Discuss about the Report On Concept of Blockchain.
Blockchain can be defined as the continuously evolving and enhancing list of records. These records are known as blocks and these are subsequently connected as well as secured with the help of cryptography [13]. Each and every block comprises of the cryptographic hash of the block that is the predecessor. Moreover, it also comprises of the data transaction and the time stamp. When the design of the Blockchain is considered, it is inherently and eventually resistant to the data modification. Blockchain can also be referred to as the distributed and open ledger, which has the ability to record the transactions within the two parties. These transactions could be recorded effectively and efficiently in the most verifiable method [2]. Blockchain is considered as the most effective technology that would change the entire technological world with its uses.
The following report outlines a brief discussion on the entire concept of Blockchain. The report is divided into three parts. They are the Blockchain, its applications and the socio technical aspects of this technology. Relevant details will be provided here.
Blockchain is the new technology in modern world that provides easy money transfer and payment processing. Furthermore, it also monitors the supply chain and helps in sharing data or information [1]. The technology of Blockchain can be demonstrated in three aspects. They are the architecture, features and challenges.
i) Architecture: A Blockchain is the mesh network of various systems that are linked with one another and not with the centralized server [4]. The systems within this network solely define as well as agree on the shared data and thus adhere to the various constraints that are imposed on the data. The shared state is the machine of distributed state that has each and every block for the change. The various architectural components of the Blockchain are transactions, blocks, consensus and mining [11]. All these components could be generalized as well as implemented in several methods and hence leading to the most effective projects of Blockchain.
Transactions provide the Blockchain a proper purpose. These are the smallest blocks for building in any Blockchain system. These transactions usually comprise of a value, a sender address and a recipient address. This transaction helps to shift the value from one address to the next [12]. It changes the state of the corrected Blockchain. Each and every node eventually holds its own respective copy of Blockchain. The current state is then calculated by the processing of each transaction in the order they are appearing in the Blockchain. The format of the transaction is one or more inputs and one or more outputs. This input is the reference to the output over the last transaction.
The second component is the blocks [3]. These are certain data structures, where the motive is the bundling of transaction sets and be distributed with every node present within the network. These are created by the miners. Any specific block comprises of a block header that is the metadata, verifying the block validity. The metadata comprises of version, last block header hash, merkle root hash, time, nBits and nonce [12]. When the blocks are added in the Blockchain, it is tough to overwrite on the existing blocks.
The third component is mining. It is the procedure to put in real world work for creating the valid block, which is accepted by the remaining network. The miners take up the pending transactions and verify the accuracy for packaging them into various blocks [2]. At the higher level, the mining process involves hashing. It checks whether the hash is fitted into the difficult rules and if is not fitted, the nonce is altered again.
The final component is the checking as well as verifying the transaction validity or blocks. This is known as consensus [13]. This consensus is the codified rules collection that is self enforced. When the network of Blockchain grows large, the miners and the nodes eventually participate in it.
ii) Features: There are various features of the Blockchain technology. They are given below:
iii) Challenges: In spite of having various advantages and features, this particular technology do comprises of few challenges within it. The most significant challenges of the Blockchain technology are as follows:
The applications of Blockchain are present in every domain. Following are the two domains with relevant applications.
Currency: For the domain of currency, the most popular and suitable application of Blockchain is Bitcoin [6]. It is typical kind of crypto currency as well as payment system that is being utilized worldwide. It is the very first decentralized currency that is digital, since all the systems work without the help of any administrator or centralized banks. The network here is peer to peer or P2P and thus the transactions that take place are directly between the users and without the presence of any intermediary. All the transactions are properly verified with the help of network nodes, with the utilization of cryptography [5]. They are recorded in the publicly distributed ledger, known as Blockchain.
This particular currency was invented by an anonymous individual or group, with the name of Satoshi Nakamoto. Bitcoin was first released as the open source software in the year 2009. These are created as the rewards for a procedure called mining [7]. The bitcoins are exchanged with other currencies, services and products. It is widely utilized by various users worldwide. It provides hassle free transactions effectively as well as efficiently.
Internet of Things: The application of Blockchain in IoT or Internet of Things is the cooperatively owned self driving cars [10]. This is one of the major steps towards the technologically advanced society. With the help of the service that is based on Blockchain, various individuals can easily form a specific agreement within themselves for purchasing a self driving car and thus sharing the cost of maintenance amongst one another. Any particular cooperative group can form contracts with the other groups and thus share the usage of the vehicles within broad group. The individuals enter into the Smart Contracts, which define the ownership of machine, proper usage and requirements for maintenance [8]. Each and every group has their own agreement and thus can enter into new agreements with any other group. The reputation protocols enable the information, resources and services exchange in a group.
The date is centralized with any devices and group of individuals. The service providers eventually compete amongst each other for connecting with the trusted peers. The third feature is the improvement in the marketplace. It increases the efficiency for sharing the resources and thus determines the fair rate of exchange of data and information [9]. This is the perfect combination of IoT or Internet of Things or Smart Contracts and Blockchain technology.
Conclusion
Therefore, from the above report, it can be concluded that, Blockchain is the type of distributed ledger that helps to maintain a tamper proof as well as permanent record for data transactions. The Blockchain eventually functions as the decentralized database, which is controlled by the computer systems that belong to the P2P or peer to peer networks. All the computer systems within the distributed network maintain the copy of a ledger for preventing the single point failure or SPOF. All the copies are substantially validated as well as updated regularly. The Blockchains are linked with the digital currencies and the applications are explored in a cost effective and secured manner. The above report has outlined a brief discussion on the concept of Blockchain with its utilization and popularity. Various aspects of this technology like architecture, features and challenges are explained here. Moreover, the applications of Blockchain are also explained here. The final part has described about the socio technical aspects of the mentioned applications.
References
Swan, Melanie. Blockchain: Blueprint for a new economy. ” O’Reilly Media, Inc.”, 2015.
Zyskind, Guy, and Oz Nathan. “Decentralizing privacy: Using blockchain to protect personal data.” In Security and Privacy Workshops (SPW), 2015 IEEE, pp. 180-184. IEEE, 2015.
Kosba, Ahmed, Andrew Miller, Elaine Shi, Zikai Wen, and Charalampos Papamanthou. “Hawk: The blockchain model of cryptography and privacy-preserving smart contracts.” In Security and Privacy (SP), 2016 IEEE Symposium on, pp. 839-858. IEEE, 2016.
Pilkington, Marc. “11 Blockchain technology: principles and applications.” Research handbook on digital transformations(2016): 225.
Eyal, Ittay, and Emin Gün Sirer. “Majority is not enough: Bitcoin mining is vulnerable.” In International conference on financial cryptography and data security, pp. 436-454. Springer, Berlin, Heidelberg, 2014.
Yermack, David. “Is Bitcoin a real currency? An economic appraisal.” In Handbook of digital currency, pp. 31-43. 2015.
Androulaki, Elli, Ghassan O. Karame, Marc Roeschlin, Tobias Scherer, and Srdjan Capkun. “Evaluating user privacy in bitcoin.” In International Conference on Financial Cryptography and Data Security, pp. 34-51. Springer, Berlin, Heidelberg, 2013.
Bojarski, Mariusz, Davide Del Testa, Daniel Dworakowski, Bernhard Firner, Beat Flepp, Prasoon Goyal, Lawrence D. Jackel et al. “End to end learning for self-driving cars.” arXiv preprint arXiv:1604.07316 (2016).
Daily, Mike, Swarup Medasani, Reinhold Behringer, and Mohan Trivedi. “Self-Driving Cars.” Computer 50, no. 12 (2017): 18-23.
Lee, Gim Hee, Friedrich Faundorfer, and Marc Pollefeys. “Motion estimation for self-driving cars with a generalized camera.” In Computer Vision and Pattern Recognition (CVPR), 2013 IEEE Conference on, pp. 2746-2753. IEEE, 2013.
Cachin, Christian. “Architecture of the Hyperledger blockchain fabric.” In Workshop on Distributed Cryptocurrencies and Consensus Ledgers. 2016.
Back, Adam, Matt Corallo, Luke Dashjr, Mark Friedenbach, Gregory Maxwell, Andrew Miller, Andrew Poelstra, Jorge Timón, and Pieter Wuille. “Enabling blockchain innovations with pegged sidechains.” URL: https://www. opensciencereview. com/papers/123/enablingblockchain-innovations-with-pegged-sidechains (2014).
Pass, Rafael, Lior Seeman, and Abhi Shelat. “Analysis of the blockchain protocol in asynchronous networks.” In Annual International Conference on the Theory and Applications of Cryptographic Techniques, pp. 643-673. Springer, Cham, 2017.
Wright, Aaron, and Primavera De Filippi. “Decentralized blockchain technology and the rise of lex cryptographia.” (2015).
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