The future of software development for MLM business. Data logging on the blockchain

Security and data integrity are critical for any business, including network marketing. Today, implementing blockchain solutions into company workflows is the most reliable way to protect information. In this article, we will explain in more detail how to save on protecting critical data without sacrificing the quality of work tools.

What is blockchain and what lies ahead for it

Blockchain (English blockchain) — is a decentralized technology designed to protect assets (both tangible and intangible). The technology has particularly revolutionized the financial sector (in particular, it has increased the security of financial transactions). Read more about the technology in the article Blockchain Serving MLM Companies

Blockchain is positioned as a secure way to store information, eliminating data theft, fraudulent activities, and the like. The technology is constantly improving and moving to an entirely new level of application. Forecasts for the near future:

- the number of blockchain startups in new and existing business niches will significantly increase;

- many companies are moving the storage of critical data to the blockchain;

- the throughput of financial transactions and overall work quality will improve;

- companies implementing blockchain technologies will become even more attractive to investors and consumers;

- competent application of blockchain integrations in business will provide a significant temporary competitive advantage for companies that are the first to implement it in their field.

Forecast of future business software development

Template software (software) will become even more outdated and will not correspond to modern business management realities. Speaking of MLM, standard software simply cannot perform tasks of narrow specialization. Unique businesses with a unique marketing plan require unique solutions.

To keep up with the times, entrepreneurs must choose individual development solutions. Considering the importance of data security, automation, rationalization of software algorithms, increasing business competitiveness, an increase in demand for individual blockchain solutions is expected. 

However, such blockchain platforms require:

- huge computing power. Manipulating blockchain data requires resources of computing systems, which leads to an increase in the cost of renting or purchasing servers; 

- significant time and financial costs on development and especially refinement. Given the specifics of building blockchain solutions, in most cases, refinements and improvements will require full-fledged development almost from scratch.

The FlawlessMLM team has created and successfully tested a more advantageous hybrid model for implementing blockchain in business — software (platform) is created in a centralized manner, with blockchain used as a tool for logging critical data (e.g., for reward allocation or distributor structuring). The decision on which data is considered critical and requires blockchain logging is made by the development team in collaboration with the client during the technical specification discussion phase.

Combining individual development and blockchain logging. How it works

Now, let's talk more about logging. Logs (log files) are files containing system information about specific user or program actions. Their purpose is to log operations performed automatically by the machine.

To ensure the customer's platform works as fast and efficiently as possible, and its development is not too costly and time-consuming, we suggest logging the most important parts of the company's workflow algorithm. We reiterate that the choice of data to log is made by the development team together with the customer during the technical specification discussion stage.

Combining centralized software and logging data in the blockchain is the most advantageous solution for importing blockchain into business in terms of resource efficiency and effectiveness. This is the path that modern network businesses will take.

Benefits of Combining Centralized Software with Blockchain Logging

Essentially, such a solution filters out the negatives and preserves the positives of solutions developed entirely on the blockchain.

- Cost Reduction. Each change made to the blockchain is akin to new development, as according to the principles of the technology, edits cannot be made to the implemented algorithm. Therefore, it is more economically advantageous to separately develop the project's software and log critical algorithms on the blockchain that do not need frequent updates.

For instance, conditions of temporary bonuses or seasonal promotions should clearly not be integrated into the blockchain ledger.

- Transparency. While a partner's personal data remains protected, every participant in a private blockchain will be able to track all transactions made to their public address. Such transparency is the main principle of how blockchain operates and one of its key advantages.

FlawlessMLM projects implement a transaction scanner, which is accessible through a separate link. It allows viewing the history of operations by filtering them by distributor login or operation type.

- Security. Blockchain is now seen as the optimal way to secure financial (and any other) transactions. You guarantee distributors that the marketing plan will work flawlessly, commissions will be paid out clearly according to the agreed terms of cooperation, and even if desired, no one will be able to manipulate transactions or deceive partners.

Pitfalls or Weaknesses of the Technology

Despite the many advantages of implementing blockchain, in the case of some company data, it is not entirely relevant— for example, for calculating bonuses in MLM project accounting systems. Sometimes its application harms the business more than it helps. For example, blockchain:

- causes additional complexities when making changes to the bonus calculation system. In practice, no network company has been able to implement a blockchain marketing plan that works quickly and correctly.

- may turn out to be irrationally expensive. Blockchain software, by default, is more complex - its development requires significant technical resources, and testing and debugging the software code takes a lot of time. Additionally, considering the speed of technological advancement, the software will need constant improvement and updating of its functionality.

- implies payment of additional fees for the owner company. Indirectly, these costs often fall on the shoulders of partners, reducing the competitiveness of the business.

The right way to select areas for future data logging is to delve into the specific features of each individual project.

To learn more about the application of blockchain technology for your business and see examples, you can ask our specialist directly in the chat:

The company FlawlessMLM has become the first and only developer to implement such a technological solution in business. Become one of the first blockchain companies in your niche with us. We will also assist with the development and improvement of the marketing plan. To learn more about solutions for your business, contact our manager in the website chat