lOMoARcPSD|13989817

Blockchain technical report

Database management system (Swami Vivekanand University)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by Bannu sai ([email protected])
 lOMoARcPSD|13989817

BLOCKCHAIN TECHNOLOGY
A Technical Seminar Report submitted to
Jawaharlal Nehru Technological University
in partial fulfillment of the requirements for the award of degree of

BACHELOR OF TECHNOLOGY
IN
COMPUTER SCIENCE AND ENGINEERING

Submitted By

Krishna Kavya Motamarri 17P71A0540

Under the Guidance of

Mrs. K. J. Archana
Associate Professor

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

SWAMI VIVEKANANDA INSTITUTE OF TECHNOLOGY
(Approved by AICTE & Affiliated to Jawaharlal Nehru Technological University,Hyderabad)
Mahbub College Campus, Patny Centre, Secunderabad
Year of submission: 2020-2021

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

SWAMI VIVEKANANDA INSTITUTE OF TECHNOLOGY

(Approved by AICTE & Affiliated to Jawaharlal Nehru Technological University,Hyderabad)
Mahbub College Campus, Patny Centre, Secunderabad
Year of submission: 2020-2021

COMPUTER SCIENCE AND ENGINEERING

CERTIFICATE

This is to certify that the technical seminar entitled “Blockchain Technology”

Submitted by Krishna Kavya Motamarri (17P71A0540), In partial fulfilment for the
award of the Degree of Bachelor of Technology in Computer Science and Engineering to
the Jawaharlal Nehru Technology University is a record of bonafide work carried out by
them under my guidance and supervision.

Internal Guide Head of the Dept.

Mrs . K. J. ARCHANA DR.Y.L.MALATHI LATHA

External Examiner

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

ACKNOWLEDGMENT

We are extremely grateful to Dr. M. B. Raju , Principal and Dr. Y. L. Malathi Latha ,
HOD, Department of CSE, Swami Vivekananda Institute of Technology for their constant
support.

We are extremely thankful to Mrs. K. J. Archana, Associate Professor, Department of

CSE, for her constant guidance, encouragement, and moral support throughout the project.

We express my thanks to all staff members and friends for all the help and co-ordination
extended in bringing out this Project successfully in time.

Finally, we are very much thankful to our parents who guided me for every step.

Submitted By:

Krishna Kavya Motamarri

17P71A0540

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

DECLARATION

I hereby declare that the work reported in the present technical seminar entitled
“Blockchain Technology” submitted to JNTU Hyderabad, is a record of original work
done by us under the guidance of Mrs. K. J. Archana, Associate professor, Swami
Vivekananda Institute of Technology, and that this project work is submitted in the
partial fulfilment of the requirements for the award of the degree of Bachelor of
Technology in Computer Science & Engineering. The results embodied in this project
have not been submitted to any other university or institute for the award of any degree
or diploma to the best of my knowledge and belief.

Submitted By:

Krishna Kavya Motamarri

17P71A0540

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

CONTENTS

TITLE PAGE NO.

Abstract ii
List of Figures iii

1. INTRODUCTION
1.1 Introduction 1
1.2 History 1
2. WORKING
2.1 Components 4
2.1.1 Transaction 4
2.1.2 Block 4
2.2 Working 4
2.2.1 Blocks 4
2.2.2 Miners 5
2.2.3 Nodes 5
3. TYPES OF BLOCKCHAINS
3.1 Public Blockchain 8
3.2 Private Blockchain 9
3.3 Consortium Blockchain 11
3.4 Hybrid Blockchain 12
4. ADVANTAGES 14
5. DISADVANTAGES 15
6. APPLICATIONS 16
7. CONCLUSION
7.1 Project Conclusion 17
7.2 Future of Blockchain 17
8. REFERENCES 18
i

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

ABSTRACT

Blockchain technology has been described as the biggest technical revolution since the
Internet. The technology – which is the basis for the cryptocurrency Bitcoin, but which can be used
for much more – enables digital transactions without the use of intermediaries, which are much
faster and also more secure than has previously been possible. Blockchain technology is expected
to change a wide range of business sectors fundamentally, such as banks and finance, consumer
goods, supply chain, automotive, energy, legal services, etc.

With Blockchain technology in financial sector, the participants can interact directly and
can make transactions across the internet without the interference of a third party. Such
transactions through Blockchain will not share any personal information regarding the participants
and it creates a transaction record by encrypting the identifying information.

The most exciting feature of Blockchain is that it greatly reduces the possibilities of a data
breach. In contrast with the traditional processes, in Blockchain there are multiple shared copies
of the same data base which makes it challenging to wage a data breach attack or cyber-attack .
With all the fraud resistant features, the block chain technology holds the potential to revolutionize
various business sectors and make processes smarter, secure, transparent, and more efficient
compared to the traditional business processes.

ii

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

LIST OF FIGURES

Title Page No.

Fig 1.1 Blockchain technology 1

Fig 2.2 operation of blockchain 6

Fig 6.1 Applications of blockchain 16

iii

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

1. INTRODUCTION

1.1 INTRODUCTION

The Blockchain is an encrypted,

distributed database that records data, or in
other words it is a digital ledger of any
transactions, contracts - that needs to be
independently recorded. One of the key
features of Blockchain is that this digital
ledger is accessible across several hundreds
and thousands of computer and is not bound Fig 1.1: blockchain technology
to be kept in a single place. Blockchain chain has already started disrupting the financial services
sector, and it is this technology which underpins the digital currency- bitcoin transaction.

Blockchain is an open and distributed ledger that can be used to record transactions between
two parties. This way of recording a transaction is both permanent as well as verifiable, which
makes it one of the best ways to keep transactions. Blockchains are built on the open-source
platform. So different versions of these blockchains are possible, which are developed as per the
needs of different industries.

As blockchain is a distributed ledger, hence every transaction is stored on more than one
computer, which makes us sure that every transaction is going to be permanent without any fear
of loss. As blockchain is distributed, it can neither be owned nor be fully controlled by a single
entity. Transactions are between two parties, and no other parties are involved, this results in lower
cost, and once a transaction is performed, it cannot be changed under any circumstances.

1.2 HISTORY

Although blockchain is a new technology, it already boasts a rich and interesting history. The
following is a brief timeline of some of the most important and notable events in the development
of blockchain.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

2008
• Satoshi Nakamoto, a pseudonym for a person or group,
publishes “Bitcoin: A Peer to Peer Electronic Cash System."
2009
• The first successful Bitcoin (BTC) transaction occurs between
computer scientist Hal Finney and the mysterious Satoshi
Nakamoto.
2010
• Florida-based programmer Laszlo Hanycez completes the first ever purchase using Bitcoin
— two Papa John’s pizzas. Hanycez transferred 10,000 BTC’s, worth about $60 at the
time. Today it's worth $80 million.
• The market cap of Bitcoin officially exceeds $1 million.
2011
• 1 BTC = $1USD, giving the cryptocurrency parity with the US dollar.
• Electronic Frontier Foundation, Wikileaks and other organizations start accepting Bitcoin
as donations.
2012
• Blockchain and cryptocurrency are mentioned in popular television shows like The Good
Wife, injecting blockchain into pop culture.
• Bitcoin Magazine launched by early Bitcoin developer Vitalik Buterin.
2013
• BTC market cap surpassed $1 billion.
• Bitcoin reached $100/BTC for first time.
• Buterin publishes “Ethereum Project" paper suggesting that blockchain has other
possibilities besides Bitcoin (e.g., smart contracts).
2014
• Gaming company Zynga, The D Las Vegas Hotel and Overstock.com all start accepting
Bitcoin as payment.
• Buterin’s Ethereum Project is crowdfunded via an Initial Coin Offering (ICO) raising over
$18 million in BTC and opening up new avenues for blockchain.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

• R3, a group of over 200 blockchain firms, is formed to discover new ways blockchain can
be implemented in technology.
• PayPal announces Bitcoin integration.
2015
• Number of merchants accepting BTC exceeds 100,000.
• NASDAQ and San-Francisco blockchain company Chain team up to test the technology
for trading shares in private companies.
2016
• Tech giant IBM announces a blockchain strategy for cloud-based business solutions.
• Government of Japan recognizes the legitimacy of blockchain and cryptocurrencies.
2017
• Bitcoin reaches $1,000/BTC for first time.
• Cryptocurrency market cap reaches $150 billion.
• JP Morgan CEO Jamie Dimon says he believes in blockchain as a future technology, giving
the ledger system a vote-of-confidence from Wall Street.
• Bitcoin reaches its all-time high at $19,783.21/BTC.
• Dubai announces its government will be blockchain-powered by 2020.
2018
• Facebook commits to starting a blockchain group and also hints at the possibility
of creating its own cryptocurrency.
• IBM develops a blockchain-based banking platform with large banks like Citi and Barclays
signing on.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

2. WORKING

2.1 COMPONENTS
A Blockchain comprises of two different components, as follows:

2.1.1. Transaction:
A transaction, in a Blockchain, represents the action triggered by the participant.
2.1.2. Block:
A block, in a Blockchain, is a collection of data recording the transaction and other associated
details such as the correct sequence, timestamp of creation, etc.
The Blockchain can either be public or private, depending on the scope of its use. A public
Blockchain enables all the users with read and write permissions such as in Bitcoin, access to it.
However, there are some public Blockchains that limit the access to only either to read or to write.
On the contrary, a private Blockchain limits the access to selected trusted participants only, with
the aim to keep the users’ details concealed. This is particularly pertinent amongst governmental
institutions and allied sister concerns or their subsidies thereof. One of the major benefits of the
Blockchain is that it and its implementation technology is public. Each participating entities
possesses an updated complete record of the transactions and the associated blocks. Thus the data
remains unaltered, as any changes will be publicly verifiable. However, the data in the blocks are
encrypted by a private key and hence cannot be interpreted by everyone.

2.2 WORKING

The whole point of using a blockchain is to let people — in particular, people who don't
trust one another — share valuable data in a secure, tamperproof way.Blockchain consists of three
important concepts: blocks, nodes and miners.

2.2.1 Blocks:
Every chain consists of multiple blocks and each block has three basic elements:
• The data in the block.
• A 32-bit whole number called a nonce. The nonce is randomly generated when a block is
created, which then generates a block header hash.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

• The hash is a 256-bit number wedded to the nonce. It must start with a huge number of
zeroes (i.e., be extremely small).
When the first block of a chain is created, a nonce generates the cryptographic hash. The data in
the block is considered signed and forever tied to the nonce and hash unless it is mined.

2.2.2 Miners:
Miners create new blocks on the chain through a process called mining.In a blockchain
every block has its own unique nonce and hash, but also references the hash of the previous block
in the chain, so mining a block isn't easy, especially on large chains.Miners use special software
to solve the incredibly complex math problem of finding a nonce that generates an accepted hash.
Because the nonce is only 32 bits and the hash is 256, there are roughly four billion possible nonce-
hash combinations that must be mined before the right one is found. When that happens miners
are said to have found the "golden nonce" and their block is added to the chain.
Making a change to any block earlier in the chain requires re-mining not just the block with
the change, but all of the blocks that come after. This is why it's extremely difficult to manipulate
blockchain technology. Think of it is as "safety in math" since finding golden nonces requires an
enormous amount of time and computing power.
When a block is successfully mined, the change is accepted by all of the nodes on the network and
the miner is rewarded financially.

2.2.3 Nodes:
One of the most important concepts in blockchain technology is decentralization. No one
computer or organization can own the chain. Instead, it is a distributed ledger via the nodes
connected to the chain. Nodes can be any kind of electronic device that maintains copies of the
blockchain and keeps the network functioning.
Every node has its own copy of the blockchain and the network must algorithmically
approve any newly mined block for the chain to be updated, trusted and verified. Since blockchains
are transparent, every action in the ledger can be easily checked and viewed. Each participant is
given a unique alphanumeric identification number that shows their transactions.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

Combining public information with a system of checks-and-balances helps the blockchain

maintain integrity and creates trust among users. Essentially, blockchains can be thought of as the
scalability of trust via technology.
Another major advantage of the Blockchain technology is that it is decentralized. It is
decentralized in the sense that:

• There is no single device that stores the data (transactions and associated blocks), rather they are
distributed among the participants throughout the network supporting the Blockchain.

• The transactions are not subject to approval of any single authority or have to abide by a set of
specific rules, thus involving substantial trust as to reach a consensus.

• The overall security of a Blockchain eco-system is another advantage. The system only allows
new blocks to be appended. Since the previous blocks are public and distributed, they cannot be
altered or revised.

Fig 2.2 operation of blockchain

For a new transaction to be added to the existing chain, it has to be validated by all the
participants of the relevant Blockchain eco-system. For such a validation and verification process,

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

the participants must apply a specific algorithm. The relevant Blockchain eco-system defines what
is perceived as “valid”, which may vary from one eco-system to another. A number of transactions,
thus approved by the validation and verification process, are bundled together in a block. The
newly prepared block is then communicated to all other participating nodes to be appended to the
existing chain of blocks. Each succeeding block comprises a hash, a unique digital fingerprint, of
the preceding one. Figure 2.2 demonstrates how Blockchain transactions takes place, using a step-
by-step example. Bob is going to transfer some money to Alice. Once the monetary transaction is
initiated and hence triggered by Bob, it is represented as a “transaction” and broadcast to all the
involved parties in the networks. The transaction now has to get “approval” as being indeed “valid”
by the Blockchain eco-system. Transaction(s) once approved as valid along with the hash of the
succeeding block are then fed into a new “block” and communicated to all the participating nodes
to be subsequently appended to the existing chain of blocks in the Blockchain digital ledger.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

3. TYPES OF BLOCKCHAINS

At a glance, there are four different major types of blockchain technologies. They include the
following.

• Public
• Private
• Hybrid
• Federated

3.1 PUBLIC BLOCKCHAIN

A public blockchain is one of the different types of blockchain technology. A public
blockchain is the permission-less distributed ledger technology where anyone can join and do
transactions. It is a non-restrictive version where each peer has a copy of the ledger. This also
means that anyone can access the public blockchain if they have an internet connection.
One of the first public blockchains that were released to the public was the bitcoin public
blockchain. It enabled anyone connected to the internet to do transactions in a decentralized
manner.
The verification of the transactions is done through consensus methods such as Proof-of-
Work(PoW), Proof-of-Stake(PoS), and so on. At the cores, the participating nodes require to do
the heavy-lifting, including validating transactions to make the public blockchain work. If a public
blockchain doesn’t have the required peers participating in solving transactions, then it will
become non-functional. There are also different types of blockchain platforms that use these
various types of blockchain as the base of their project. However, each platform introduces more
features in its platform aside from the usual ones.
Examples of public blockchain: Bitcoin, Ethereum, Litecoin, NEO
Advantages:
Public blockchains are good at what they do. Its advantages include the following.
• Anyone can join the public blockchain.
• It brings trust among the whole community of users
• Everyone feels incentivized to work towards the betterment of the public network

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

• Public blockchain requires no intermediaries to work.

• Public blockchains are also secure depending on the number of participating nodes
• It brings transparency to the whole network as the available data is available for
verification purposes.
Disadvantages:
Public blockchain does suffer from disadvantages. They are as follows:
• They suffer from a lack of transaction speed. It can take a few minutes to hours before a
transaction is completed. For instance, bitcoin can only manage seven transactions per
second compared to 24,000 transactions per second done by VISA. This is because it takes
time to solve the mathematical problems and then complete the transaction.
• Another problem with public blockchain is scalability. They simply cannot scale due to
how they work. The more nodes join, the clumsier, and slow the network becomes. There
are steps taken to solve the problem. For example, Bitcoin is working on lighting the
network, which takes transactions off-chain to make the main bitcoin network faster and
more scalable.
• The last disadvantage of a public blockchain is the consensus method choice. Bitcoin, for
example, uses Proof-of-Work (PoW), which consumes a lot of energy. However, this has
been partially solved by using more efficient algorithms such as Proof-of-Stake (PoS).
Use Cases:
There are multiple use-cases of the public blockchain. To get a better idea, let’s list some of them
below.
• Voting: Governments can do voting through public blockchain employing transparency
and trust.
• Fundraising: Companies or initiatives can make use of the public blockchain for
improving transparency and trust.

3.2 PRIVATE BLOCKCHAIN

A private blockchain is one of the different types of blockchain technology. A private
blockchain can be best defined as the blockchain that works in a restrictive environment, i.e., a
closed network. It is also a permissioned blockchain that is under the control of an entity.

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

Private blockchains are amazing for using at a privately-held company or organization

that wants to use it for internal use-cases. By doing so, you can use the blockchain effectively
and allow only selected participants to access the blockchain network. The organization can also
set different parameters to the network, including accessibility, authorization, and so on!
So, how is it different from a public blockchain? It is different in the way it is accessed.
Otherwise, it offers the same set of features as that of the public blockchain, providing
transparency, trust, and security to the selected participants.
Another major difference is that it’s kind of centralized as only one authority looks over
the network. So, it doesn’t have a decentralized theoretical nature. There are also various types of
blockchain platforms that use private blockchain as the base of their platform. More so, each one
of them tends to be unique and offer different features.In many cases, a private blockchain is
considered permissioned blockchain. But the concept of permissioned blockchain is much
broader as it can include public blockchain as well.
Examples of Private blockchain: Multichain, Hyperledger Fabric, Hyperledger Sawtooth,
Corda
Advantages:
• Private blockchains are fast. This is because there are few participants compared to the
public blockchain. In short, it takes less time for the network to reach consensus resulting
in faster transactions.
• Private blockchains are more scalable. The scalability is possible because, in a private
blockchain, only a few nodes are authorized to validate transactions. This means it
doesn’t matter if the network grows; the private blockchain will work at its previous
speed and efficiency. The key here is the centralization aspect of decision making.
Disadvantages:
• Private blockchains are not truly decentralized. This is one of the biggest disadvantages
of private blockchain and goes against the core philosophy of distributed ledger
technology or blockchain in general.
• Achieving trust within the private blockchain is tough because the centralized nodes
make the last call.

10

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

• Lastly, as there are only a few nodes here, the security isn’t all that good. It is important
to understand that it is possible to lose security if a certain number of nodes go rogue and
compromise the consensus method utilized by the private network.
Use Cases:
There are multiple private blockchain’s use-cases. Some of them are listed below.
• Supply chain management: Organizations can deploy a private blockchain to manage
their supply chain.
• Asset ownership: Assets can be tracked and verified using a private blockchain.
• Internal Voting: Private blockchain is also effective at internal voting.
Anyhow, you can use the article as types of blockchain technology pdf when in need.

3.3. CONSORTIUM BLOCKCHAIN

A consortium blockchain is one of the different types of blockchain technology. A
consortium blockchain (also known as Federated blockchains) is a creative approach to solving
organizations’ needs where there is a need for both public and private blockchain features. In a
consortium blockchain, some aspects of the organizations are made public, while others remain
private.The consensus procedures in a consortium blockchain are controlled by the preset nodes.
More so, even though it’s not open to mass people, it still holds a decentralized nature. How?
Well, a consortium blockchain is managed by more than one organization. So, there is no one
single force of centralized outcome here.
To ensure proper functionality, the consortium has a validator node that can do two
functions, validate transactions, and also initiate or receive transactions. In comparison, the
member node can receive or initiate transactions.
In short, it offers all the features of a private blockchain, including transparency, privacy,
and efficiency, without one party having consolidating power.
Examples of Consortium Blockchain: Marco Polo, Energy Web Foundation, IBM Food Trust.
Advantages:
• It offers better customizability and control over resources.
• Consortium blockchains are more secure and have better scalability.
• It is also more efficient compared to public blockchain networks.
• Works with well-defined governance structures.

11

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

• It offers access controls.

Disadvantages:
• Even though it is secure, the whole network can be compromised due to the member’s
integrity.
• It is less transparent.
• Regulations and censorship can have a huge impact on network functionality.
• It is also less anonymous compared to other types of blockchain.
Use Cases:
There are multiple use-cases of consortium blockchain. Some of them include the following
• Banking and payments: A group of banks can work together and create a consortium.
They can decide the nodes that will validate transactions.
• Research: A consortium blockchain can be used to share research data and results.
• Food tracking: It is also great for food tracking.

3.4 HYBRID BLOCKCHAIN

Hybrid blockchain is one of the different types of blockchain technology. More so,
Hybrid blockchain is the last type of blockchain that we are going to discuss here. More so,
hybrid blockchain might sound like a consortium blockchain, but it is not. However, there can be
some similarities between them.
Hybrid blockchain is best defined as a combination of a private and public blockchain. It
has use-cases in an organization that neither wants to deploy a private blockchain nor public
blockchain and simply wants to deploy both worlds’ best.
Example of Hybrid Blockchain: Dragonchain, XinFin’s Hybrid blockchain
Advantages:
• Works in a closed ecosystem without the need to make everything public.
• Rules can be changed according to the needs.
• Hybrid networks are also immune to 51% attacks.
• It offers privacy while still connected with a public network.
• It offers good scalability compared to the public network.
Disadvantages:

12

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

• Not completely transparent.

• Upgrading to the hybrid blockchain can be a challenge.
• There is no incentive for participating and contributing to the network.
Use Cases:
Some of the best use-cases of the Hybrid blockchain are as follows:
• Real estate: You can use hybrid networks for real-estate purposes where real-estate
companies can use it to run their systems and use the public to show information to the
public.
• Retail: Retail can also use the hybrid network to streamline their processes.
• Highly regulated markets: Hybrid blockchains are also ideal for highly regulated
markets such as financial markets.

13

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

4. ADVANTAGES
The crucial advantages of implementing Blockchain Technology for the industry are:

• Decentralization : This is one of the primary benefits of this technology because, in a

Blockchain-powered system, the need for third-party or intermediaries is eliminated by its
working mechanism that manages the process of validating, verifying, and clearing the
various transactions.
• Process Integrity : 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.
• Traceability : The format of Blockchain designs in such a way that it can easily locate any
problem and correct if there is any. It also creates an irreversible audit trail.
• Trustworthy: A distributed ledger in blockchain technology records all crucial
transactions in such a manner that they are readily available to all the blockchain members.
As now the ledgers are being shared publicly, this brings more transparency and trust in
the entire system.
• Simplification: Present working model in various organizations, in whichever sector like
an automobile, healthcare, banking, etc. every department is maintaining their own
databases. Blockchain technology serves a single shared ledger that makes data sharing
fast and simpler involving all departments.
• Faster Trades: Any kind of trade or contract has to pass through various verification
processes before reaching its final destination. Blockchain technology can assist in saving
time here, by offering a single ledger to all the associated parties by providing faster
settlement of trades.

14

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

5. DISADVANTAGES
Of course, every system has both merits and drawbacks.With some crucial advantages,
Blockchain Technology has some drawbacks too for an industry:

• Nascent Technology: With having several benefits of Blockchain Technology, the

primary disadvantage of this cutting-edge technology is that there are some nasty
challenges like transaction speed, the verification process, and data limits that should be
resolved before making blockchain widely applicable.
• Uncertain: As most of the modern currencies of today have been created and regulated by
national governments, financial institutions, etc. Blockchain or bitcoin faces a hurdle in
widespread adoption as their financial transactions would be restricted because not
authorized by the government institutions and as a result remain unsettled.
• Higher Costs: Developing a Blockchain into your organization is not an easy task, it
involves massive energy consumption, a decent amount, colossal capital cost, etc. that
might be not possible for medium-scale as well as low scale businesses. It is a fact that it
offers tremendous savings in transaction costs, but at the same time, its implementation
cost is too high.
• Power Use: The consumption of power in the implementation of Blockchain Technology
is comparatively high. Keeping a real-time ledger is one of the underlying reasons for this
higher consumption because every time it produces a new node, it communicates with
every node at the same time.

Despite all these drawbacks, blockchain is one of the most advanced and secured technologies of
the decade. If you are struggling while deciding whether to adopt blockchain or not, shade-off your
doubts and integrate the blockchain technology into your business infrastructure. If you are finding
it difficult to get a blockchain development company that can help you create a highly functional
and feature-rich blockchain-enabled solution, then SARA could be a one-stop destination.

15

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

6. APPLICATIONS

Blockchain has a nearly endless amount of applications across almost every industry. The
ledger technology can be applied to track fraud in finance, securely share patient medical records
between healthcare professionals and even acts as a better way to track intellectual property in
business and music rights for artists.

Fig 6.1 Applications of blockchain

Blockchain technology can be utilized in multiple industries including Financial Services,

Healthcare, Government, Travel and Hospitality, Retail and CPG.

• Financial Services: In the financial services sector, Blockchain technology has already been
implemented in many innovative ways. Blockchain technology simplifies and streamlines the
entire process associated with asset management and payments by providing an automated
trade lifecycle where all participants would have access to the exact same data about a
transaction. This removes the need for brokers or intermediaries and ensures transparency and
effective management of transactional data.
• Healthcare: Blockchain can play a key role in the healthcare sector by increasing the privacy,
security and interoperability of the healthcare data. It holds the potential to address many
interoperability challenges in the sector and enable secure sharing of healthcare data among
the various entities and people involved in the process. It eliminates the interference of a third-
party and also avoids the overhead costs. With Blockchains, the healthcare records can be

16

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

stored in distributed data bases by encrypting it and implementing digital signatures to ensure
privacy and authenticity.
• Government: Blockchain technology holds the power to transform Government’s operations
and services. It can play a key role in improving the data transactional challenges in the
Government sector, which works in siloes currently. The proper linking and sharing of data
with Blockchain enable better management of data between multiple departments. It improves
the transparency and provides a better way to monitor and audit the transactions.
• CPG and Retail: There is a huge opportunity for Blockchain technology to be applied in the
retail sector . This includes everything from ensuring the authenticity of high value goods,
preventing, fraudulent transactions, locating stolen items, enabling virtual warranties,
managing loyalty points and streamlining supply chain operations.
• Travel and Hospitality: It can be applied in money transactions, storing important documents
like passports/ other identification cards, reservations and managing travel insurance, loyalty
and rewards.

17

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

7. CONCLUSION
7.1 CONCLUSION
The application of the Blockchain concept and technology has grown beyond its use for Bitcoin
generation and transactions. The properties of its security, privacy, traceability, inherent data
provenance and time-stamping has seen its adoption beyond its initial application areas. The
Blockchain itself and its variants are now used to secure any type of transactions, whether it be
human-to-human communications or machine-to-machine. Its adoption appears to be secure
especially with the global emergence of the Internet-of-Things. Its decentralized application across
the already established global Internet is also very appealing in terms of ensuring data redundancy
and hence survivability. Thus the invention of the Blockchain can be seen to be a vital and much
needed additional component of the Internet that was lacking in security and trust before. BC
technology still has not reached its maturity with a prediction of five years as novel applications
continue to be implemented globally.

7.2 THE FUTURE OF BLOCKCHAIN

According to the Gartner Hype Cycle for Emerging Technologies
2017, shown in Figure 2, below, Blockchain still remains in the
region of “Peak of Inflated Expectation” with forecast to reach
plateau in “five to ten years”. However, this technology is shown
going downhill into the region of the “Trough of
Disillusionment”. Because of the wide adoption of the Blockchain
in a wide range of applications beyond cryptocurrency, the authors of this paper are forecasting a
shift in classification from “five to ten years” to “two to five years” to reach maturation.
Blockchain possesses a great potential in empowering the citizens of the developing countries if
widely adopted by e-governance applications for identity management, asset ownership transfer
of precious commodities such as gold, silver and diamond, healthcare and other commercial uses
as well as in financial inclusion. However, this will strongly depend on national political decisions.

18

Downloaded by Bannu sai ([email protected])

 lOMoARcPSD|13989817

8. REFERENCES

• Blockchain Technology Explained: The Ultimate Beginner’s Guide About Blockchain

Wallet, Mining, Bitcoin, Ethereum, Litecoin, Zcash, Monero, Ripple, Dash, IOTA and
Smart Contracts, Alan T. Norman
• Blockchain: Blueprint for a New Economy, Melanie Swan
• https://builtin.com/blockchain
• https://www.computerworld.com/article/3191077/what-is-blockchain-the-complete-
guide.html
• http://graphics.reuters.com/TECHNOLOGY-BLOCKCHAIN/010070P11GN/index.html

19

Downloaded by Bannu sai ([email protected])