Blockchain has been a topic of much discussion in recent years. This technology is being called the most disruptive technology in the next decade by many. This technology is being used in many industries, including healthcare, medicine, insurance, smart properties, automobiles, and government. The Bitcoin – A peer-to-peer electronic cash system, which is also the first use of blockchain technology, is the best and most successful implementation. To understand blockchain technology we must first understand how it is implemented and designed.
II. Blockchain Architecture
- Public blockchain architectures mean that anyone can access the data and have access to the system. Public blockchain architectures for Bitcoin, Ethereum and Litecoin are available. All records will be made public, and everyone can participate in the agreement process.
- Private blockchain architecture is different from public blockchain architecture. It can only be controlled by authorized users or users belonging to a specific organization who have been invited. Private blockchain is safer because it is operated by a specific group.
- Blockchain technology is used for encrypting transaction data. It is stored on multiple servers, so hackers are unable to decrypt it.
- Blockchain technology can be used to authenticate assets and prevent fraud.
- The blockchain technology can be used to modify all records in the future and to allow for the collaboration of the entire network. Data on a blockchain can be more consistent, accurate, and transparent than if it were pushed through paper.
- This program is extremely secure. It cannot be edited to alter any transaction or block that adds to the chain.
- Today, millions of transactions occur per day. The bitcoin blockchain can only process 7 transactions per second. A large block size could slow down the propagation speed, and cause blockchain branches.
- In the event of information leakage, users can also create multiple addresses. Blockchain cannot guarantee transactional privacy because the public keys are openly visible to all transactions and balances.
- Mixing service allows you to transfer funds from multiple addresses to one output address. This provides anonymity. It is difficult to determine the relationship between sender/receiver.
- The average cost of a Bitcoin transaction is between $75 and $160, with most of that cost covered by energy consumption
V. Future Direction
- Users who want to use blockchain technology in their businesses must first determine the right blockchain. This is why blockchain testing is used to evaluate different blockchains.
- Combining blockchain with big data could work well. As it is secure and distributed, blockchain could be used for data storage.
- New opportunities are being created by blockchain technology for artificial intelligence (AI). AI technologies may be able to solve many blockchain problems.
VI. Current Use
- Blockchain technology allows for the transfer of funds from one party (or to another) to another.
- Blockchain could allow consumers and businesses to see how products perform from a quality control perspective, as they travel from their origin to the retailer.
- Blockchain could revolutionize retail by becoming the preferred platform for loyalty rewards
VII. Blockchain Application
- The impact of Bitcoin on traditional financial services and business has been enormous. Blockchain technology can be used in many areas, including clearing and settlement financial assets.
- IoT (also known as smart objects) is a way to connect things and provide users with different services. IOT allows for network-controlled management of specific types of electronic devices, such as the monitoring of temperature in a storage unit. Smart contracts allow remote system management to be automated.
- Your reputation is a measure of how trust you have in the community. Your reputation is a measure of how trustworthy you are to others. A person’s reputation can be determined by his or her past transactions and interactions within the community.
- Smart contracts are a way to ensure that voters can be elected by the people, for the people. Contracts define the expectations of the electorate and electors will only be paid if they fulfill the demands of the electorate rather than the wishes of funders.