The Blockchain is primarily described as an ever increasing list of records that are known as blocks and which are linked with the use of cryptography. These block chains could be read by the public and are used by cryptocurrencies. The technology of Blockchain is continuously growing in the form of completed blocks [2]. These are recorded and are then added based on the chronological order. This technology would be helpful for the participants within the market in order to keep a certain track of the transactions made through digital form of currency. Each node within the Blockchain network would receive a copy of the Blockchain that would be downloaded on an automatic basis.
A ‘block’ within the Blockchain technology could be defined as the recent form of transactions that would be recorded. Once the transaction gets completed, the block would move into the Blockchain and would get stored within the permanent database. Each time the processing of a block gets completed, a new form of Blockchain gets generated on an automatic basis. There are numerous number of blocks within the blockchain technology. These blocks are added with the help of cryptography and would thus ensure that the data does not get distributed [1].
The technology of blockchain also has the severe form of potential in order to impact the use within the institutions as they perform various operations based on processing and conduction of business scenarios. The blockchain technology helps in providing a secure of ledger based transaction with the help of a decentralized network based system. The blockchain technology has the major form of potential for reducing the costs of operation, create various forms of transaction based records that would be immutable and secure operations [3]. They are also able to enable the transparent form of ledgers that would provide instant form of updates and open various forms of opportunities for the growth of the technology.
The system of blockchain would comprise of several nodes that would have a local copy of a ledger. In most of the systems, the nodes based within the blockchain would primarily belong to many organizations. The different nodes would be able to communicate within each other in order to deal with an agreement based within the contents of the ledger. This would not require any form of central authority in order to coordinate and validate for the set transactions. Different forms of algorithms have been developed in order to act according to the architecture of the blockchain technology [4].
(Fig 1: Working of Blockchain Technology)
[4]
The primary features of blockchain technology are:
1. Improved Security – The blockchain provides a better form of security measures within the security systems. The highest form of financial based systems are vulnerable to get hacked. The network of blockchain are mostly secured with several computers known as nodes. These are responsible for confirming the network based transactions.
2. Immutability – The primary technology of Blockchain provides the main values of the creation of immutable ledgers. Any form of database that would be centralized is mostly subjected for getting hacked as they require trust based on third party for maintaining the security of the database systems.
3. Faster Settlement – The traditional form of banking systems could be slower in transaction when they would require a lot of settlement time. This is the prime reason for the banking systems to get updated regularly. This problem is thus solved with the help of Blockchain technology as they have the potential for settling the transfer of money at higher speeds and accuracy [5].
The challenges that are mainly faced within the blockchain technology are as follows:
1. Initial Costs of Setup – The implementation of blockchain technology would require expensive forms of software that need to be set up within the organizations. These organizations also need to purchase expensive and specialized form of hardware systems for the use of the technology.
2. Consumption of Energy – The blockchain technology would require the mechanism of proof-of-work. This would be meant in order of validating the transactions made within the blockchain technologies. Hence this system would require higher use of computational problems for the purpose of verification and processing of transactions [6].
3. Public Perception – Though the technology of blockchain is increasing rapidly, yet the knowledge of the technology of ledgers is still vague to some of the people and industries who are in the process of adoption of blockchain based solutions.
Blockchain technology has some of the applications within various sectors. Some of the applications within the technology include Currency and Internet of Things. The impact of the technology within this sector are:
Bitcoin can be defined as the primary form of decentralized form of currency in the world and hence is attracting much attraction in the last years. The blockchain technology makes the usage of bitcoin. The information gained from the transactions are kept updated within every devices of the world in a simultaneous manner [9]. Bitcoin could be defined as one of the newer form of generation of decentralized method of digital based currency that would work within the internet framework. The emission of the currency in bitcoin could be easily executed with the working of billions of computers from all over the world. They make use of the programs, which are based on the calculation of mathematical algorithms [8].
Experts within this technology have predicted the bright and big future of the blockchain technology. This technology also ensures the authenticity of the conducted transactions, which could only be confirmed within the parties who are involved within the transactions. The validity of the transactions would not be confirmed by any form of third person or regulating based parties.
IoT based technologies have hugely transformed the offline objects and have made them vulnerable to e-threats. The nodes within the blockchain network are equivalent to the objects that would be connected within the ecosystem of IoT. The IoT based in blockchain technological network would be helpful in connecting cars, connected homes and objects. This would also allow for a secure and reliable form of underlying network.
With the help of blockchain based technology, different individuals would be able to form an agreement within themselves in order to purchase a self-driven vehicle and thus share the reports based on their maintenance. With the help of blockchain in order to manage the accessibility to data from the IoT based devices, any attacker would be able to bypass the additional security layer [7].
The blockchain technology could be used for tracking many of the connected devices within the IoT framework. This would help in enabling the process of transactions and maintain coordination between several smart devices. The cryptographic based algorithms could be used by blockchain in order to privatize the data of the consumers. In the network of IoT, the use of blockchain would be able to keep an absolute record of the history of the number of connected devices within the internet framework. This feature would be would be helpful in enabling the autonomous based functioning of the smart devices.
The digital based currencies are built with the help of breakthrough technology. Charities and various foundations make use of bitcoin in order to collect funds and cryptocurrency forms of donations directly from the donors. The digital based currencies such as bitcoin and blockchain technology provides greater form of aid in the conduction of transactions for social causes. The civil society and government agencies also leverage the use of blockchain technology in order to strengthen the processes of democracy and thus help in healthy form of participation. The blockchain systems that includes Ballot chain is able to manage the conduction of online elections with the help of anonymous and secure methods of voting [10].
The maintenance of the stability within the systems has a higher form of social importance. The stability within the systems should be maintained properly. The financial based systems are extremely vital for the welfare of the society. The legal framework within the social systems have evolved in the recent years with newer form of technologies [11].
With the extensive development of the internet platform, the IoT has made tremendous growths within the development of important applications. There are several forms of social and technological aspects based on IoT within the blockchain technology. Although the blockchain technology is not able to solve all the problems that occur, it could be a factor of transformation and thus would empower the services in order to improve the current form of systems [12].
The IoT could be useful in overcoming the social and technological challenges that are concerning the blockchain technology. The solutions developed within the IoT framework would be of great help in supporting the demand for the connected form of devices and gathering the offered services [14]. IoT based solutions could be useful for addressing the privacy and concerns for security that would surround around the devices and the data that would be collected, generated and thus the entire processing of data. Blockchain based technology has gained a wide attention within the IoT based solutions. IoT based solutions have also a greater impact within the financial domain where Blockchain would be able to create promising form of applications that could be leveraged in order to solve the issues based on privacy and security [13].
Conclusion
Based on the discussion from the above report, it could be concluded that the blockchain technology would be complementary within the within the possibility space within the future world. Blockchain technology is one of the popular and has the highest form of impact within the applications in Bitcoin. The technology has greater form of impact and has wider scope of development based on the newer technologies. With the help of the blockchain technology, any kind of transactions would be performed easily. They are also performed in a cheaper manner. They would also be benefited from the security of the protocol. There is a growing trend of improvisation within the financial and government based institutions. There are also greater form of social expectations based on accountability and form of responsibility. Hence, the effective form of blockchain technology would also reflect an emerging based trend in order to prioritize transparency based on transparency. The blockchain technology also helps in providing several form of platforms in order to provide better form of actions based on good or bad. The technology of blockchain also promotes the power from central based systems across a wide based community.
References
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, A., Miller, A., Shi, E., Wen, Z., & Papamanthou, C. (2016, May). Hawk: The blockchain model of cryptography and privacy-preserving smart contracts. In 2016 IEEE symposium on security and privacy (SP) (pp. 839-858). IEEE.
Cachin, Christian. “Architecture of the hyperledger blockchain fabric.” In Workshop on Distributed Cryptocurrencies and Consensus Ledgers, vol. 310. 2016.
Xu, Xiwei, Ingo Weber, Mark Staples, Liming Zhu, Jan Bosch, Len Bass, Cesare Pautasso, and Paul Rimba. “A taxonomy of blockchain-based systems for architecture design.” In Software Architecture (ICSA), 2017 IEEE International Conference on, pp. 243-252. IEEE, 2017.
Glaser, Florian. “Pervasive decentralisation of digital infrastructures: a framework for blockchain enabled system and use case analysis.” (2017).
Underwood, Sarah. “Blockchain beyond bitcoin.” Communications of the ACM 59, no. 11 (2016): 15-17.
Crosby, Michael, Pradan Pattanayak, Sanjeev Verma, and Vignesh Kalyanaraman. “Blockchain technology: Beyond bitcoin.” Applied Innovation 2 (2016): 6-10.
[8] Pilkington, Marc. “11 Blockchain technology: principles and applications.” Research handbook on digital transformations(2016): 225.
Buterin, Vitalik. “A next-generation smart contract and decentralized application platform.” white paper (2014).
Lustig, Caitlin, and Bonnie Nardi. “Algorithmic authority: The case of Bitcoin.” In 2015 48th Hawaii International Conference on System Sciences (HICSS), pp. 743-752. IEEE, 2015.
Mallard, Alexandre, Cécile Méadel, and Francesca Musiani. “The paradoxes of distributed trust: peer-to-peer architecture and user confidence in Bitcoin.” Journal of Peer Production 4 (2014): 10.
Heiskanen, Aarni. “The technology of trust: How the Internet of Things and blockchain could usher in a new era of construction productivity.” Construction Research and Innovation 8, no. 2 (2017): 66-70.
Dupont, Benoit. “Cybersecurity futures: How can we regulate emergent risks?.” Technology Innovation Management Review3, no. 7 (2013).
Damiani, Ernesto, Ryszard Kowalczyk, and Gerard Parr. “Extending the outreach: From smart cities to connected communities.” ACM Transactions on Internet Technology (TOIT) 18, no. 1 (2017): 1.
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