JASC: Journal of Applied Science and Computations ISSN NO: 1076-5131
BLOCKCHAIN TECHNOLOGY
B.Mona, Shaik Yasmeen, Nada Faiz, Ms.PR .Anisha, Dr.BV Ramana Murthy, Mr.C.Kishor Kumar Reddy Stanley college of Engineering and Technology for Women Chapel road, bids, Hyderabad -500001 [email protected]@gmail.com,[email protected] [email protected] ,[email protected]
Abstract Blochchain serves as an immutable edger which allows transactions take place in d - decentralize manner.Blockcahin based-applications are rapidly increasing, covering numerous fields. However there are challenges of blockchain technology .We provide an overview on the history of blockchain and its architechture.Technical challenges and recent advances are listed.Possible future of blockchain in is research is also discussed. We also lay various applications of blockchain.
1. Introduction Nowadays crytocurrency has become a buzzword in both industry and academia .As one of the most successful cryotocurrency ,Bitcoin has enjoyed a huge success with its capital market searching 10 billion dollars in 2016 with a specially designed data storage structure ,transactions in Bitcoin network could happen without any third party and the core technology to build bitcoin is blockchain ,which was first propose in 2008 and implemented in 2004.A blockchain is a decentralized ,disturbed database that is used to maintain a continuously growing list of records, called blocks. Each block contains a timestamp and a link to previous block.Blockchin is named that way because it is basically and endless chain of blocks.The order o this chain defines the order in which the transaction in the blocks took place. The blockchain is created with a very specific problem to solve the double spacing problem.
2. Blockchain A Specially Designed Data Storage Structure, Transactions in Bitcoin Network could happen without any third party and the Core Technology to Build Bitcoin is Blockchain.It is a decentralized, distributed database that is used to maintain a continuously growing list of records called blocks. It could be regarded as a public ledger and all committed transactions are stored in a list of blocks. This chain grows as new blocks are appended to it continuously. Each block contains a timestamp and a link to a previous block. As it is endless chain of blocks, it is called as blockchain.The order of this chain defines the order in which transaction in the blocks took place.
3. History of Blockchain Technology
Blockchain seemingly came up out together nowhere together with Bitcoin in 2013.Importance of blockchain has been increasing day by day .Dubain is powered by government in the world by 2020.Blockchain and Bitcoin are created by “SATOSHI NAKHAMOTO”.He was born On 5th April 1975 as with most inventions he used and combined many already present techniques.Example Encryption Methods where already present .Blockchain solved a very specific problem in mind to solve :the double spending problem.Blockchain solves many problems because the database is very disturbed, very transparent
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4. Literature Survey
I. Eyal and E. G. Sirer[10] describes the phase as the literature search. In this phase we explain the methodological framework for conducting the literature search. According to us the search can be conducted in different ways. We suggest starting the search for relevant literature in leading journals. However, the literature search in this paper was divided into four phases. First, we establish a common ground by searching generally for the concepts across various platforms to identify a knowledgebase as the foundation for the literature review. As established above, the primary focus has been on the keyword Blockchain, due to the fact that extensive literature exists on both ecosystems and platforms. Second, when the common ground has been established, we identify the primary drivers within the IS research field We take foundation in the senior scholars basket of journals, in which we identify the basket of eight, consisting of the essential journals within IS research. However, there exist various ways of identifying literature with high quality. Additionally, we also identify other relevant journals that are included. In our database search. In step three, we conduct a forward- and backwards each to ensure that we have exhausted the concepts within the area of interest. The literature found in step three is mapped into customized version of M. Sharples and J. Domingue[8] backward/forward matrix. After we conclude that we have reached an exhaustive point of our re-search, we add the literature found in the forward/backward search to our original concept matrix to ensure a full overview of the topic. How-ever, we note that due to the exclusion of technical papers, we cannot claim to be exhaustive, but note that we reach a point of theoretical saturation with the selected articles. Theoretical saturation is reached.When no new categories and properties emerge from the data .During our general search, we start out by searching for literature on Google Scholar to create a quick overview of the research topic. During this phase, we use a concept matrix approach where the concepts are identified and mapped in the matrix. This allows us to get a full overview of the research landscape within our topic of interest.
5. Analysis
5.1 Blockchain Architechtutre
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As ,we know that the blocks, holds a complete list of transaction records like conventional public Ledger. FIGURE 1 illustrates an example of blockchain which has continuous sequence Of block. The first block of a blockchain is called genes is block which has no parent block
5.2 Internals of Blockchain
A. Block: A Block consists of the block header and the block body as shown in FIGURE 2. Block version: Indicates which set of block validation riles to follow. Merkle tree root hash: The hash value of all the transactions in the block. Timestamp: Current time as seconds in universal time since January 1st 1970. n Bits: Target threshold of a valid blockhash. Parent Blockhash: A 256 bit hash value that points to the previous block
B. Digital Signature:
The typical digital signature is involved with two phases: signing phase and verification phase. This digital signature algorithm used in blockchains is the elliptic digital signature algorithm (EDSA).
C. Key characteristics of Blockchain:
Decentralization: Here, third party is no longer needed in blockchain.It is used to maintain data consistency in distributed network. Persistency: Here, blocks that contain invalid transactions could be discovered immediately.
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Anonymility: Each user can interact with the blockchain with a generated address, which does not reveal the real identity of the user
D.Taxonomy of Blockchain Systems:
Current block chain systems are categorised roughly into three types: public block chain, private blockchain and consortium blockchain .A private blockchain is regarded as an untralized network since it is fully controlled by one organisation. In public blockchain all records are visible to the public and everyone could take part in the consensus process. In a consortium blockchain, only a group of pre-selected nodes would participate in the consensus process.
5.3 Changes and recent Advances
Even though blockchain has great potential, it faces many challenges which limit the wide usage of blockchain.Some major challenges and recent advantages are ● Scalability: Because of the amount of transactions increasing day by day blockchain becomes bulky. The job of the node is to store all transactions to validate them on the block chain because they have to check if the source of the current transaction is unspent or not as the original restriction of the block size and the interval is used to generate a new block, the Bitcoin blockchain can only process nearly 7 transactions per second .Which cannot fulfil the requirement and needs of processing millions of transactions in real-time fashion. In order to address the scalability problem of blockchain, it is classified onto two types, here a database named account tree is used to hold the balance of all non –empty addresses .Light weight client could also help fix this problem. Where some, a novel scheme allowed light weight clients to outsource expensive computations. ● Redesigning Blockchain:Bitcoin next generated is proposed and it main idea is to decouple conventional block into two part .Key block for leader election and microblock to store trabsactions.Bitcoin-NG is the heaviest chain strategy in which microblock carries no weight. In the above way, blockchain is redesigned and the trade-off between block size and network security has been addressed. ● Privacy leakage: Blockchain preserve privacy through the public and private keys. Many methods have been proposed to develop anonymity of blockchain,which is divided into two types ● Mixing: Here, in blockchain users addresses are psuedoymous.But we can still link addresses to user identity as users make transactions with the same addresses frequently. Mixing is a service which provides anonymity by transferring funds from multiple input addresses to multiple outputs. ● Anonymous: In zero coin. Zero knowledge proof is used. Minors don’t have proper transaction with digital signature but to validate coins belong to a list of valid coins. It reveals payments destination and amounts.So; inorder to prevent this zero cash was proposed to addresses this problem. In that, zero knowledge sufficient non-interactive arguments of knowledge are leveraged. ● Selfish Minning: Blockchain gets easily attacked by colliding selfish minor’s .EYAL and SIRER proved that the network is vulnerable even if only a small portion of the
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Hashing power is to cheat. Private branch is longer than the current pubic chain, it is admitted by all minors because of the selfish minning, and blockchain is not secured. Trial Stubbornness is one of the stubborn strategies that mine the blocks even if the private chain is left behind. So we can use zero block in which each block must be generated and ascended by within a maximum time intervals
5.4 How everything is connected?
This is an overview of all variables and indicators and their relation amongst each other. Indicators Metrix: These are designed by to evaluate the unique properties NAKAMOTTO on senses a. Consensus Delay: Is the time it take as system to reach agreement b. Fareness: Is the optimally largest minor and the nine largest minus representation in the transactions set should be the dame as their respective mining powers. c. Mining Power: Is the ratio of the mining pore that secures the system to the mining system. d. Time to Win: Average time wasted due to for KS.
6. The Future of Block chain in IS Research:
If the block chain lives up to its promised potential, it could provide a decentralized global information infrastructure in which no one is in full control and no-one can distort our life about past or current events. As block chain promises this vision of a decentralized information sharing is possible researchers and practitioners are being a part of the block chain bandages trying to realise vision of a decentralised information sharing and building up a brave new world characterised by crypto currency ,and truly global data repositories while exisisting embedded in current socio-economic infrastructure have to gear up to fight back and defend their truf.There remain many approach for IS research, on the development and implications of blockchain.There is a real need for the field to introspect on societal implications of the technology.Blockchain developers have been criticized for putting out overly optimistic view critics are argue that blockchain technology may end up limiting our freedom to make decisions by for giving records trials that cannot be amended.In such circumstance the blockchain technology may have economic,social and ecological effects.Therefore, more critical perspectives on blockchain are necessary we need people research on mitigating the risk and the consequences ofthe technologies. We also need to call for researches on the affects of the blockchain technology in the market and the livelihood of the comity who are dependent on markets further, we need to understand the ecological implications of powering and expanding network of computer ability required to sustain blockchain.Therefore, we need to research on the effects of block chain technology on wealth and geo political balance.
7. Advantages of Blockchain Technology Ever since the blockchain technology has come into existence it severed in the various kinds. The popular advantageous aspect of the blockchain technology is the security and database.
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Double checking. This technology has vastly provided the feature of being the speediest and modest regarding the technology. The description of the blockchain has more advantageous it can be is given down below. ● Disintermediation and trust less trades Any social affair cannot be outcaste to make any exchanges without the oversight and intermediation of the decreasing counterparty possibilities. ● Empowered Clients The customers are made sure to have an account of the every trade and information that they have done or have been doing. ● Process Respectability Clients are not made to assume that any changes taking place regarding convention summons and revealing the requirement of the trusted client without their permission. ● Transparency and Changelessness The clients are made sure and given trust regarding the transactions of any sort of transaction that they won’t be revealed r changed, modified or erased unless and until they have been ordered or requested. ● Faster Transactions Generally the internet banking take very long time to complete our transactions or clearing our cheques or sending the demand draft but with the help of blockchain technology theses all work can be possibly done in a short span of time. This technology has made the things regarding the internet banking much easier that people can one easily access the different systems like E-banking-banking and many sorts of things. ● Lower Exchange Costs For any transaction to the outsider client the blockchain technology has reduced thru charges regarding the transactions that have been done to the member outside at a very affordable price. 8. Applications of Blockchain Technology
Since ever that the Bitcoin that has collaborated with the blockchain technology many things has been evolved. The list give below focuses on the different application provided by the blockchain technology ever since it has joined the Bitcoin 1. It has brought a “bitmortgauge “which is a type of mortgage that the university of TU-DELFT has created using the blockchain technology and induced in the sort of the mortgage system. 2. For implementing in the loans which is quite a broader item. According to the Microsoft the blockchain technology has been useful for the any type of loans. 3. Similarly the obligation is another type of loan that undergoes the same procedure with the help of blockhead technology for providing the similar item as loan. 4. The basest application of the blockchain technology is wit the voting system where the contractions can take place easily so that the contractions take place without any external hindrance. 5. Mostly in the field of banks the blockchain technology that has been overhead regarding this blockchain .the lesser the blockchain technology the less are the possibilities of being affected by any kind of fraud. 6. Identity and verification theses are done generally according to the ownership of the individual’s .As the ideas have been already collected and sold whenever there is
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tendency of having any wrong information then he/she can access through these individuals of information’s for being correctable. 7. These are the best in the field of supply chains as they involve may things in the supply chain with the help of blockchain, where everything is clear and reliable forsaking it to run much smoother way.
8. The best application of this blockchain technology is by using in the business of EMIRATES where in future it want all the transactions in Dubai government must be don eBay using thus blockchain technology by the year 2020.
9. Bitcoin : The very first crypto-valuta launched by “SANTOSHI NAKAMOTTO” Himself. By far the most well known application of blockchain is Bitcoin.It could be argued that blockchain got so well known because of Bitcoin.Just to make sure ever one is on the same page; Bitcoin is a crypto-valuta.The first valuta within no bank and / or nation behind it to organise and maintain it.
Fig shows the course of Bitcoin in USD is shown its launch in 2013.Because of the lack of interference it is pruned a lot of fluctuation. At the same time it can be seen that it rises to new heights.
10. Bitnation: Called I not life by SUSSANE TARKOWSKI, TEMPELHOF on JULY 14TH 2014.Tempelofh’s father was stateless for a decade which brought her interest into this field. She has spent her life till now studying the topic of non-geographically contingent governance service aggrgaters.With the launch of Bitcoin, she realised, and her probability could make her dream true. Of providing more services then just health insurance, but aloe things like education and security, through networks of local sub- contactors.Bitnation offers the same services as those provided by traditional government, but in a geographically unbound way. Any individual from around the world can become
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a citizen of Bit nation by signing on to the constitution. After being launched on JULY 14TH 2014 Bit nation took off .On OCTOBER 5TH the first blockchain marriage was a fact.DECEMBER 2014 marked the moment when Bitnation announced working on a basic income protocol.In APRIL 2015 the first birth certificate came about. In NOVEMBER 2015 ASTONIA announced its partnership with Bitnation.This game access to all E-residence of ASTONIA to the blockchain of Bitnation with their physical ID card.FEBUARY 2016 was a big moth for Bitantion,they moved their equity to the ethereum blockchain and coded their virtual nation constitution called PANGEA.In APRIL 2016 LIBER LAND( a micronation informer JOEGOSLAVIA) also partnered up with Bitnation,giving their citizens the same easy services as the ASTONIANS already had.
9. Conclusion
Blockchain has shown its potential for transforming traditional industry with its key characteristics decentralization, persistency, and anonymility and audit ability .In this paper we present a comprehensive overview on blockchain.The application of the blockchain concept and technology has grown beyond its use for Bit coin generation and transactions. The properties of security, privacy, traceability, inherit the data province.The blockchain itself and its variants are more used to secure any type of transactions.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.
10. References
[1] “State of blockchain q1 2016: Blockchain funding overtakes bitcoin,” 2016. [Online]. Available: http://www.coindesk.com/ state-of-blockchain-q1-2016/ [2] S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” 2008. [Online].Available: https://bitcoin.org/bitcoin.pdf [3] G. W. Peters,E. Panayi, and A. Chapelle, “Trends in crypto-currencies and blockchain technologies: A monetary theory and regulation perspective,” 2015. [Online]. Available: http://dx.doi.org/10.2139/ssrn.[4] G. Foroglou and A.-L. Tsilidou, “Further applications of the blockchain,” 2015. [5] A. Kosba, A. Miller, E. Shi, Z. Wen, and C. Papamanthou, “Hawk: The blockchain model of cryptography and privacy-preserving smart contracts,” in Proceedings of IEEE Symposium on Security and Privacy (SP), San Jose, CA, USA, 2016, pp. 839–858. [6] B. W. Akins, J. L. Chapman, and J. M. Gordon, “A whole new world: Income tax considerations of the bitcoin economy,” 2013. [Online]. Available: https://ssrn.com/abstract=2394738 [7] Y. Zhang and J. Wen, “An iot electric business model based on the protocol of bitcoin,” in Proceedings of 18th International Conference on Intelligence in Next Generation Networks (ICIN), Paris, France, 2015, pp. 184– 191. [8] M. Sharples and J. Domingue, “The blockchain and kudos: A distributed system for educational record, reputation and reward,” in Proceedings of 11th European Conference on Technology Enhanced Learning (EC-TEL 2015), Lyon, France, 2015, pp. 490–496. [9] C. Noyes, “Bitav: Fast anti-malware by distributed blockchain consensus and feedforward scanning,” arXiv preprint arXiv:1601.01405, 2016. [10] I. Eyal and E. G. Sirer, “Majority is not enough: Bitcoin mining is vulnerable,” in Proceedings of International Conference on Financial Cryptography and Data Security, Berlin, Heidelberg, 2014, pp. 436-454. [11] A. Biryukov, D. Khovratovich, and I. Pustogarov, “Deanonymisation of clients in bitcoin p2p network,” in Proceedings of the 2014 ACM SIGSAC Conference on Computer and Communications Security, New York, NY, USA, 2014, pp. 15–29.
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[12] F. Tschorsch and B. Scheuermann, “Bitcoin and beyond: A technical survey on decentralized digital currencies,” IEEE Communications Surveys Tutorials, vol. 18, no. 3, pp. 2084–2123, 2016. [13] NRI, “Survey on blockchain technologies and related services,” Tech. Rep., 2015. [Online]. Available: http://www.meti.go.jp/english/press/ 2016/pdf/0531 01f.pdf [14] D. Lee Kuo Chuen, Ed., Handbook of Digital Currency, 1st ed. Elsevier, 2015. [Online]. Available: http://EconPapers.repec.org/RePEc: eee:monogr:9780128021170 [15] V. Buterin, “A next-generation smart contract and decentralized application platform,” white paper, 2014. [16] V. Buterin, “On public and private blockchains,” 2015. [Online]. Available: https://blog.ethereum.org/2015/08/07/ on-public-and-private-blockchains/ [17] “Hyperledger project,” 2015. [Online]. Available: https://www. hyperledger.org/ [18] “Consortium chain development.” [Online]. Available: https://github. com/ethereum/wiki/wiki/Consortium-Chain- Development [19] S. King and S. Nadal, “Ppcoin: Peer-to-peer crypto-currency with proofof-stake,” Self-Published Paper, August, vol. 19, 2012. [20] “Bitshares - your share in the decentralized exchange.” [Online]. Available: https://bitshares.org/ [21] S. King, “Primecoin: Cryptocurrency with prime number proof-ofwork,” July 7th, 2013.
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