Blockchain: Revolutionizing Technology and Applications

Introduction

Market dynamics are attracting significant changes in terms of development and use of technology. Most of the disruptive technologies have impacted money transfers, payment processes, monitor the supply chains as well as influence data sharing among other significant technologies. The emergence of blockchain has essentially revolutionized the way people handle significant processes that entail data sharing, transaction data and digital transactions among other avenues. Basically, blockchain denotes a growing list of the records commonly known as blocks which are linked with the help of cryptography. Every block is said to entail a cryptographic hash of the prior blocks, transaction data as well as timestamp. Blockchain is known for establishing a decentralized environment with validated transactions as well as data being removed from the hands of a third party organization. With such capabilities, blockchain has found a place in the smart contracts, cryptocurrencies, video games, financial services as well as supply chain among other uses. In this sense, the report will focus on the blockchain itself, and then have a vast look at the applications of block before highlighting a case study linked to the research. If you need a IT dissertation help, blockchain technology offers a fertile ground for exploration and analysis.

Blockchain

Before looking at the applications of blockchain, it is important to understand what blockchain entails and its capacity to influence significant processes. The term blockchain was first coined in the year 2009 while denoting the source code for the known virtual currency Bitcoin. Apparently, the nodes would collect new transactions into a potential block before hashing them into a significant hash tree. The most interrelated terms linked to blockchain include Cryptocurrency, which is currency that exists digitally while taking advantage of the decentralized system, as well as initial coin offering, which denotes the first sale of the Cryptocurrency to the entire public [23]. Blockchain as a technology is essentially characterized by global usability, censorship resistance, carries a global network of the validators referred to as miners, immutability and maintains block rewards. Blockchain is also decentralized, which is a characteristic that makes it collusion resistance, fault tolerance as well as attack resistance [1]. The decentralization item is achieved through possible axes housed under software decentralization. The first axe is political decentralization, which means that there is nobody who can regulate or control it. The second axe is that of architectural decentralization, which means that there is no failure of the infrastructural central point [14]. The final axe is the logical centralization, which denotes the common agreed state thereby making the system to behave just like a single computer [24].

A better understanding of blockchain attracts significant bits of history as well as the architectural breakdown, which touches on significant elements of the entire technology. The entire idea of chaining the blocks together with the cryptographic hashes is said to have been in place since 1970s. In the year 1982, under the influence of Ralph Merkle, the cryptographic protocols stated evolving with data structures being named after him as it was being denoted as Merkle Tree [26]. With the use of peer-to-peer systems, most of the peers would end up sharing identical data with changes being detected almost immediately. Blockchain works more effective with data structures and would eventually be influenced by the network dynamics. The Git and networks of Cryptocurrencies are mainly characterized by the fact that developers create as well as deploy the network [25]. The structures are also characterized by users who can input data into a given network. It is quite interesting that within the blockchain, peers would always propose the blocks to augment to the entire blockchain. Peers would still strive to hit the consensus as well as validate the proposed blocks.

Blockchain Arhcitecture

The talk of peers and Git further attracts further studies of the blockchain architecture. Apparently, it is more recommendable to understand the functions of every block within the blockchain as shown in the figure below.

The blockchain is regarded as a sequence of blocks which holds the entire list of the transaction records. It should be noted that a block contains only one parent block. Notably, uncle blocks hashes can be stored within the ethereum blockchain. From the structure, it could be identified that a block has the block header as well as the block body. The block header constitutes the block version, which would show the set of the block validation rules, which need to be followed [26]. The timestamp, on the other hand, gives the current time in seconds as universally agreed since the 1st of January 1970. Another component is the Merkle tree root hash gives the hash value appended to all transaction within the block. The parent block hash carries the 256 bit hash value, which plays the critical role of pointing to the prior block. On the other hand, nBits is the target threshold of the given valid block hash while Nonce is regarded as a 4-byte field that normally starts with a zero before increasing for every single hash calculation. Apparently, the block body entails the transactions as well as the transaction counter [13]. The size of a given transaction and that of the block normally determine maximum number of the transactions that can be withheld by a given block. The structure or the architecture of blockchain attracts significant characteristics which also find applications in various fields. The architecture prompts the idea of decentralization in which every transaction needs to be validated via the central trusted agency [26]. Another characteristic that can be attached to the architecture includes persistency, where transactions can quickly be validated while the invalid ones may never be admitted by miners.

Application Of Blockchain

Blockchain, as seen through the history and its structure, is in itself a revolution which carries with it a significant change in the world full of dynamics [20]. However, the most significant side of the blockchain story resides behind its application as far as technology is put into consideration. The primary application of blockchain was Bitcoin, which is believed to be a digital currency that drew its basis on protocol said to allow users of a given network to carry out transactions while making use of virtual money [2]. The latter mainly prevails in the computers and executed in a fast as well as secure way. Apparently, blockchain is regarded as a public ledger that holds Bitcoin transactions said to have been executed. Blockchain still remains relevant today as result of the unstoppable significance of copious computing power as well as cryptography [15]. In the same sense, the IoT ecosystem has embraced the machine to machine solutions or interactions. However, the level of trust remains questionable. Blockchain, however, intervenes as a catalyst that enhances security, privacy, reliability and scalability at the same time. Blockchain facilitates a transactional process with the help of cryptographic algorithms.

Besides, blockchain is applied as a system of records with the help of digital identity, tokenization, inter-organizational data management and grounds for auditing. Digital identity comes in the sense of cryptographic keys, which are handed to individuals thereby allowing them to have new ownership rights while forging digital relationships [19]. Blockchain is never based on permissions and accounts but it is regarded as a push transaction as it attracts the newest and more secure way of handling identity across the ever growing digital world [3]. Tokenization comes into play as a result of authenticating unique physical items, which can be paired in correspondence to a digital token. This largely implies that tokens can meaningfully be applied in binding digital and physical worlds. Most of these digital tokens are meaningful when handling fraud detection, anti-counterfeiting, supply chain management as well as intellectual property [16]. In terms of inter-organizational data management, blockchain reflects a revolution in terms of the way details can be collected, which resonates with the essence of managing systems of records. This is well addressed in the audit trials where banks, with the help of the client server infrastructure, assist individuals in establishing digital relationships [4].

In addition, blockchain can be used a platform for markets, automated governance, streamlining settlement and clearance, automating regulatory compliance and for smart contracting. In smart contracting, blockchain plays a focal role in establishing digital relationships which are more secured [17]. Notably, startups are making use of sidechains where the bespoke blockchain is plugged or introduced to a public blockchain. Newer smart contracting has appeared in the Vitalik Buterin white paper. For automated governance, under the idea of blockchain as a platform, attracts such examples of Bitcoin among other examples [2]. For the markets, blockchain is better thought as a digital bearer bond through Cryptocurrency. This implies establishment of a digital unique identity for the keys meant to control codes, which reflect particular ownership rights. Tokens, used in this case, imply that the ownership of the code can still present an asset, a physical item and even a stock among other things [10]. On the side of automating regulatory compliance, blockchain as a platform is an enabler of the regulatory compliance expressed in code form [4]. For instance, in most of the banks, blockchain would imply improvement in terms of efficiency in the course of anti-money laundering compliance denoted as AML.

Further applications of blockchain include cloud storage, which is one use that seems to take the advantage of Storj [21]. However, it is said that this application is still in the beta-testing stage with Storj founder noting that users can store the traditional cloud more than 300 times than they would do with introducing an extra hard drive space. This would ultimately reduce the ultimate cost of storing data for both personal users and companies at the same time [7]. Blockchain is also finding space in terms of proof-of-provenance a well as supply chain communications. This implies that blockchain technology would essentially facilitate digitally permanent as well as auditable records which would show stakeholders the condition of the products. Besides, electronic voting can take the advantage of blockchain technology [6]. Voting while making use of the blockchain counters chances of an election fraud, which again enhances the voter turnout. This has been tested in West Virginia for the November midterm elections in the year 2018. One of the Virginia-based company known as FollowMyVote is said to have spearheaded the implementation of blockchain. Another company is BitCongress which has been working on a token-based system, which controls the voting process via the one “unchangeable” vote [8]. The token is referred to as a vote and blockchain uses this to permanently record every vote. In the course of electronic voting, more decentralized applications which include Aragon and MakerDAO are said to have completed rounds of token holder thereby enabling protocol level changes aligned to respective projects [25].

Sample Case Study

It is important to note that applications of blockchain are spreading and becoming more diverse each. In this case, the report sampled a case scenario of IBM blockchain and how the steadfast growth has led to pragmatic applications and the impact of this technology [5]. IBM blockchain intended to address citizen needs, meet compliance demand via trusted as well as immutable records, and finally, fight fraud. The IBM experts have gone ahead helping buyers to leverage the blockchain technologies while adopting intelligent data use [9]. IBM Blockchain first targeted the supply chain through tracking and tracing the exact location of the object along the supply chain. IBM believes that limited visibility of the objects in the supply chain increases the chances of encountering waste as a result of ordering. Most of the organizations have approached IBM Blockchain, which has the capacity of accompanying the objects on transit with digitized documentation, which can equally be made as part of the traceable permanent records [5]. The most critical side that ensures protection of property includes the asset registration. IBM spearheaded the development of most accurate as well as accessible government records linked to real estate. As part of the solutions, IBM blockchain links the ownership of the asset to a unitary record collection, which is mediated via IBM Blockchain tools.

Future Of Blockchain

At the center of numerous application of blockchain, most of the researches have now turned their attention towards the possible future of blockchain [22]. It could be predicted that blockchain would stand as the critical component at the centre of the world trade. The current world trade is only managed through chaotic as well as fragmented bits of the business relationships [11]. However, in the light of blockchain, the global supply chain would stand a chance of handling counterfeit medicines, the food supply chain, the fake Louis Vuitton handbags as well as counterfeit electronic equipment. Furthermore, the thought of blockchain also gives the future position of the widespread models for distributed data. This is aligned to the fact that data has been spread to many geographies and even cloud data centers [18]. With such developments, the next-generation data problems can only find solutions through blockchain technology. In the 21st century, there is still more attention that is given to DLT-Based Government Systems [12]. The Distributed Ledger Technology has a long stay as Dubai vowed to work on this technology with structures said to be put in place by the year 2020. DLT is a transition that would make systems more transparent, immutable and even more trusted [13].

Conclusion

The report has touched on significant areas attached to application of blockchain. Among much other application, blockchain is seen as both a platform as well as a system of records. This could be justified through the IBM Blockchain case study. Furthermore, blockchain has its future centered in the world trade while trying to improve the global supply chain.

References

[1]. G. Eason, Z. Zheng, S. Xie, H. Dai, X. Chen and H. Wang, “An overview of blockchain technology: Architecture, consensus, and future trends,” In 2017 IEEE International Congress on Big Data, pp. 557-564, June 2017.

[2] M. H. Miraz and M. Ali, “Applications of blockchain technology beyond Cryptocurrency,” 2018.

[3] K. Czachorowski, M. Solesvik and Y. Kondratenko, “The Application of blockchain technology in the maritime industry,” In Green IT Engineering: Social, Business and Industrial Applications, pp. 561-577, 2019. Springer, Cham.

[4] C. Holotescu, “Understanding blockchain technology and how to get involved,” The 14thInternational Scientific ConferenceeLearning and Software for EducationBucharest, pp.19-20, April 2018.

[5] T. Ahram, A. Sargolzaei, S. Sargolzaei, J. Daniels and B. Amaba, 2017, June. “Blockchain technology innovations,” In 2017 IEEE Technology & Engineering Management Conference (TEMSCON), pp. 137-141, June 2017.

[6] S. Wilkinson, J. Lowry and T. Boshevski, “Metadisk a blockchain-based decentralized file storage application,” Tech. Rep, 2014

[7] J. Li, J. Wu and L. Chen, “Block-secure: Blockchain based scheme for secure P2P cloud storage. Information Sciences”, vol. 465, pp.219-231, 2014.

[8] F.S. Hardwick, A. Gioulis, R. N.Akram and K. Markantonakis, “E-Voting with blockchain: an E-Voting protocol with decentralisation and voter privacy,” In 2018 IEEE International Conference on Internet of Things (iThings) and IEEE Green Computing and Communications (GreenCom) and IEEE Cyber, Physical and Social Computing (CPSCom) and IEEE Smart Data, pp. 1561-1567, July 2018.

[9] K. Wüst and A. Gervais, “Do you need a Blockchain?. In 2018 Crypto Valley Conference on Blockchain Technology (CVCBT),” pp. 45-54, June 2018. IEEE.

[10] E. Yavuz, A. K. Koc, U. C. Çabuk and G. Dalkılıç, “Towards secure e-voting using ethereum blockchain,” In 2018 6th International Symposium on Digital Forensic and Security (ISDFS), pp. 1-7). March 2018. IEEE.

[11] Z. Zheng, S. Xie, H. Dai, X. Chen and H. Wang, “An overview of blockchain technology: Architecture, consensus, and future trends,” In 2017 IEEE International Congress on Big Data (BigData Congress), pp. 557-564. March 2018. IEEE.

[12] D. Puthal, N. Malik, S. P. Mohanty, E. Kougianos and C. Yang, “The blockchain as a decentralized security framework [future directions],” IEEE Consumer Electronics Magazine, vol. 7, issue no. 2, pp.18-21, 2018

[13] M. Mettler, “Blockchain technology in healthcare: The revolution starts here,” In 2016 IEEE 18th International Conference on e-Health Networking, Applications and Services (Healthcom), pp. 1-3, September 2016. IEEE.

[14] S.Huh, S. Cho and S. Kim, “Managing IoT devices using blockchain platform,” In 2017 19th international conference on advanced communication technology (ICACT), pp. 464-467. February 2017. IEEE.

[15] K. Biswas and V. Muthukkumarasamy, “Securing smart cities using blockchain technology,” In 2016 IEEE 18th international conference on high performance computing and communications; IEEE 14th international conference on smart city; IEEE 2nd international conference on data science and systems (HPCC/SmartCity/DSS), pp. 1392-1393, December 2016. IEEE.

[16] Z. Zheng, S. Xie, H. Dai, X. Chen and H. Wang, “An overview of blockchain technology: Architecture, consensus, and future trends,” In 2017 IEEE International Congress on Big Data (BigData Congress), pp. 557-564, June 2017. IEEE.

[17] M. Samaniego and R. Deters, “Blockchain as a Service for IoT,” In 2016 IEEE International Conference on Internet of Things (iThings) and IEEE Green Computing and Communications (GreenCom) and IEEE Cyber, Physical and Social Computing (CPSCom) and IEEE Smart Data (SmartData), pp. 433-436, December 2016. IEEE.

[18] T. Ahram, A. Sargolzaei, S. Sargolzaei, J. Daniels and B. Amaba, “Blockchain technology innovations,” In 2017 IEEE Technology & Engineering Management Conference (TEMSCON), pp. 137-141) June 2017. IEEE.

[19] M. E Peck, “Blockchain world-Do you need a blockchain? This chart will tell you if the technology can solve your problem,” IEEE Spectrum, vol. 54, issue. 10, pp.38-60, June 2017.

[20] D. Puthal, N. Malik, S.P. Mohanty, E. Kougianos and C. Yang, “The blockchain as a decentralized security framework [future directions,” IEEE Consumer Electronics Magazine, vol. 7 issue no. 2, pp.18-21, June 2017.

[21] Q. K. Nguyen, “Blockchain-a financial technology for future sustainable development,” In 2016 3rd International Conference on Green Technology and Sustainable Development (GTSD), pp. 51-54, November 2016. IEEE.

[22] P. Treleaven, R. G. Brown, R.G. and D. Yang, “Blockchain technology in finance,” Computer, vol. 50 issue no. 9, pp.14-17, 2017.

[23] A. Anjum, M. Sporny and A. Sill, A, “Blockchain standards for compliance and trust,” IEEE Cloud Computing, vol. 4 issue no.4, pp.84-90. 2017.

[24] M. Turkanović, M. Hölbl, K. Košič, M. Heričko and A. Kamišalić, “EduCTX: A blockchain-based higher education credit platform,” IEEE access, vol. 6, pp.5112-5127. 2018

[25] H. Halpin and M. Piekarska, “Introduction to Security and Privacy on the Blockchain,” In 2017 IEEE European Symposium on Security and Privacy Workshops (EuroS&PW), pp. 1-3, April 2017, IEEE.

[26] Zheng, Z., Xie, S., Dai, H., Chen, X. and Wang, H., 2017, June. An overview of blockchain technology: Architecture, consensus, and future trends. In 2017 IEEE International Congress on Big Data (BigData Congress) (pp. 557-564). IEEE.