What is a minimum lovable product (MLP) and how can it benefit your business? You've come to the right place for the answers to these questions, as we're ready to provide them in our piece.
Let's start with the fact that technologies are rapidly evolving, and new software items appear every day. As a result, users are harder to please than before.
Under such conditions, MLP can be the key to success. When building lovable products, we kind of test the waters. The task is to better understand what to offer our target audience and how to delight our users.
Of course, these are just generalities. They aren&rsquo;t enough to build MLP. That's why we've prepared a complete guide; hopefully, it'll help you figure this issue out properly.&nbsp;
<h2 dir="ltr">What Is A Minimum Lovable Product?</h2>
Just like MVP, a minimum loveable product provides users with a basic set of features: those without which the app or website won&rsquo;t work properly. And the main difference is that MLP pays great attention to the UI/UX factor. The goal is to spend a minimum of resources to create a product, capable of attracting the users even in its simplified version.
The author of the concept is Brian Haaff. He proposed a minimum loveable product definition in 2013 when he realized the MVP approach no longer worked as it should.
<h3 dir="ltr">Why Make A Product Lovable?</h3>
Every year the markets become more competitive, which makes consumers especially capricious and demanding. They won&rsquo;t be satisfied with just a useful product, they need the emotions and impressions it provides them with.
Here is a basic example, just to make things clear. Visitors to the only coffee shop in the city would be happy with any interior and menu (they have nothing to choose from!). However, the situation will change radically as soon as several more similar establishments appear. That's when you have to think about beautiful serving, tasty dishes, and other ways to attract customers.
In other words, today it's important to create an emotional connection with consumers and give them the best experience of interacting with your product. And you can't achieve this goal with the help of useful features alone.
If you still don&rsquo;t see the relationship between the minimum loveable product definition and all of the above, pay attention to the picture below. It'll put things into perspective.
<img src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1656580113622.png" alt="what is a minimum lovable product" width="1000" height="800" />
On the left, we see regular coffee without milk, cream, and other additives. It's a good option to brighten yourself up early in the morning, but nothing more. Another thing is a cappuccino with thick milk foam. Such a drink is tastier and looks prettier, it gives more emotions and impressions.&nbsp;
As you may have guessed, the coffee on the left is the MVP. The cappuccino on the right is the MLP.
<a class="incut--wrap" href="https://agilie.com/blog/how-your-startup-can-reduce-development-costs-with-an-mvp" aria-label="incut"> <img src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1656580077647.png" width="100%" height="100%" /> To better understand what MVP is, read our other article. </a>
And now let's take a closer look at the main differences between these concepts.
<h3 dir="ltr">The Difference Between MVP and MLP</h3>
MVP is a simplified software version helping businesses bring the product to market at a low cost and in a short time. After the MVP launch, the company collects and analyzes the feedback and considers further steps.
For a long time, MVP was more than enough to get things done&hellip; however, the high level of competition presented new demands, which resulted in the emergence of MLP.&nbsp;
A minimum lovable product delights consumers beyond solving their problems. That's its main essence... but the differences don't end there. Let's look at some of them:
<ul>
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Primary goal. MVP is designed to confirm or refute the software idea, collect feedback on the product, and think about the further development strategy. MLP, on the other hand, needs to win over early adopters, so to say.
</li>
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Time and financial costs. Building lovable products takes more time and effort than developing an easier-to-implement MVP.&nbsp;
</li>
<li dir="ltr" aria-level="1">
UI/UX. When creating an MVP, little attention is paid to UX, because it's not a key task. But if you intend to build MLP, you have to take care of the product usability and work on the interface design. After all, MLP should appeal to users.
</li>
<li dir="ltr" aria-level="1">
Relationships with users. After testing the MVP, users simply express their opinion about the software and say if everything works as it should. But interaction with MLP must hook and interest them; ideally, it causes the word-of-mouth effect.
</li>
</ul>
The difference between MVP and MLP is clear, but let's not forget one more concept, namely, MMP.
<h3 dir="ltr">What About MMP?</h3>
MMP stands for Minimum Marketable Product. The name eloquently reflects the concept idea and shows that we're dealing with the minimum set of features for which people don't mind paying. Of course, it's still a simplified software version, but it's monetizable. Simply put, this is a polished MVP or MLP.&nbsp;
There is even a special formula to illustrate the MMP meaning:
MVP/MLP v01 + MVP/MLP v02 + MVP/MLP v03 + &hellip; MVP/MLP v0N = MMP
By testing and improving MVP or MLP, we gradually make it a commercially interesting product.
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1656580172251.png" alt="difference between mvp and mlp" width="1000" height="900" />
<h2 dir="ltr">The Benefits Of Creating Your MLP Product</h2>
<ul>
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Increasing competitiveness. As you've already understood, the concept of MLP appeared due to a new problem, which is the crowded markets. Lovable products have more chances to appeal to the customers and make them loyal. As a result, you increase the competitiveness of your company.
</li>
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Loveable product with low effort. You can test the product in its simplified version and understand how to perfect it without big financial outlays at the start. And it's not just about offering the user what he needs: you offer him something that pleases him and brings him positive emotions.
</li>
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Reduced time to market. By creating your MLP product, you reduce your time to market many times over. Also, you're making the user fall in love with your software (even in its stripped-down form), which is an additional bonus. Minimum launch time with maximum user loyalty sounds pretty good, right?
</li>
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Marketing at the start. If you make a product lovable, you initiate a viral effect. Users, admiring your software, begin to discuss it with each other and thus contribute to its promotion.
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Early Branding. And one more benefit is the opportunity to work on the recognition of your product at the very first development stages. You can do this by incorporating branding elements into the interface design.
</li>
</ul>
<a class="incut--wrap" href="https://agilie.com/blog/what-are-the-next-steps-after-creating-an-mvp" aria-label="incut"> <img src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1656580228583.png" width="100%" height="100%" /> What if you&rsquo;ve already created MVP? Your next steps are described in the piece at the link. </a>
<h2 dir="ltr">How To Build A Minimum Loveable Product</h2>
Since MLP is a simplified version of the software, there is no point in trying to bring a flawless product to market. It might take too much time, money, and effort, which will devalue the MLP concept. In addition, you're unlikely to 100% guess the tastes of your audience on the first try, even with preliminary research. So you had better take it slow and act wisely.
<h3 dir="ltr">Let&rsquo;s Build MLP From Scratch</h3>
We&rsquo;ll start with a more complicated option when you don&rsquo;t have anything ready.&nbsp;
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1656580310230.png" alt="how to build a minimum loveable product" width="1000" height="550" />
<h4 dir="ltr">Setting the MLP Goal</h4>
Surely, your product must be visually appealing, but it's not enough! The MLP must still solve the user's problem. Define this problem and make it the goal of your project. Among other things, knowing your tasks will help you later come up with the functionality ideas.
<h4 dir="ltr">Market Analysis</h4>
To understand how to build a minimum loveable product, you need to explore the current market situation. What kind of competitors will you have? What are their strengths and weaknesses? What do your potential users choose and why?
Until you answer these and other similar questions, it is pointless to continue.
<h4 dir="ltr">Selection Of Must-Have Features</h4>
As we said, in addition to trying to impress customers, you must solve their problem. And the only way to solve it is to provide them with some basic functionality. Therefore, choose the minimum set of features, which will allow users to get what they want, whether it's an online order on a website or booking a hotel room through an app (or whatever!).
<h4 dir="ltr">Working on UI/UX</h4>
Pay special attention to the next step when creating your MLP product. It&rsquo;s really crucial, as now is the time when you make your software not only useful but also loveable.
Work properly on the interface design. Remember, the process of using your product should be pleasant, easy, and exciting: in short, your app or website must be user-friendly. Only in this case, the first interaction of customers with the software will give them the most positive experience.
And one more piece of advice: don't try to design based on UI/UX trends alone. Consider the data you&rsquo;ve collected during your market analysis.
<h4 dir="ltr">Community Gathering</h4>
Also, it doesn't hurt to create a community loyal to your product. Find those users among the target audience who believe in your project and are ready to help you finish it. Communicate with them on an ongoing basis and get their opinion on your MLP.&nbsp;
<h4 dir="ltr">MLP Launch &amp; Testing</h4>
If you think your work will soon come to an end, then you're going to be disappointed. Alas, it's just begun.
After launching MLP, you need to test it on end-users and collect their feedback. The task is to draw conclusions and decide on the next development steps.&nbsp;
You&rsquo;ll act in this way cyclically, in iterations, until MLP becomes MMP: a minimized product, which brings you profit.
<h3 dir="ltr">Turning an MVP Into a Minimum Lovable Product</h3>
Another minimum lovable product example is the case when MLP is based on an already existing MVP.
Suppose, you've already built a minimum viable product... why abandon it entirely? A much smarter step is to remake your MVP into what you actually need. And if you're not sure where to start, take a look at our tips, they might help you.
<h4 dir="ltr">Clarifying The Goal</h4>
First, you need to clarify the purpose of your project. Discuss the situation with the team and let them know that you have another task now, an updated one. All of you should work together, knowing what goal your company is aiming at and what you should get in the end.
<h4 dir="ltr">Analyzing User Preferences</h4>
You already have the basic functionality, which is a good start. All you have to do now is to add some appealing elements to your product and thus make it loveable.
If you haven't conducted your customer preference research yet, it&rsquo;s the best time to finally do so. You can use the received data to develop a further strategy. Your task is to work on software design, provide an innovative user experience, and think about integration with other tools.
<h4 dir="ltr">Looking For Balance</h4>
As you understand, there is a difference between MVP and MLP, but these concepts have something in common too. Namely, we&rsquo;re talking about the opportunity to launch the product without any extra effort. Therefore, one must keep in mind the balance between under-investing and over-investing in MLP.
If you under-invest in a project, you'll achieve nothing. If you overdo it out of a desire to implement too many features or UI elements, you'll waste extra resources.
<h2 dir="ltr">Summary</h2>
Creating an MVP only makes sense if you don't have any idea about your target audience yet, which is typical in the early project stages. Once you have the right information, turn your MVP into an MLP.
And remember! MLP development is an iterative process. It'll continue until you see you've achieved what you want, which means customers enjoy using your product.
<h3 dir="ltr">BTW!</h3>
Our experts know how to build a minimum loveable product and have relevant development experience. And we would be happy to help you with your software project.
&nbsp;
&nbsp;

Explore what is Minimum Lovable Product (MLP) and how it differs from MVP.

Explore what is Minimum Lovable Product (MLP) and how it differs from MVP.

What Is a Minimum Lovable Product? The Difference Between MVP and MLP | Agilie

Clarify how to build a daily deals coupon business website like Groupon.

Clarify how to build a daily deals coupon business website like Groupon.

Things You Need to Do to Start an Online Coupon Business like Groupon | Agilie

Do you know what the software discovery phase is? We believe so, because the concept is gaining popularity month by month. And here's why!
You see, it is Discovery that allows you to find the right approach to project implementation. It offers you the best solution to delivering the product, capable of meeting all crucial user needs.&nbsp;
Definitely, we could tell you about Discovery and its benefits for a long time, but why waste time if the key information has already been crying for your attention? Just <a style="color: #3598db;" href="https://agilie.com/blog/project-discovery-phase" target="_blank" rel="noopener">follow the link</a> and read the article covering this very topic.
And now we'd like to discuss with you another issue, namely, two discovery phases, or rather, two ways of conducting research and analysis.&nbsp;
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1650630916324.png" alt="discovery stage" width="1000" height="410" />
As a rule, we, the Agilie team, work remotely and perform the required activities online. But if necessary, we&rsquo;re ready to visit your office in person and get information on site, so to say.
What should you choose? The answer is in the blog piece below. And we start, as usual, with the basics.
<h2 dir="ltr" style="text-align: justify;">Why Do You Need a Software Discovery Phase?</h2>
Of course, Discovery is hardly an obligatory project part. That's why many skip or reduce it and start with the Delivery steps right away... which they usually regret later. The thing is, they think they're saving time and/or money, but it's not really the case. In the long run, they're losing much more resources because this kind of short-sighted savings result in increased costs over time. It's not worth the risk.
The story with the Everest app serves as proof. The original idea was to create a digital platform aimed at helping users make their dreams come true. The features included setting goals, describing steps to achieve them, getting support from like-minded people, and so on.&nbsp;
The start of the project was successful: investors allocated $2+ million to finance its implementation. Alas, the developers failed to meet the promised six-month deadline. They paid too much attention to secondary features (such as offline synchronization: an option, which took too long to implement)... while they should have focused on releasing an MVP model first (the app with basic functionality).
Eventually, the app entered the market, but it was too slow and had poor UI/UX. And a few years later, the project had to be suspended. The most annoying thing about that is that the software discovery phase would have helped to avoid such a sad outcome.
If you don&rsquo;t want the same fate as Everest, don't skimp on the initial thorough research.
<h2 dir="ltr" style="text-align: justify;">What is a Discovery Stage Team?</h2>
Discovery takes from 2 weeks to a few months (roughly speaking) and involves a whole team of experts, including a business analyst, designer, technical specialist, project manager, and many others. They help the startup owner to understand how to approach the project, what features to create in the first place, what technology stack to choose to ensure the software runs smoothly. In other words, they'll explain to you how not to disappoint future users.
<ul style="text-align: justify;">
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To get detailed information on all Discovery experts and their responsibilities, see the article we linked to in the introduction.
</li>
</ul>
The aforementioned specialists can perform their work remotely; still further, the online format won't prevent them from showing their best (it's the so-called OFFSITE Discovery). However, in some cases, the business analyst and manager may visit the client personally to conduct on-site research (which is known as ONSITE Discovery). This way, they get first-hand information, dive into the nature of their client's business, and find out all the details.
Sounds good, but this has a downside as well. Moreover, both methods have their pros and cons, and the choice of a particular technique depends on the project's specifics.
Let's take a closer look at what's right for you and your startup.
<h2 dir="ltr" style="text-align: justify;">ONSITE vs OFFSITE Discovery Phases</h2>
Let's briefly remind you of what steps Discovery traditionally consists of (in the above article, you'll find their full description). <img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1650630952462.png" alt="software discovery phase" width="1000" height="340" />
It doesn't really matter if we only do Discovery online or include offline activities too. In both cases, we go through the same stages. The main difference is the methods and tools we use to achieve the desired result (say, a personal interview in Onsite Discovery and an online survey when working 100% remotely).
<h3 dir="ltr" style="text-align: justify;">OFFSITE Software Discovery Phase</h3>
Although the name sounds like it's offline, Offsite Discovery is all about remote work on the project (because we're working off site, and we mean your site). Undoubtedly, the option is at its peak today; and the following list explains why by highlighting the main benefits of online research:
<ul style="text-align: justify;">
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New challenges of the times: we mean, of course, the coronavirus and the pandemic it has caused. Over the past couple of years, we&rsquo;ve learned and got used to working remotely.
</li>
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Saving time: no need to go anywhere, the project discussion takes place remotely. And it does matter, as businessmen are usually on tight schedules.
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Saving money (we&rsquo;ll discuss this advantage of Offsite Discovery a little later).
</li>
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Convenience to the max. And finally, Offsite Discovery is really convenient! You aren&rsquo;t limited by anything: neither the time zone, nor the location, nor other factors.
</li>
</ul>
However, sometimes you have to resort to the help of personal meetings. Let's discuss the option at greater length, shall we?
<h3 dir="ltr" style="text-align: justify;">ONSITE + OFFSITE Discovery Stage</h3>
Just so we're clear: the Onsite approach doesn't work by itself. Offsite activities will still be part of the project. Personal visits are needed to collect information about the client's business, conduct interviews with those who own crucial data, and perform similar offline activities. The subsequent processing of the gathered information will take place remotely (online) anyway. You see, requirements analysis involves a lot of time and effort... starting it on the client's location (site) is expensive and therefore makes zero sense.
Let's not deny, though: Onsite Discovery is very effective&hellip; but only if you manage to organize the process correctly. If you want Agilie experts to personally visit you, be sure to keep them busy all the time. Also, your employees must be ready to spend time with our specialists, answer their questions, and help them understand how your company works. And we're not talking about a few hours... The visit may last at least a week (otherwise, there is no point in Onsite Discovery).
Agree, if the business analyst just walks around one of your offices, he'll be of little help to the project. The final results are likely to be minimal (at high costs).
<h3 dir="ltr" style="text-align: justify;">What About Discovery Phases&rsquo; Cost?</h3>
Surely you&rsquo;ve already been wondering how long Discovery takes, right? We have the answer to your question, although the data is rather approximate (each project is unique).
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1650631009666.png" alt="discovery phases" width="1000" height="281" />
As you can see, the implementation of the Discovery phase in the case of small and medium-sized projects takes a similar time, regardless of the chosen approach. But when it comes to large projects, the situation changes: Onsite + Offsite method gives faster results, which is hardly surprising. In the end, personal presence allows the expert team to get answers to all burning questions here and now, so to speak: you and your employees provide maximum information in real time. However, Discovery's accelerated process doesn't make it cheaper&hellip; quite the contrary.
See for yourself!
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1650631024526.png" alt="discovery phases" width="1000" height="281" />
We cannot name the exact cost of the Discovery phases, whether it's offsite or onsite, a lot depends on the specific project and the techniques used. But exact data isn't needed anyway (at least, right now): as the second table shows, research, which includes online and offline activities, entails additional expenses.&nbsp;
The explanation is simple: firstly, you should cover the cost of full board and accommodation for our team (usually, it's about a business analyst and a project manager, although there may be other options). Secondly, you need to finance the flight too (it would be unwise of us to work at a loss, right?). In addition, several of your employees will have to spend their precious time accompanying Agilie experts and showing them your business from the inside, figuratively speaking.
That's why so many people prefer the offsite format... The only question is how to make sure the Discovery phase remains effective even when executed remotely. What can we offer in this regard?
<h2 dir="ltr" style="text-align: justify;">How to Conduct the Discovery Stage Online?</h2>
Among our advantages is the willingness to work in a flexible mode and adapt to your needs. You yourself, as a client, choose a convenient interaction format, including a suitable time zone. And we use our best efforts to provide appropriate working conditions.
To be specific, here is what we offer as part of Offsite Discovery:
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
agile approach to Discovery, when the development process is divided into repetitive cycles (sprints). Thus, we remain as flexible as possible and more easily respond to any changes.&nbsp;
</li>
<li dir="ltr" aria-level="1">
careful planning of current and future activities using modern digital tools, including the popular Google calendar.
</li>
<li dir="ltr" aria-level="1">
daily online/offline meetings within our Discovery team, which means each of its members stays abreast of developments. It also ensures transparency of processes.
</li>
<li dir="ltr" aria-level="1">
regular communication with the client (with you), so that you are in the know and can offer new ideas, if you have any. Our interaction channels include the following:
</li>
<ul>
<li dir="ltr" aria-level="2">
real-time communication in instant messengers (Viber or WhatsApp) and similar programs (Skype, Slack, etc.). If necessary, we can arrange an audio or video call;
</li>
<li dir="ltr" aria-level="2">
email communication, which allows you to write to us when you are in a hurry to convey some important information but there is no time to make a call right away;
</li>
<li dir="ltr" aria-level="2">
Google Meet/Zoom conferences if there is a need to have a longer and more detailed business conversation.
</li>
</ul>
</ul>
All the proposed ways to conduct the Offsite discovery stage aren&rsquo;t just a set of theories. We've tested them in practice, and they've proved effective and decisive.
For more information about our Discovery services, <a href="https://agilie.com/expertise/discovery" target="_blank" rel="noopener">follow the link</a>.
<h2 dir="ltr" style="text-align: justify;">Summary</h2>
Of course, there are situations when personal presence is preferable. So let&rsquo;s not completely dismiss the Onsite approach to the Discovery stage. Instead, we invite you to discuss your project and decide which of the two options is the ideal solution in your case.
&nbsp;

Discover the essence and peculiarities of Onsite and Offsite software discovery phases.

Discover the essence and peculiarities of Onsite and Offsite software discovery phases.

ONSITE & OFFSITE Discovery Phases: What To Choose? | Agilie

Embrace the difference between the SDLC and Waletfall methodologies of project development and their pros and cons.&nbsp;

Embrace the difference between the SDLC and Waletfall methodologies of project development and their pros and cons.

Waterfall vs Agile Approaches to the Discovery Process | Agilie

The launch of a thought-out mobile application is a proven way to speed up the development of your business and make it stronger. Let&rsquo;s assume you realize the urgent need for creating an app. So, where to start? Don&rsquo;t waste your time on the planning process. Start the implementation by trying to find an app development company, which would help you analyze your market and figure out the necessary features of the future product. In this article, we are going to consider different approaches to cooperation and find out which one is better.
<h2 dir="ltr">In-House Team vs Freelancer vs Outsource Team</h2>
There are three options in project implementation.
<h3 dir="ltr">IT department as part of your company</h3>
In other words, hiring mobile app developers into your team. The vast majority of businesses avoid the option because drawbacks exceed its benefits.
Pros:
<ul style="list-style-type: disc;">
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Full control over the development process;
</li>
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Easier communication (opportunity to convey thoughts, ideas, and requirements during the development process);
</li>
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Protected data. 23% of entrepreneurs are concerned about information leaks. To be honest, the problem is relevant if you cooperate with low-cost project executors.
</li>
</ul>
Cons:
<ul style="list-style-type: disc;">
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High costs. In outsourcing, you can find mobile app developers with greater experience who cost less. Moreover, you are able to save up on office rent, software licenses, and so on;
</li>
<li dir="ltr" aria-level="1">
The need to ensure the &ldquo;right&rdquo; environment. It&rsquo;s a well-known fact that the labor market experiences a lack of talents. So, in order to get the desirable results, you have то make sure your employees take an advanced professional training from time to time.
</li>
<li dir="ltr" aria-level="1">
Time-consuming process. Sometimes hiring an app development team takes weeks and months, not including the preparation and resolution of emerging difficulties (sick leaves, layoffs, and suchlike).
</li>
</ul>
The in-house approach is suitable for IT and Telecom companies with continuous tasks and decent time reserve.
<h3 dir="ltr">Freelance services</h3>
Freelancing seems to be a wonderful cost-effective option. However, the reality is going to be different.
Pros:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Fewer expenses. Freelancers don&rsquo;t have as many expenses as companies, so they offer a good service price. Moreover, paying for vacation days, social security, and other stuff is out of the question;
</li>
<li dir="ltr" aria-level="1">
The ability to order exactly what you need from different specialists.
</li>
</ul>
Cons:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Freelancers aren&rsquo;t interested in the success of your company, so the work result may be insufficient;
</li>
<li dir="ltr" aria-level="1">
The necessity of thorough control at every stage of product implementation that is going to take a lot of your precious time;
</li>
<li dir="ltr" aria-level="1">
Delays and disruptions of plans. You are not able to influence the situation when your executor disappears. The question &ldquo;How to find an app developer quickly?&rdquo; arises in such cases.
</li>
<li dir="ltr" aria-level="1">
Risk of the budget increase. Let&rsquo;s assume you aren&rsquo;t satisfied with the freelancer's work. Sometimes finalizing a project is impossible: it&rsquo;s easier to start implementing an application from scratch than to make improvements to the existing one. It extremely increases the budget. In addition, the time to market is shifting causing additional implicit costs (lost profit).
</li>
</ul>
Thus, freelance is good for small projects and short-term solutions.
<h3 dir="ltr">Outsourcing</h3>
It is the most common approach even if you are working on a large continuous project. The main benefits we would like to list are:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Cheaper development. You may be sure about getting a professional solution for an adequate price (our team always tries to offer discounts and find ways to reduce costs by avoiding certain expensive technologies);
</li>
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Working with high-qualified developers. Freelance is usually about middle developers while IT companies include senior specialists. They conduct some studies to provide your clients with the best user experience;
</li>
<li dir="ltr" aria-level="1">
Availability of a contract. Working with an app development company requires the conclusion of an agreement. It guarantees you&rsquo;ll get what you need;
</li>
<li dir="ltr" aria-level="1">
The possibility of long-term cooperation. You interact with a company, not with one specific executor. So, you can count on maintaining your product after its launch all the time while the company provides services;
</li>
<li dir="ltr" aria-level="1">
Scalability. You are able to expand or lessen the size of the team to fit the exact needs of your project.
</li>
</ul>
Cons:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Price is higher compared to the freelance option.
</li>
<li dir="ltr" aria-level="1">
Possible difficulties with money transfers. Freelance exchanges usually provide users with convenient and cheap ways to send and receive money. Unfortunately, you will have to find such methods independently.
</li>
</ul>
Every entrepreneur tries to implement his project inexpensively, fast, and qualitatively. Outsourcing allows you to come to a compromise.
<h2 dir="ltr">What to Consider When Choosing Mobile Developers?</h2>
The main tips on how to find app developers are as follows.
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Check a portfolio. Figure out if the chosen company has examples from your particular industry. Estimate such works and determine whether they solve business problems and cover users&rsquo; needs or not.
</li>
<li dir="ltr" aria-level="1">
Analyze reviews on independent platforms. Or contact former clients of the company.
</li>
<li dir="ltr" aria-level="1">
Assess the company&rsquo;s experience. Find out how many years the team has been operating and what industries it has dealt with.
</li>
<li dir="ltr" aria-level="1">
Look at prices. They are usually not final, so it is very important to describe your project in detail to a manager.
</li>
<li dir="ltr" aria-level="1">
Focus on communication. If the first discussion of your future product didn&rsquo;t satisfy you, we recommend choosing another executor. The poor relationship causes misunderstandings and predicaments.
</li>
<li dir="ltr" aria-level="1">
Ask for approximate shipping time. Sometimes the extra charge is necessary to fulfill your task on time.
</li>
</ul>
<h2 dir="ltr">Where to Look For?</h2>
Unfortunately, hiring an app development team requires time and patience. The common ways and web resources are:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Freelance exchanges. It&rsquo;s worth mentioning the platforms always take some fees for their intermediary services.
</li>
<li dir="ltr" aria-level="1">
IT blogs. The main advantage is they allow you to see the author&rsquo;s qualification in a specific topic.
</li>
<li dir="ltr" aria-level="1">
Communities. There are special sites where designers and developers present their works (an example is Dribbble).
</li>
<li dir="ltr" aria-level="1">
B2B directories. In such catalogs, you can find information about different companies and their ratings.
</li>
<li dir="ltr" aria-level="1">
Networking. Ask your partners, colleagues, friends, and so on.
</li>
<li dir="ltr" aria-level="1">
Search results. Top positions in the search results indicate the reputation of the web resources. It means they invest in long-lasting SEO promotion and aren&rsquo;t one-day businesses. However, be careful on the Internet.
</li>
</ul>
<h2 dir="ltr">How to Find Your Mobile Development Team?</h2>
Below, we have cited a rundown, which is going to help you hire mobile app developers.
1. Setting goals. Be clear about your business purposes and app concept. It will allow managers to understand what expertise you really need.
2. Choosing a type of cooperation, tools, and platforms where executors offer development services.
3. Listing appropriate candidates, comparing them according to the following criteria:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Experience;
</li>
<li dir="ltr" aria-level="1">
Development approach (agile is preferable to waterfall);
</li>
<li dir="ltr" aria-level="1">
Specialty;
</li>
<li dir="ltr" aria-level="1">
Programming tools;
</li>
<li dir="ltr" aria-level="1">
Reviews;
</li>
<li dir="ltr" aria-level="1">
Availability of contracts;
</li>
<li dir="ltr" aria-level="1">
Quality of communication.
</li>
</ul>
Don&rsquo;t hire a jack-of-all-trades &ldquo;expert&rdquo; because you risk failing your entire project. Most professional developers specialize in creating a certain type of apps.
4. Seeing if you are able to find some common ground with the leader of the chosen company. If everything is alright, you can move forward.
<h2 dir="ltr">Agilie Mobile Development Team</h2>
In the USA, users spend more than 5 hours every day staring at the screens of their mobile devices. Despite that fact, the list of applications being used isn&rsquo;t wide. It says one thing: you have to fight for attention by launching a top-notch solution. Finding mobile app developers in outsourcing is an approach that would allow you to implement your ideas efficiently and for adequate money.
We at Agilie have been operating since 2010, so we have all the necessary resources and expertise to create modern digital products. In addition, our services don&rsquo;t cost an arm and a leg. Get hold of us by using the following link when you&rsquo;ll be ready: <a href="https://agilie.com/contacts">agilie.com/contacts</a>
&nbsp;

Learn how to hire a team for mobile application development. Explore freelance and outsourcing models.

Learn how to hire a team for mobile application development. Explore freelance and outsourcing models.

How to Find and Hire The Best Mobile Development Team | Agilie

When you are running a startup, many things about its implementation are unclear and blurred. In order to prevent an unexpected result and make a launch map, specialists conduct <a href="https://agilie.com/blog/project-discovery-phase">the Discovery phase</a>. The working group includes different experts, and one of them is a solution architect. Let&rsquo;s find out how he can help you in website development.
<h2 dir="ltr">Basics about the Discovery Project</h2>
The Discovery is the first stage in project implementation. It helps to ascertain the necessary technologies and actions to successfully create and then promote your web resource. In fact, the Discovery phase of website development is an analysis with different approaches to research. It is a more agile solution that is perfectly suited to the ever-changing IT market.
The analysis at the very beginning of project implementation will help you find answers to the following questions:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
What part of the market are you going to engage in?
</li>
<li dir="ltr" aria-level="1">
Who are your competitors?
</li>
<li dir="ltr" aria-level="1">
What are your purposes and wishes in conjunction with your resources?
</li>
<li dir="ltr" aria-level="1">
What do you need to create an MVP (technologies required)?
</li>
<li dir="ltr" aria-level="1">
How much will it cost?
</li>
</ul>
Moreover, you&rsquo;ll get a clickable prototype and a carefully thought-out business model. UX/UI designers and business analysts are responsible for that. However, in this article, we are going to look at the work of solution architects during the Discovery phase of web development.
<h2 dir="ltr">Who is a Solution Architect?</h2>
One of the Discovery stages is a technical analysis performed by a solution architect who is usually a senior developer. He helps to release the product on time and on budget. In addition, he is responsible for ensuring that your website solves all the problems assigned to it. Take a look at other tasks of solution architects:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
preparing descriptions for every feature;
</li>
<li dir="ltr" aria-level="1">
cooperation with a business analyst to find the best implementation approach;
</li>
<li dir="ltr" aria-level="1">
developing a structure for the whole project;
</li>
<li dir="ltr" aria-level="1">
conducting research to find appropriate solutions for solving certain problems;
</li>
<li dir="ltr" aria-level="1">
finding ways to avoid technical risks;
</li>
<li dir="ltr" aria-level="1">
scheduling the process of product implementation.
</li>
</ul>
So, during the Discovery phase of website development, a solution architect encompasses business, system, information, security, application, and technology architecture.
<h2 dir="ltr">The Necessary Skills of a Solutions Architect</h2>
To align IT solutions successfully, it&rsquo;s not enough to have strong technical skills. No less important are soft skills, namely leadership. The specialists who are usually senior developers communicate with leaders, managers, and employees across every business unit.
Concerning hard skills, a solution architect should sort out specific IT areas, such as networking administration, development, customer service, or other relevant fields. A bachelor&rsquo;s degree or higher in information technology, computer science, software engineering, or a related field is mandatory.
In addition, it is important to have marketing knowledge because the solution architect&nbsp;must understand the requirements of businesses to offer a suitable and competitive solution.
<h2 dir="ltr">Why You Shouldn&rsquo;t Ignore the Research Stage</h2>
The Discovery phase before web development allows you to determine whether you are at risk of failure or not. This is why you should cooperate with a highly-experienced team, which can estimate your chances to achieve all goals.
In any company that intends to succeed, the architecture of solutions is developed. This is the practice of designing, describing, and managing solutions. So, the Discovery will show the capability of project launch according to the business tasks and goals.
Specialists find ways to cover customer needs with certain software solutions. It&rsquo;s obvious that every software requires hardware, so a solution architect describes standards for firmware, control systems, etc. He is able to consult you on how to implement your plans while other experts involved in the website Discovery phase assess the questions of what to do and how to maintain the platform already developed.
The low cost of marketing and development services always beckons but the risk of failure usually hides under it. Only a professional company will help you save the entire budget by avoiding the launch of an unclaimed web resource.
<h2 dir="ltr">Conclusion</h2>
Agilie has been operating since 2010, so our portfolio includes numerous projects on different topics. Most likely, we worked on a product similar to yours.
The technology environment is changing rapidly. So the process of digital transformation requires specific expertise and some practices to align business focus with technology solutions. We have all the necessary resources and high-qualified specialists. They will clarify important things during the Discovery phase of website development to decide if your idea is worth being implemented. We&rsquo;ll advise you on cost-effective technologies to help you launch a website as soon as possible and, as a result, outrun the competitors.
Just fill out the following contact form if you are ready to cooperate.
&nbsp;

Find out what solution architect is and what are their responsibilities in the software development process.&nbsp;

Find out what solution architect is and what are their responsibilities in the software development process.

Solution Architect and His Role in the Discovery Project | Agilie

The real estate industry is very personalized: what one person requires is not desired by the other. It implies the need to store a huge amount of data concerning each client: his/her wishes, preferences, problems, intents, and suchlike. It&rsquo;s obvious that a notebook or notes on your smartphone are not a good option. The information should be stored in the cloud and be accessible to each of your colleagues to maintain a continuous workflow. So, let&rsquo;s consider CRM software for a real estate agency as one of the mandatory things for successful work.
<h2 dir="ltr">What is Real Estate CRM?</h2>
CRM (Customer Relationship Management) is an internal system, which allows keeping client records and their requests. Real estate CRM solutions usually include the following information:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Name and contacts;
</li>
<li dir="ltr" aria-level="1">
Requirements for new apartments (obligatory and desirable things);
</li>
<li dir="ltr" aria-level="1">
Customer pains (an experience they are trying to avoid this time);
</li>
<li dir="ltr" aria-level="1">
Relevant options of apartments to offer the client;
</li>
<li dir="ltr" aria-level="1">
Transaction deadlines, etc.
</li>
</ul>
There are no constraints on the stored data: you may have a totally personalized solution that would feature a user-friendly and simple interface for easy data entry. We&rsquo;ll do our best to offer such a system despite a possibly huge amount of information it'll have to deal with.
<h2 dir="ltr">Benefits of Real Estate CRM</h2>
91% of companies with 10 and more employees are using CRM solutions for real estate. There are several reasons why such systems have become so popular.
<h3 dir="ltr">#1 Centralized Client Data Storage</h3>
CRM technologies are designed to organize the information received from completely different resources. Having the data in one place simplifies the provision of services and prevents data duplicates. In addition, it allows companies to fine-tune their strategies and improve customer retention.
<h3 dir="ltr">#2 Cross-platform Instant Access</h3>
In order to get rid of the risks regarding data loss, one should choose to use the cloud, which is a preferable option. Modern technologies guarantee the preservation of records and round-the-clock access to them from any gadgets. You can start entering information on a PC and then continue on your smartphone. Today is the era of on-the-go agents who need to be everywhere at the same time.
<h3 dir="ltr">#3 Analysis Tools</h3>
Quite a pertinent question: what to do with the collected information? Managing it manually is impossible and irrational. So, real estate CRM solutions include diverse tools based on Artificial Intelligence. They allow conducting complex analyses to forecast future sales using historical data. Moreover, such systems are able to learn customer trading habits and then advise you on how to maximize the revenue within the sales targets.
Thanks to various visual graphics and tables, you can track customers&rsquo; behavior and predict their wishes.
<h3 dir="ltr">#4 Customized Lead Quality Criteria</h3>
The real estate industry is sometimes about serving multiple clients simultaneously. It makes agents categorize clients by different groups to effectively spend working time. Filtering relevant and irrelevant leads allows employees to prioritize certain groups of customers.
<h3 dir="ltr">#5 Zero Lead Leakage</h3>
How often do one or a few leads slip out unnoticed? Don&rsquo;t try to keep all things in your head: to avoid confusing situations, CRM solutions for real estate were invented. A smart system will inform you if a client has not received feedback yet. Thus, the reputation of your company won&rsquo;t suffer.
Implementing a CRM should be a part of your strategy. It helps realtors build, manage, and sustain meaningful and successful relationships with customers.
The statistics mentioned below make the importance of a CRM obvious.
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
29% of sales increase after launching a modern system.
</li>
<li dir="ltr" aria-level="1">
34% of sales productivity grow.
</li>
<li dir="ltr" aria-level="1">
42% of predicament accuracy increase.
</li>
<li dir="ltr" aria-level="1">
The conversion of leads to clients rises up to 300%.
</li>
</ul>
<h2 dir="ltr">Key Features of Real Estate CRM</h2>
The solution provides users with a rich set of diverse features. The most common of them are:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Dashboard. Get a brief overview of the main indicators concerning sales stages, marketing reports, current leads, and so on;
</li>
<li dir="ltr" aria-level="1">
Daily planner. The work of estate agents is not limited in time: it may be needed to show some apartments early in the morning on the weekend or late Friday night. So, a convenient multifunctional planner will help them keep all tasks in mind;
</li>
<li dir="ltr" aria-level="1">
Property catalog. Having all items in one place accelerates the provision of services. Users can easily choose an appropriate option by filtering the content.
</li>
<li dir="ltr" aria-level="1">
Notifications. Don&rsquo;t miss important meetings and events. Reminders are one of the crucial real estate CRM features that helps to be always on time.
</li>
<li dir="ltr" aria-level="1">
Cloud-based storage. There are two types of CRM solutions: desktop (a stand-alone program, which should be installed on a PC) and a cloud-based option (a website based on a remote server). Both types can send your files to the cloud to ensure they're safely preserved, so it doesn't matter what you choose. Easily manage your documents and don&rsquo;t worry about a possible disaster (hard drive failure as an example);
</li>
<li dir="ltr" aria-level="1">
Omnichannel communication. Customers communicate via different platforms: messengers, social networks, emails, etc. Using numerous diverse channels may blow up your mind, so a CRM is very useful for keeping in touch with clients;
</li>
<li dir="ltr" aria-level="1">
Integration with third-party services. It&rsquo;s one of the must-be real estate CRM features, which is obligatory if your company practices multichannel sales. Some agencies provide several services: independent home&rsquo;s value assessment services, assistance in home buying-selling deals, and consulting. In such cases, we are speaking of different eco-systems and work scenarios. Provide your employees with the opportunity to create diverse sales models;
</li>
<li dir="ltr" aria-level="1">
Document flow automation. Paperless interaction is mainstream today. CRM software for a real estate agency allows users to put the document flows on autopilot. It reduces the time needed to create, approve, and share docs.
</li>
<li dir="ltr" aria-level="1">
Mobile version. It may be a mobile application or a mobile version of the website. Nowadays, mobile traffic reaches 70% of the total volume.
</li>
</ul>
<h2 dir="ltr">Conclusion</h2>
To stay competitive, we recommend not delaying the implementation of a CRM solution. The system is incredibly useful in analyzing piles of data and then managing it. With a CRM, you&rsquo;ll not miss an important event or forget to give feedback to a client. In addition, different employees can access the deal details anytime if necessary.
In view of the fact that universal CRM systems are often unable to satisfy the requirements of ever-changing businesses, Agilie offers to develop a completely customized solution, which would meet all your individual needs.
50% of CRM users reported being more productive after the implementation of modern technologies. So, don&rsquo;t pass up the chance to outrun your competitors. Fill in a few boxes in the contact form using the following link: <a href="https://agilie.com/contacts">agilie.com/contacts</a>. It will be the first step to boosting the development of your business.
&nbsp;

Explore what real estate CRM is, its features, and core benefits for industry.

Explore what real estate CRM is, its features, and core benefits for industry.

Must-Have Features of Real Estate CRM | Agilie

There are numerous entrepreneurs who have encountered some difficulties while running their startups or scaling current businesses. And the main reason lies in poor planning or misunderstanding of the market trends (during the implementation, your idea may become hopelessly outdated). In order to prevent any predicaments, it is desirable to conduct a discovery phase with business analysis.
<h2 dir="ltr">What is a Discovery Phase?</h2>
When you come up with some business idea, the first things you usually wish to know are:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
What is your target audience?
</li>
<li dir="ltr" aria-level="1">
Where is your place in the market?
</li>
<li dir="ltr" aria-level="1">
Who are your competitors?
</li>
<li dir="ltr" aria-level="1">
What budget do you need?
</li>
</ul>
So, <a href="https://agilie.com/blog/project-discovery-phase">the Discovery Phase</a> is the product launch stage that will help you get answers to the questions listed above. However, the discovery phase is not just marketing research as you might think. This stage is actually more technical because solution architects, senior developers, UX/UI designers, business analysts, subject matter experts, and other specialists are involved in the research process. Therefore, in the end, you&rsquo;ll receive a comprehensive presentation with the following additional information:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
User needs in the conjunction with your business goals (what customer needs you&rsquo;ll be able to cover);
</li>
<li dir="ltr" aria-level="1">
The functionality of the future solutions taking into account your budget, market trends, and services of your competitors;
</li>
<li dir="ltr" aria-level="1">
Recommendations about tools you had better use to save money and present a well-working solution, which will be able to outrun other market players;
</li>
<li dir="ltr" aria-level="1">
Roadmap with detailed user experience;
</li>
<li dir="ltr" aria-level="1">
Business objective model if you are not aware of what you should focus on in order to succeed.
</li>
</ul>
Moreover, the stage may even include the creation of MVP (minimum viable product). But let&rsquo;s focus on the business analysis of the discovery phase.
<h2 dir="ltr">What About Analysis?</h2>
Every discovery phase involves a business analyst because all gathered data must be structured and presented in a meaningful way. Only a specialist with extensive experience and understanding of the development process and different approaches is able to correctly analyze and interpret the information. Perhaps, the market you are interested in is in a state of stagnation. You may think the glass is half full but actually, it is half empty. So, the task of our business analysts is to warn you about all possible challenges and estimate the viability of your product.
After getting our findings, you&rsquo;ll be able to shorten the time to market and choose a certain path to fast growth. Business analysis within the discovery phase is the only way to develop a product in accordance with your initial ideas (an analysis eliminates situations when the results don&rsquo;t meet your expectations).
<h2 dir="ltr">What Can Be Analyzed During the Project Discovery Phase?</h2>
First of all, you should understand that the discovery phase is a very personalized stage of the development process. There is no a silver bullet: every project is unique. What one client requires, another does not need. This is why our business analysts approach the discovery phase with maximum responsibility, giving themselves completely to your project.
We are able to list just some areas, which are always analyzed at the beginning of the product implementation:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Client&rsquo;s pain. One of the main marketing rules declares that every product should solve some customer&rsquo;s problems. The more these problems are tackled, the more beneficial the product can be. The analysis conducted by us will show you the possible demand for your solution;
</li>
<li dir="ltr" aria-level="1">
Competitors. Sometimes the market is oversaturated: there are a lot of players with great services, so a new product won&rsquo;t be able to satisfy the needs of a &ldquo;spoiled&rdquo; audience. Also, we can&rsquo;t fail to mention the price dumping resorted to by strong companies: you may not have even a chance to compete with them;
</li>
<li dir="ltr" aria-level="1">
Market trends. Are you sure your idea is relevant and fresh? Maybe, you are going to use outdated tools and technologies. Our business analysts within the discovery phase assess the products potential and warn entrepreneurs if necessary;
</li>
<li dir="ltr" aria-level="1">
Technologies. Thanks to our senior developers involved, you&rsquo;ll get an extensive list of tools, which will be used. We&rsquo;ll help you save money by advising cost-effective solutions.
</li>
</ul>
<h2 dir="ltr">Conclusion</h2>
According to statistics, about 15% of all startups die because of insufficient planning and underrating different risks in the market. 45% of ideas are too expensive to implement. It is impossible to have a complete vision about creating and then promoting your product without the discovery phase. Perhaps, the longread &ldquo;<a href="https://agilie.com/blog/discovery-stage-or-what-to-do-if-you-need-an-agile-project-analysis">Discovery Stage, or What to Do If You Need an Agile Project Analysis</a>&rdquo; will answer some of your questions.
&nbsp;

Explore the importance and value of business analysis during the discovery phase.

Explore the importance and value of business analysis during the discovery phase.

The Role of Business Analysis During the Project Discovery Phase | Agilie

The rise of crypto wallets represents&ensp;a significant innovation in fintech. Those wallets can be very useful for businesses because, with them, many people can have access to funds depending on roles and permissions.
Depending on the type, cryptocurrency wallets also help in managing digital assets and allow businesses or individuals to control funds without banking, as they retain the full autonomy of&ensp;funds, or even trade assets without manual transfers. In this article, we are going to see what is the difference between a custodial and non-custodial wallet.
<div id="form-description" class="form-description" data-title="Key Takeaways" data-text="The custodial wallet requires identity verification, breaching the user&rsquo;s anonymity, while the non-custodial wallet is pseudonymous. 
Since non-custodial wallets operate independently of centralized exchanges (CEXs), transaction speed depends on blockchain network conditions, leading to delays in crypto operations. 
Although the custodial wallet relies on the Know Your Customer policy, the risks of cyber security attacks arise because of the required identity verification.">
<div class="form-description-title">Key Takeaways</div>
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
The custodial wallet requires identity verification, breaching the user&rsquo;s anonymity, while the non-custodial wallet is pseudonymous.&nbsp;
</li>
<li dir="ltr" aria-level="1">
Since non-custodial wallets operate independently of centralized exchanges (CEXs), transaction speed depends on blockchain network conditions, leading to delays in crypto operations.&nbsp;
</li>
<li dir="ltr" aria-level="1">
Although the custodial wallet relies on the Know Your Customer policy, the risks of cyber security attacks arise because of the required identity verification.
</li>
</ul>
</div>
<h2 dir="ltr" style="text-align: justify;">Foreword: The Essence of Private Keys</h2>
Hold on! Why is it important to discuss the private key and how it comes with the custodial and non-custodial wallets? Let&rsquo;s define this cryptographic element and analyze its functions and importance for crypto wallets.&nbsp;
The crypto wallet generates a private key, which represents an alphanumeric code consisting of a large string of letters and numbers. The primary functions of a private key include enabling the users to authorize transactions and prove ownership of their assets.
This alphanumeric cipher matters to any crypto wallet type as it generates a digital signature. A private key is used to sign the transaction, which is transmitted to the blockchain, but prior to being added to the block, it requires verification. The computers operating the blockchain check the user&rsquo;s public key to verify the digital signature, and if it is correct the transaction is approved and recorded permanently on the blockchain.&nbsp;
The private and public keys are paired, which ensures the transaction&rsquo;s security due to the resistance to tampering and the impossibility of making any changes on the block. Hence, private keys are central elements of a crypto wallet, so let&rsquo;s discuss their essence in custodial and non-custodial wallets.&nbsp;
<h2 dir="ltr" style="text-align: justify;">What Is a Custodial Wallet?</h2>
The custodial wallet meaning can be defined as a wallet in which a third party, such as an exchange or bank, holds the private keys of the users. This means that the client is not in full control of their funds, as they rely on the custodian who secures and manages their transactions.&nbsp;
There are the following features of the custodial wallets:
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Simplified Usability
</li>
</ul>
The custodial wallets represent an opportunity for beginners to trade their crypto assets without managing private keys.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Options for Account Recovery
</li>
</ul>
If users lose access to their accounts, they will be able to recover their funds as the custodian holds their private keys on the centralized server. The users will only have to verify their identity.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Support Opportunities
</li>
</ul>
A central unity manages the client&rsquo;s wallet, providing them with support like undoing the transaction.
Some of the best custodial wallets to consider are: Coinbase, Gemini, BitMex, BitGo, Binance, and Bitfinex.
<h2 dir="ltr" style="text-align: justify;">What Is a Non-Custodial Wallet?</h2>
When analyzing the non-custodial vs custodial wallet, the first one provides clients with full ownership of their private keys and funds, respectively. This autonomy defines the non-custodial wallet meaning that no third party will handle the user&rsquo;s funds and operations. This excludes issues like account freezing and withdrawal restrictions. There are the following distinctive features of the non-custodial wallets:
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
User&rsquo;s Full Ownership
</li>
</ul>
The non-custodial wallets function within the decentralized ecosystem, meaning that no centralized unity will manage the wallet.
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Direct Blockchain Interaction
</li>
</ul>
A non-custodial wallet does not require an intermediary; transactions occur directly on the blockchain.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Increased Privacy
</li>
</ul>
The users don&rsquo;t have to abide by the Know Your Customer policy and verify their identity in the non-custodial wallet. This crypto wallet type preserves pseudoanonimity.
<a class="incut--wrap" style="transition-property: all;" href="https://agilie.com/blog/digital-wallets-types-ideas-and-future-of-such-products" target="_blank" rel="noopener" aria-label="incut"><img style="float: left;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1740483774764.png" width="100%" height="100%" />Gain insights into the essence of e-wallets, their benefits, and examples.</a>
<h2 dir="ltr" style="text-align: justify;">Difference Between Custodial and Non-Custodial Wallet</h2>
Based on the aforementioned analysis of two crypto wallet types, their meaning, advantages, and disadvantages, it would be essential to provide a short summative recap, as well as additional details on the differences between the custodial wallet vs non-custodial wallet, focusing on the following metrics.
<h3 dir="ltr" style="text-align: justify;">Security</h3>
<h4 dir="ltr" style="text-align: justify;">Custodial Wallet</h4>
The custodial wallet is less secure than its non-custodial counterpart, considering its vulnerability to cyberattacks. Hackers can attack the centralized servers and obtain access to multiple accounts.
Credential harvesting is a phishing type of cyberattack which aims to steal a user&rsquo;s login and password so that the attacker can access their account. The attackers send the falsified site links, almost identical to the real ones, via SMS or email, so by entering their credentials, the victim provides them with access to their funds.&nbsp;
<h4 dir="ltr" style="text-align: justify;">Non-Custodial Wallet</h4>
The non-custodial wallets depend on the private keys owned by the users, which decreases the risks of theft. Nevertheless, attackers can obtain the key due to malware attacks, which can infect the computer or smartphone as in the case of clipboard hijacking malware attack.&nbsp;
The malware functions, so to say, silently in the device, monitoring the clipboard. When the user copies the wallet address, the malware substitutes it with the attacker&rsquo;s one, so the victim sends them their funds unintentionally.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Ownership of Private Keys</h3>
<h4 dir="ltr" style="text-align: justify;">Custodial Wallet</h4>
In the custodial wallet, it&rsquo;s the custodian&rsquo;s responsibility to hold the user&rsquo;s private keys, which limits the latter&rsquo;s control over their funds. This is one of the most significant disadvantages of the custodial wallets for the following reasons:
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Lack of Client&rsquo;s Full Ownership Over Their Finances.
</li>
</ul>
The client has access to accounts but relies heavily on the custodian&rsquo;s controls over the transaction&rsquo;s approval.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Withdrawal and Transaction Restrictions
</li>
</ul>
The custodian can delay or block the transaction based on governmental policies, which can limit the fund movement.&nbsp;
<h4 dir="ltr" style="text-align: justify;">Non-Custodial Wallet</h4>
In the non-custodial wallet, the user holds the private keys by themselves, which is simultaneously convenient and requires a decent level of responsibility not to lose them.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
No KYC Compliance
</li>
</ul>
The non-custodial wallet does not rely on the KYC policy, so the user doesn&rsquo;t have to verify their identity to proceed with the transactions, showing their full ownership over their funds.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Ease of Use&nbsp;</h3>
<h4 dir="ltr" style="text-align: justify;">Custodial Wallet</h4>
Custodial wallets are easier to use as the client does not have to know the precise details of the exchange work. If the user wants to undo the operation, customer support can help with that.&nbsp;
<h4 dir="ltr" style="text-align: justify;">Non-Custodial Wallet</h4>
Non-custodial wallets require decent knowledge about the work of blockchain and smart contracts, as minor mistakes can lead to the loss of funds with no refund option, representing one of the core challenges of this wallet type.
<a class="incut--wrap" style="transition-property: all;" href="https://agilie.com/blog/top-7-crypto-wallet-apps" target="_blank" rel="noopener" aria-label="incut"><img style="float: left;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1740483930529.png" width="100%" height="100%" />Check out 7 potential crypto wallets you might use.</a>
<h2 dir="ltr" style="text-align: justify;">Choosing the Right&nbsp;Wallet&nbsp;for Your Business Needs</h2>
You might be interested in how to choose the right wallet type per business needs. It's time to discuss the most suitable cases to use custodial and non-custodial cryptocurrency wallets.
<h3 dir="ltr" style="text-align: justify;">Custodial Wallets</h3>
The custodial wallets are a valuable option for businesses that need an insured and regulated service. For instance, Greyscale, a leading crypto asset manager, utilizes Coinbase Custody, which improves its scalability and contributes to success due to alignment with NYC banking laws as the wallet is regulated by NYDFS, one of the most prominent financial regulators in the world.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Non-Custodial Wallets</h3>
The non-custodial wallets are best suited for businesses that manage crypto without third-party integration, and those companies with DeFi projects and NFT platforms. For instance, Open Sea, a web3 marketplace for NFTs, applies Meta Mask, which improves its scalability and success by integrating Layer 2 support like Polygon network for lower fees and faster transactions.
<h2 dir="ltr" style="text-align: justify;">Who We Are</h2>
Agilie is a European IT outsourcing organization that crafts custom digital products for businesses and startups in fintech, real estate, healthcare, and marketing domains. By providing our clients with three outsourcing models, like the dedicated team, staff augmentation, and project-based outsourcing, Agilie elaborates on tech-savvy software relevant to&nbsp;<a href="https://agilie.com/expertise/fintech" target="_blank" rel="noopener">fintech</a>,&nbsp;<a href="https://agilie.com/expertise/fintech/payment-solutions" target="_blank" rel="noopener">payment solutions</a>, and&nbsp;<a href="https://agilie.com/expertise/fintech/mobile-banking" target="_blank" rel="noopener">mobile banking</a>.&nbsp;
When it comes to the&nbsp;<a href="https://agilie.com/expertise/fintech/blockchain-software" target="_blank" rel="noopener">blockchain software development services</a>, Agilie can help you craft:
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Cryptocurrency
</li>
<li dir="ltr" aria-level="1">
Crypto Wallets
</li>
<li dir="ltr" aria-level="1">
Blockchain
</li>
<li dir="ltr" aria-level="1">
Smart Contracts
</li>
<li dir="ltr" aria-level="1">
NFT
</li>
</ul>
<h2 dir="ltr" style="text-align: justify;">Conclusion</h2>
The article analyzed the features, advantages, disadvantages, and differences of custodial vs non-custodial crypto wallet types. Both introduce unique approaches to handling finances, such as the client&rsquo;s full ownership of the private keys versus the custodian&rsquo;s. Nevertheless, when choosing a wallet type, you have to take into account the elements of security, anonymity, and tech knowledge to make your trade or transactions secure and minimize risks.&nbsp;
<a class="incut--wrap" style="transition-property: all;" href="https://agilie.com/contacts" target="_blank" rel="noopener" aria-label="incut"><img style="float: left;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1740484028707.png" width="100%" height="100%" />Are you eager to craft a personalized crypto wallet? Then contact us to get a consultation!</a>

Explore the differences between a custodial wallet vs non-custodial wallet, their features, and use cases.

Explore the differences between a custodial wallet vs non-custodial wallet, their features, and use cases.

Custodial vs Non-custodial Wallet: Explained & Compared | Agilie

Blockchain has become a paradigm shift that changes the operations of different industries. Nevertheless, like any other disruptive technology, a lot of myths and misconceptions have appeared. We should differentiate between fact and fiction to use blockchain technology effectively and responsibly. We can better understand what blockchain is (and isn&rsquo;t), how it functions, and the varied applications it holds besides cryptocurrencies by clarifying these misconceptions.
<div id="form-description" class="form-description" data-title="Key Takeaways" data-text="Blockchain is not just about Bitcoin; it is the technology that can transform different fields. 

Blockchains are strong but not flawless, and being aware of the possible weak sections is a very important thing in keeping the network safe.

Educational investment and partnerships with software development experts are the main factors for businesses that will use blockchain technology.">
<div class="form-description-title">Key Takeaways</div>
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Blockchain is not just about Bitcoin; it is the technology that can transform different fields.&nbsp;
</li>
<li dir="ltr" style="text-align: left;" aria-level="1">
Blockchains are strong but not flawless, and being aware of the possible weak sections is a very important thing in keeping the network safe.
</li>
<li dir="ltr" aria-level="1">
Educational investment and partnerships with software development experts are the main factors for businesses that will use blockchain technology.
</li>
</ul>
</div>
<h2 dir="ltr" role="presentation">&nbsp;Myth 1: Blockchain and Bitcoin Are the Same</h2>
Among the most common myths about blockchain technology is the confusion between the blockchain and Bitcoin. Blockchain and Bitcoin were created simultaneously, so they are widely believed to be the same thing. However, we must understand that blockchain is a much broader term. It is the technology that created Bitcoin. While Bitcoin is indeed the first and most famous application of this technology, equating the two is like saying that Google is the Internet.
Blockchain is a decentralized digital ledger technology (DLT) that records transactions across multiple computers so that the records cannot be altered retroactively, without the alteration of all subsequent blocks and the consensus of the network.
This makes blockchain a naturally secure and transparent method of data and transaction recording.&nbsp;
Bitcoin is a type of digital currency based on blockchain technology and used for secure, anonymous, and decentralized financial transactions. The blockchain of Bitcoin acts as a public ledger for all the transactions in the Bitcoin network, thus, it is possible to transfer digital currency securely without the use of intermediaries like banks or governments.&nbsp;
Blockchain technology can be much broader than purely financial transactions. It can be used in different industries with various aims. Nowadays, many businesses are studying how <a href="https://agilie.com/blog/enterprise-blockchain-development-how-businesses-derive-benefits" target="_blank" rel="noopener">enterprise blockchain development</a> can improve their operations.

Here are a few examples:
Healthcare: Blockchain can guarantee the safety of medical records storage and sharing. Thus, they are only available to authorized personnel and patients and lead to quicker diagnosis and treatment.​
Financial Services: Blockchain is a viable solution for international payments, real-time settlements, and improving transaction transparency and security.
Digital Identity:&nbsp; Blockchain can correct identity theft and fraud by adding digital identities that cannot be changed. For example, Estonia's e-Residency program is the first of its kind, a government-issued digital identity that allows entrepreneurs from anywhere in the world to operate and conduct business online in the EU.
Real Estate: Blockchain can simplify property transactions such as sales, leasing, and financing by reducing paperwork and improving transparency.
<a class="incut--wrap" style="transition-delay: 0s;" href="https://agilie.com/blog/the-evolution-of-blockchain-from-bitcoin-to-business-applications" target="_blank" rel="noopener" aria-label="incut"><img style="height: 344px; width: 778px;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1716280829344.png" width="100%" height="100%" />Learn more about the evolution of Blockchain from Bitcoin to business applications.</a>
<h2 dir="ltr">Myth 2: Blockchain Transactions Are Always Anonymous</h2>
A frequent mistake people make about blockchain technology is that it is automatically anonymous to its users. However, the truth is more nuanced. Blockchain transactions are not strictly anonymous but pseudonymous.
Pseudonymity means that a user's identity is not directly tied to their blockchain transactions but rather to a digital pseudonym, typically a public key or a blockchain address. These addresses are like a sequence of letters and numbers, giving privacy but not total anonymity.
In contrast, anonymity would mean that the transactions are entirely disconnected from any identity, even a pseudonym, making them untraceable to the user. Blockchain does not usually provide this level of anonymity because the transaction history of each blockchain address is visible to anyone who accesses the blockchain.
Most blockchains are open ledgers, meaning that all transactions are visible to anyone who wishes to view them. This level of transparency ensures that while users' identities are not directly exposed, their transaction histories and patterns can be analyzed.<span style="font-size: 11pt; font-family: Roboto, sans-serif; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-alternates: normal; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> 
<img src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1716280901953.png" />
While basic blockchain transactions offer pseudonymity, several enhancements and tools can increase privacy:
1. Mixing Services: Services like CoinJoin allow multiple users to combine their transactions into a single transaction with multiple inputs and outputs. This mixing blurs the traceability of any single coin, making it more difficult to link wallets with identities.
2. Privacy-Focused Cryptocurrencies: Some cryptocurrencies, like Monero and Zcash, are designed specifically to enhance privacy. Monero uses ring signatures and stealth addresses to hide the transactions&rsquo; origins, amounts, and destinations. Zcash allows users to shield transactions completely through its zk-SNARKs technology, which enables transactions to be verified without revealing the sender, receiver, or amount.
3. Use of Multiple Addresses: Users can increase their privacy by using multiple wallets or addresses, dispersing their transactions across several points, which makes it more challenging to link them to a single identity.
<a class="incut--wrap" style="transition-delay: 0s;" href="https://agilie.com/blog/blockchain-tech-trends-how-to-stay-ahead-of-the-curve" target="_blank" rel="noopener" aria-label="incut"><img style="height: 344px; width: 778px;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1716280997458.png" width="100%" height="100%" />Explore key blockchain technology trends and stay ahead in its innovation with insights and practical examples.</a>
<h2 dir="ltr">Myth 3: Blockchains Are Unhackable</h2>
The idea that blockchains are completely unhackable is a frequently held misconception that can cause a dangerous level of complacency in security measures. While blockchain technology does offer robust security features, it is not immune to vulnerabilities. Knowing the security features employed and the situations in which breaches happen is very important for anyone who wants to use blockchain for their business.
Blockchain technology secures data through several mechanisms:
Cryptography: Every transaction on a blockchain is secured using cryptographic algorithms, which ensure that data can neither be altered nor read without the appropriate cryptographic key.
Decentralization: By distributing copies of the ledger across a network, blockchain reduces the risk of a single point of failure that could compromise the entire system.
Consensus Protocols: Blockchains use various consensus mechanisms, like Proof of Work (PoW) or Proof of Stake (PoS), to agree on the validity of transactions. These protocols prevent a malicious actor from changing even a single aspect of the blockchain.
<a class="incut--wrap" style="transition-delay: 0s;" href="https://agilie.com/expertise/fintech/blockchain-software" target="_blank" rel="noopener" aria-label="incut"><img style="height: 344px; width: 778px;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1716281102044.png" width="100%" height="100%" />Learn more about our blockchain software development services.</a>
Despite these security measures, there are scenarios where blockchains can and have been compromised.
<h3 dir="ltr">Scenarios Under Which Breaches Have Occurred</h3>
51% Attacks: This type of attack happens when a single entity gains control of more than 50% of the network&rsquo;s mining hash rate or stake, allowing them to manipulate transactions and potentially double-spend coins.&nbsp;
Code Vulnerabilities: <a href="https://agilie.com/blog/secure-smart-contract-design-best-practices-in-solidity-programming" target="_blank" rel="noopener">Smart contracts</a>, which are self-executing contracts with the terms directly written into code, can contain vulnerabilities. One of the most famous incidents is the DAO attack on the Ethereum network. Hackers exploited a vulnerability in the DAO (Decentralized Autonomous Organization) smart contract code to siphon off one-third of the DAO&rsquo;s funds.
Phishing and Social Engineering: End-user security is often the weakest link in a blockchain system. Phishing attacks can allow attackers access to blockchain assets, bypassing network security measures, to steal private keys or wallet credentials.
<img src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1716281254703.png" />
<h2 dir="ltr" style="text-align: justify;">Conclusion</h2>
The blockchain technology is often seen as highly popular and muddled at the same time.&nbsp; Falsified myths are only part of the misconceptions that can mislead such a fantastic technology. Similarly, proper professional knowledge and strategy can help blockchain perform to its potential in various fields.&nbsp;<a href="https://agilie.com/blog/your-own-cryptocurrency-from-scratch-everything-you-need-to-know-to-create-your-cryptocurrency" target="_blank" rel="noopener">Building your own cryptocurrency</a> can be a strategic move for businesses seeking to innovate and tap into new digital markets.
At <a href="https://agilie.com" target="_blank" rel="noopener">Agilie</a>, we understand that dealing with a complex environment is also a significant challenge. This is why we create powerful blockchain systems and wish to educate our clients regarding the breadth of blockchain-utilizing services. Therefore, such solutions can be tailored to your industry's concrete necessities and problems.
<a class="incut--wrap" style="transition-delay: 0s;" href="https://agilie.com/contacts" target="_blank" rel="noopener" aria-label="incut"><img style="height: 344px; width: 778px;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1716281316627.png" width="100%" height="100%" />Contact us to find out how our blockchain development services can help you achieve your goal.</a>

Discover the truths about blockchain technology as we debunk common myths and clarify its applications to empower businesses with informed integration.

Discover the truths about blockchain technology as we debunk common myths and clarify its applications to empower businesses with informed integration.

Blockchain Myths Debunked: Separating Fact from Fiction | Agilie

Learn about the cost of building a banking app based on its features, dev process, UX/UI design, and wireframe.

Learn about the cost of building a banking app based on its features, dev process, UX/UI design, and wireframe.

Banking App Development Cost | Agilie

Analyze the latest fintech software development trends. Clarify what impact the evolving digital technologies have on the industry.&nbsp;

Analyze the latest fintech software development trends. Clarify what impact the evolving digital technologies have on the industry. 

Fintech Software Development Trends in 2025 | Agilie

Explore a step-by-step way of building a property management system from scratch, its features, and challenges.&nbsp;

Explore a step-by-step way of building a property management system from scratch, its features, and challenges.

How to Create a Property Management System | Agilie

Nowadays, blockchain reshapes the functionality of the fintech industry, invoking a significant interest in institutions that work with financial operations directly. We&rsquo;re talking about accounting, which starts integrating blockchain technology to its daily operations.&nbsp;
Accounting is a noticeable area for blockchain innovation due to the significant improvements it can present. Businesses experience growth of interest in secure financial operations. The elimination of a single-point failure and cryptographic encryption can reduce the dependency on the centralized intermediary and protect financial transactions by improving security and economizing protection costs simultaneously. The article analyzes what is blockchain used for in accounting and its benefits.
<h2 dir="ltr" style="text-align: justify;">How Blockchain Is Transforming Accounting</h2>
As a distributed and public ledger, blockchain benefits versatile fintech and business branches due to its possibility to record transactions that cannot be altered. The impact of blockchain in accounting is significant as it eliminates manipulations with records and minimizes human errors. We&rsquo;re going to focus on fraud prevention and error detection capabilities of blockchain in accounting.&nbsp;
<a class="incut--wrap" style="transition-property: all;" href="https://agilie.com/blog/the-role-of-cryptography-in-blockchain-security" target="_blank" rel="noopener" aria-label="incut"><img style="float: left;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1739370419274.png" width="100%" height="100%" />In this article you can learn how cryptography makes blockchain safe and the consensus mechanisms its work is based on.</a>
<h3 dir="ltr" style="text-align: justify;">Fraud Prevention</h3>
Blockchain undermines the pain point of fraudulent actions through immutability and security.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Immutability
</li>
</ul>
As stated above, the transaction is recorded, while the record is immutable. This is important for accounting to fraud prevention because it makes it difficult for fraudsters to manipulate revenue or conceal expenses.
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Safety
</li>
</ul>
Authorized parties can access a real-time ledger, proving that blockchain can reduce the likelihood of fraudulent reporting. The auditors can cross-check the transactions in real-time, which greatly reduces the risk of any manipulations in the financial statements.
Moreover, with triple-entry accounting, the blockchain makes it hard&ensp;to commit double-entry fraud. Transactions are cryptographically linked and recorded in the distributed&ensp;ledger, making identifying fraudulent actions easier.
<h3 dir="ltr" style="text-align: justify;">Error Detection and Overcoming</h3>
Blockchain helps to identify common human-factor mistakes and helps overcome them via smart contracts and AI integration.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Human Errors within Data Entry
</li>
</ul>
Blockchain helps resolve issues like incorrect figures or duplicate entries. Multiple parties validate the transduction cryptographically prior to recording. Smart contracts will automate the transactions, minimizing human input.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Duplicate Transactions
</li>
</ul>
Blockchain can help prevent accidental duplication of invoices, expenses, or payroll payments based on the correct realization of smart contracts or transaction control systems. The chances of record duplication are reduced as each transaction gets a unique cryptographic signature. Blockchain&rsquo;s task is to ensure a real-time reconciliation by underlining the duplicate entries.&nbsp;
<ul style="text-align: justify;">
<li dir="ltr" aria-level="1">
Transaction Misclassification
</li>
</ul>
Another human error in accounting is assigning the wrong category for revenue, expenses, or&ensp;liabilities, which results in erroneous financial statements. Smart contracts and AI analyze transactions and mark inconsistencies, while the immutable ledger ensures proper classification.
<h2 dir="ltr" style="text-align: justify;">Key Benefits of Blockchain in Accounting</h2>
Accounting organizations can optimize their record processing, minimize fraud, and economize financial input by integrating blockchain technology. Let&rsquo;s analyze the advantages of blockchain in accounting into the following categories.
<h3 dir="ltr" style="text-align: justify;">Transparency</h3>
The blockchain works on the distributed ledger that instantly&ensp;records any transactions and displays them to authorized users. The immutable ledger eliminates the possibility of changes and is deleted once the finance-relevant operation is recorded. Finally, one of the key benefits blockchain brings to accounting is the absence of dependency on centralized units. All the required stakeholders and auditors are independent in verifying transactions.
<h3 dir="ltr" style="text-align: justify;">Security</h3>
Blockchain and accounting are intertwined based on security intensification. Now, let&rsquo;s analyze how exactly blockchain helps accounting improve the security of its operations.&nbsp;&nbsp;
Blockchain assists accounting services in preventing and reducing fraudulent activities due to the cryptographic security mechanisms that protect against unauthorized access. Another way of supporting safety in accounting is securing financial data through advanced cryptographic encryption. Blockchain can prevent unauthorized alterations in the transactions via the consensus mechanisms that verify and record those operations.&nbsp;
Finally, as in blockchain, there is no need to rely on a third party; decentralized storage minimizes the risks of cyberattacks. For instance, Deloitte relies on machine learning in blockchain that helps check, mark anomalies, and set a risk rate for the transaction.&nbsp;
Nevertheless, it is important to remember the existing threats of cyber attacks on the users&rsquo; non-custodial wallets, smart contracts, and network nodes. The intermediary can store data in a centralized server, making it vulnerable to a single-point attack, while in the blockchain, decentralized storage eliminates this single-point failure and reinforces tamper resistance, making the records immutable based on the blockchain hashing.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Efficiency</h3>
Blockchain in accounting applies smart contracts that automate financial transactions. Manual intervention and processing are not required. The ledger facilitates real-time financial reporting, so&ensp;there are no delays in data processing. The distributed nature of the ledger allows auditors to determine if the transaction was legitimate. Overall, blockchain improves the efficiency of accounting services by minimizing the need for repeated data entry, which minimizes human errors.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Cost Savings</h3>
Blockchain minimizes overhead and manual transaction processing by excluding the dependency on third parties and eliminating the need to perform manual audits.&nbsp;
Blockchain favorably affects compliance costs by ensuring automatic alignment with accounting regulations. Finally, blockchain minimizes costs associated with error corrections and fraud detection.&nbsp;
<h2 dir="ltr" style="text-align: justify;">How Can Blockchain Be Used in Accounting?</h2>
Indisputably, the organization specializing in accounting can benefit significantly from integrating a decentralized ledger due to improved security, optimized time, and efficiency in verifying and operating transactions. But what are the practical examples of blockchain in accounting? Let&rsquo;s clarify.
<h3 dir="ltr" style="text-align: justify;">Auditing and Assurance</h3>
Traditional accounting depended on third-party confirmations to check and verify whether the financial record was legitimate. Audits were time-consuming due to manual proceeding and verification. Blockchain functionality is based on the smart contract, which benefits audit compliance. It is possible to pre-program specific financial processes to follow audit rules automatically. Auditors don&rsquo;t have to wait for periodic reports. Instead, they can access data in real time.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Tax Compliance</h3>
Traditional manual tax management faced the challenges of income misreporting or purposeful dedication, which led to tax evasion and non-compliance. Here on, tax audits can be time-consuming to complete.
Integrating blockchain into accounting can eliminate invoice falsification. Smart contracts can automate the process of invoice verification in real-time prior to processing the tax claim. However, the correctness of data depends on the source information checked by the accountants. The immutable ledger ensures no record can be altered, eliminating the manipulation of tax-relevant data. Finally, due to the integration with the API of tax offices, smart contracts can calculate and file tax automatically based on recorded transactions.&nbsp;
<h3 dir="ltr" style="text-align: justify;">Payroll Management</h3>
Payroll management encountered the dilemma of ghost employees who could divert and manipulate funds. Implementing blockchain technology in accounting can eliminate potential fraudulent actions in the following ways. Smart contracts can contribute to payroll automation by the automatic proceedings over the salaries only when the predefined conditions are met. Secondly, in blockchain, the payments will be analyzed only when the ID of the verified worker matches with the work records. The next point is that blockchain ensures the records are tamper-proof, meaning that no insider can manipulate the payroll records.
<h3 dir="ltr" style="text-align: justify;">Supply Chain Finances</h3>
The accounting organizations faced the problem of delayed payments from suppliers. The issue emerged because of the prolonged manual invoice verification. Moreover, manual reconciliation between vendors and clients delayed accounting processing. As blockchain provides real-time reconciliation, it can be integrated to eliminate the presented problems. This translates to real-time transaction recordings, removing the need to carry out manual reconciliation. One of the examples of blockchain in accounting is EY&rsquo;s blockchain analyzer reconciler applied to reconcile and match transactions. The approval of received items stimulates automated payment processing, which eliminates data manipulations, providing accounting with real-time financial tracking.&nbsp;
<h2 dir="ltr" style="text-align: justify;">Agilie, Your Reliable Partner</h2>
Agilie is a European IT outsourcing organization that crafts from scratch and optimizes software solutions that align with our clients' boldest ideas. Specializing in fintech, mobile banking, and payment solutions, our software benefits multiple industries, including fintech, marketing, logistics, healthcare, real estate, etc. We aspire for client-centricity by aligning with the client&rsquo;s unique needs and embedding them into effective and time-preserving SDLC-based product development.&nbsp;
Our&nbsp;<a title="blockchain software services" href="https://agilie.com/expertise/fintech/blockchain-software" target="_blank" rel="noopener">blockchain software services</a>&nbsp;include:&nbsp;
<ul style="text-align: justify;">
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Blockchain Development
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NFT Crafting
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Smart Contract Development
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Decentralized Finance Development
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<h2 dir="ltr" style="text-align: justify;">Conclusion</h2>
The article answered the question of how is blockchain used in accounting by demonstrating its advantages and use cases. Blockchain technology excludes the reliance on intermediaries and streamlines efficiency by minimizing manual reconciliations and ensuring security and cost-effectiveness.
Smart contracts automate the transaction verification process, can prevent data falsification, and, by operating on decentralized storage, will make sure that no single entity will have control over the financial records and operations. Therefore, it is important to collaborate with skilled IT professionals who can integrate blockchain technology into your system to ensure the security and integrity of your accounting processes.
<a class="incut--wrap" style="transition-property: all;" href="https://agilie.com/contacts" target="_blank" rel="noopener" aria-label="incut"><img style="float: left;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1739370637771.png" width="100%" height="100%" />Don&rsquo;t hesitate to contact us if you want to integrate blockchain into your accounting services.</a>

Delve into the cases of how is blockchain used in accounting, including its benefits and examples.&nbsp;

Delve into the cases of how is blockchain used in accounting, including its benefits and examples.