Research of the Block Chain Technology Free Essay Example

INTRODUCTION

The sole purpose of this paper is to give a detailed and enhanced elaboration of the previously written papers. Furthermore, show the interest in the research of block chain and its implication while also providing its technical aspects.  Research design and methodology paper has narrowed down the specific questions, aims of the research paper and helped to design a blue print for this paper. The paper will give readers the knowledge to analyze its outcomes, analyze its data and experiments its proposed solutions for the future works and projects.

BACKGROUND

All the Cloud and Financial Technologies that exist in todays world are highly Centralized and even though Cloud Computing implements Distributed Systems they are under an organization which is controlling them and that makes them centralized in terms of concept also. The most popular Cloud Services available today are Google Cloud and Amazon Web Services. Amazon holds 60% of the internet share and is very dangerous because of the Centralization. All the Financial Systems in the world which exist today are highly Centralized and you have to be answerable to them even though it’s your own asset and it does not provide any anonymity which is highly dangerous.

Blockchain provides Immutable Distributed Ledger and anonymity while processing transactions. Data on Blockchain is not owned by anyone and all the data is stored on nodes in encrypted form. It is safe because all Cloud Services store your data raw and they also use it to train their systems. Blockchain is not owned by anyone that is why your data is owned by you only.

METHODOLOGY

This paper give an elaborated explanation of the methodology which states that the block chain application for cloud computing and financial infrastructures.

• Proposed Methodology and Justification: The research paper discusses the problems which might be concerned with the numerical facts and figures but on the base of it all, the paper depends on the journal and ideas. The whole idea of block chain is dependent upon mathematics and numbers. Although this paper is not an answer to the technical problems but is something that plays a role of a guide or a qualitative approach of practical world views or an evident which might help readers to understand more of the technology and benefit from it.
• The Qualitative Aspect: The sole purpose of the research is to gather all the required information, facts, figures, news, articles, journals and different white papers provided by the block chain firms to see the progress and current situations on the block chain technology. The aim is to research on different websites which display all the crypto currency coins in the crypto eco-system with respect to its value and capitalization. As well as the government policies and rules and regulations concerning block chain. The outcome of these findings is to explore the depth on the field of block chain and its applications, to clearly evaluate the upcoming projects and applications.
• Proposed Experiment Design: (Nakamoto 2008) was the first one to introduce the idea of block chain through his paper. He proposed to create an alternative for electronic cash system that provided peer-to-peer online payments without the need of a middle man or banks. The basic concept was the digital signature, using hash function for financial timestamp and constructing chain adding each successive block with respect to the previous block. The only way to change or fraud the block chain is to start at the beginning and change the time stamp on all the blocks which is practically impossible as the verification of transaction is done by miners throughout the globe. The problem of double spending can be solved by limiting the transaction cost from peer-to-peer.
• Transactions: To explain the transaction, the owner of the coin signs the hash of previous transaction before handing the coin to the next owner using the public key. Whereas the payee confirms the transaction using his private key. The apparent problem is the verification whether the coin is double spent or not, called mint, which can’t be done by the payee. Mint is crucial for each successful transaction therefore as soon as the coin is in the mint the transaction is publically announced to all nodes to verify is the coin is the same as the one first received and is not spent.
• Time Stamp Server: For the integrity of the process the time stamp server is crucial. All block must be time stamped on the date of occurrence and with respect to the previous block to generate hash and publish it.
• Proof of Work: Proof of work is used for the transaction verification and time stamp server implementation. In this procedure the miner use their computational power to solve the mathematical puzzle for creation of new block. In this process miners check the hash value and match it with the hash to add it to the block with most nodes accepting it as a valid transaction and valid block. Bit coin Blockchain use SHA-256 algorithm for the creation of block hash. In proof of work miner solve the SHA-256 algorithm puzzle which is a combination of merkle tree transaction hash, previous block hash and the timestamp server. The average work required is exponential in the number of zero bits required and can be verified by executing a single hash. For our timestamp network, we implement the proof-of-work by incrementing a nonce in the block until a value is found that gives the block’s hash the required zero bits. Once the miner mine the block it will add on the chain ad it will never change.

Network: There are 6 steps which can help implement the network over two or more nodes.

1. It is necessary to broadcast each new transaction over the network.
2. The broadcast is saved in block.
3. Proof-of-work is found for every respective block.
4. After proof-of-work, the block is broadcast.
5. Blocks are verified by nodes and checked for double spend.
6. After acceptation the node creates the next block in the chain.

DATA COLLECTION METHODS AND ANALYSIS

The complete process described depends on the making of new IT system which is a great innovative in the present era. Detailed case studies and knowledge collection have been done to support the finding of this paper.

• Design and Creation: The paper explores the previously unknown dimensions of the internet to benefit the world from the Nakamoto 2008 paper. The paper emphasizes on the technology and implementation of the block chain to provide people with a great intangible product.
• Case Studies: Case studies are the second greatest source to collect and gather data. In order to collect more knowledge many papers and case studies of great scholars have been found and investigated. The papers and case studies give us an in-depth study of block chain and distributed system to make it easier to understand and use.
• Limitations of Study and Ethical Issues.

The limitations considered are:

1. Mass Adoption: It is really necessary for the block chain to be used by mass population if we want the system to work efficiently and perfectly.
2. If there are not enough nodes the project would not gain momentum just like a telephone for instance.
3. Government Rules and Policies: another necessity is for the government to pass appropriate rules and laws so that people and banks find it safer and easier and invest in it. Few developed countries have shown interests in this technology and urge its people and banks to use it.
4. Cybercrimes due to Anonymity: due to the pseudo anonymity that it provides it can give new birth to cybercrimes and illegal activities.
5. Switching Cost: Switching to any new technology is always a headache due to the cost, time and training it requires.
6. Time Limitations: time limitations is also a great hurdle.

DISCUSSION

The result expected from this paper is to make the use of block chain vast and applicable everywhere possible. The possible way of doing this is to make the system reliable and distributed with lower cost and faster services. it suggests that we need to understand block chain in depth and have a full knowledge of how to implement layer system of network.

CONCLUSION

The research paper explains the technical aspect of how the payment can be securely proceeded between two individuals without the need of a middle man or a bank. Escrow mechanism can aid in the smart contracts to ensure greater trust. Moreover, the distributed system of block chain can be used to implement inventory system, digital identity with hash, digital voting and so much more. The decentralized system can lead us to solve big data problem where digital item is sent from peer to peer. This all can be done with reduced cost of storage, redundancy of data and many more issues of copyrights.

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