Blockchain Technology- An Introduction

Blockchain Technology- An Introduction

28 April 2022

I. Introduction

In recent years, there is a lot of we have heard on Blockchain. Many have said that this as a most disruptive technology of the decade. The technology is being adapted into many industry verticals like Healthcare, Medicines, Insurance, Smart Properties, Automobiles, and even Governments. However, so far the most successful implementation of Blockchain is the Bitcoin – A Peer-to-Peer Electronic Cash System, which is also the first implementation of blockchain technology. Thus, to understand blockchain technology,We need to understand how the Bitcoin System is designed and implemented.

II. Blockchain Architecture 

  1.   A public blockchain architecture means that the data and access to the system is available to anyone who is willing to participate (e.g. Bitcoin, Ethereum, and Litecoin blockchain systems are public). So all the records will be available public and every one can take part in the agreement process. 
  2.  As opposed to public blockchain architecture, the private system is controlled only by users from a specific organization or authorized users who have an invitation for participation. Private blockchain is more secure since it operated by particular group. 

III. Advantages

  1. Blockchain technology is used to encrypt the transaction data that is stored across the network server instead of a single server,So it makes it very difficult for hackers to decrypt the data. 
  2. Blockchain technology is used to authenticity of assets and prevent fraud. 
  3. Blockchain technology is used to alter all subsequent records and the collusion of the entire network. Thus, data on a blockchain is more accurate, consistent and transparent than when it is pushed through a paper-heavy process.
  4.  Due to the security reasons, this program was made in such a way that any block or even a transaction that adds to the chain cannot be edited which ultimately provides a very high range of security.

IV. Challenges

  1.  Nowadays millions of transactions happen in a day, the bitcoin blockchain can only perform 7 transactions per second. a large block size would slow down the propagation speed and lead to blockchain branches. 
  2. Users also generate many addresses in case of information leakage. However, blockchain cannot guarantee transactional privacy since the values of all transactions and balances for each public key are publicly visible. 
  3. Mixing service is a kind of service which provides anonymity by transferring funds from multiple input addresses to multiple output addresses. So it is very hard to find the relationship between sender and receiver. 
  4. Average cost of the Bitcoin transaction is $75-$160 and most of this cost cover by the energy consumption 

V. Future Direction 

  1.  When users want to set the blockchain technology in their business, they need to know the suitable blockchain which fits their requirements, so blockchain testing is used to test different blockchains. 
  2. Blockchain could be well combined with big data. Blockchain could be used to store important data as it is distributed and secure. 
  3. Recent developments in blockchain technology are creating new opportunities for artificial intelligence (AI) applications. AI technologies could help solve many blockchain challenges.

VI. Current Use

  1. Blockchain technology is used to transfer funds from one party to another party. 
  2. Blockchain would allow businesses, and possibly even consumers, to view how products performed from a quality-control perspective as they traveled from their place of origin to the retailer.
  3.  Blockchain could further revolutionize the retail experience by becoming the go-to for loyalty rewards 

VII. Blockchain Application 

  1. Bitcoin has brought a huge impact on traditional financial and business services . Blockchain technology could be applied to many areas including clearing and settlement of financial assets. 
  2. IoT is proposed to integrate the things (also named smart objects) into the internet and provides users with various services. IOT is network-controlled management of certain types of electronic devices — for instance, the monitoring of air temperature in a storage facility. Smart contracts make the automation of remote systems management possible.
  3.   Reputation is an important measure on how much the community trusts you. The greater your reputation, the more trustworthy you are regarded by others. The reputation of a person can be evaluated on his or her previous transactions and interactions with the community.
  4.  Smart contracts can ensure that electorates can be elected by the people for the people so that government is what it’s meant to be. The contracts specify the electorate’s expectations and electors will get paid only once they do what the electorate demanded rather than what funders desired.

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