Review paper on Blockchain Technology
Surya Bazal , Assistant Professor
Department Of Electronics & Communications
Gyan ganga Institute of Technology & Sciences, Jabalpur
ABSTRACT - Blockchain, the foundation of The potential for blockchain technology is not
Bitcoin, has received extensive attentions recently. limited to bitcoin. As such, it has gained a lot of
Blockchain serves as an immutable ledger which attention in a variety of industries including:
allows transactions take place in a decentralized financial services, charities and nonprofits, the
manner. Blockchain-based applications are arts, and e-commerce.
springing up, cov-ering numerous fields including
2.HISTORY
financial services, reputation system and Internet
of Things (IoT), and so on. However,there are still Blockchain, which began to emerge as a real-
many challenges of blockchain technology such as world tech option in 2016 and 2017, is poised to
scalability and security problems waiting to be change IT in much the same way open-source
overcome.This paper presents a comprehensive software did a quarter century ago. And in the
overview on blockchain technology. We provide same way Linux took more than a decade to
an overview of blockchain architechture firstly become a cornerstone in modern application
and compare some typical consensus algorithms development, Blockchain will likely take years to
used in different blockchains. Furthermore, become a lower cost, more efficient way to share
technical challenges and recent advances are information and data between open and private
briefly listed. We also lay out possible future business networks.
trends for blockchain.
Based on a peer-to-peer (P2P) topology,
Keywords:Bitcoin , Bitcoin Network , Currency ,. blockchain is a distributed ledger technology
(DLT) that allows data to be stored globally on
1. INTRODUCTION
thousands of servers – while letting anyone on
The Bitcoin Network is the first successful the network see everyone else's entries in near
implementation of blockchain technology. real-time. That makes it difficult for one user to
gain control of, or game, the network.
The term "blockchain technology" typically
refers to the transparent, trustless, publicly However, in highly publicized incidents over the
accessible ledger that allows us to securely five years, blockchains have been hacked,
transfer the ownership of units of value using typically through a cryptocurrency application
public key encryption and proof of work such as bitcoin. Smaller blockchains with fewer
methods. nodes (or computers) have also been susceptible
to fraud, with would-be thieves gaining control
The technology uses decentralized consensus to
of the majority of nodes.
maintain the network, which means it is not
centrally controlled by a bank, corporation, or For businesses, however, blockchain holds the
government. In fact, the larger the network promise of transactional transparency – the
grows and becomes increasingly decentralized, ability to create secure, real-time communication
the more secure it becomes. networks with partners around the globe to
support everything from supply chains to can be openly shared among disparate users to
payment networks to real estate deals and create an unchangeable record of transactions,
healthcare data sharing. each time-stamped and linked to the previous
one. Every time a set of transactions is added,
Recent hype around this relatively new
that data becomes another block in the chain.
technology is real because DLT, in essense,
represents a new paradigm for how information Blockchain can only be updated by consensus
is shared; tech vendors and enterprises, not between participants in the system, and once new
surprisingly have rushed to learn how they can data is entered it can never be erased. It is a
use the distributed ledger technology (DLT) to write-once, append-many technology, making it
save time and admin costs. Numerous companies a verifiable and auditable record of each and
have already rolled out, or are planning to every transaction.
launch, pilot programs and real-world projects
While it has great potential, blockchain
across a variety of industries - everything from
technology development is still early days; CIOs
financial technology (FinTech) and healthcare to
and their business counterparts should expect
mobile payments and global shipping.
setbacks in deploying the technology, including
So while blockchain isn't going to replace the real possibility of serious bugs in the software
traditional corporate relational databases, it used atop blockchain. And as some companies
does open new doors for the movement and have already discovered, it's not the be-all
storage of transactional data inside and outside solution to many tech problems.
of global enterprises.
Blockchain standards organizations, universities
Driven mainly by financial technology (fintech) and start-ups have proposed newer consensus
investments, blockchain has seen a fast uptick in protocols and methods for spreading out the
adoption for application development and pilot computational and data storage workload to
tests in a number of industries and will generate enable greater transactional throughput and
more than $10.6 billion in revenue by 2023, overall scalability – a persistent problem for
according to a report from ABI Research. Most blockchain. And the Linux Foundation’s
of that revenue figure is expected to come from Hyperledger Project has created modular tools
software sales and services. for building out blockchain collaboration
networks
Blockchain adoption is expected be steady, as the
changes it brings gain momentum, according 4.BITCOIN
Karim Lakhani, a principal investigator of the
The term bitcoin was first... well, coined in 2008
Crowd Innovation Lab and NASA Tournament
when Satoshi Nakamoto (likely a pseudonym for
Lab at the Harvard Institute for Quantitative
one or more developers) wrote a paper about a
Social Science. "Conceptionally, this is TCP/IP
"peer-to-peer version of electronic cash that
applied to the world of business and
would allow online payments to be sent directly
transactions," Lakhani said. "In the '70s and
from one party to another without going through
'80s, TCP/IP was not imaginable to be as robust
a financial institution."
and scalable as it was. Now, we know that
TCP/IP allows us all this modern functionality For more than a year, however, Bitcoin has been
that we take for granted on the web. on a roller coaster ride, with its value dropping
from a peak of nearly $20,000 to a little more
3.BLOCKCHAIN
than $3,500, mainly due to the fact that it has no
First and foremost, blockchain is a public intrinsic value; its worth is based only on high
electronic ledger built around a P2P system that demand and limited supply. Unlike fiat
currencies or stocks, there is no institution or As a peer-to-peer network, combined with a
government backing the value of bitcoin. distributed time-stamping server, public blockchain
ledgers can be managed autonomously to exchange
Bitcoin can often refer to two things. First, the information between parties. There's no need for an
Bitcoin network that keeps track of our administrator. In effect, the blockchain users are the
transactions and balances, and second, the administrator.
currency that we use as the unit of value when
A second form of blockchain, known as private or
we transact. We'll cover both here. permissioned blockchain, allows companies to create
4.1.THE BITCOIN NETWORK and centrally administer their own transactional
networks that can be used inter- or intra-company
Bitcoin's payment network (also called the with partners.
bitcoin blockchain) is what makes it possible for
Additionally, blockchain networks can be used for
us to transact with one another. The network "smart contracts," or scripts for business automation
uses distributed consensus to verify and confirm that execute when certain contractual conditions are
transactions, and consensus is reached via a met. For example, after a bad batch of lettuce
large global network of high-performance resulted in customers becoming sick from e-coli,
computers (called miners) running the bitcoin Walmart and IBM created a blockchain-based
software. supply chain to track produce from farm to table.
Walmart has asked its produce suppliers to input
Whenever someone sends a transaction it is their data to the blockchain database by September
broadcast instantly to the network and verified 2019. Once on the blockchain, produce can be
by the miners. Miners are constantly working to automatically tracked through smart contracts from
confirm individual transactions and include point to point, removing human intervention and
them in the next block of transactions in the error.
chain. Once a new block is verified, all the 6.BLOCKCHAIN & MOBILE PAYMENT
transactions within it are permanently recorded
on the blockchain. Rewards are paid out in Prior to rolling out a blockchain-based electronic
bitcoin to miners who confirm transactions and exchange, peer-to-peer foreign exchange provider
verify the next block as a way to incentivize KlickEx was limited in scale by the company's own
infrastructure; it served about 1 million users per
productivity on the network.
day across eight countries, or about 80% of
Each party who participates in the mining households in its Pacific region.
process has an identical up-to-date copy of the Today, the monetary exchange handles about 90% to
blockchain or public ledger, which is a record of 95% of all electronic payments for the region that are
all the transactions in bitcoin history. Each for $200 or less. When not overtaxed, the old KlickEx
party's copy of the ledger is updated every time a exchange system was able to clear payments in
new block is found. between 90 and 200 seconds. But a common
processing issue often slowed the process: payments
received would outpace payments issued, forcing the
4.2.THE CURRENCY exchange to use batch processing. That caused
payments to enter queues and created a delay that
The unit of value that we send and receive on the could take days.
Bitcoin network is also referred to as bitcoin, or
A new blockchain-based payment system that
bitcoins. Bitcoin is completely digital, meaning KlickEx has created can process cross-border
we can't physically hold it in our hand. It's also payments in seconds.
portable, divisible, fungible, and irreversible.
The Polynesian payments system provider partnered
5.PUBLIC Vs PRIVATE BLOCKCHAIN with IBM to create an open-source payment network
as a new international exchange based on a and Networking (ICDCN). Singapore,
blockchain electronic ledger. The new network uses Singapore:ACM, 2016, p. 13.
IBM's Blockchain Platform, a cloud service, to
4. D. Kraft, “Difficulty control for blockchain-based
enable the electronic exchange of 12 different
consensus systems,”Peer-to-Peer Networking and
currencies across Pacific Islands as well as in
Applications, vol. 9, no. 2, pp. 397–413,2016.
Australia, New Zealand and the United Kingdom.
5 Y. Sompolinsky and A. Zohar, “Accelerating
"In bringing IBM in to mature the technology, we
bitcoin’s transaction pro-cessing. fast money grows
think we're pushing something like 8
on trees, not chains.” IACR Cryptology
million...payments per day capacity, which is a long
ePrintArchive, vol. 2013, no. 881, 2013.
way up from where we started," KlickEx CEO
Robert Bell said. "So the new real-time system based 6. A. Chepurnoy, M. Larangeira, and A. Ojiganov,
on blockchain means payment happens immediately, “A prunable blockchainconsensus protocol based on
rather than in batch files." non-interactive proofs of past states retriev-ability,”
arXiv preprint arXiv:1603.07926, 2016.
7.THE FUTURE OF BLOCKCHAIN
7. J. Bruce, “The mini-blockchain scheme,” July
The reason some organizations feel angst about
2014. [Online].
moving forward (or failing to do so) is because
Available:http://cryptonite.info/files/mbc-scheme-
blockchain goes to the heart of how we organize our
rev3.pdf
information and our records-keeping infrastructure,
according to Lakhani. Any blockchain-centric 8J. van den Hooff, M. F. Kaashoek, and N. Zeldovich,
overhaul is not going to happen overnight. “Versum: Verifiablecomputations over large public
logs,” in Proceedings of the 2014 ACMSIGSAC
"My sense is this will again take time. We need both
Conference on Computer and Communications
business logic and technical logic to be figured out,
Security,NewYork, NY, USA, 2014, pp. 1304–1316.
the applications to be developed and people to be
trained to use it,” he said. “then we'll adapt our 9 I. Eyal, A. E. Gencer, E. G. Sirer, and R. Van
institutions to the new way of sharing information." Renesse, “Bitcoin-ng: A scalable blockchain
protocol,” in Proceedings of 13th
8.CONCLUSION
USENIXSymposium on Networked Systems Design
Blockchain is finally making a name for itself at age and Implementation (NSDI16), Santa Clara, CA,
twenty-seven, in no small part because of bitcoin and USA, 2016, pp. 45–59.
cryptocurrency. As a buzzword on the tongue of
every investor in the nation, blockchain stands to
make business and government operations more
accurate, efficient, and secure.
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