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Remember when Korben Dallas in The Fifth Element movie wakes up and so does his apartment. Music starts to play, lights turn on, the bed makes itself. We can say that 21 years later we still don&rsquo;t have flying cars, but we control our houses with simple smart home apps. The future of smart home market looks attractive with <a href="https://agilie.com/blog/fresh-trends-in-smart-home-apps-development">emerging trends</a> and increasing awareness of consumers in safety and security, personalized experience as well as the adoption of cloud-based technologies.
In this blog post, we answer 5 questions that will help you to improve and better understand your smart home idea.
<h2 dir="ltr" style="text-align: justify;">Is your smart solution really smart?</h2>
Over the last years, there has been an increased interest in the smart home. Many world tech companies have announced that they are going to make the smart home their next big thing and invest in it. However, let&rsquo;s sort out, what is smart and what is the difference between the smart and connected device?
For many years we have been using a variety of automated devices in our houses: home thermostats, remote light switches, and others. Recently, manufacturers have started to add web connectivity to these devices, which makes it possible for users to manage and monitor them from anywhere at any time using a smartphone. These devices are known as &ldquo;connected&rdquo;. However, some marketers mistakenly call them &ldquo;smart&rdquo; devices, which they are not. A real smart device contains a certain intelligence, which is located in the cloud. As an example take a smart leak detection system. In case it detects a leak, it automatically turns off the water and prevents any damages.
A&nbsp;smart solution is a solution behind the smart home idea. Yet, the use of an intelligent device in the home, which is labeled as a smart home product doesn&rsquo;t make a home smart.
The crucial components of a smart home are integration and expansion. For example, some malfunctions in your kitchen sink have appeared. In this case, your smart home connects online to your plumber to make an appointment for a service day. Knowing your work schedule, it gives a one-time door access code that deactivates your security code and lets the plumber enter your house and fix the sink. At the same time, you can watch the plumber&rsquo;s progress through your security camera.
Smart home apps should bring value, be convenient in use, and solve real problems that users face. Imagine that your smart home acts as your assistant who is able to prevent, reveal, and fix disruptions that happen to users during their everyday lives.
<h2 dir="ltr" style="text-align: justify;">Is it equally smart and user-friendly?</h2>
There is a common problem that draws users away from purchasing a smart home app: the inconvenience. Smart devices are all about interfaces and easy integration into people's lives. Users want to have simple navigation and one best home automation app to control all devices. Assume that a person has a smart home equipped with several IoT devices: a thermostat to control temperature from a smartphone, smart lighting to remotely turn on and off the lights or a robot vacuum cleaner with remote control. For now, we have three different smart home apps, which a user has to manage. Because these apps are not integrated into one platform, it provides users with a headache instead of a comfort.
In a perfect world, it would be possible to control a house using a single app or interface. For example, with a voice assistant, a user can control everything without a need to type in the action. The examples of such devices are Alexa, Siri, Google Assistant. There are two options to access these voice assistants: either through a smartphone or if buying a special device that can handle all voice commands.
Another opportunity for a user to control everything using a single device is a smart home hub. A smart home allows integration between all smart home devices to perform various tasks and control of those devices in one interface. It is possible to set up the temperature and lights using the same app.
This certainly makes controlling various smart home devices much simpler and with the voice control, you won&rsquo;t be hunting for your phone to turn on the lights.
<h2 dir="ltr" style="text-align: justify;">Is your target market right?</h2>
The smart home market continues to grow. If previously smart home automation systems were considered as a luxury, today more households are considering to equip their houses with smart home devices. However, before developing the next product, it is worth approaching each country differently. According to a forecasting study conducted by Berg Insight, by 2020, 91 million homes in Europe and North America will be smart. 
The home automation industry analysis shows that the USA is the best smart home market across the globe followed by Europe. It is expected that by 2021 there will be 73 million smart homes in North America, which equals 55 percent of all homes. Americans are ambassadors of a comfortable lifestyle. The most preferred products in smart homes are smart lighting, security systems, lighting, audio systems, and climate control. 
European smart home market is not that big as in the USA. The key opportunities for the smart home market in Europe are energy and cost saving, security and convenience, and more. For example, Scandinavian countries drive the development of alternative sources of energy and for them, the smart home is a way to save natural resources. Southern European countries have lower standards of living, thus people there are less interested in the adoption of smart home automation systems. Those who live in Portugal or Spain save as much as possible on heating.
 The United Arab Emirates is the leading country in the adoption of home automation solutions. Because of the constant heat, the country residents and tourists spend most of the time in air-conditioned premises. For this reason, climate control devices are the most popular in UAE. UAE is also known as one of the safest countries in the world. Many people don't even lock their cars. Taking into consideration this fact, smart home security systems are less popular. But due to high utility bills, residents of UAE concentrate on saving.
Due to the increasing adoption of cloud-based technologies, increasing population and standard of living, the Asia Pacific region is expected to have the highest adoption of smart home applications. It is expected that the Asia Pacific smart home market will reach US$115 billion by 2030, which will account for 30 percent of the global share.
<h2 dir="ltr" style="text-align: justify;">Can your application ensure security?</h2>
More IoT devices increase the chances of hacking. Consequently, it is essential for both developers and users to take care of safety and privacy vulnerabilities. So what are the ways to keep smart home security and avoid being hacked?
<ol>
<li dir="ltr">
Using two-factor authentication can save you from a phishing attack. When you log in from another device or location, you are required to enter an additional password that might be sent by SMS or automatically generated by your phone. In this case, even if the hackers get your password, they won&rsquo;t be able to log in.
</li>
<li dir="ltr">
Complete security updates. Neglecting software updates can cause dangerous malware. Most smart home devices don&rsquo;t update automatically that&rsquo;s why once a month users should check their smart home appliances for firmware updates.
</li>
<li dir="ltr">
Don&rsquo;t use public Wi-Fi. When accessing your smart home remotely, avoid using public Wi-Fi networks. Hackers can use them to get access to your home.
</li>
</ol>
Providing that developers and consumers adhere to the highest level of <a href="blog/mobile-app-security-risks-and-their-impact-on-your-business" target="_blank" rel="noopener">mobile security</a> on all devices, home automation solutions can bring many benefits to our lives.
<h2 dir="ltr" style="text-align: justify;">Have you paid enough attention to a mobile application?</h2>
Wearables and smart home devices eliminate the need for computer screens and keyboards, which brings new ways for users to interact with devices in more unexpected ways.
We have reached the point when we can totally control our house: temperature, lights, security, air pollution, etc. Modern IoT smart home apps take care of users&rsquo; comfort and safety.
Wearables and smart home devices eliminate the need for computer screens and keyboards, which brings new ways for users to interact with devices in more unexpected ways.
 The graph below shows that the market for the smart home is growing. It is clear why many companies invest in smart home application development. But to succeed in this market, it&rsquo;s worth paying attention to the app&rsquo;s usability, design, and set of features.
<img style="width: 700px; height: 347px;" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/584/content_statista.png" alt="smart home trends" />
Source: <a href="https://www.statista.com/statistics/682204/global-smart-home-market-size/" rel="nofollow">Statista</a>
Design
While some IoT devices user can control via mobile apps, others require the use of voice interactions. As IoT development becomes a bigger part of our lives, we may expect a rise in new user experience design. Design of internet of things app should be user-friendly, provide value and positively impact the user&rsquo;s day-to-day routine. If designers use best practices and create technology that will connect the creativity with true usefulness, then IoT devices will successfully position themselves.
It&rsquo;s not that simple to design a user experience for IoT products. IoT systems consist of several devices, a number of interfaces and apps with various functionality, and user rights distribution. It is not enough to build a set of cross-device user flows for an IoT product. It is more important to create a user experience that will help people to manage IoT product with ease. &nbsp;
Most connected IoT devices are mobile. Design for smaller screens should be responsive, which means in response to the user&rsquo;s behavior and environment based on the UI&rsquo;s size.
<img style="margin: 5px; width: 800px; height: 600px;" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/583/content_sh_animation.gif" alt="" />
Smart Home App Concept by Agilie Team
Making your app accessible
This is the most basic and important feature in the mobile monitoring system for the smart home for a smart home. Just using a special smart home monitoring app, the user can control home appliances like doors and lamps with a touch of a fingerprint. The user is able to control his house from anywhere at any time.
Accessing user configuration 
The homeowner should have admin rights, which requires setting up an access configuration. In this case, home automation would have the correct access and avoid mistakes.
Sending push notifications
Notifications show users the status of all the integrated devices in the house. If a person forgets to turn off the lights, close the garage or doors, the system sends instant notifications.
<h2 dir="ltr" style="text-align: justify;">Summary</h2>
Soon owning a smart home device may not be a matter of a choice but rather a necessity. Shortly when buying a light switch consumers won&rsquo;t have another option but to buy a smart light switch.
If you are considering to enter IoT market and start home automation business but still wonder how to implement all of your smart home business ideas, <a href="https://agilie.com/contacts">get in touch</a> with our experts who will give you a technology consultancy and project estimation. We also invite you to read our <a href="https://agilie.com/success-stories/smart-home-app" target="_blank" rel="noopener">latest case study</a> on smart home safety and <a href="blog/what-can-make-your-smart-home-product-more-attractive-for-users" target="_blank" rel="noopener">mobile security software</a>.

The future of smart home market looks attractive with <a href="https://agilie.com/en/blog/fresh-trends-in-smart-home-apps-development">emerging trends</a> and increasing awareness of consumers in safety and security, personalized experience as well as the adoption of cloud-based technologies.
<div>&nbsp;</div>

Read this article to know how to start home automation business

What Can Make Your Smart Home Product More Attractive For Users

Over the years technology has been growing exponentially, and the smart home sector is not an exception. New home technologies consist of devices and services that are connected to the internet and to each other. The user can access and manage them remotely using mobile devices.
According to <a href="https://www.gartner.com/smarterwithgartner/will-5g-boost-the-adoption-of-smart-living/" rel="nofollow">Gartner</a>: &ldquo;Consumer spending on connected home devices will total $189 million in 2018, and increase 18% from 2017&rdquo;. <a href="https://www.gartner.com/newsroom/id/3598917" rel="nofollow">Analysts also predict</a> that by 2020 the number of connected things will reach 20,4 billion worldwide and 12,8 billion of them will be for the household and not for business. In 2018 we already see a rise in new home automation technology such as connected home appliances.&nbsp;
<img src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/3304/content_content_statista_1.jpg" alt="" width="719" height="473" />
 &nbsp;
Forecast market size of the global smart home market from 2016 to 2022 (in billion U.S. dollars)
Source: <a href="https://www.statista.com/statistics/682204/global-smart-home-market-size/" rel="nofollow">Statista</a>
The graph above proves why many startups and enterprises are investing in new smart home technology. We all want to know that our house is properly secured and that even when we are away, we can still control and monitor our house using mobile devices. The adoption of the Internet of Things has already captured smart home enthusiasts. We noticed new smart home technologies that are appearing and leading companies are embracing these new trends.&nbsp;
In this blog post, we are going to look at some key trends in smart home app development that will transform our everyday lives in 2018 and beyond:
<h2 style="text-align: justify;">Voice assistant integration</h2>
The competition among voice assistants is getting tougher. Thanks to it, more new smart-home products that can be managed by one or more voice assistants appear on the market.&nbsp;
In the past five years, voice-based technologies have experienced rapid growth in the consumer market. Market leaders such as Amazon, Google, Apple, and Samsung continue to enhance their product lines. According to <a href="https://www.prnewswire.com/news-releases/parks-associates-30-of-us-broadband-households-very-interested-in-controlling-smart-home-and-entertainment-devices-with-same-remote-300577420.html" rel="nofollow">Parks Associates</a>, over 37% of U.S broadband users find it appealing to use voice to control smart home devices.&nbsp;
For example, Whirlpool has already started building voice assistants into its appliances. During CES 2018, the manufacturer presented numerous appliances that a person can control using Alexa or Google Assistant. You can now set and start your dishwasher remotely by your voice or change the temperature settings of your refrigerator.
With a smart home platform like <a href="https://www.insteon.com/insteon-hub/" rel="nofollow">Insteon Hub</a>, a homeowner can control lights and appliances using a voice command to Google Home.&nbsp; In the future, we expect to have a number of voice-activated smart devices in our houses. We might no longer use light switches but instead give voice commands asking to turn and off the light. The same will be with HVAC systems, TV, and any other device.&nbsp;
<h2 style="text-align: justify;">Air quality monitoring</h2>
Most of our time we spend indoors, thus it should go without saying that indoor air quality greatly influences our health. The quality of air in the home can deteriorate while cooking or cleaning. Until recently it was difficult to measure the CO2 and dust in your air. With the growth of new home technologies, the situation had changed.
Nowadays, there are several air monitoring products on the market that send messages about the air in your home. These devices can be set up in the smart home and improve the quality of the air we breathe. Take a <a href="https://foobot.io/" rel="nofollow">Footbot</a> as an example. Footbot is a smart device that is capable of tracking four different air quality measures: particulate matter, chemical pollutants, humidity, and temperature. Footbot uses light from blue to orange to indicate air quality. If the light is blue the air is good, while orange means a decrease in quality.​
Another example of a device that tracks indoor air quality via the app is <a href="https://www.getawair.com/">Awair</a>. It displays a score out of 100 and offers tips on what to do if things turn bad. The higher the score the better. Awair measures harmful chemicals through Volatile Organic Compounds (VOC). The chemicals can come from anything (detergents, glue, etc.). Awair also has a dust feature, which displays the level of dust in the air. In addition, it can also measure humidity and temperature in your apartment.&nbsp;​
<h2 style="text-align: justify;">Leak detection and control</h2>
One of the biggest concerns for most homeowners is water leaks and their consequences. Especially areas with frequent floods and hurricanes suffer from the damage caused by the leak.
Unfortunately, by the time we notice a leak, it's usually too late and the house may already be damaged. For this reason, systems of leak detectors and valve controllers sound promising, Agree, that being able to prevent your apartment and the apartment of your neighbors from unexpected leaks is what we all need in our houses. Take a look at the <a href="https://getguardian.com/">Guardian</a>, a system of leak detection and a valve controller. In case the system detects a leak, it automatically shuts off your water thus preventing further damage. The system has simple installation and navigation.&nbsp;
<h2 style="text-align: justify;">Energy consumption monitoring</h2>
According to EIA, <a href="https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_3" rel="nofollow">electricity prices have increased by nearly 20% from 2007 to 2017</a>. For this reason, many consumers are considering adding home energy monitoring systems to their homes. With the help of these devices, it becomes possible to track how much energy your home is using. Based on this information, a homeowner can consume energy more efficiently.
For instance, the Wall Plug <a href="https://www.fibaro.com/en/products/wall-plug/" rel="nofollow">Fibaro</a> that was showcased during the CES 2018, allows you to monitor and manage devices using Z-Wave technology. By connecting the Fibaro to a standard power outlet, a homeowner can monitor energy consumption. The crystal LED ring changes the color reflecting the amount of energy that&rsquo;s being consumed. In this way, you can identify which devices consume the most power. The blue color means that less amount of used energy is consumed &nbsp;(e.g. lamp), while the purple color shows that the device temperature increases (e.g. washing machine).&nbsp;
<h2 style="text-align: justify;">All-in-one-systems</h2>
Home security solutions allow residents to monitor each room. With sensors and alarms being installed throughout the house, it is possible to discover any changes in the building. Whether it is smoke detection, open doors, or motion detection, the smart home system notices users about those changes.&nbsp; Unlike most home security systems, all-in-one systems require minimal installation. Each device comprises live-streaming cameras, motion sensors, arming and disarming functionality, and integrated sirens.&nbsp; An example of such a system can be, <a href="https://ajax.systems/">Ajax</a>, a wireless security system that can be easily installed, armed and disarmed, and monitored using your mobile device. Here is another example of a <a href="https://agilie.com/success-stories/smart-home-app">home safety solution</a>. Our team has developed an app where residents are able to receive temperature and humidity data from their apartment, as well as alarms for low battery level, fire, or motion. The solution has already been awarded the CES Innovation Honoree award during CES 2017.&nbsp;
<h2 style="text-align: justify;">Temperature monitoring</h2>
A remote temperature monitor in your home ensures the comfort and protection of your family and home. A digital thermometer tracks change in temperature and then sends data using wireless technology. A user receives data from a mobile device and can control thermostats and temperature levels anytime anywhere. With a digital thermostat, you can control any area of your home: pantry, aquarium, refrigerator, wine cellar, vacant residence, etc.&nbsp;
At CES 2018 a home security provider <a href="https://alarm.com/our-story">Alarm.com</a> had presented a smart thermostat, which monitors HVAC system and prevents homeowners from possible emergencies. A user can place remote temperature sensors in any room, attic, or basement and the thermostat will notify each time when the temperature is too low or high and also balance humidity and temperature to prevent mold and ensure comfortable living. ​​
<h2 style="text-align: justify;">The future of smart home technology is getting smarter</h2>
Several years ago, the idea of controlling your home appliances and security systems remotely using smartphones would have sounded unreal. But 2017 and 2018 prove that the smart home market is gaining momentum and new innovations coming out all the time.&nbsp;
Initially, smart home technology and <a href="https://agilie.com/blog/mobile-app-security-risks-and-their-impact-on-your-business" target="_blank" rel="noopener">mobile security software</a> were used to control HVAC systems, but today the use of technology in a way that almost every electronic mechanism in the house can be included in the system. In addition to turning on and off the devices, smart home technology can monitor what&rsquo;s happening in the house when the homeowner is away.&nbsp;
By utilizing smart home devices we can automate our daily routines and make our life more comfortable. It is likely that the adaptation of smart house technologies will soon become mainstream and an integral part of every apartment. It is no doubt that the future of smart home products and platforms is promising and worth looking forward to.&nbsp;
If you have an idea to build an innovative home automation product, <a href="https://agilie.com/contacts">get in touch with our team</a> so that our experts can give you technical advice on how to build new technology for the smart home. We're offering the best&nbsp;<a href="what-can-make-your-smart-home-product-more-attractive-for-users" target="_blank" rel="noopener">mobile security solutions</a>.

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<span style="color: #0d0d0d; font-family: S&ouml;hne, ui-sans-serif, system-ui, -apple-system, 'Segoe UI', Roboto, Ubuntu, Cantarell, 'Noto Sans', sans-serif, 'Helvetica Neue', Arial, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; text-align: start; white-space-collapse: preserve; background-color: #ffffff;">We can guide you on how to create an app like Periscope, including how much it will likely cost.

After the success of Twitter's live video streaming app Periscope, many app developers eager to use video streaming technologies in their projects. In this article, we'll calculate the world's average cost of development of an app like Periscope, and outline the main factors that influence the project development time and, therefore, its total cost.

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WhatsApp is the most sought-after application in 109 countries. But how to create a messaging app like WhatsApp?&nbsp;

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Snapchat Clone, or How to Make an App Like SnapChat

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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;">
<li dir="ltr" aria-level="1">
Blockchain Development
</li>
<li dir="ltr" aria-level="1">
NFT Crafting
</li>
<li dir="ltr" aria-level="1">
Smart Contract Development
</li>
<li dir="ltr" aria-level="1">
Decentralized Finance Development
</li>
</ul>
<a class="incut--wrap" style="transition-property: all;" href="https://agilie.com/success-stories" target="_blank" rel="noopener" aria-label="incut"><img style="float: left;" src="https://d3pxw3l8cozu05.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1739370581892.png" width="100%" height="100%" />Gain insights into the versatility of our tech experience with Agilie Success Stories.</a>
<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.
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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.