OVERVIEW OF BLOCKCHAIN[/b]
ABSTRACT:[/b]
Blockchain technology has attracted a great deal of attentions as an effective way to innovate business process.it has to be integrated with other business process management system components to implement specific functional application.to apply blockchain into business process efficiently, blockchain and business process characteristics must be identified. blockchain era to overcome the problems of time inconsistency and consensus bias.
MEANING:
Blockchain is a digitized, decentralized, public ledger of all cryptocurrency transaction. Constantly growing as completed blocks are recorded and added to it in chronological order.it allows market participated to keep track of digital currency transaction without central record keeping. Originally developed as the as the accounting method for the virtual currency bitcoin, blockchain which is use what’s know as distributed ledger technology.
OBJECTIVES:
The blockchain’s visibility should always be actively kept with in chosen participate to avoid confusion so as to ensure.stability and control over which transaction.
PROCESS:
LIMITATION:
Complexity:
Blockchain technology involves an entirely new vocabulary it has made cryptography more mainstream but the highly specialized industry is chock-full. This requires a large network of users however if a blockchain is not a robust network with a widely distributed grid of nodes.
Transaction costs, network speed:
Bitcoin currently has notable transaction costs after being touted as near free for the first few years of its existence.
Human error:
If a blockchain is used as a database needs to be of high quality. the data stored on a blockchain is not inherently trustworthy.
Unavoidable security flaw:
There is one notable security flaw in bitcoin and other blockchain, if more then half of the computers working as nodes to service the network tell a lie the will become the truth.
Political:
Because blockchain protocols offer an opportunity to digitize governess models and because miners are essentially forming another type of incentivized governess model. there have been ample opportunities for public disagreements between different community sector.
CHALLENGIES:
We couldn’t help but recount his bright speech where he cleared up the challenging problems of blockchain related technologies and the way to solve them.
• transaction cost and transaction speed.
1. First is the use of child blockchain
FEATURES:
Increased capacity:
This is the first and an important feature of blockchain. the most remarkable thing about this blockchain technology is that it increases the capacity of the whole network.
Better security:
Blockchain technology has a better security because there is not even a single chance of shutting down of the system. even highest level of the financial system is subject to get backed. Bitcoin in the second hand had never been hacked.
Immutability:
Creating immutable ledgers is one of the main values of blockchain .any database that is centralized is subjected to get hacked any they require trust in the third party to keep the database secure.to control the bitcoin market anyone needs control over 51%of the total market.
CHARACTERISTICES:
• It is designed to be distributed and synchronized across networks which makes it ideal for multi organization business networks such as supply chain or financial consortia.
• advance and stored in the blockchain as “smart contracts” which helps given confidence that every one is playing by the rules.
• Before one can execute a transaction, there must be agreement between all relevant parties that the transaction is valid.
5 APPLICATIONS FOR BLOCKCHAIN IN BUSNIESS:
Smart contracts:
The term smart contract was first coined in 1993 but is recently become a buzzworthy term to the 2013 release of the etherurem project. Chris DeRose further explain on American banker that smart contract.
Cloud storage:
Cloud storage will be another application that business can take advantage. simply using excess hard device space users cloud store the traditional cloud 300 times.
Supply chain communication:
Phil Gomes says on Edelman Digital most of the things we buy aren’t made by single entity but by a chain of suppliers who sell their components.
Paying employees:
Bit wage which claims to be the world first bitcoin-based payroll service will circumvent the costly fees associated with transferring money internationally as well as the time it.
Electronic voting:
Bit shares a globally distributed database, states,” delegated proof of stake is the fastest most efficient, most decentralized, and most flexible consensus model available “. bit shares go on to state.
BLOCHCHAIN ADVANGTAGE:
Transparency:
One of the prime reasons blockchain is intriguing to business is that this technology is almost always open sources. that means other users developers have the opportunity to modify it as they see fit.
Reduced transaction cost:
Blockchain allows peer to peer and business to business transaction to be completed with out the needed for a third party which often a bank.
Faster transaction settlements:
When it comes traditional banks its not uncommon for transaction to take days to completely settle.as well as the fact that financial institutions located in various time zone around the world.
Decentralization:
Another central reason blockchain is so exciting is it s lack of a central data hub. blockchain actually allows individual transaction to have their own proof of validity and the authorization to enforce those constraints.
User -controlled networks:
Lastly cryptocurrency investors are tending to be really encouraged by the control aspect of blockchain. inability to reach an 80%consensus on an upgraded tied to bitcoin blockchain is what necessitated a fork into two separate currencies more than four months ago. Having a says goes a long way with investors and developers.
DISADVANTAGE:
Signature verification:
Every blockchain transaction must be digitally signed using a public -private cryptography scheme such as ECDSA. This is necessary because transaction propagated between nodes in a peer-to-peer fashion so their sources cannot otherwise be proven.
Consensus mechanisms:
In a distributed database such as a blockchain effort must be expended in ensuring that nodes in the network reach consensus. less likely where transaction are queued and processed in a single location.
Redundancy:
This isn’t about the performance of an individual node but the total amount of computation that a blockchain requires.
CONCLUSION:
They thus focus only on the payment applications of blockchain technology, such as Bitcoin. However, this work seeks to go beyond that and analyse in a more holistic way what the problem of limiting at the outset the effects and the results of the technology might be.
ABSTRACT:[/b]
Blockchain technology has attracted a great deal of attentions as an effective way to innovate business process.it has to be integrated with other business process management system components to implement specific functional application.to apply blockchain into business process efficiently, blockchain and business process characteristics must be identified. blockchain era to overcome the problems of time inconsistency and consensus bias.
MEANING:
Blockchain is a digitized, decentralized, public ledger of all cryptocurrency transaction. Constantly growing as completed blocks are recorded and added to it in chronological order.it allows market participated to keep track of digital currency transaction without central record keeping. Originally developed as the as the accounting method for the virtual currency bitcoin, blockchain which is use what’s know as distributed ledger technology.
OBJECTIVES:
The blockchain’s visibility should always be actively kept with in chosen participate to avoid confusion so as to ensure.stability and control over which transaction.
PROCESS:
- Apply the changes in permission set by transaction and the block respectively.
- Count the total approved miners set after these variations in the block
- Multiply the number of miners by mining diversity and round up to attain left spacing.
- The protocol of the chain
- Target time for the block
- Active permission type
- Mining diversity
- Mining incentive
- Maximum block size
- Approved type of transaction.
LIMITATION:
Complexity:
Blockchain technology involves an entirely new vocabulary it has made cryptography more mainstream but the highly specialized industry is chock-full. This requires a large network of users however if a blockchain is not a robust network with a widely distributed grid of nodes.
Transaction costs, network speed:
Bitcoin currently has notable transaction costs after being touted as near free for the first few years of its existence.
Human error:
If a blockchain is used as a database needs to be of high quality. the data stored on a blockchain is not inherently trustworthy.
Unavoidable security flaw:
There is one notable security flaw in bitcoin and other blockchain, if more then half of the computers working as nodes to service the network tell a lie the will become the truth.
Political:
Because blockchain protocols offer an opportunity to digitize governess models and because miners are essentially forming another type of incentivized governess model. there have been ample opportunities for public disagreements between different community sector.
CHALLENGIES:
We couldn’t help but recount his bright speech where he cleared up the challenging problems of blockchain related technologies and the way to solve them.
• transaction cost and transaction speed.
1. First is the use of child blockchain
FEATURES:
Increased capacity:
This is the first and an important feature of blockchain. the most remarkable thing about this blockchain technology is that it increases the capacity of the whole network.
Better security:
Blockchain technology has a better security because there is not even a single chance of shutting down of the system. even highest level of the financial system is subject to get backed. Bitcoin in the second hand had never been hacked.
Immutability:
Creating immutable ledgers is one of the main values of blockchain .any database that is centralized is subjected to get hacked any they require trust in the third party to keep the database secure.to control the bitcoin market anyone needs control over 51%of the total market.
CHARACTERISTICES:
• It is designed to be distributed and synchronized across networks which makes it ideal for multi organization business networks such as supply chain or financial consortia.
• advance and stored in the blockchain as “smart contracts” which helps given confidence that every one is playing by the rules.
• Before one can execute a transaction, there must be agreement between all relevant parties that the transaction is valid.
5 APPLICATIONS FOR BLOCKCHAIN IN BUSNIESS:
Smart contracts:
The term smart contract was first coined in 1993 but is recently become a buzzworthy term to the 2013 release of the etherurem project. Chris DeRose further explain on American banker that smart contract.
Cloud storage:
Cloud storage will be another application that business can take advantage. simply using excess hard device space users cloud store the traditional cloud 300 times.
Supply chain communication:
Phil Gomes says on Edelman Digital most of the things we buy aren’t made by single entity but by a chain of suppliers who sell their components.
Paying employees:
Bit wage which claims to be the world first bitcoin-based payroll service will circumvent the costly fees associated with transferring money internationally as well as the time it.
Electronic voting:
Bit shares a globally distributed database, states,” delegated proof of stake is the fastest most efficient, most decentralized, and most flexible consensus model available “. bit shares go on to state.
BLOCHCHAIN ADVANGTAGE:
Transparency:
One of the prime reasons blockchain is intriguing to business is that this technology is almost always open sources. that means other users developers have the opportunity to modify it as they see fit.
Reduced transaction cost:
Blockchain allows peer to peer and business to business transaction to be completed with out the needed for a third party which often a bank.
Faster transaction settlements:
When it comes traditional banks its not uncommon for transaction to take days to completely settle.as well as the fact that financial institutions located in various time zone around the world.
Decentralization:
Another central reason blockchain is so exciting is it s lack of a central data hub. blockchain actually allows individual transaction to have their own proof of validity and the authorization to enforce those constraints.
User -controlled networks:
Lastly cryptocurrency investors are tending to be really encouraged by the control aspect of blockchain. inability to reach an 80%consensus on an upgraded tied to bitcoin blockchain is what necessitated a fork into two separate currencies more than four months ago. Having a says goes a long way with investors and developers.
DISADVANTAGE:
Signature verification:
Every blockchain transaction must be digitally signed using a public -private cryptography scheme such as ECDSA. This is necessary because transaction propagated between nodes in a peer-to-peer fashion so their sources cannot otherwise be proven.
Consensus mechanisms:
In a distributed database such as a blockchain effort must be expended in ensuring that nodes in the network reach consensus. less likely where transaction are queued and processed in a single location.
Redundancy:
This isn’t about the performance of an individual node but the total amount of computation that a blockchain requires.
CONCLUSION:
They thus focus only on the payment applications of blockchain technology, such as Bitcoin. However, this work seeks to go beyond that and analyse in a more holistic way what the problem of limiting at the outset the effects and the results of the technology might be.