BLOCKCHAIN TECHNOLOGY

  
Contents
Blockchain Technology................................................................................................................................1
Architecture of Blockchain technology....................................................................................................2
Features of Blockchain technology..........................................................................................................3
Challenges of Blockchain technology.......................................................................................................5
Applications of Blockchain technology........................................................................................................6
Storj.........................................................................................................................................................6
Digital freight over supply chain management........................................................................................7
Socio technical aspects................................................................................................................................8
Socio technical aspects over Storj...........................................................................................................8
Socio technical aspects of Digital freight over supply chain management..............................................8
Conclusion...................................................................................................................................................9
References...................................................................................................................................................9

Blockchain Technology
Blockchain technology is highly utilizing technology that is gaining popularity day by day. This

particular technology makes use of cryptography technique to ensure the secure transmission of

transactions from one end to another. It is also considered as the array of blocks that consists of

information about the sender and the receiver. Each block involved under the row consists of

cryptographic hash value that belongs to the previous blocks, timestamp and previous data.

Blochchain technology works over distributed networks and there is no third party availability

over network that is responsible for the transmission of transaction related data from one end to

another. Varied individuals can write entries over the information record the controlling for the

same will be done by the community users as per the majority. The evolution of blockchain

technology depends upon three main technology i.e. P2P network, Private key cryptography

technique and blockchain’s protocol. The transactions are broadcasted and each node is

responsible to create their own event’s version of update. One of the technique that is responsible
for managing the security of users over both end is private key cryptography that provides strong

tool of ownership which automatically handle the authentication requirements over network.

The following report highlights the architecture, features and challenges that can come in the

field of blockchain technology and can affect its working and performance. The architecture is

discussed in detailed manner along with the applications of blockchain over different domains

such as currency and internet of things. The socio-technical aspects of the application are also

discussed under the report in order to get the details about its performance and future.

Architecture of Blockchain technology

Figure: Architecture of working of Blockchain

The above figure consists of information about the basic functioning of the blockchain

technology that involves two participants among which one is sender and the another one is

receiver. Among them one of the participant request for the transaction and then the requested

transaction broadcast over Peer-to-Peer network over which various system nodes are linked. [6]

The network of nodes validation the transactions to get the information about the actual status of
the users by making use of specific algorithm. The verified transaction further includes contracts,

cryptocurrency, records and correspondingly related information. After this the cryptography

technique is used in order to ensure the security of the transaction held between two different

participants. After this the transactions get verified and then collaborate to create new block of

information regarding the participants and their transaction over the ledger. Then the particular

block gets added over the chain and transaction gets completed.

Blockchain works over the distributed network so the chances of transaction failure are very low

and the security maintenance is very much high. This particular technology allows the digital

information to be distributed over the network but not derivative.

Features of Blockchain technology

Blockchain is considered as the incorruptible digital ledger of varied transactions that are

developed for the purpose of recording. The database of blockchain is not stored over the single

location and is easy to be verified. It becomes hard for the hackers to track or corrupt it.

Blockchain technology consists of various advantages as features as per the enterprise and the

participants available over the network. Some of the common features of blockchain technology

are listed down as follows-

Blockchain technology works over the Peer to Peer network that further enhances the

capacity of the network. Multiple number of systems attached over the network requires

more power than some centralized servers and one of the great example of this thing is-

Foldingcoin.

One of the main value proposition of blockchain technology is the creation of immutable

ledgers. This particular technology works over the distributed network instead of working

over the centralized one because in centralized databases the chances are high that they
can be corrupted by the hackers of attackers. This particular technology keeps the ledger

in perpetual state because there are multiple number of users that needs to confirm the

transactions by verifying the power of new transactions that are newly recorded within

the ledger or the chain.

Blockchain is considered as highly secured technology that is utilized to transmit the

transactions from one end to another. This is considered as the secured medium because

it makes use of cryptography technique and it becomes hard for the attackers and hackers

to track the location for the same. The publically used blockchain makes use of their own

currency to reward the experts the secure the transactions occurred over the network

between two different participants.

Blockchain technology works over the decentralized network and allows the user to

accumulate the assets over the network where the actual transfer is occurring. [5] The

transmission can be of smart contract, token and varied other required documents and the

transmission gets completed with the help of private key association so the security can

also be maintained simultaneously.

 The traditional way to transmit some amount of money from one end to another is very

lengthy and time consuming mechanism and the settlements takes too much time to

proceed. Blockchain is responsible for settling the money transfer within very high speed

which further leads to secure the required amount of money for the overall finance

industry.

Challenges of Blockchain technology

Today most of the users make use of bank to proceed their transactions as a middleman but

through making use of blockchain technology the suppliers and consumers can directly

communicate with each other along with resolving the problem of third party availability.

Blockchain technology is used over various areas but along with various features it also consists

of varied challenges that are listed as follows-

Integration with legacy systems: If any of the organization really wants to make use of

blockchain technology then they need to overhaul their overall previous system and then

make appropriate integration with blockchain technology. [7] It becomes hard for the

blockchain to manage all the required functions and also make it difficult to eradicate the

legacy systems.

Blockchain adoption provides long term benefits in sense of efficiency, productivity,

timeliness and cost reduction. In order to run blockchain technology within the

organization, the software needs to be developed specifically and it becomes the

expensive deal.
 In order to validate blockchain’s transaction two types of network are required i.e.

Bitcoin network and Ethereum network. Complex mathematical calculation needs to be

done for the verification and processing of transactions as well as to secure the network

so it consumes more energy.

The benefits of blockchain technology are still limited to the one who are involved within

the technology space and those whose companies are thinking to makes use of blockchain

technology.

Applications of Blockchain technology

Following are the application of blockchain technology within currency and internet of things-

Storj
The focus of most of the blockchain technologies is always over cash and related cash

equivalents but not similar in the case of Storj. Storj has complete focus over cloud storage

because most of the online storage needs to do the data live over the central server then sends on
demand web assets when the user clicks over the application. [3] Multiple copies of similar data

sends to the servers all over the world so that the closest copy can be used after the user click

over the application with the help of CDN. Storj is taking the online transactions handling

process over the next level. [4] The users can store its various digital objects over the cloud with

the help of heavy encryption and blockchain technology. Storj offers great uptime, possibilities

of faster deliveries and security over internet. Storj is silently improving and speeding up the

web.

Digital freight over supply chain management

Today, with the continuous increment and the advancement in technology, most of the people are

adopting it for resolving their currently facing issues or problems. In the similar manner logistics

and supply chain management is one of the trending topic over this area because today its

demand is increasing but this particular sector is facing various issues in delivering the quality

services to the customers within the specific amount of time. [1] The suppliers, manufacturer and

carriers faces varied issues in detecting the loaction of the vehicle and due to which it become

hard to analyze that whether the product reached to the client or not. In order to resolve this

particular problem IOT combines with blockchain technology in order to create the tracking

system along with the ledger that is further immutable in nature. This application provides end to

end auditing over supply chain and their management. [2] Any of the product that get defected

in-between the delivery process will automatically get recorder within the decentralized network

in which different stakeholders will present that are directly or indirectly related to the product

delivery. IOT network of the application automatically detects the damage with the help of

sensors so that the product can be exchanged of replaced as soon as possible without affecting

the timely delivery of customer’s product.

Socio technical aspects
Socio technical aspects over Storj
Blockchain technology is considered as one of the emerging technology that is gaining

popularity day by day but still there are many areas and countries that do not prefer or accept the

payment made through this technology. Blockchain technology provide secure money

transmission over the network because there is no third party involvement but as per the second

aspect, people considered it less secure mechanism then the traditional one because there is

unavailability of middle person who will going to handle the transactions. The another socio

technical aspect is unawareness. Most of the people are unaware about this particular technology

that involves the general public or employees of the organization so proper awareness needs to

be spread about the technology and the employees needs to be trained accordingly. Storj is one

of the application of Blockchian technology that is providing value to its users by offering them

secure mechanism to transfer money from one end to another in a secured manner.

Socio technical aspects of Digital freight over supply chain management

As the people prefer to shop online instead of wasting their time to visit varied number of shops

to find at least one product that can completely fulfill his requirements but manually it’s very

much time consuming mode. The customers make online booking regarding the products and

services of their choices and make corresponding online payment against it and then product get

delivered to them but the delivery process is quite hectic for the organizations. The reason behind

is that it becomes hard to track the location of the product that whether it reached to the client or

not within the expected condition.

This process is highly affecting the society as many individuals can lose their jobs due to instant

advancement in traditional approach of serving the customers so indirectly it is affecting the

society but if the focus shifts over the manufacturers and suppliers, they are getting lots of

benefits from this blockchain technology.

Conclusion
The above report concludes the detailed information about blockchain technology and its use in

different sectors. The architecture of bockchain technology is also discussed above the report

along with its varied features and challenges. Blockchain technology is considered as highly

secured technology for money transmission and for tracking the location of products sending

from the manufacturers or suppliers to the client. This particular technology completely changes

the means to do online business and to handle online money transmission between two different

parties. This particular technology works over decentralized network and there is no involvement

of third party members to handle online money transmission. Blockchain technology consist of

various application areas such as in currency and internet of things. This is one of the emerging

technology and people should aware about this and started making use of it so that the security

over online money transmission can be managed more effectively.

References
[1]D. Vujicic, D. Jagodic and S. Randic, "Blockchain technology, bitcoin, and Ethereum: A brief

overview", 2018 17th International Symposium INFOTEH-JAHORINA (INFOTEH), 2018.

[2]Q. Liu and K. Li, "Decentration Transaction Method Based on Blockchain Technology", 2018

International Conference on Intelligent Transportation, Big Data & Smart City (ICITBS), 2018.

[3]K. Mudliar and H. Parekh, "A comprehensive integration of national identity with blockchain

technology", 2018 International Conference on Communication information and Computing

Technology (ICCICT), 2018.

[4]R. Chatterjee and R. Chatterjee, "An Overview of the Emerging Technology: Blockchain",

2017 3rd International Conference on Computational Intelligence and Networks (CINE), 2017.

[5]N. Rifi, E. Rachkidi, N. Agoulmine and N. Taher, "Towards using blockchain technology for

IoT data access protection", 2017 IEEE 17th International Conference on Ubiquitous Wireless

Broadband (ICUWB), 2017.

[6]T. Yang, Q. Guo, X. Tai, H. Sun, B. Zhang, W. Zhao and C. Lin, "Applying blockchain

technology to decentralized operation in future energy internet", 2017 IEEE Conference on

Energy Internet and Energy System Integration (EI2), 2017.

[7]I. Zikratov, A. Kuzmin, V. Akimenko, V. Niculichev and L. Yalansky, "Ensuring data

integrity using blockchain technology", 2017 20th Conference of Open Innovations Association

(FRUCT), 2017.