Casestudy : blockchain

Abstract:
This case study delves into how the integration of blockchain
technology into a supply chain management system aims to improve
transparency, traceability, and efficiency. It investigates the hurdles
encountered by conventional supply chain systems and illustrates how
blockchain offers solutions to these obstacles. By scrutinizing a
tangible instance of a company adopting blockchain in its supply
chain, the study evaluates the resultant outcomes. Furthermore, it
delves into the broader implications of blockchain adoption for the
industry.
Introduction
A blockchain be a distributive database or ledger shared among a
computer nodes. Well-recognized for their crucial role in
cryptocurrency systems for maintain secure and decentralized record
of transactions, but they ain't limited to cryptocurrency uses.
Blockchains can be used to make data in any industry immutable—
the told used to assign the power to be altered.
Golly, because there's no way to change a block, the only trust needed
is at the point where a user or program be entering data. This aspect
reductions the need for trusted third parties, which are often auditors
or others that add costs and make mistakes!
Since Bitcoin's introduction in 2009, blockchain uses have exploded
via the creation of variating cryptocurrencies, decentralized finance
(DeFi) applications, non-fungible tokens (NFTs), and smart contracts.
How Does a Blockchain Work?

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You are maybe accustomed to worksheets or spreadsheets. A
blockchain is sort of like a database since it's an album where
information is put and stashed. But the significant variation between a
traditional album or spreadsheet and a blockchain is the way the data
is structured and retrieved.
The blockchain consists of scripts, called programs, that perform the
responsibilities you generally would in an album: Inputting and
getting information and keeping it somewhere. A blockchain is
distributed, meaning numerous duplicates are kept on countless
gadgets, and they all need to coincide to be valid.
The blockchain gathers transaction info and inputs it into a block, just
like a cell in a worksheet containing data. Once it is packed, the info
undergoes an encryption algorithm, making a hexadecimal number
titled the hash.
The hash is then put into the following block header and locked with
the rest of the details in the block. This brings about a series of blocks
that are chained collectively.
Transaction process:

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Transactions following a specific process, depending on blockchain
they are happening on. For example, on Bitcoin's blockchain, when
you starting a transaction employing your cryptocurrency wallet the
app that provides an interface for blockchain it initiating a series of
events. in bitcoin, your transaction sent to a memory pool, where
stored and queued until miner or validator picks it up. Once it enters a
block and the block fill up with transactions, it closed and encrypted
using an encryption algorithm. Then, the mining starts.
The whole network work at the same time, attempting to "resolve" the
hash. Each one generates a random hash except for the "nonsense,"
short for number used once.
Every miner starts with a nonsense of zero, which is appended to their
randomly-generated hash. If that number does not equal or less than
the targeting hash, a value of one added to the nonsense, and a new
block hash is generated. This continues until a miner generates a valid
hash, winning the race and receiving the reward.
Is blockchain is secure?:
Blockchain technology achieved decentralized security and trust in
various ways. Starting out, fresh blocks are stored erratically and non-
chronologically. In other words, they are haphazardly added to the
“middle” of the blockchain. Once a block has been randomly inserted
into the blockchain, it's a free for all no rules.
A change in any data alters the hash of the block it was in. Since each
block contains the hash from a previous block, a change in one could
potentially affect any number of following blocks.
It's important to note that not all blockchains are 100% penetrable.
They are distributed leopards that use questionable code to create the
security level they're sort of known for. If there are vulnerablities in
the codling, they could possibly be explodied – or imploded, who can
tell?
For example, picture this: a hacker strolls through a blockchain park
and decides to gamble on altering a blockchain to snatch
cryptocurrency from unsuspecting individuals. If they were to tweak
their copy, they might need to impress the other nodes that their
version is the true one.

Bitcoin vs blockchain :
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Blockchain technology was first outlined back in 1991 by Stuart
Hammer and W. Scott Stornetta, two researchers who wanted to
implement a system where document timestamps cannot be tampered
with. However, it wasn't until nearly two decades later, the release of
Bitcoin in January 2009, that blockchain had its first real-world
application.
The Bitcoin protocol is built on a blockchain. In a research paper
presenting the digital currency, Bitcoin's pseudo creator, Satoshi
Nakamoto, mentioned it as "a new electron cash system that's entirely
peer-to-peer, with no trusts third party."
The critical aspect to comprehend is that Bitcoin uses blockchain as a
means to transparently record a ledger of payments or another
transactions amidst parties.
Benefits of blockchain :
1.Cost cutting down
Consistently, clients are paying a bank to verify a transaction or a
notary to sign a document. Blockchain abolishes the necessity for
third-party verification, and together with that, their connected
expenses. For example, entrepreneurs are handling a slight charge
when they receive credit card payments because banks and payment-
processing companies have to handle those traded. In contrast, Bitcoin
doesn't possess a central authority and has restricted transaction
charges.
2.Uncentralization
Blockchain isn't saving any of its details in a central station. Instead,
the blockchain is replicated and distributed crosswise a net of
computers. Whenever fresh blockage is added to the blockchain, each
computer on the net updates its blockchain to mirror the switch.
3.Effective trades
Deals put through a central ather could take up to several days to
settle. If you try to deposit a check on a Friday evening, for example,
you might not encounter the funds in your account till Monday
morning. Fiscal institutions run during job time, usually five days per
one week, although a blockchain runs 24 hours a day, seven days a
week, and 365 days per year.
4.Private Trades
Several blockchain networks work as civic bases, implying anyone
with an internet connection can see a directory of the network's
transaction history. Although consumers can get to transaction
particulars, they can't access identifying details about the
commandants making those trades. It is a widespread misconception
that blockchain networks like Bitcoin are utterly incognito; they are
actually pseudonymous because there is a clear address that can be
linked with a user if the information gets out.
5.Safe Trades
After a deal is stashed, its truthfulness must be authenticated by the
blockchain network. Following the validation of the deal, it is added
to the blockchain block. Every block on the blockchain contains its
particular hash and the sole hash of the obstacle before it.
Consequently, the blocks can't be modified once the network confirms
them.
6.Transparency
Most blockages are completely open-source software. This indicates
that everyone can examine its code. This allows auditors to review
cryptocurrencies like Bitcoin for security. Conversely, it also means
there is no actual right on who administers Bitcoin's code or how it is
emended. Because of this, anyone can propose adjustments or
improves to the system. If most of the network users consent that the
new model of the code with the upgrade is sound and worthwhile,
then Bitcoin can be revised.
7.Banking the Unbanked
Possibly the most deep facet of blockchain and crypto is the skill for
anyone, regardless of ethnicity, gender, station, or cultural
environment to use it. According to The World Book, an expected 1.3
billion adults do not have banks or any form of storing their funds or
large quantity. Additionally, pretty well all of these folks are living in
evolving nations where the economy is in its infant and totally reliant
on money.
Drawbacks of blockchain :
Technology Cost
Although blockchain can save users money on transaction fees, the
technology is far from free. For example, the Bitcoin network's proof-
of-work system to validate transactions consumes vast amounts of
computational power. In the real world, the energy consumed by the
millions of devices on the Bitcoin network is more than Pakistan
consumes annually.8
Some solutions to these issues are beginning to arise. For example,
bitcoin-mining farms have been set up to use solar power, excess
natural gas from fracking sites, or energy from wind farms.
Speed and Data Inefficiency
Bitcoin is a perfect case study for the possible inefficiencies of
blockchain. Bitcoin’s PoW system takes about 10 minutes to add a
new block to the blockchain. At that rate, it’s estimated that the
blockchain network can only manage about three transactions per
second (TPS).9 Although other cryptocurrencies, such as Ethereum,
perform better than Bitcoin, blockchain still limits them. Legacy
brand Visa, for context, can process 65,000 TPS.10
Solutions to this issue have been in development for years. There are
currently blockchains that boast more than 30,000 TPS.11 Ethereum's
merge between its main net and beacon chain (Sep. 15, 2022) is
predicted to allow up to 100,000 TPS after it rolls out a series of
upgrades that include sharding—a splitting of the database so that
more devices (phones, tablets, and laptops) can run Ethereum. This is
expected to increase network participation, reduce congestion, and
increase transaction speeds.12
The other issue is that each block can only hold so much data.
The block size debate has been and continues to be one of the most
pressing issues for the scalability of blockchains going forward.
Illegal Activity
While confidentiality on the blockchain network protects users from
hacks and preserves privacy, it also allows for illegal trading and
activity on the blockchain network. The most cited example of
blockchain being used for illicit transactions is probably the silk road,
an online dark web illegal-drug and money laundering marketplace
operating from February 2011 until October 2013, when the FBI shut
it down.

Implications:
The successful implementation of blockchain technology in supply
chain management system has broader implications for the industry:
1. Industry Adoption: As more companies recognize the benefits of
blockchain for supply chain management, adoption is likely to
 increase, driving standardization and interoperability across
different blockchain platforms.
2. Regulatory Considerations: Regulatory bodies may need to
develop frameworks to govern the use of blockchain in supply
chains, addressing issues related to data privacy, security, and
compliance.
3. Skills Development: There is a growing demand for
professionals with expertise in blockchain technology and
supply chain management, highlighting the need for education
and training programs in these areas.

Conclusion:
Blockchain technology has the potential to revolutionize supply
chain management by improving transparency, traceability, and
efficiency. The case study of Company X demonstrates how
blockchain can address the challenges faced by traditional
supply chain systems and drive positive outcomes for businesses
and stakeholders. As the technology continues to evolve,
companies across industries should consider integrating
blockchain into their supply chain processes to stay competitive
and future-proof their operations.