Learn about the SDLC vs. Agile product development specificity and their core differences.

Learn about the SDLC vs. Agile product development specificity and their core differences.

SDLC vs. Agile Development: Key Differences | Agilie

Explore what software reengineering is and the stages of its implementation.

Explore what software reengineering is and the stages of its implementation.

Software Re-Engineering and Re-Engineering Process | Agilie

Explore what is the Agile methodology of software development, its principles, and frameworks.&nbsp;

Explore what is the Agile methodology of software development, its principles, and frameworks. 

Agile Software Development Lifecycle: A Comprehensive Guide | Agilie

The project management life cycle is the complete process of initiating, planning, executing, controlling, and closing a project. Knowing these key project lifecycle stages can help organize it and focus on your projects. Each phase of the project management life cycle has specific goals, allowing you to track each step in detail throughout the cycle. In this blog post, we will look at what the project life cycle is, explore the five phases of the project management life cycle, and why the Discovery phase is helpful for production.
<div id="form-description" class="form-description" data-title="Key Takeaways" data-text="Understanding the project management life cycle is critical to the success of any project. The five phases - initiation, planning, execution, monitoring and controlling, and closure - provide a structured approach that ensures projects are completed on time, within budget, and to the satisfaction of stakeholders.
During the initiation phase, it's crucial to identify the project's purpose, scope, and stakeholders, and obtain buy-in from all involved parties. The planning phase involves detailed planning and setting of project objectives, resources, timelines, and deliverables.
The execution phase requires effective communication, collaboration, and project management skills to ensure the project runs smoothly, and the desired outcomes are achieved. During the monitoring and controlling phase, the project team monitors and adjusts the project's progress and makes necessary changes to keep it on track. Finally, in the closure phase, the project is reviewed, and the outcomes are documented.
By understanding these five phases and applying them to project management, organizations can increase the likelihood of project success and mitigate risks. Effective project management not only ensures the completion of a project but also improves team morale, stakeholder satisfaction, and overall business success.">
<div class="form-description-title">Key Takeaways</div>
Understanding the project management life cycle is critical to the success of any project. The five phases - initiation, planning, execution, monitoring and controlling, and closure - provide a structured approach that ensures projects are completed on time, within budget, and to the satisfaction of stakeholders. During the initiation phase, it's crucial to identify the project's purpose, scope, and stakeholders, and obtain buy-in from all involved parties. The planning phase involves detailed planning and setting of project objectives, resources, timelines, and deliverables. The execution phase requires effective communication, collaboration, and project management skills to ensure the project runs smoothly, and the desired outcomes are achieved. During the monitoring and controlling phase, the project team monitors and adjusts the project's progress and makes necessary changes to keep it on track. Finally, in the closure phase, the project is reviewed, and the outcomes are documented. By understanding these five phases and applying them to project management, organizations can increase the likelihood of project success and mitigate risks. Effective project management not only ensures the completion of a project but also improves team morale, stakeholder satisfaction, and overall business success.</div>
<h2 dir="ltr">Project management phases: Brief Overview</h2>
Project production is a set of activities that must be performed in a particular order within a given period. A project requires a system of processes and talented people to get the job done. All in all, it's not an easy feat!
Any project requires a comprehensive study of its life cycle. Knowing how each phase functions provides valuable insight into how to approach it.
The standard project management life cycle consists of five phases:
<ul>
<li dir="ltr" aria-level="1">
Project Concept &amp; Initiation
</li>
<li dir="ltr" aria-level="1">
Project Planning
</li>
<li dir="ltr" aria-level="1">
Project Launch or Execution
</li>
<li dir="ltr" aria-level="1">
Project Performance &amp; Control
</li>
<li dir="ltr" aria-level="1">
Project Close&nbsp;
</li>
</ul>
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1676406834071.png" width="2000" height="2700" />
Usually, when a new project is started, these five phases follow each other in order, but this is not always the case. For example, if there are any changes during the course of the project, you can return to the planning phase to accommodate the changes, but do not repeat the entire cycle again from the initiation phase.
This level of flexibility simplifies change management processes throughout the project life cycle.
What is the importance of the project management life cycle? This sequence of phases may seem like a formality to you, but it actually helps a lot with the implementation of a project plan. It allows you to apply an organized approach to project management. This means that you will have more obvious roles and responsibilities, improved communication, and stable results (and there will be many fewer omissions and forgotten tasks!).
<h2 dir="ltr">What are the different phases of a project?</h2>
The life cycle of each project includes several stages. Although there are different models of project life cycles, almost all of them include the following five phases:
<h3 dir="ltr">Phase 1: Project Concept &amp; Initiation</h3>
The first stage of the life cycle, initiation, requires a kickoff meeting that loops around the client and investor. Goals, objectives, doubts, fears, and any initial thoughts and ideas are discussed here. When decision-makers are not in the same place, you can look forward to organizing an online meeting for video chat or conference call to discuss the following topics for discussion:
<ul>
<li dir="ltr" aria-level="1">
Who are the investors and stakeholders?
</li>
<li dir="ltr" aria-level="1">
What is the vision and mission of the business?
</li>
<li dir="ltr" aria-level="1">
What are the expected timelines?
</li>
<li dir="ltr" aria-level="1">
What are the risks?
</li>
<li dir="ltr" aria-level="1">
What budget and resources are available?
</li>
</ul>
This phase includes the description of the project, the creation of a business case, the identification of key stakeholders, and the approval of the project by the relevant parties.
Start by drafting a project charter that outlines your initial ideas as well as the project scope and constraints.
When you get busy with tasks and deadlines, it will be very easy to forget the importance of the project. In fact, only 55% of the participants clearly understand the business goals of the project, mainly team leaders and project managers.
The project charter must include specific business benefits associated with your project. This will help you and your team members not only focus on achieving goals, but also ensure that time is not wasted in advance.
Drafting a project charter will help you provide leaders with specific facts and get their approval.
<h3 dir="ltr">Phase 2: Project Planning</h3>
During the planning phase of the project, the project manager establishes the purpose and scope of the project. In addition, project managers use this stage to determine the project budget, determine the required resources, and begin to organize a team to complete the tasks associated with the project. A feasibility analysis is testing the viability of an idea, for example, to ensure the project is legally and technically feasible as well as for economic profit.&nbsp;
Depending on the nature of the project, the project manager may create a report detailing the plan.
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1676406870064.png" width="2000" height="1000" />
The planning phase requires careful consideration of the many elements associated with your project. Among other things, these may include the following information:
<ul>
<li dir="ltr" aria-level="1">
Key roles and responsibilities
</li>
<li dir="ltr" aria-level="1">
Success rates
</li>
<li dir="ltr" aria-level="1">
Possible risks and obstacles that reduce efficiency
</li>
<li dir="ltr" aria-level="1">
Expectations for intra-team communication
</li>
<li dir="ltr" aria-level="1">
Project Schedule
</li>
</ul>
All of these elements should be described in a detailed project plan that you will present to the team at the kick-off meeting and then refer to throughout the project.
<h3 dir="ltr">Phase 3: Project Launch or Execution</h3>
Team leaders and project managers are involved in creating results, facilitating clients, completing tasks, implementing processes, and more. Direct communication at all stages of a project is essential and vital to the successful implementation of an idea.
Important at the execution stage:
<ul>
<li dir="ltr" aria-level="1">
Frequent meetings
</li>
</ul>
Keeping teams up to date with scheduled online meetings helps keep the project on track and on schedule. Timely and crystal-clear communication via video conferencing reduces blind spots, improves collaboration, and speeds up the movement of items in the pipeline.
<ul>
<li dir="ltr" aria-level="1">
Conflict Management
</li>
</ul>
Problems are inevitable. Reduce the likelihood of incidents by inviting the development team to speak up and voice issues or anything that could potentially become a weak point in the chain.
<ul>
<li dir="ltr" aria-level="1">
Progress reports
</li>
</ul>
Regular updates shared during a meeting session, or video chat help you stay ahead of the curve and catch issues before they happen.
<h3 dir="ltr">Phase 4: Project Performance &amp; Control</h3>
This phase requires a review to make sure everything is in line with what was previously agreed upon. What are the key performance indicators? What needs to be implemented in order to meet the deadlines and financial parameters?
Hold online meetings with key players for regular audits, reviews, and performance reports. You can give presentations remotely via video conferencing, including workflows, important documents and files, and anything else that needs to be shared.
During the monitoring and control phase of the project, the project manager oversees the execution of the project. They provide feedback to team members, make sure all project elements are on schedule, and remove roadblocks. By monitoring the progress of the project, managers can ensure that the scope does not increase and the project stays within acceptable time limits.
<h3 dir="ltr">Phase 5: Project Close</h3>
After completion of all work required at the implementation stage, the project moves to the final stage. Closeout starts when the user accepts the project deliverables and the project authority concludes that the project has met the goal. During the project closure phase, the project manager communicates the completion of the project to project stakeholders. By this stage, the stakeholders have all the results. Many project managers evaluate the success of a project at this stage in order to improve the lifecycle management process for future projects. Commissioning builds trust with stakeholders and has to be integrated into all stages of the project with a project management approach to ensure that each step of testing is successful.
Decommissioning means the termination phase of a project that is carried out in an orderly manner. It requires fulfilling standards to preserve important data, information, and documentation. If required, the data retained can be easily retrieved and utilized in the future.
<h2 dir="ltr">How the Discovery Phase contributes to efficient project management</h2>
The discovery phase <a href="https://agilie.com/blog/project-discovery-phase" target="_blank" rel="noopener">helps to assess</a> whether the company will be able to complete the client's project and how much it will cost. During the discovery phase, business problems are identified, the domain is explored, requirements are identified, and solution design is done.
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://d12zh9bqbty5wp.cloudfront.net/images/f9e66e179b6747ae54108f82f8ade8b3c25d76fd30afde6c395822c530196169-1676406904264.png" width="2000" height="1200" />
<h3 dir="ltr">Project schedule</h3>
Inception is carried out as a preparatory phase before starting work on the current project. The main goal is to detail the requirements, especially for the first iterations, so that the team does not have delays at the start. As a result of this research, you and your team should create a detailed backlog for the first few sprints of the project, at least basically decide on the architecture and approve the project schedule.
<h3 dir="ltr">Project team composition</h3>
Project team composition includes those who can help to lead the discovery work and who can make it feasible (developer), usable (UX-person who meets the users), and sellable (PO who knows the business).
<h3 dir="ltr">Project milestones</h3>
Discovery is a phased work. We go from global business goals and objectives to specific user actions in the system. After each stage, it provides a separate artifact with fixed requirements. Artifacts are conditionally divided into mandatory and optional, and the final set depends on the goals of the customer.
<h3 dir="ltr">Project budget</h3>
The discovery phase allows you to determine the project timeline and budget, specify the requirements for the final product, identify the needs of the end user and get feedback from them about the product.
<h3 dir="ltr">Project risks and challenges</h3>
In order to estimate the cost of the project and make a commercial offer to the client, it is necessary to conduct a Discovery phase or a complete analysis of all operations of the project implementation, risks, and challenges - from the emergence of an idea and business concept to the technical implementation of the expected product. This approach allows you to protect the client from unplanned costs and facilitate and clearly define the working conditions of the team that will develop the product.
<h2 dir="ltr">FAQs</h2>
<h3 dir="ltr">What are the objectives of each phase?</h3>
In the process of implementing a conceptual idea regarding the production process or other activities at the enterprise, several successive moments can be distinguished. So, it is customary to distinguish the following stages of the project life cycle:
<ul>
<li dir="ltr" aria-level="1">
Initiation - the idea is put forward, as well as the preparation of project documents. A detailed justification is being made, as well as marketing research, which will serve as an aid to the implementation of the subsequent stages.
</li>
<li dir="ltr" aria-level="1">
Planning - determining the timing of the implementation of the plan, dividing these processes into specific stages, as well as appointing performers and responsible persons.
</li>
<li dir="ltr" aria-level="1">
Execution - begins immediately after the plans have been approved. It implies the implementation in full of all planned actions.
</li>
<li dir="ltr" aria-level="1">
Controlling or monitoring - In this phase of the life cycle, the manager controls resources, quality of work and timely completion of tasks, coordinates team members, and promptly makes changes to the project plan in case of unforeseen circumstances.
</li>
<li dir="ltr" aria-level="1">
Completion - analysis of the received data and control for their compliance with the planned ones. In most cases, this responsibility rests with management.
</li>
</ul>
<h3 dir="ltr">What is the scope of each phase?</h3>
The costs of the project are directly dependent on its scope. Large projects require full-time workers, while relatively small projects with the same life cycle may only require part-time workers. Therefore, one person can be responsible for many projects in different life cycle phases. The management of the enterprise is responsible for periodic review of the most important stages of the project, which should occur at least at the end of each phase of the life cycle or after critical technological stages of the project.
<h3 dir="ltr">What are the deliverables of each phase?</h3>
The project deliverables include defining the product or services that are needed. The planning phase helps to set the budget and deliver project deliverables without exceeding it.&nbsp; In the Project Execution phase, the team will start creating project deliverables and achieve project goals and objectives as outlined in the project plan. In the Project Closure phase, the product is delivered to clients, the project manager will highlight strengths, list the takeaways of the project, and identify the unclearness.
<h3 dir="ltr">What is the timeline for each phase?</h3>
Regardless of which methodology is chosen for project management, each of them will always have a beginning, a middle, and an end. This is the life cycle of a project.
Project management can seem overwhelming at times. However, dividing a project into five distinct phases, called the project life cycle, will help the team manage time and resources wisely, which increases the chances of success for projects of any size or complexity.

Gain insights into five phases of the Project Management Life Cycle.

Gain insights into five phases of the Project Management Life Cycle.

Phases of Project Management Life Cycle | Agilie

SDLC is a process that consists of a detailed plan that describes all the details regarding the development, maintenance, and replacement/change of specific software. It is a methodology used to improve the quality of software as well as improve the overall development process.

SDLC, or Software Development Life Cycle, are the steps to create software applications. The development process is divided into tasks that then are assigned, completed, and measured.

What is SDLC? Phases of Software Development & Models

Explore the differences between the off-the-shelf ready-made solution or custom built from scratch software and how they align with the business needs.

Explore the differences between the off-the-shelf ready-made solution or custom built from scratch software and how they align with the business needs.

Build vs Buy Software: Guide to Choose the Best Option | Agilie

Nowadays mobile applications are a must-be thing in most businesses. The first step to creating an app is to choose a development approach, which would be productive, functional, and, of course, cost-effective. So, we are here to simplify your choice by considering a few popular development options (Native vs. Hybrid vs. Cross-Platform).
<h2 dir="ltr" style="text-align: justify;">Native Apps</h2>
The term refers to the creation of a mobile application exclusively for a single platform (Android or iOS). The development process is built on using programming languages recommended by the creators of the operating systems (Java or Kotlin for Android and Swift/Objective-C for iOS).
Pros of native app development:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Advanced functionality. Your developers get full access to OS&rsquo;s features (API and tools) and are able to create a secured and user-friendly application with powerful performance;
</li>
<li dir="ltr" aria-level="1">
Better store support. Publishing such apps to the App Store or Play Market is much easier. Moreover, native products are usually ranked higher on these platforms;
</li>
<li dir="ltr" aria-level="1">
&zwj;High performance and great UX. The interaction between software and hardware is easy and provides users with great performance. Furthermore, clients get a better user experience because native apps primarily have excellent interfaces and appearance (it is achieved through the use of Native UI).&nbsp;
</li>
</ul>
Unfortunately, sometimes it is impossible to take advantage of the Native approach due to its costs: you have to hire iOS and Android developers if planning to launch an app on both of these OS.
All cons:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Costly. Hiring iOS and Android developers is expensive;
</li>
<li dir="ltr" aria-level="1">
&zwj;Time Consuming. Developing takes a lot of time because two teams of developers have to work independently. Alas, code reuse is not possible;
</li>
<li dir="ltr" aria-level="1">
Complex application support (you can't opt out of both development teams).&nbsp;&nbsp;
</li>
</ul>
<h2 dir="ltr" style="text-align: justify;">Hybrid App Development</h2>
The Hybrid approach is known as a cheaper option, which allows building an iOS and Android app simultaneously and in less time. The codebase includes the code lines written in HTML, CSS, JavaScript, and other languages. Then they are wrapped into a native container: the WebView or Crosswalk. The WebView is responsible for user experience and the interaction with hardware (cameras, GPS, etc.). Therefore, there are some limitations and restrictions related to the functionality and user interface. The rendering engine is a browser that slows down the system.
The pros are obvious:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Lower development costs;
</li>
<li dir="ltr" aria-level="1">
Supporting different OSs at the same time (code reuse);
</li>
<li dir="ltr" aria-level="1">
Adequate customization capabilities.
</li>
</ul>
Cons:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Lower performance (however, users won&rsquo;t struggle);
</li>
<li dir="ltr" aria-level="1">
Inability to use certain operating system&rsquo;s functions;
</li>
<li dir="ltr" aria-level="1">
Lack of interaction with native applications.
</li>
</ul>
The Hybrid approach may be really useful if your priority is development speed and cost reduction: it allows you to present your own application in the shortest possible time.
<h2 dir="ltr" style="text-align: justify;">Cross-platform Applications</h2>
First of all, you should know that Hybrid and Cross-platform options are not the same things. The only similarity is code compatibility. So, the cross-platform dev approach implies the use of JavaScript language. Then the codebase is connected to native components with the help of special bridges.
The user experience and performance are close to native apps. The cross-platform development method offers seamless functionality, easy implementation, and cost-effective production. However, close-to-native UX is not native UX, you shouldn&rsquo;t expect something outstanding.
The cross-platform approach uses different frameworks, so the functionality and performance depend on them.
Pros:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Developers write code just once and use it for all platforms;
</li>
<li dir="ltr" aria-level="1">
Cross-platform applications are secure, stable, and easy to maintain and scale;
</li>
<li dir="ltr" aria-level="1">
There are many frameworks, which help to achieve the native app-like quality;
</li>
<li dir="ltr" aria-level="1">
Such apps feature a fast UI (is similar to Native);
</li>
<li dir="ltr" aria-level="1">
Development is cost-effective.
</li>
</ul>
Cons:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
Cross-platform applications are not as fast as Native ones;
</li>
<li dir="ltr" aria-level="1">
Not all OS features are available;
</li>
<li dir="ltr" aria-level="1">
Poor interaction with other native apps.
</li>
</ul>
<h2 dir="ltr" style="text-align: justify;">Let&rsquo;s Summarize</h2>
Before choosing a certain option, you should determine your goals, budget, and deadline.
<ol style="list-style-type: decimal;">
<li dir="ltr" aria-level="1">
A Native application is perfect if you have enough financial resources and time, and wish to create a wonderful solution. Maybe, you are planning to launch an app only for one platform that will save your money. You&rsquo;ll be able to develop another version of the app later.
</li>
<li dir="ltr" aria-level="1">
A Hybrid application is a good option if you are running a startup. In this case, you need a budget solution to create an app for both iOS and Android operating systems at the same time.
</li>
<li dir="ltr" aria-level="1">
Cross-platform development is ideal if your business requires a high-quality application, which would work on multiple operating systems. This approach may save your budget. It is a golden mean between the above options, so you shouldn&rsquo;t worry about performance and UX. Moreover, after a while, you can switch on the Native approach.
</li>
</ol>
Below we have given a more detailed comparison of Native, Hybrid, and Cross-Platform approaches.
<div>
<img src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/4375/content_native_vs_hybrid_vs_cross-platform-02-min.png" alt="" width="800" height="943" />
If your app doesn&rsquo;t have specific features, you can save your company&rsquo;s budget by giving preference to the Hybrid or Cross-Platform approach. Games, B2B, and content distribution apps are usually cross-platform.
In order to choose a suitable option, you should define:
<ul style="list-style-type: disc;">
<li dir="ltr" aria-level="1">
your target audience;
</li>
<li dir="ltr" aria-level="1">
the level of complexity of the app&rsquo;s functionality;
</li>
<li dir="ltr" aria-level="1">
whether you need native functionalities or not (features of devices and OS);
</li>
<li dir="ltr" aria-level="1">
the UI/UX level.
</li>
</ul>
<img src="https://d12zh9bqbty5wp.cloudfront.net/ckeditor_assets/pictures/4376/content_native_vs_hybrid_vs_cross-platform-03-min_1.png" alt="" width="800" height="580" />
Do you have difficulty choosing a particular approach? Feel free to contact us: our professional team is ready to consult you taking into consideration your goals and plans. Perhaps, the article &ldquo;<a href="https://agilie.com/blog/what-you-need-to-know-about-native-and-cross-platform-apps">What You Need to Know About Native and Cross-Platform Apps</a>&rdquo; will answer some of your questions.
</div>
&nbsp;

Not sure which development approach to take? We&rsquo;ve compared Native, Hybrid, and Cross-Platform applications to simplify your choice.

There are three development approaches, which have significant differences. In our new article, we have compared Native, Hybrid, and Cross-Platform applications

Native vs. Hybrid vs. Cross-Platform Apps: What is the Difference?

Considering a PHP development project? Then you need experts to help you. Follow the link and read how to find one.

Considering a PHP development project? Then you need cool experts to assist you. And our tips will help you find one 

How Much Does It Cost to Hire a PHP Developer?

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 blockchain can improve their operations (read more about <a href="https://agilie.com/blog/enterprise-blockchain-development-how-businesses-derive-benefits" target="_blank" rel="noopener">enterprise blockchain development</a> and <a href="https://agilie.com/blog/enterprise-blockchain-development-how-businesses-derive-benefits" target="_blank" rel="noopener">enterprise-grade blockchain development</a>).

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>

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