Tokens
NFT stands for Non-Fungible Token. In layman’s terms, non-fungibility means unique and irreplaceable. Unlike a normal currency, which is fungible, NFTs derive their value from their uniqueness and scarcity in the market.
All the currencies that you see in the market are fungible, including Bitcoin, Ether, etc… Theoretically, a 10 dollar bill in my pocket is equivalent to a 10 dollar bill in your pocket. This is called being fungible. But in the case of NFT, an original digital asset, say any artwork, cannot be replaced by a replica of the same, despite being exactly identical. NFTs provide a stamp of originality that cannot be corrupted.
You would not pay the same price for a Mona Lisa’s duplicate, as you would pay for the original one, however real it may look. Would you?
If you want an in-depth understanding of NFTs, we highly recommend this article.
Blockchain-based ID Protection
Today, blockchain technology has made Self-Sovereign Identity (SSI) possible. The ideology behind this is to give control to the individuals over the usage of their identity. This means you can register yourself, with the accurate details, on an unalterable decentralized database and use the generated unique identity hash to represent yourself online. In comparison to the centralized identity management systems, it is much more secure and reliable. This technology has the potential to completely change the way how we interact with different online services.
DeFi: Decentralized Finance
Decentralized Finance refers to a new financial system that is transparent and gives control to the user over his/her accounts. It provides you with the option to interact with the global markets using alternate currencies, instead of using government-issued fiat. As of now, tens of billions of dollars have been pumped into it via cryptocurrencies and it’s still growing. Anyone with an internet connection can use these services, and no one can deny access to them or choke your payments. No human errors are possible in these self-sustaining systems, which makes them much faster than their traditional counterparts.
Fact: A group of crypto-enthusiasts in Argentina used DeFi to escape inflation.
Associated risks with Crypto
Extremely Volatile Market Prices
If you have been crypto-trading for some time, then you know what we’re talking about. There is great instability in the prices of crypto due to its unregulated nature, which makes them extremely high-risk investment tools. You need to understand it deeply before jumping into the sea of crypto. Currently, the market sentiment for cryptocurrencies is very uncertain, which leads to sharp and unexpected price movements frequently.
To keep your portfolio in crypto, you need a strong risk appetite.
Vulnerable Smart Contracts
Smart contracts are self-executing, unalterable, autonomous programs that live on the blockchain networks. In the land of decentralized applications, smart contracts give birth to the philosophy, “Code is Law”. But, is it a good thing or a bad thing? If there is a vulnerability or loophole in a smart contract, then exploiting it is acceptable or not? Is it any different from the situation where a lawyer bends the law to suit his client? It’s an ongoing debate in the crypto community with no clear answer.
Smart contracts that power DApps are difficult, or sometimes impossible, to change once they’re deployed on the network. So if any mistakes are made, then you’ll have to deploy it again before it’s too late. That’s why rigorous testing of all the external functions of a contract is quintessential.
On 20th July 2016, the original Ethereum Blockchain Network was hacked due to a small vulnerability in a smart contract, which enabled hackers to siphon off almost 33% of the funds to a subsidiary account. To restore all the funds, the Ethereum community hard-forked a new branch and essentially had to split Ethereum into two. The original Ethereum continued as “Ethereum Classic”, whereas the new, unhacked, branch is now called “Ethereum”.
Lost Cold Storage
The term, Cold Storage, refers to the offline crypto wallet that is not connected or dependent on an internet connection. This protects it from all kinds of cyberattacks, hacks, and vulnerabilities that a normal online digital wallet possesses. But, its prime advantage is also its worst disadvantage. There have been several cases in the past, that you might’ve heard of, where the owner has lost large sums of crypto in his/her cold storage which now worth millions of dollars.
Without a doubt, we’re in the middle of a crypto-revolution and most of the countries acknowledge this fact. Today, governments all around the world are working on “regulating” the usage of cryptocurrencies and making and modifying constitutional laws for this new financial system. The pros of this technology outweigh the cons, hence, accepting this change is their best move.
But unfortunately, there are countries like Iran, Bolivia, North Macedonia, etc… that do not see the good side of implementing cryptocurrencies. They have restricted its usage and declared it illegal in their jurisdiction. Hence the development of Blockchain technology is difficult, if not impossible, in those parts of the world. And for blockchain-based companies, it presents a new challenge when they try to go global.
Why should you care about this transformation?
The world is transforming rapidly, faster than ever. Businesses and organizations are automating their transactions with blockchain networks, and rebuilding their services in a decentralized manner.
Andres describes the usage of blockchain technology as, “Dramatically simplifies financial processes, being a self-maintained network that substantially increases the security and efficiency of transactions.”
This dramatic shift towards crypto is due to the increase in public awareness. People now know about all the benefits that decentralization provides and why it’s necessary. If your business does not adapt according to this changing digital landscape, it will soon be ex-communicated and vanished.
In the interview also, Andres mentioned the increasing awareness over there as:
“In Uruguay, the blockchain movement really started this year , because several people started to talk about it and because IBM is pushing a lot the IBM Hyperledger blockchain services.”
On the personal level, he and his team started contributing ever before that: Andres said, “it was Alejandro who started the Blockchain meetups in Montevideo in 2015”!
The rate of social adoption and technological advancements in this field are exponential and the future applications of blockchain are beyond our imagination. If implemented correctly, it provides you with impenetrable security and an inherent data backup system. You can leverage other DeFi services and present new and exciting features to your customers. You can sell utility tokens or security tokens that can help you in fundraising and power your platform.
With so many things going on, one thing is absolutely certain, that blockchain isn’t going anywhere soon. Either welcome it with open arms or be left out.
How to incorporate a blockchain-based solution into your existing infrastructure?
Adding new payment gateways for crypto
There are numerous crypto payment gateways out there, but BTC is still considered and accepted as the standard form of receiving payment. There are several bitcoin payment gateways in the market, like Coinbase, Coingate, CoinsBank, etc …, that provide you with all the integration facilities that you’ll need.
By adding these payment gateways, you can attract new customer segments that prefer cryptocurrencies over fiat. Also, if you happen to provide a sensitive service, where confidentiality is the key, then integration of such crypto payment gateways is the perfect choice for you.
Creating Smart contracts
We know, that for most businesses, automating everything with smart contracts is near impossible. It is also true that not everything can be automated through smart contracts. But, there are areas in any organization that can benefit from such automation. Like several legal aspects that follow a fixed standard procedure, or business logic that can be encoded for faster execution. To develop and deploy smart contracts within your blockchain company, coders and business experts must join their hands and work together.
In regards to the success of smart contracts, Andres believes in the power of Ethereum, since it is the most popular blockchain network where smart contracts are deployed.
“As long as the community continues to develop in Ethereum, it will be required ethers so that the smart contracts can be executed by the nodes, and therefore will have demand.”
Throughout the article, we explained blockchain, how it works, what are its application, what are the risks involved, and how you can incorporate blockchain solutions into your existing business infrastructure. We also saw that Andres and his team were talking about this revolution long before it became trendy in the eyes of the commonwealth. In the realm of technology, first movers always get the advantage, but it’s not too late. Now it’s up to you to use this information and create something valuable.
About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.
CIRCULAR ECONOMY AND HAZARDOUS WASTE: THE ECUADORIAN ASSOCIATION OF LUBRICANTS (APEL) IMPLEMENTS SMART CONTRACTS
Aware that used lubricants are waste considered dangerous at a global level and that their disposal generates negative impacts on the environment, the companies of the Ecuadorian Association of Lubricants -APEL launched in April 2021 a program for the collection and comprehensive management of this waste. APEL turned to SUSCRIBO and the use of smart digital contracts to quickly formalize its commitments with suppliers and customers and automate tasks.
The program, called RECOIL (www.recoil.ec), which also includes the collection of containers, meets the “Instructions for the Comprehensive Management of Used Lubricating Oils and Containers” issued by the Ministry of the Environment and with the Ecuadorian Environmental Code.
RECOIL supposes the financing of environmental actions by incorporating an economic value called ECOVALOR, in the invoices for each gallon of lubricant sold by the participants in the Program. Each month, on the basis of official information that the companies in the sector report to the National Hydrocarbons Authority, RECOIL will settle, invoice and charge each participant the total ECOVALOR that corresponds to pay, which will finance the collection and management of the waste in question throughout the Ecuadorian territory.
To achieve the launch of its Program, APEL resorted to SUBSCRIBO and the use of smart digital contracts to quickly formalize its commitments with suppliers and customers and automate tasks.
Between March 03 and 12, APEL signed adhesion contracts with all the companies that participate in the RECOIL program, that is, 18 digital contracts in 9 days, something unthinkable in the use of traditional paper contracts.
Likewise, it signed a cooperation agreement with the main used lubricant management company in the country, BIOFACTOR, so that it can carry out the management of collection-land transport, temporary storage and treatment of waste. In addition, APEL hired SAMBITO, a leading company in environmental services consulting and technology for the development of SAAS that allows RECOIL to integrate the entire chain of management of used oils and packaging, in accordance with the traceability requirements contained in the applicable regulations.
With MONAX (www.monax.io) technology, marketed by SUSCRIBO (www.suscribo.com), APEL – RECOIL perfected the contracts in which it launches its circular economy model in the lubricants sector in 2021. The contracts signed with BIOFACTOR, SAMBITO and all the companies in the sector, like the other contracts to be signed, are therefore using a unique combination of blockchain technology and process modeling, to give security, transparency, analytics and above all life to the contracts integrating with other business processes. Initially, this consists of the automatic calculation of the ECOVALOR to be settled by each company, based on the volume of its commercialization reported to the authority, as well as the automatic production of invoices and their subsequent collection. In addition to this, each contract includes notices, milestones for the fulfillment of obligations and notifications.
For the first time in the history of the region, as perhaps the world, a circular economy model on hazardous waste is formalized so quickly and is managed through smart contracts, allowing cutting of costs, time and physical contact in contractual processes and of business.
The Ecuadorian Association of Lubricants -APEL- is a non-profit corporation that represents importing, producing and exporting lubricant companies domiciled in Ecuador. Among the brands represented in APEL are world leaders such as Castrol, Valvoline, Havoline, Texaco, Terpel, General Motors, Golden Bear, Kendall, PDV (Citgo in USA), Total, Caterpillar. In addition to supplying more than 90% of the Ecuadorian market, APEL companies export to the region, so their corporate leadership has international projection.
On the smart digital contracting functionalities capitalized by APEL:
Both the participants of the RECOIL program as well as BIOFACTOR and SAMBITO will have at their disposal 24 hours a day the attached documents and signed contracts, safely archived in the blockchain, they will obtain key analytics on compliance with contractual obligations, they will receive notices and notifications about key dates such as billing, payments, renewal, termination and even the schedule of activities, to ensure compliance and avoid delays in managing paper contracts. In other words, each time a clause programmed in the contract must be complied with, the parties will receive an email as a reminder for its effective implementation. In a second phase, automation will be gradually added to the digital contracts already signed until the ECOVALOR report and monthly settlement trigger billing and collections without human intervention. This second phase should be completed by December 2021.
Ecuador promotes a circular economy model for its used lubricating oils – RECOIL
About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.
Although the first NFT was created and shown to the world by Kevin McCoy and Anil Dash on May 3, 2014, at a conference at the New Museum in New York City, NFTs have recently obtained notoriety because they are becoming an attractive way to buy and sell assets as digital artwork. Since November 2017, an incredible 174 million dollars has been spent on NFT.
A group of experts thinks they’re a bubble that will pop, but others believe NFTs are changing the way people are investing and that they are here to stay. There are many questions about NFT, and we will analyze this fantastic world in this article.
What Are NFTs?
Non-fungible tokens (NFTs) are digital assets representing real-world objects like photos, videos, audio, in-game items, and many other types of digital files. They can be bought, sold online, and they are usually encoded with the same underlying software as many cryptocurrencies.
Unlike most digital creations that are almost always infinite in supply, NFTs are usually one of a kind or one of a minimal run and have unique identifying codes. NFTs allow buyers to own the original item, and they contain built-in authentication, which serves as proof of ownership. Sometimes those “digital rights” value relatively more than the item itself.
Non-Fungible Tokens (NFTs) are single tokens encrypted on the blockchain network. NFTs function like cryptographic tokens, but unlike cryptocurrencies such as Bitcoin, NFTs are not interchangeable or not fungible. The most crucial feature of NFTs is that they certify unique and proprietary assets that cannot be changed.
NFTs use Blockchain infrastructure to manage digital storage of any kind of visual, audio, or written works. Most of them are part of the Ethereum blockchain that supports NFTs. We can say that an NFT is unique because it is tied to the token. NFTs have metadata processed through an algorithm that computes a unique string of letters and numbers called the “cryptographic hash function.”
Examples of NFTs
The scope of the NFT covers anything that is unique and requires demonstrable ownership. Although the NFT world is relatively new, today can find different kinds of examples of NFTs such as:
Unique Digital Artwork
Foundation helps creators to auction their unique digital artwork as NFTs on the Ethereum blockchain. With their bids, collectors feed a new system of value for online expression. NFTs are helping artists, musicians, and all kinds of digital creators to invent a new cultural paradigm.
The Future of Collectible Sneakers
The X Evolutions is a next-gen sneakers studio creating the future of collectible sneakers for the metaverse. It is a project by RTFKT studios created in collaboration with the Artist MGXS. This design is unique and will never be made again. The Sneaker will be “hypercrafted” by the expert RTFKT team with premium leather and materials.
A Fully Decentralized Virtual World
DAO stands for “Decentralized Autonomous Organization,” and it is the first fully decentralized virtual world. Thanks to the NFT technology, users can control these virtual spaces. Through the DAO, the community will propose and vote on policy updates. Users are in control of the policies designed to determine how the world behaves.
What Is the Point of an NFT?
NFTs are getting very popular in the art world because an NFT allows the buyer to own the original item. It contains built-in authentication, which serves as proof of ownership. These kinds of features are very valuable for both artists and collectors.
Since the minting artist is always listed as the original owner of the digital artwork linked to the NFT, it provides clear and unique evidence of ownership and authorship by the artist. It is essential to clarify that minting authenticates an item on Ethereum’s blockchain by assigning a token like a digital record.
Fungible And Non-Fungible Tokens
The comparison between Fungible Vs. Non-Fungible Token is a critical aspect that can define the future of the blockchain ecosystem. NFTs provide a clear improvement over fungible tokens in terms of security and immutability.
As a new technology, ordinary users may have difficulty trusting NFTs, although they have a broader acceptance in the blockchain ecosystem with prominent arts and gaming applications.
The Different between Fungible And Non-Fungible Tokens
For fungible tokens such as Bitcoin, fungibility is scripted in the code of the cryptocurrency. A fungible good is standardized, and the units of fungible goods don’t have any uniqueness.
In contrast, NFT features unique features that indicate restrictions for replacing or exchanging it with an identical token. Therefore, NFTs serve as a unique token variant without any interchangeability with other tokens.
NFTs are different from cryptocurrencies because they don’t have any inherent value, and they receive discounts from the assets or goods represented by them.
What Are Fungible Tokens?
One of the most known types of tokens is fungible tokens. Cryptocurrencies like Bitcoin are fungible tokens, which means that each cryptocurrency unit is the same as any other. For a token to be helpful as a currency, it needs to be indistinguishable from the other tokens in the same ecosystem.
For example, Bitcoins aren’t more valuable or rarer than others. If you own one unit of Bitcoin, it doesn’t matter which exact Bitcoin you own. These tokens are interchangeable and indistinguishable like regular government-issued money.
What Are Non-Fungible Tokens?
The other most known types of tokens are non-fungible tokens. Non-fungible means that each token is unique, and there’s no standard value for a token. Each token represents unique, distinct ownership information. So you can’t necessarily exchange one token for another equally.
Non-fungible tokens are adequate when we need to prove ownership or identity. They belong to a completely different protocol for their creation than fungible tokens. Non-fungible tokens are different from their fungible counterparts, even on the basis of the source code. For instance, in Ethereum, fungible tokens follow the protocols ERC-20, while non-fungible tokens follow ERC-721.
NFT and the Ethereum Blockchain
Non-Fungible Tokens (NFTs) are tokens secured by blockchains such as Ethereum, they can only have one official owner at a time, and no one can modify the record of ownership. Users can use NTFs to represent ownership of unique items like pieces of art, collectibles, and even real estate.
NFTs are powered by smart contracts on the blockchain. They provide content creators more power than ever before, and they are a way to represent any kind of unique digital artwork.
The Internet of Assets
One of the significant problems on the internet today is that as everything becomes more and more digital, there’s a need to identify physical things like uniqueness and proof of ownership. NFTs can solve this kind of problem by giving the user tools to represent ownership of unique items.
Today, a copy of a file, like a .mp3 or .jpg, is the same as the original. But as NFTs are digitally unique and no two NFTs are the same, users can generate ownership for different files without the possibility of copying or plagiarism.
Another example is that today the ownership records of digital items are stored on servers controlled by institutions. But with the use of non-fungible tokens, every NFT must have an owner, and it is indeed a public record and very simple for anyone to verify.
Are NFTs Only on Ethereum?
The NFT market value tripled in 2020, reaching more than $250 million, and there has been increased interest in using NFTs In 2021. NFTs are now being used to commodify digital assets in art, sports, music, and other mass-market items.
Most NFTs are part of the Ethereum blockchain, but other blockchains can implement their versions of NFTs. Blockchains like Tezos and Flow have their standards when it comes to supporting NFTs. Each of these works to ensure that the digital item represented is authentically unique.
What Is a Digital Collectible?
NFT identifies a one-of-a-kind item that only exists in the digital world and a new form of digital collectible that is making the online world go wild. Recently digital artists, musicians, and even food franchises have sold NFTs for millions of dollars.
Unlike real-world originals, which need to be verified by an auction house or expert, ownership and authenticity of NFTs are public and provable thanks to the blockchain, the same technology that powers cryptocurrencies.
We need to keep in mind that NFTs can also lose their value. There are marketplaces If you want to check out some NFT’s. OpenSea is one of the biggest online marketplaces for them.
NFTs and Their Value
The value of a particular NFT can be calculated differently depending on the asset that the NFT represents. Therefore, investors can use this framework to evaluate if an NFT is worth investing in, and developers can consider different ways to increase the value of NFTs to bring users and investors. The main point of all this is that NFTs create multiple new ways for values to be created for both developers and asset owners.
Another critical point of this new NFT Era is that any creator can tokenize its work to sell it as an NFT. But the recent extraordinary interest in NFTs has been fed by headlines of multi-million-dollar sales. For instance, an animated Nyan Cat GIF ─a 2011 meme of a flying pop-tart cat─ was sold at auction for $587,000 in cryptocurrency last 19 February.
Why Buy NFT?
Miami-based art collector Pablo Rodriguez-Fraile told Insider that “People have long used art to store value. Crypto extends easily into digital art. It is just a more modern approach to investing in art and using it like someone would use gold or bitcoin.”
Fraile thinks about NFT as a product of the tech boom that was accelerated by the pandemic. Although, younger generations would have eventually pushed it anyway.
The recent NTFs multi-million dollar sales have captured the spotlight and produced a gold rush for many artists in the music industry. But from the buyer’s point of view, they can be motivated to buy NFTs because it provides a different connection to the creator that hasn’t existed till the moment with any other art form.
How to invest in NFTs?
Users can do whatever they want with NFTs, just like physical goods. But unlike material goods, NFTs have exciting new attributes such as uniqueness, scarceness, usability across multiple applications, and they can be managed with all the programmability of digital assets.
OpenSea, Mintable, and Raible are among the leading marketplace to buy, sell, and discover exclusive new digital assets. OpenSea is building an open digital economy for new digital goods such as Non-Fungible Tokens or NFTs.
Founded in 2017, OpenSea has 113K users, 477K collections, 15.3M NFTs, and over $354 million in trading volume. They are the first and largest marketplace for user-owned digital goods, including digital art, collectibles, gaming items, domain names, and other securely backed blockchain technology assets.
NFTs and Smart Contracts
Mark Cuban is an American successful entrepreneur and investor that has found many ways to invest in NFTs. He said he is excited about the Smart Contracts contained in NFTs. This means that a creator can get royalties when an NFT is resold, which Cuban describes as a “game-changer.”
Since the launch of the Ethereum blockchain in 2015, the term “Smart Contract” has been applied explicitly toward the notion of operation that takes place on a blockchain. Smart Contracts are sometimes called self-executing contracts. They are programs that are stored on the Ethereum blockchain ledger, and that will execute the clauses automatically.
Cuban believes that the collectible NFTs we’re witnessing now is only the beginning. There’s plenty of business applications that have yet to unfold. NFTs could be an exciting way to collect when you’re a collector. NFTs are improving all the time the way users buy, store, and display.
Which Is the Most Expensive NFT Ever Sold?
2021 will be remembered as the year in which NFT comes to public knowledge. This is because the crypto community has shown great excitement to invest in NFTs such as images, collectibles, songs, GIFs, and even Memes. We are witnessing the creation of a brand new form of digital assets industry in the last few months.
Michael Joseph Winkelmann, known as Beeple, is an American digital artist known for creating clever works with social and political commentary and using pop culture figures as references. Beeple was not that much popular until last year, but he had recently sold one of the most expensive NFT artwork on the market.
“Everydays: the First 5000 Days.” is a massive compilation of the first 5000 digital arts by Beeple that had been sold by the astonishing sum of $69.3 million in an auction that took place at Christie’s. Although the bidding started at $100, it is incredible that it soon raised and was sold at $69.3 million.
The Future of Art & Entertainment with NFT
The actual NFT ecosystem is vast, diverse, and is constantly growing. Christie’s partnership with Beeple is one of many examples of a company branching out from traditional to more innovative markets as Non-Fungible Tokens are gradually going mainstream.
As NFTs are revolutionizing how artists sell and trade their work, these creators show how brands can enter the world of decentralization of NFTs. Right now, a significant number of new businesses are finding innovative uses for NFTs in many different areas such as art marketplaces, virtual worlds, decentralized finance, NFTs for physical collectibles, and many others.
What Brands Need To Know about NFT
According to Forbes, fashion and entertainment will be the Holy Grail on the blockchain. We can see how users are reselling or trading digital items right now. But maybe soon, we could be able to outfit our avatars and digital homes on the blockchain.
The Argentinian designer Andrés Reisinger recently sold ten pieces of virtual furniture on Nifty Gateway. These pieces can be placed in any open-world like Minecraft, Somnium Space, Decentraland, and others. The most expensive of these ten pieces of virtual furniture was sold for almost $70,000.
Karinna Nobbs, the co-founder of THE DEMATERIALISED, says that brands need to be conscious of several things when selling fashion via NFTs: “There is a first-mover advantage right now as there are so few fashion brand NFTs in the marketplace, so the first advice is to experiment, jump in early to this nascent market and it will get you higher media/social exposure and will bring you new audiences.”
“Choose to release limited-edition iconic pieces with a design signature that a brand is known and recognized for to harness scarcity and drive demand, as well as partner with a marketplace and blockchain provider that has an easy-to-use UI and UX – especially if you are trying to convert the regular fashion consumer, as for many this would probably be their first fashion NFT journey,” said Nobbs.
NFTs and Crypto-Art
Crypto-Art is not much different from any other type of digital art. But Crypto-Art is treated like physical art because it can hold verified ownership of the piece of art indeed.
Crypto-Art gives the creator and the buyer the capacity to verify an original painting using a Non-Fungible Token, just like physical art can be authenticated.
NFT technology uses a unique token that is a unique ID linked to a piece of Crypto-Art that is used to verify ownership of a piece and cannot be replicated. So the creator can use this ID to any kind of media file.
The specific token proves ownership of the ‘original’ file, and it is stored on a Blockchain that can be read but not modified. From then on, the blockchain is used to verify proof of ownership of a digital asset.
How Are NFTs Creating More Equity for Artists?
Some artists are beginning to experiment with Non-Fungible Tokens (NFTs), looking for ways to benefit them from financial and legal systems that habitually favor dealers and collectors.
Recently artists are starting to understand the benefits of Non-Fungible Tokens (NFTs) on their artwork and how financially viable NFTs can add value to an artists’ work.
NFTs have tremendous potential, ensuring royalties for artists when a gallery resells an artwork. Artists can also use Smart Contracts to distribute percentages of sales between the different workers in the galleries.
NFTs can help artists using technology to circumvent the traditional art market altogether. Most of the recent sales of artworks with NFTs have been made on platforms such as Foundation by individual artists without gallery representation.
One of the main points of this technology for artists is its potential to make the back-end business of studio inventory and gallery sales contracts more transparent. Another innovative use of NFT can be to build micro-investment for creative projects that are difficult to fund with traditional methods.
The Future of NFTs
NFTs can create new business models that didn’t exist in the past. For instance, artists can add stipulations to an NFT to ensure they get fair profits every time their artworks are resold. This way, artists can achieve something unthought till now, and they can benefit if their work increases in value.
Another example of this technology is that art platforms can demonstrate they own the digital works they claim to have. The NFT will always ensure that ownership is authentic when customers purchase art from the platform and guarantee no problems with copyright or originality.
When it comes to Sports Memorabilia, a significant part of these items are thought to be fake. NFTs can help overcome this copying problem by giving these items a clear transaction history back to their creator. In the music industry, NFTs can provide musicians the potential to produce enhanced media for their fans.
But the potential of Non-Fungible Tokens can go much further because they carry ownership rules to another level. Lawyers will not be necessary to establish trust in transactions anymore in the future, thanks to NFTs, because transactions recorded on blockchains cannot be changed.
Lawyers also can be replaced with Smart Contracts to automatically ensure that both parties honor their agreements when assets change hands. NFTs convert assets into tokens guaranteeing a fair and trustful system.
About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.
Our goal with this article is to help you make your business grow using offshoring software development. Firstly we can agree that offshore development is the same as outsourcing, and the central part focuses on getting the best offshore software development rates.
In this context, you’re sending your software development to be done by people located in another country far from your business. Some software business managers could see ‘offshoring’ as a risky maneuver, but reality says that more software development companies trust this modality year after year.
Some of the reasons some businesses recourse to outsourcing are the lack of human resources or lack of needed qualification level within their own company. So, businesses with this need to search for a trustful third-party offshore development company with reasonable offshore software development rates that can help them.
Most software development’s outsource tasks are mobile and web app application development, data management, blockchain, or AI development. By outsourcing, you don’t need to hire and train new staff, and at the same time, you can be sure to get the best quality software delivered to you at the accorded rates and terms.
You can trust the effectiveness of these long-standing practices adopted by many of the world’s largest and prominent corporations. Due to the digital transformation, many worldwide companies are motivated to offshore their software development needs.
Below you can read why offshore development companies have become an essential part of the global economy.
How Can Offshore Software Development Help Your Business?
In accordance with this article from Skeliathere are many reasons why software companies hire offshore developers, considering the speed at which the digital industry is expanding.
Companies that want to stand ahead of their competitors need to assign lots of time, effort, and capital to develop innovative and creative software solutions. In this framework, businesses that are unable to hire the most talented recruits may not achieve their goals efficiently.
Therefore, by hiring offshore developers, these companies free themselves from the obstacle of finding first-class staff while they receive the best software solutions with predefined rates and terms.
Below you can find some of the reasons offshore software development can help your business:
Outsourcing Is More Cost-Effective
By hiring offshore developers, you can prevent your business from running out of money. You will not have to spend on additional expenses such as office rent, salaries, insurance payments, vacations, and many others.
By hiring a trustful offshore developer with the best offshore software development rates, you will be routing funds into your business’s most crucial areas, developing your projects.
Flexibility is critical when you scale your team or change the technology stack to match the project’s size. Outsourcing developers are more flexible and can easily switch their focus from one task to another.
Delivers Advanced Skill
Many developers worldwide are working for well-known tech giants such as Apple, Microsoft, DELL, IBM, and others. IT outsourcing provides you with broad access to a great talent pool with the right skills.
Nearshore software development in LATAM countries can be very fruitful due to the qualified professionals who will be happy to participate in your startup’s development.
When it comes to the quality of the code created by a dedicated development team, one important thing to keep in mind is that a project’s success and quality don’t depend on the country in which it is released. Instead, it depends on the people who built it and how passionate they were about their business.
What Is the Difference Between Nearshore, Offshore, and Onshore Software Development?
Choosing an IT outsourcing services vendor can be difficult, particularly when you don’t have experience with outsourcing. The first point you need to take is deciding where you will look for a software development outsourcing partner.
Although you will be looking for the best offshore software development rates, you need to pay attention to the three primary options for outsourcing:
nearshore, offshore and onshore. Bellow, you have detailed the main differences between these options:
Nearshore Software Development
Nearshore software development may be the most convenient option, and it is when you outsource to developers from countries located near similar time zones.
Your business can get the best offshore software development rates by nearshoring software development.
Typically, customers count on geographic proximity and cultural similarities. For instance, a nearshore software development location for the United States would be a LATAM country.
Offshore Software Development
With its option, the service provider’s company is located in a different country found in a different continent with a notable time zone difference.
For instance, an offshore location for the United States would be India. The negative side of Offshore outsourcing is the lack of proximity and cultural similarities that can make the treatment between your team and the Offshore developer’s team complex.
Onshore Software Development
Onshore outsourcing is when you outsource to developers within your country. Some companies find this option convenient.
Taking into account that the main reason for outsourcing is to reduce your business’ costs, the negative side of this option is that it can be more expensive than the other options on the list.
Offshore Software Development Rates
As we analyzed above, there are three significant options where you can find a software development outsourcing partner. This decision is crucial and needs to be taken comparing the best offshore software development rates and the quality of the partner.
Thanks to modern technologies, your business can save costs by outsourcing software development to an overseas programmer team, according to this article from youteam.io.
Outsourcing methods as nearshoring and offshoring can allow your company to contact a vast global talent pool. The average cost of software development services differs from country to country, and development costs may change depending on the platform you use to hire offshore developers.
Offshore Software Development Hourly Rates by Region in 2021
Let now see an overview of regions and software development rates by areas with the different outsourcing methods that we have seen above. It will help your business make a more informed decision when hiring from overseas.
Nearshore Software Development Rates in Latin America
According to IDC, the Latin American IT industry will be growing in 2021 despite political uncertainty and low economic growth. As predicted by Ricardo Villate, vice president of the consultancy for the region, the IT market reached 4.8% in 2020. IDC reports an increase in business spending on technologies related to AR/VR, AI, IoT, 3D printing, cloud, security, and robotics.
Uruguay, Argentina, and Brazil are the leading software outsourcing country in Latin America and South America. Over the last 15 years, Uruguay has become a first-class business hub and is chosen by foreign companies to develop their IT products or services.
Uruguay is a country of 3.5 million with an IT services machine that continues to perfect the global export model’s execution. Today, foreign companies come to this country to develop their IT products or services to expand their regional operations.
Uruguay has remarkable technological advances, which place it at the forefront of technology in the region and the world, the highly qualified talent, and its quality of life. This country is a technological hub with outstanding connectivity and internet penetration.
Ninety percent of Uruguayan homes have access to fiber optics, which guarantees fast download speeds, and 100% of public schools have Internet access.
Argentina is ranked 14th among the best software outsourcing countries and is number 2 in the region. It is also the world’s 10th digital nation in the Tholons Services Globalization Index 2019.
When it comes to offshore software development rates, the average hourly rate for software developer talent in Latin American countries is 45.00 dollars per hour.
Offshore Software Development Rates in Eastern Europe
Eastern European countries such as Ukraine, Belarus, Poland, and Romania are now among the top 5 global software development centers, according to a reportissued by AVentures Capital, Aventis Capital, and Capital Times at the beginning of 2019.
The average hourly rate for software developer talent in these Eastern European countries is 33.00 dollars per hour.
Offshore Software Development Rates in Asia
Asia boasts the most significant number of offshore software developers as compared with other regions. In 2018, only in India, this number amounted to almost 3 million. China is also an attractive offshore development destination. Chinese developers are the first across all HackerRank challenges.
The Chinese government supports the tech sector by offering economic incentives. For example, now, there are more than 50 science and technology industry parks across the country.
The average hourly rate for software developer talent in Asian countries is 26.00 dollars per hour.
Advantages of Nearshore Software Development in Latin America
You need to look for reliable partners with whom you can achieve long-term relationships. Therefore, it is essential to know why Latin America is an excellent nearshore software development destination, according to this article from perficient.com.
Great Value and Cultural Similarities
Prices in Latin American are commonly higher than in places like China or India, but the benefits far exceed total costs. It’s not enough for companies to focus on the cost benefits.
The end costs might be very similar when you factor that you’ll be spending more time trying to connect with your vendor in Asia than in Latin America.
Little Time Difference
As Latin America is so close to the United States, the time difference is minimal compared to India or China. It means that your business will have nearly an entire workday of overlap with your nearshore software development team.
The number of issues that originate from time differences cannot be discounted. It can often lead to massive delays, which can significantly increase the project’s cost, especially if it’s a vital component of a larger project.
Building a solid relationship with your team is the key to success in any IT outsourcing endeavor. The great proximity means that it’s easier and cheaper to get there.
Being able to hop on a flight, visit your team, and return within a few days is invaluable, and you can do it with far greater frequency than if you were outsourcing to Asia.
It is another excellent advantage of proximity. Latin American culture similarities with the U.S. make intercultural interaction to goes much smoother. Latin Americans will have no problem suggesting more effective alternatives when they can’t do something.
In Asia, in contrast, the attitude of saying no or contradicting your client is considered a lack of respect. And although it was for the client’s benefit, it is something they simply don’t do.
As miscommunications and delays are reduced over the long term, the cultural similarities between Latin American and the U.S. can eventually lead to far more significant advantages.
Creativity is essential in your business to generate innovation and to remain competitive. It isn’t easy to innovate when working with an IT outsourcing team that will never develop new ideas or more efficient ways of doing things because it’s not how they’ve been brought up to think.
Latin Americans will always tell you if there’s a more efficient way of doing something or if your idea isn’t quite as great as you believe it to be. Latin America is a great creativity hub. Combined with their lack of timidity in expressing themselves, people from this area of the world are great partners for any company that wants to innovate.
This creativity is also great when it comes to problem-solving. An Asian team will wait for clear instructions on how to solve an issue, even a minor one. A team from Latin America will at least try to find a way to solve the problem.
Investing in the Future
Many Latin American governments have realized that the IT industry can provide them with significant growth independent of poor infrastructure issues.
With software development, all a partner company needs is a minimal infrastructure focused on the quality of computers and internet connections. Due to this, many Latin American countries have been investing heavily in IT, especially in tech workers’ education and training.
To end this article, we want to desire you good luck in your future projects. Now you know the cost-savings benefits when offshoring software development and that a nearshore partner from LATAM can be the best option for your software development business.
About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.
SUSCRIBO-Contratos Digitales and ZirconTech announce a strategic alliance to work on developing smart contract solutions in Latin America.
SUSCRIBO-Contratos Digitales is a company formed in 2019 by investors from different Latin American countries to provide contract digitization, electronic signature, and business flow automation services using blockchain-based smart contract technology.
In March 2020, SUSCRIBO undertook to search for a technology provider and partner focused on specializing in smart contracts to act as a representative and distributor of services in the Latin American region (LATAM). During this search process, SUSCRIBO chose ZirconTech as a partner to identify, evaluate, select and implement a Software as a Service (SaaS) service for smart contracts for legal and natural persons, both public and private.
ZirconTech is a company that offers information technology services, conformed mostly by a team of Latin American professionals with more than two decades of experience in systems development, support, and technology implementation; ZirconTech is a specialist in blockchain, internet of things, cloud computing, web and mobile applications, big data, and artificial intelligence.
Toño Rumbea and Martin Machin, representatives of SUSCRIBO and ZirconTech, agreed in expressing that “After the COVID-19 pandemic, it is likely that will survive only those institutions that manage to digitize and automate their processes and paper contract files as soon as possible, incorporating the management of contractual obligations with other business systems for digital signature, management, billing, collections, and analytics”.
From this strategic alliance, SUSCRIBO and ZirconTech carry out research, testing, and development actions. Currently, the specialists have successfully linked intelligent contractual flows with CRMs and customer ERPs while executing integration projects with transactional banking APIS, with credit bureau and price index databases, and finally activities with electronic signature and certificate systems according to jurisdictions. Both companies are also working on structuring a back-office technical support component for clients in Latin America.
About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.