Understanding Blockchain Technology: Features, Challenges And Architecture

Introduction to Blockchain Technology

Discuss about the Concept Of The Blockchain With Regards To The Features, Challenges And The Architecture Of The Technology.

In recent times the concept of blockchain is playing a very vital role in the area of record of the database or public ledger. The aspect of the block chain can be considered to be a part related to the digital event and transactions that have been executed and directly shared among the participation parties. The information or the data ones it is inserted into the database cannot be modified or erased. The concept of the block chain consist of the data which are very much verified taking into aspect every single transaction which are initiated. One of the best example which can be stated in this context is the bit coin. Being the best example it can be stated as one of the most controversial one due to the factor that it helps in the aspect of enabling ““multibillion dollar global market which is related to the anonymous transaction without and control of the government”. It can be stated here that the concept of the blockchain is itself cover all and many of the research are being conducted in the field which directly reflects the overcoming of the issue by which it is highly implemented in the sectors of finance and non-finance.

The main focus point of the report is to take into consideration the different aspects which are related to the concept of the blockchain with regards to the features, challenges and the architecture of the technology. The aspect which is related to the socio technical field are also majorly discussed in the report.

Architecture

The architecture which is related to the aspect of the technology of blockchain can be considered as an application which is ingenious, which is very much like a database of transactions that run on a server which is distributed designed as a ledger which is distributed. The system in this context can be considered as a decentralized system which are powered by the nodes which run on full stack. In the server the application are installed and it is directly synchronizing with other nodes which are directly present in the network. The main role of the server is the aspect of maintaining the rules of cryptography which is based upon consensus. The validation and the authentication of the transaction of the user are done in a manner of chronology without any involvement of any third party.

Features

Features of Blockchain Technology

The main feature which is related to the concept of the blockchain are stated below:

• Providing authentication: there are different cases which are related to the authentication of the document of the user and the data of the user which can be considered as a very important sector. Most of the organization have different types of data which may be crucial for them and they may also include assets and contracts. When any data is stored in the concept of the database, it results in the creation of a hash function using the concept of the algorithm which of length which is fixed and very much unique for each and transaction which is made through it.
• Decentralized system: the concept which is applicable to the aspect of the decentralized technology states that the user would be able to store their own assets in the network which can be retried from the concept of the internet. The assets can be anything from the range of tokens, contacts, chain of evidence or property registry documents. Through the concept of the decentralized system the owner would have the direct control over the data by means of a private which is unique for every user who tend to store the information which is directly linked to the assets for their easy access. The concept of the easy access can be considered one of the most important sectors related to the use of blockchain technology.
• Distributed ledger: The block chain concept can be considered as a ledger which is for the public which provide all the information of all the participants who are involved into the transaction. The concept of block can be considered as one of the sectors in the aspect of the block chain technology which has a very important role to play. The block hold the data of the user and ones the transaction is completed the data would be transferred to the clock chain. The clock chain can be considered as a sequence of space which hold the data of the user. A new block is automatically generated ones a previous block gets entered into the block chain database.

Challenges

There are different types of challenges which are faced in the sector of the block chain technology which are stated below:

• Integration with the legacy system: In order to move towards the concept of the block chain an organization must either completely overhaul their previous system or find a way to integrate the existing system with the block chain solution. It can be stated here that the process of blockchain. It can be stated that the interaction with the system can be considered one of the most vital aspects which would be playing a dominating role. Is very much difficult to handle taking into consideration the different functions, which are related to the organization. In order to get a good and smooth process there should be considerable amount of changes in the infrastructure of the existing structure.
• Initial cost: The concept of block chain can be considered as an approach, which have different types of benefit such as efficiency, productivity, timeliness and reduced cost it can be considered expensive in the initial set up process. The software requirement which is related to the concept of the block chain must be typically be developed for the specific firm and is therefore stated as expensive from the purchase point of view, developed in- house or acquire.
• Consumption of energy: The ethereal network and the bit coin network both use the concept of proof of work mechanism to validate the transaction, which are made in the concept of the blockchain. The mechanism has a requirement of computation of complex mathematical problems to process and verify the transaction and directly secure the network. This type of calculation require large amount energy, which would be used to power the computers to solve the problem [1].

Currency

It can be stated here that the simplest form of crypto currency or the digital currency are the concept if the coin. The means of doing transaction in this concept id done by means of electronic network. The user can make direct transaction by using this process by check, wiring and cash. The user can use the concept of the virtual currency which is one of the best example in such type of cases. The more the value of the currency more would the user want security of the transaction. In most of the cases, it is seen that traditional system usually hire a mediatory such as a remittance company or a banker to ensure the concept of the trust, which would be applicable in the transaction. The concept can be a global concept ranging from the user from Rome, Yemen, Vermont and so forth. Records in this concept can be considered as comprehensive, permanent and public. This is the main reason why the user actually want to involve into the concept. The concept of block chain directly reduces the cost due to the factor of transparency and the use of the cryptographic methods which allow to certify with the low cost and the verify without the cost. The transaction, which can be directly guaranteed, are not just for the concept of currency but also transfers of anything digital representation. Intermediate when necessary would be secured by the means of transaction with multiple signers [5].

Smart contracts

Smart contracts can be considered as a digital device, which are embedded with an if-this-then-that (IFTTT) code. The block chain concept not only waives the direct need for the third parties but also it ensures that all the ledger participation know the contract details and that terms which are related to the contractual implement automatically ones the conditions are meet. The user can use the concept of the smart contacts for different sort of situations such as the property law, insurance premium, crowd funding agreement and many more. Few of the example relating to the concept may include the blockchain healthcare, blockchain music and blockchain government [5]. The health care aspect can be used for saving the data of the person, which is encrypted and mainly very much secured from the interference of any of the third party. In most of the cases, it is seen that the blockchain concept gives a better infrastructure of the system, which can be directly implemented to get advantage.

Challenges of Blockchain Technology

Block chain smart contract

The main aspect which is related to the socio technical aspect which is related to the block chain can be stated in the form of the voting system which impacted the sector of the common people who did not get any type of assurance relating to the concept [5]. The concept which is related to the blockchain ledger provided the platform which is related to the responsive open data according to the report of the 2013 from the McKinney the company open data concept made in the accessing of the government sourced which was difficult. In most of the concept relating to the concept of block chain stated that the data would not be accessible by any other person and the access would be given to the person who has the overall charge of the system. In most of the cases the unauthorized person can directly access the data and use them for their own benefit which may include the sector of the transformation in the security of the user who had the overall charge of the data.

Currency

The socio impact can be related to the aspect of the bank sector even. In most of the cases it is seen that the data is stored in the server of the bank and the permission of the access is given to only those individual who have the overall control of the data. In most of the cases it is seen that the person would be able to access the features of the system without any proper knowledge of the aspect which is related to the security of the data. In the sector of the bank it can be stated that the security of the data play a very vital role which should be involved in the overall aspect of the operation of the data [3].

Conclusion

The concept of block chain can be considered to be playing a vital role in recent times as well in the future. It can be stated that in the future more of the technologies aspect would be related to the sector of the blockchain due to the factor that there are many advantage aspects which are related to the aspect. In most of the cases it is seen that the concept has played a dominating role like the bank and the accounting sector as well.

References

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