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A minimum loveable product, what is it and how does it work? If this issue is of great interest to you, click here ➦ and read our article! An MLP development for a startup is not easy, but surely manageable.

What are the Next Steps After Creating an MVP?

Entrepreneurship is getting increasingly popular nowadays. Plenty of startups emerge all around the world every single day, but only a few are destined for success. But how to be the lucky one? Frankly, there is no room for luck at all, as you can benefit only through hard, deliberate, and painstaking work.
In this article, we are going to pay more attention to digital startups. Everything begins with an idea. Besides, the market is rarely in standstill, so startups have as little time as possible to present their projects to the public. However, dream big, but take your time. The startup culture has a number of various challenges and problems, and this is why, we believe, it is an appropriate moment to introduce you to an MVP.
<h2 dir="ltr" style="text-align: justify;">What is a minimum viable product?</h2>
A minimum viable product definition more or less varies, since it is a concept. The term itself was coined and defined by Frank Robinson and popularized by Steve Blank and <a href="https://en.wikipedia.org/wiki/Eric_Ries" target="_blank" rel="nofollow noopener">Eric Ries</a>. The latter wrote The Lean Startup, a work that determined the formation of many companies. He defines an MVP as &ldquo;that version of a new product a team uses to collect the maximum amount of validated learning about customers with the least effort.&rdquo; The approach is proved to be rather efficient, and many large international companies used it in the beginning.
As a result, we can conclude that an MVP is a fully operational web or mobile application with enough functionality to meet the requirements of early users and gather feedback. &ldquo;M&rdquo; and &rdquo;V&rdquo; stand for minimum and viable. The general idea is to comprehend the required minimum and make it equally viable. The use of the concept of a minimum viable product became a common practice in the IT industry, for it allows startups to understand whether their product is able to attract potential users without investing much time and money.
<h2 dir="ltr" style="text-align: justify;">How to build an MVP?</h2>
It is quite a challenge to introduce a new product to the market. The market is full of companies that rushed all-in on a new product and failed to fit customer needs. That is why one needs an MVP. Of course, a new idea will totally excite you, but for your own good, cool down a little and carefully consider how to create a minimum viable product. The first thing to do is to conduct a proper market and competitor analysis. It will provide one with answers to the following important questions:
<ol style="list-style-type: decimal;">
<li dir="ltr">
What audience are you targeting by your product?
</li>
<li dir="ltr">
Your app is capable of solving a particular problem, isn&rsquo;t it?
</li>
<li dir="ltr">
Will your product stand out?
</li>
<li dir="ltr">
Are there any rivals on your way?
</li>
<li dir="ltr">
How will you generate money by it?
</li>
</ol>
Starting a minimum viable product development makes sense only if you answered yourself all these questions.
Let&rsquo;s model a real-life situation: you&rsquo;ve come up with an original idea of how to provide people with shelter. Usually, a house has a foundation, one or several floors, and a roof. However, despite all the progressive construction methods, it still takes plenty of time. In the meantime, the user wants the solution as soon as possible. Will he or she be pleased with only a foundation and several walls? Definitely not, since even a basic version of the project has to solve the main problem, and the major purpose of a shelter is to evoke a sense of security in people. As a result, such an approach is not feasible. It would be more appropriate to begin with a simple hut, later you can pitch a tent, then you will be able to build a bungalow, whereas the final product might even be a skyscraper.
<img src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/998/content_mvp_2.jpg" alt="mvp key features" width="800" height="511" />
Such a scenario is also applicable to the IT industry. Moreover, almost every currently popular startup had been a rather primitive one at one point, and gradual development brought them to success. Pursuant to Go-Globe latest data, 74% of high growth internet startups are set to fail owing to premature scaling, while startups that expand properly perform a 20-fold faster growth.
Have you ever heard about such minimum viable product examples? Everyone is aware of what Airbnb is now, plenty call upon its services on a daily basis, but only a few can recollect how it looked like in the beginning. Facing the problem of paying rent and lack of cash, Brian Chesky and Joe Gebbia decided to share their apartments with attendees of their hometown conference at a minimum charge. They launched a minimalistic website, posted some photos of the apartment and that is it.
After a while, demand for the services skyrocketed. Their concept of a minimum viable product managed to prove its feasibility. As of today, Airbnb not only leases millions of flats all around the globe but also provides a number of other options, namely yoga lessons, canyon rafting, cooking classes, various wildlife encounters, etc. After such prosperous startups, one will no longer doubt about how useful could be an MVP development for a startup.
The things are similar when you decide to build a web or mobile app MVP. Eventually, what you need is to create a basic version and improve it according to the feedback you get. If you are still wondering how to make use of an MVP, take these aspects into account as well:
<ul style="list-style-type: disc;">
<li dir="ltr">
Find your target audience and understand its needs and expectations. Before wasting thousands or hundreds of thousands on product development, make sure you are building something the customer needs and, it is vital, can afford.
</li>
<li dir="ltr">
Build an MVP for a particular platform. Do not try to please everyone at once. Even if you have enough funds, it is wiser to choose one of the platforms at first.
</li>
<li dir="ltr">
List the features you want to introduce. Many young entrepreneurs start panicking when it comes to what MVP key features should be initially implemented. Only basic, but fully operational ones have the right to exist on this early stage. Their major goal is to allow users to solve their current issue, nothing more.
</li>
<li dir="ltr">
If you plan to build an MVP, do not set a long-term target, get it done gradually, step by step; do not plan anything way ahead. The urgent issue is to attract users. There is no use scheduling other upgrades whereas the product enjoys poor demand.
</li>
<li dir="ltr">
Perfectionism can backfire in the circumstances. One should deliver a real working product, not eye candy. Although your minimum viable product examples may have a catchy design, admirable visuals, and plenty of functions, the user might show a little interest in it, for it does not solve its problem.
</li>
</ul>
Without taking the above mentioned into account, an MVP&rsquo;s attributes will be neither minimum nor viable. We are still trying to convey the idea that there is no sense in implementing all the features at a time. This tips might encourage some entrepreneurs to stop and adjust the development process. They might even think something like that: &ldquo;Oh, OK, we&rsquo;ve substantially advanced with our project, but the whole thing is to bring a minimum viable product to the market, not a complete working product. It is better to define and temporarily remove currently unnecessary features from our MVP, improve the major ones, and release the product.&rdquo; And the approach will only favor them.
<h2 dir="ltr" style="text-align: justify;">How can startups benefit from an MVP?</h2>
It is rather hard to underestimate the impact of a minimum viable product development. There are a lot of reasons to implement the project with the help of the concept, but here we will try to underline the most valuable ones:
<ul style="list-style-type: disc;">
<li dir="ltr">
It slashes costs. High inputs frighten entrepreneurs the most. They often wonder how much does it cost to build an MVP. The figure can be attributed to many factors, since more complex projects need higher expenditures. However, when it comes to an MVP, it costs notably less (within $10,000-$20,000 on average), and a price of a mistake is substantially lower.
</li>
<li dir="ltr">
You are able to gather users&rsquo; feedback and test the product interactively. It allows you to collect information about the most and the least popular features as well as improve an MVP correspondingly. The product resolves a particular issue but has no additional functions so far, but early users are able to suggest improvements that might be introduced later.
</li>
<li dir="ltr">
It saves your time. Creating a minimum viable product mobile app as well as a web app requires as little time as possible. In addition, one can always adjust the development process. Earlier, custom software was developed according to initial specifications. But customer needs would inevitably change until it was completed. According to <a href="https://en.wikipedia.org/wiki/Lean_startup" target="_blank" rel="nofollow noopener">Lean Startup</a>, the startup MVP methodology we&rsquo;ve mentioned above, and Agilie team estimations, the first version of an MVP should take about 12 weeks or 3-4 months. Notably, this time includes not only programming but also design stages, that are an integral part of a minimum viable product development.
</li>
<li dir="ltr">
It enables you to attract investors and first paying customers. The benefits are obvious: your product starts generating money, thereby you can advance in adding new features to your MVP.
</li>
</ul>
<img src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/999/content_mvp_3.jpg" alt="how to build mvp" width="800" height="511" />
<h2 dir="ltr" style="text-align: justify;">Outsourcing or in-house team?</h2>
Although designing a minimum viable product is only a part of the development cycle and is optional, it would be rather essential if you have a scale project. But whom to make responsible for it? There are several ways to build an MVP.
On the one hand, nothing prevents you from creating a minimum viable product yourself. Yet, it requires a deep knowledge of coding and a huge amount of time. Remember, one has to represent all MVP key features in the best light for as little time as possible, because the market is constantly on the march.
On the other hand, you can put together your own team. Still, it is way more difficult. Here one will have to consider a bunch of various aspects besides the project itself. Hiring people is a time-consuming process, and it takes a lot more to retain them. Besides, the quality of the product might be affected, as a newly gathered team will hardly operate as smoothly as an experienced one. Another thing is that you can hardly predict the results.
Eventually, the most suitable option of how to create a minimum viable product is to outsource it. Let us consider the pros and cons of the approach.
Pros:
<ul style="list-style-type: disc;">
<li dir="ltr">
outsourcing companies traditionally have a full stack of specialists who are experienced in building a minimum viable product: business analysts, developers, designers, QA specialist, etc;
</li>
<li dir="ltr">
having a well-established development process, they will be able to deliver the final product of better quality in less time;
</li>
<li dir="ltr">
you receive a well-designed, convincing, and competent solution;
</li>
<li dir="ltr">
transparent and well-established communication process; the customer could always be in touch with a team, be aware of what is being developed at the moment, and what is scheduled for later;
</li>
<li dir="ltr">
in some cases, an outsourcing company from another country may cost you less, but this largely depends on where are you from.
</li>
</ul>
Cons:
<ul style="list-style-type: disc;">
<li dir="ltr">
services provided by experienced teams will surely cost you more;
</li>
<li dir="ltr">
sooner or later you will need your own team, since VC rounds favor startups with an in-house team, while some work can still be outsourced;
</li>
<li dir="ltr">
absence of frequent personal meetings due to different locations.
</li>
</ul>
All in all, a minimum viable product development is one of the most appropriate models for startup companies. It takes a little time to make an MVP for a startup and equip it with a basic set of functions that can address the user issue. It enables you to save time, money, and human resources if one is frugal with them. We hope that this article granted you all the information you needed.
Whereas you have any questions left, we&rsquo;re always ready to provide you with our expert advice. <a href="https://agilie.com/contacts" target="_blank" rel="noopener">Contact us</a>!

How to build a minimum viable product and what benefits does it have? These and similar questions are disclosed in our article!

How to build a minimum viable product and what benefits does it have? Whereas you are concerned about these and similar questions, click here ➦ and read our article! We will describe you how to develop an MVP in detail ✅

How Your Startup Can Reduce Development Costs with an MVP

Starting the next round to raise money for your project, keep in mind that you'll be able to interest investors only if you package your idea properly. The appealing pitch deck design in addition to a thoughtful story will help you make a positive impression on potential contributors. You'll be much more persuasive than your competitors, which means your chances of getting the investment can increase significantly.
In our article, we're going to describe to you 10 basic rules for creating the perfect pitch deck. Following these simple tips, you'll undoubtedly surpass your rivals, whose PowerPoint presentations will look poor in comparison with your beautifully designed project.
<h2 dir="ltr" style="text-align: justify;">#1 First slide - first impression</h2>
The first impression is your best chance. In fact, it's all you have. Alas, once you make the wrong move, you&rsquo;ll find it difficult to resolve the consequences. 
Having produced the undesired impression, you totally influence the opinion of the person, and not in a good way. And when it comes to the pitch deck design, the person we're talking about is your possible investor. The conclusion from this rule is extremely simple: you have to pay special attention to the first page of your presentation.
To encourage the investor to continue exploring your project, the first page should attract notice, intrigue, and, perhaps, amaze the imagination. Surprise your future contributors and make them look forward to reading more. Convince them that you are able to solve their most burning problems or implement a long-standing dream.
<img style="border: none;" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/2119/content_pitch_deck_design_2_updated.jpg" alt="pitch deck" width="800" height="586" />
<h2 dir="ltr" style="text-align: justify;">#2 Avoid large text blocks</h2>
Unfortunately, today we're not fond of reading. Of course, sometimes it is imperative but even then few people would be inspired by the huge canvas of the text. And your investor is no exception.
20-30 words are more than enough for a successful pitch deck design. The main thing is to make sure these words catch, enthrall, and convince your reader.
<h2 dir="ltr" style="text-align: justify;">#3 One thought - one image</h2>
To avoid overloading the pitch deck, break your thoughts into separate blocks. Each slide should be the answer to a specific question and express a single idea.
Do not describe the problem on 5 slides just because you have found so many cool associative pictures to supplement your phrase and want to use them all.
<h2 dir="ltr" style="text-align: justify;">#4 Diagrams are the best option for visualization</h2>
Most people love pictures, and if the image also has a certain meaning, its significance rises many times. Diagrams, graphs, and the like are very useful in this respect, for they can describe graphically different numerical data: changes in the market, company growth, increased profits, improved demand, - in general, any statistics. 
Let's summarize: the human eye perceives the information submitted in a graphics format better, and therefore it is necessary to actively use it when creating a pitch deck design.
<img style="border: none;" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/2120/content_pitch_deck_design_4_updated.jpg" alt="pitch deck design" width="800" height="511" />
<h2 dir="ltr" style="text-align: justify;">#5 Association with your company</h2>
We hope your project is a holistic brand with its character, positioning, corporate identity, and other important attributes. If we are wrong, then, first of all, you should take care of this issue.
If you have successfully overcome the branding phase, make sure that the pitch deck design is a logical addition to your company and its continuation. To create a well-rounded image, use the logo, writing style, branded fonts, and colors from your brand book or style guide.
<h2 dir="ltr" style="text-align: justify;">#6 Find a balance between slides' number</h2>
A small number of pitch deck slides is just as bad as their excessive quantity: in the first case, you won't convince investors, in the second - you risk tiring them. So you have to find your golden mean. 
No one can help you in this matter, it's meaningless to give universal tips. Everything depends on the essence of the project, your ability to summarize the thoughts, and the persuasiveness of the arguments given.
<h2 dir="ltr" style="text-align: justify;">#7 Don&rsquo;t forget about the main &ldquo;W&rdquo; questions </h2>
When creating a pitch deck design, remember the five key "W" questions. Answering them, you'll be able to argue your position soundly and convince investors to make an impressive contribution.
<img style="border: none;" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/2121/content_pitch_deck_design_3_updated.jpg" alt="design" width="800" height="586" />
<ol dir="ltr">
<li style="text-align: justify;">WHAT? What do you offer? What problem do you solve? This is the positioning of your product. Describe it in a capacious and bright way.</li>
<li style="text-align: justify;">WHY? That is, why do you need raising money for your project? And why do your possible investors need your project implemented? &nbsp;It&rsquo;d be reasonable to bring a list of your benefits.</li>
<li style="text-align: justify;">WHOM? Whom will are you going to interest in your product? Describe your target audience.</li>
<li style="text-align: justify;">WHERE? Where are you planning to sell your product? Where will customers find it?</li>
<li style="text-align: justify;">WHEN? When do you want to get started? When are you expecting to cross the break-even point and start making real profits?</li>
</ol>
Your entire pitch deck is, in fact, an expanded answer to these questions. Make them extremely clear and precise, they shouldn't require additional explanations.
However, our next rule is devoted to this very moment.
<div class="blog-banner__wrapper blog-banner__wrapper--large"><a class="blog-banner__link" style="background-image: url('https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/1175/learn_more_1.png');" href="https://agilie.com/services" target="_blank" rel="noopener"><img class="image-incut-hide" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/1175/learn_more_1.png" alt="Convincing Pitch Deck Design" width="850" height="300" /></a>
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<h2 dir="ltr" style="text-align: justify;">#8 Try to be as clear as possible</h2>
Remember about "the simplicity of genius", as they call it. Use clear associations, both verbal and graphic ones. Do not overload your pitch deck design.
Don&rsquo;t try to complicate the presentation, thinking that such an approach will make you look smarter or more innovative. Speak with your contributor in his language (since you've answered the &nbsp;"Whom?" question, you already know who he is, your potential investor).
<h2 dir="ltr" style="text-align: justify;">#9 Single style instead of chaos</h2>
This rule resonates with the fifth item we've described earlier. Your pitch deck design should cause associations with the company and be created in a single harmonious style. It applies to everything: the color scheme, fonts, the manner of expressing thoughts, the nature of the images used, and other similar factors.
Otherwise, your presentation will look unconvincing and unprofessional. It may seem that you have not given it enough time and effort. And if so, contributors can have a reasonable question: is it worth investing in a project which isn't able to inspire anyone, even its creator?
<h2 dir="ltr" style="text-align: justify;">#10 Color matters </h2>
Effective pitch deck design directly depends on the chosen color scheme. This may surprise you, after all, the color seems to be such trivia, why should you pay attention to it? However, the successful closing of your round is too important a goal to neglect any detail, even if you think it's insignificant 
So, what should you do to choose the right color palette?
<ul dir="ltr">
<li style="text-align: justify;">Think about the psychology of colors. Each color evokes its emotions and associations. Try to match the purpose of your project.</li>
<li style="text-align: justify;">Analyze your competitors. You need to understand why they&rsquo;re using this particular solution - and surpass them.</li>
<li style="text-align: justify;">Find the correlation between the design solutions and the success of the closing round.</li>
<li style="text-align: justify;">Follow the trends. Being old-fashioned is sometimes useful, but not in the case when you are trying to interest investors in the relevance of your idea.</li>
</ul>
According to statistics, some pitch deck designs garner attention thanks to a moderate color scheme, while other companies use a lot of colors and, too, receive the investments they need. It all depends on the specific situation.
<h2 dir="ltr" style="text-align: justify;">Summary </h2>
As you see, the pitch deck design is quite a complicated task, there are many nuances, which should be taken into account. And the final goal is high - to get money for your project! 
Imagine, you can gain tens of thousands of dollars (or even millions) of investments by spending just a few thousand to properly design your pitch deck. It&rsquo;s worth trying, right?
After all, people always judge by appearances, and your project will certainly meet the same fate. So help them make the right decision. 
<div class="blog-banner__wrapper blog-banner__wrapper--large"><a class="blog-banner__link" style="background-image: url('https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/1166/contact_us_1.jpg');" href="https://agilie.com/contacts" target="_blank" rel="noopener"><img class="image-incut-hide" src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/attachments/1166/contact_us_1.jpg" alt="agilie.com/contacts" width="850" height="300" /></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; white-space-collapse: preserve; background-color: #ffffff;">Dive into our article about 10 fundamental rules for crafting the perfect pitch deck for investors.

10 basic rules for creating the perfect pitch deck. Click here to find them out!

10 Rules of the Convincing Pitch Deck Design

Do you need to add authentication to your app? We suggest using Auth0, this great service for implementing auth in modern apps.

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How to start a crowdfunding campaign? We know all the secret and would be happy to share our expertise with you. &nbsp;

How to start a crowdfunding campaign and connect to potential investors? Read our tips to find it out! ►Start a successful crowdfunding project and build a professional landing page. Be on top! 

11 Tips for Building an Outstanding Landing Page for Crowdfunding Campaign 

How much does it cost to create an app? We can help to figure the issue out! Click here and read all about the cost of making an app and ways to reduce your expenses.

How much does it cost to create an app? The question would be of interest to anyone who wants to order mobile application development and start earning. We can help to figure the issue out ☝ Click here ➣ ➤ and read all about the cost of making an app and ways to reduce your expenses.

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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>
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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.