The Concept of Blockchain
In recent times technology is playing a very vital role which directly takes into consideration different aspects which make the life of the common people easy (Wright & Filippi, 2015). In recent times the concept of blockchain can be considered as a data relating to records which are distributed or public ledger relating to all transactions or events which are digital which has directly been shared and executed among different participants.
The main aim of the report is to take into consideration different aspects which are related to the concept of the blockchain and focus on the implementation sector of the technology.
The concept of blockchain can be stated as an invention which is undeniably ingenious. The aspect of allowing the digital information to be directly distributed and not copied, the technology of blockchain has created a backbone of a new type of internet. It can be stated as the information which is held in the database has an existence which is shared and reconciled continuously (Underwood, 2016). This can be considered as a mean of using the network that has a benefit which is obvious.
The technology of blockchain received much of the attention due to different aspects which are related to the technology. The database which is present in the technology can be stated as not being saved at a single location which directly means that the records which are kept are easily verified and truly public (Ølnes, Ubacht & Janssen, 2017). The main advantage which can be stated in the context that the data are not saved in a particular centralised location is that hackers would not be able to indulge into different activity within the data.
The concept of bitcoin was invented in the year 2008 (Mettler, 2016). Since that tenure, the bitcoin blockchain has majorly operated with disruption which is very much significant. In recent times it can be stated that any problem which is associated with the concept of blockchain has raised due to activity relating to mismanagement or hacking (Sikorski, Haughton & Kraft, 2017). It can be said in other words that these problems come directly from bad attention and error which are human-oriented and not due to any flaws in the underlying concept of the technology.
The blockchain implementation directly determines the authority of the documents and proof of their originality, their disposition, their state, their destruction and the index (Underwood, 2016). There are four stages which can be related to the implementation of the blockchain which is stated below:
Advantages of Not Having a Centralized Database
Stage 1: A technology plan scope is taken into consideration, and a use case is identified.
Stage 2: This stage mainly involves proof of concept (POC).
Stage 3: This stage mainly involves a field trial. In this stage, a limited production is done, and customers are involved in the concept.
Stage 4: In this stage, the market is taken into consideration, and full stage production is carried out.
Cryptography
In the concept of the blockchain, the concept of the digital signature is involved. It can be stated as a concept which directly means that the transactions are kept secure so that intruders do not get involved in the concept of transferring. In this concept, a key is generated which would be securing the transaction which is conducted. Each of the transaction is displayed and broadcasted on the network of the bitcoin, and after verification, it is recorded in the public ledger (Crosby et al., 2016). The security aspect is enhanced in the concept using validating each of the transactions before being recorded in the public ledger
Networks
In the concept of the blockchain, it uses a global network to jointly manage the database which records the transaction of the bitcoin (Pilkington, 2016). This majorly means that bitcoin is managed by its network and not any of the networks which are centrally authorised. Decentralised directly means that the network which is operated on a user to user interface (or peer-to-peer) basis.
Operation
To explain the concept of the blockchain, the working of the bitcoin can be taken into consideration because they are intrinsically linked to the concept of bitcoin. The concept of blockchain can be considered as an internet which has a build in robustness (Buchanan & Naqvi, 2018). The method of storing a block of information which is very much identical across the concept of the internet, the blockchain cannot be controlled using a single entity neither it has a single point of failure.
What can be done?
The network which is related to the blockchain can be considered to be in a stated of consensus which can automatically check in with itself in a time span of every ten minutes. It can be considered as a self-auditing ecosystem of a digital value; the network can directly reconcile directly every transaction that happens in a time interval of ten minutes. Each of the group in the transaction is stated as a “block” (Underwood, 2016). Two of the most important results which can be seen from the concept is stated below:
- The data of the transaction is embedded within the network as a whole. It can be considered to be public by definition.
- It cannot be directly be corrupted using altering a unit of information within the concept of blockchain which means using a huge amount of computing power to directly override the network as a whole.
Bitcoin and Blockchain Disruption
In theory, it can be stated to be possible. In practice, it can be considered as a task which is unlikely to happen. For example, taking the direct control of the system to capture the bitcoin can directly affect using destroying the value.
What cannot be done?
The concept of blockchain can be stated as not so resistant to bad actors due to the factor that they are very much “antifragile”. Antifragile directly means that they respond directly to the attacks and can directly grow stronger. Blockchain would be directly requiring a large network of users however it can be stated here that if a blockchain is not so much robust to network taking into consideration grid which is distributed it becomes very much difficult to reap the overall benefit (Buchanan & Naqvi, 2018). It can be considered as a point of debate due to the factor that whether it is a law which is fatal for some permission projects relating to the blockchain.
The concept of bitcoin uses proof of cryptography instead of using the third party which are involved in the concept of an online transaction. Each of the transaction which is done in the concept of bitcoin uses a digital signature concept which would be making it very much secured (Belle, 2017). This aspect shortly can be playing a very much important role due to the factor that it is not dependent on any other network and has its setup.
Conclusion
The report can be concluded on a note that the concept of blockchain is in the stages of research and it can be stated that in most of the sector of life it is implemented. The aspect of bitcoin in the technology of blockchain can be considered as a backbone. It can direct resolve problem relating to financial aspect due to the security of the blockchain coupled with distributed ledger functionality.
References
Belle, I. (2017). The architecture, engineering and construction industry and blockchain technology. Digital Culture, 279-284.
Buchanan, B., & Naqvi, N. (2018). Building the Future of EU: Moving forward with International Collaboration on Blockchain. The JBBA, 1(1), 3579.
Crosby, M., Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology: Beyond bitcoin. Applied Innovation, 2, 6-10.
Mettler, M. (2016, September). Blockchain technology in healthcare: The revolution starts here. In e-Health Networking, Applications and Services (Healthcom), 2016 IEEE 18th International Conference on (pp. 1-3). IEEE.
Ølnes, S., Ubacht, J., & Janssen, M. (2017). Blockchain in government: Benefits and implications of distributed ledger technology for information sharing.
Pilkington, M. (2016). 11 Blockchain technology: principles and applications. Research handbook on digital transformations, 225.
Sikorski, J. J., Haughton, J., & Kraft, M. (2017). Blockchain technology in the chemical industry: Machine-to-machine electricity market. Applied Energy, 195, 234-246.
Underwood, S. (2016). Blockchain beyond bitcoin. Communications of the ACM, 59(11), 15-17.
Wright, A., & De Filippi, P. (2015). Decentralized blockchain technology and the rise of lex cryptographia.
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