A

TECHNICAL SEMINAR

REPORT ON

“BLOCKCHAIN TECHNOLOGY”
This dissertation Submitted in partial fulfillment of the
requirements for the award of the degree of

BACHELOR OF TECHNOLOGY
IN
ELECTRONICS AND COMMUNICATION ENGINEERING

Submitted by
SHIVA CHETAN ASHNISHETTY 20C71A0408

Under the guidance of

Mr. D. SHEKAR GOUD
Asst.Prof

DEPARTMENT OF ELECTRONICS AND COMMUNICATION

ENGINEERING
ELLENKI COLLEGE OF ENGINEERING & TECHNOLOGY
PATELGUDA, AMEENPUR, SANGAREDDY DISTRICT - 502319
Affiliated to JNTU,Hyderabad

2023-2024
 lOMoARcPSD|34291840

ELLENKI COLLEGE OF ENGINEERING & TECHNOLOGY

PATELGUDA, AMEENPUR, SANGAREDDY DISTRICT – 502319
Affiliated to JNTU Hyderabad.

DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

CERTIFICATE
This is to certify that the dissertation entitled BLOCKCHAIN TECHNOLOGY being submitted
by

A. SHIVA CHETAN, bearing Roll No. 20C71A0408, in partial fulfillment of the requirements for
the award of degree of BACHELOR OF TECHNOLOGY IN ELECTRONICS AND
COMMUNICATION ENGINEERING, under Jawaharlal Nehru Technological University,
Hyderabad, is a record of bonafide work carried out by them under by guidance and supervision.
The results embodied in this Mini Project report have not been submitted to any other university or
institute for the award of any degree.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

Mr. D. SHEKAR GOUD Dr. K. SRINIVASULU

(Asst. Proof) (Professor)

PRINCIPAL
Dr. P. JHON PAUL
(Professor)
 lOMoARcPSD|34291840

ACKNOWLEDGEMENT
We are very pleased present this Mini Project of my research. The period of my student life has
been truly rewarding a number of people were of immense help to us during the course of my
research and the preparation of my Mini Project.

We would like to thank Sri E. SADASHIVA REDDY, Chairman, Ellenki College of

Engineering and Technology, for providing me the conducive environment for carrying through
my academic schedules and Mini Projects with ease.

We express a whole hearted gratitude to Dr. M. SAMBHA SHIVA REDDY, Director,

Ellenki College of Engineering and Technology, for providing me the conducive environment for
carrying through my academic schedules and Mini project with ease.

We are obliged and grateful to Secretary Mr. E. DAYAKAR REDDY and Academic
Director Mr. E. SAI KIRAN REDDY for allowing me to carry out my project work in the college
premises.

We would like to thank my Principal Dr. P. JOHN PAUL, Ellenki College of Engineering
and Technology. His insight during course of my research and regular guidance were invaluable to
me and also providing right suggestions at every phase of the development of my Mini Project.

We would like to thank my Head of the Department Dr. K. SRINIVASULU in Electronics

and Communication Engineering, Ellenki College of Engineering and Technology, for
providing seamless support and knowledge over the past one year and also for providing right
suggestions at every phase of the development of my Mini Project.

We would like to thank my Internal Guide Mr. D. SHEKAR GOUD, Asst.Proof,

Department of Electronics and Communication Engineering, Ellenki College of Engineering
and Technology, for providing seamless support and knowledge over the past one year and also
for providing right suggestions at every phase of the development of my Mini Project.

We would like to thank all the staff members of Research and Development Center and
Department of Electronics and Communication Engineering.

There is definitely a need to thank my friends and parents for their patience and support in
always leading to successful completion of the Mini Project.

ASHINISHETTY SHIVA CHETAN 20C71A0408

 lOMoARcPSD|34291840

CONTENT

PAGE NO.

Abstract ii
List of Figures Iii

CHAPTER - 1

INTRODUCTION
1.1 Introduction 1
1.2 History 2-4

CHAPTER - 2

2.1 Components 5
2.1.1 5
Transaction
2.1.2 Block 5

2.2 Working 6
2.2.1 Blocks 6
2.2.2 Miners 7
2.2.3 Nodes 8-10

CHAPTER - 3
 lOMoARcPSD|34291840

3. TYPES OF BLOCKCHAINS
3.1 Public Blockchain 11-12
3.2 Private Blockchain 13-14
3.3 Consortium 15-16
Blockchain
3.4 Hybrid Blockchain 17

CHAPTER - 4

4.1 ADVANTAGES 18
4..2 DISADVANTAGES 19
4.3 APPLICATIONS 20-21

CHAPTER - 5
5.1 CONCLUSION
5.1.1 Project 22
Conclusion
5.1.2 Future of Block 22-23
chain

5.2 REFERENCES 23

i
 lOMoARcPSD|34291840

ABSTRACT

Block chain technology has been described as the biggest technical

revolution since the Internet. The technology – which is the basis for the
cryptocurrency Bitcoin, but which can be used for much more – enables digital
transactions without the use of intermediaries, which are much faster and also
more secure than has previously been possible. Blockchain technology is expected
to change a wide range of business sectors fundamentally, such as banks and
finance, consumer goods, supply chain, automotive, energy, legal services, etc.

With Block chain technology in financial sector, the participants can interact
directly and can make transactions across the internet without the interference of a
third party. Such transactions through Block chain will not share any personal
information regarding the participants and it creates a transaction record by
encrypting the identifying information.

The most exciting feature of Block chain is that it greatly reduces the
possibilities of a data breach. In contrast with the traditional processes, in Block
chain there are multiple shared copies of the same data base which makes it
challenging to wage a data breach attack or cyber-attack . With all the fraud
resistant features, the block chain technology holds the potential to revolutionize
various business sectors and make processes smarter, secure, transparent, and more
efficient compared to the traditional business processes.

ii
 lOMoARcPSD|34291840

LIST OF FIGURES

Title Page No.

Fig 1.1 Block chain technology 1

Fig 1.2 History of Block chain 2

Fig 2.1 Block Diagram of Block chain 5

Fig 2.2 operation of Block chain 9

Fig 4.3 Applications of Block chain 20

Fig 5.2 The Future of Block chain 22

iii
 lOMoARcPSD|34291840

CHAPTER-1

1.1 INTRODUCTION

The Blockchain is an encrypted,

distributed database that records
data, or in other words it is a
digital ledger of any transactions,
contracts - that needs to be
independently recorded. One of
the key features of Blockchain is
that this digital ledger is
accessible across several hundreds
and thousands of computer and is
not bound
to be kept in a single place.
Blockchain chain has already
started disrupting the financial
services sector, and it is this
technology which underpins the
digital currency- bitcoin
transaction.

Blockchain is an open and distributed ledger that can be used to record transactions
between two parties. This way of recording a transaction is both permanent as well as
verifiable, which makes it one of the best ways to keep transactions. Blockchains are
built on the open-source platform. So different versions of these blockchains are
possible, which are developed as per the needs of different industries.

As blockchain is a distributed ledger, hence every transaction is stored on more than

one computer, which makes us sure that every transaction is going to be permanent
without any fear of loss. As blockchain is distributed, it can neither be owned nor be
fully controlled by a single entity. Transactions are between two parties, and no other
parties are involved, this results in lower cost, and once a transaction is performed, it
cannot be changed under any circumstances.

1
 lOMoARcPSD|34291840

1.2HISTORY

Although blockchain is a new technology, it already boasts a rich and

interesting history. The following is a brief timeline of some of the most important
and notable events in the development of blockchain.

2008

 Satoshi Nakamoto, a pseudonym for a person or group,

publishes “Bitcoin: A Peer to Peer Electronic Cash System."
2009
 The first successful Bitcoin (BTC) transaction occurs
between computer scientist Hal Finney and the
mysterious Satoshi Nakamoto.
2010
Florida-based programmer Laszlo Hanycez completes the first ever purchase
two Papa John’s pizzas. Hanycez transferred 10,000 BTC’s, worth about
$60 at the
2011
 1 BTC = $1USD, giving the cryptocurrency parity with the US dollar.
 Electronic Frontier Foundation, Wikileaks and other organizations start
accepting Bitcoin as donations.
2012
 Blockchain and cryptocurrency are mentioned in popular television shows
like The Good Wife, injecting blockchain into pop culture.
 Bitcoin Magazine launched by early Bitcoin developer Vitalik Buterin.
2013
 BTC market cap surpassed $1 billion.
 Bitcoin reached $100/BTC for first time.
 Buterin publishes “Ethereum Project" paper suggesting that blockchain has
2
other possibilities besides Bitcoin (e.g., smart contracts).
 lOMoARcPSD|34291840

2014
 Gaming company Zynga, The D Las Vegas Hotel and Overstock.com all
start accepting Bitcoin as payment.
 Buterin’s Ethereum Project is crowdfunded via an Initial Coin Offering (ICO)
raising over
$18 million in BTC and opening up new avenues for blockchain.

3
 lOMoARcPSD|34291840

 R3, a group of over 200 blockchain firms, is formed to discover new ways
blockchain can be implemented in technology.
 PayPal announces Bitcoin integration.
2015
 Number of merchants accepting BTC exceeds 100,000.
 NASDAQ and San-Francisco blockchain company Chain team up to test the
technology for trading shares in private companies.
2016
 Tech giant IBM announces a blockchain strategy for cloud-based business
solutions.
 Government of Japan recognizes the legitimacy of blockchain and
cryptocurrencies.
2017
 Bitcoin reaches $1,000/BTC for first time.
 Cryptocurrency market cap reaches $150 billion.
 JP Morgan CEO Jamie Dimon says he believes in blockchain as a future
technology, giving the ledger system a vote-of-confidence from Wall Street.
 Bitcoin reaches its all-time high at $19,783.21/BTC.
 Dubai announces its government will be blockchain-powered by 2020.
2018
 Facebook commits to starting a blockchain group and also hints at the
possibility of creating its own cryptocurrency.
 IBM develops a blockchain-based banking platform with large banks like Citi
and Barclays signing on.

4
 lOMoARcPSD|34291840

CHAPTER—2

2.1 COMPONENTS
A Blockchain comprises of two different components, as follows:

2.1.1. Transaction:
A transaction, in a Blockchain, represents the action triggered by the participant.
2.1.2. Block:
A block, in a Blockchain, is a collection of data recording the transaction and
associated details such as the correct sequence, timestamp of creation, etc.
The Blockchain can either be public or private, depending on the scope of its
use. A public Blockchain enables all the users with read and write permissions
such as in Bitcoin, access to it. However, there are some public Blockchains that
limit the access to only either to read or to write. On the contrary, a private
Blockchain limits the access to selected trusted participants only, with the aim to
keep the users’ details concealed. This is particularly pertinent amongst
governmental institutions and allied sister concerns or their subsidies thereof.

5
 lOMoARcPSD|34291840

2.2 WORKING

The whole point of using a blockchain is to let people — in particular,

people who don't trust one another — share valuable data in a secure, tamperproof
way.Blockchain consists of three important concepts: blocks, nodes and miners.

2.2.1 Blocks:
Every chain consists of multiple blocks and each block has three basic elements:
 The data in the block.
 A 32-bit whole number called a nonce. The nonce is randomly generated
when a block is created, which then generates a block header hash.

6
 lOMoARcPSD|34291840

 The hash is a 256-bit number wedded to the nonce. It must start with a
huge number of zeroes (i.e., be extremely small).
When the first block of a chain is created, a nonce generates the cryptographic
hash. The data in the block is considered signed and forever tied to the nonce and
hash unless it is mined.

2.2.2 Miners:
Miners create new blocks on the chain through a process called mining.In a
blockchain every block has its own unique nonce and hash, but also references the
hash of the previous block in the chain, so mining a block isn't easy, especially on
large chains.Miners use special software to solve the incredibly complex math
problem of finding a nonce that generates an accepted hash. Because the nonce is
only 32 bits and the hash is 256, there are roughly four billion possible nonce- hash
combinations that must be mined before the right one is found. When that happens
miners are said to have found the "golden nonce" and their block is added to the
chain.
Making a change to any block earlier in the chain requires re-mining not just
the block with the change, but all of the blocks that come after. This is why it's
extremely difficult to manipulate blockchain technology. Think of it is as "safety in
math" since finding golden nonces requires an enormous amount of time and
computing power.
When a block is successfully mined, the change is accepted by all of the nodes on
the network and the miner is rewarded financially.

7
 lOMoARcPSD|34291840

2.2.3 Nodes:
One of the most important concepts in blockchain technology is
decentralization. No one computer or organization can own the chain. Instead, it is
a distributed ledger via the nodes connected to the chain. Nodes can be any kind of
electronic device that maintains copies of the blockchain and keeps the network
functioning.
7
Every node has its own copy of the blockchain and the network must
algorithmically approve any newly mined block for the chain to be updated, trusted
and verified. Since blockchains are transparent, every action in the ledger can be
easily checked and viewed. Each participant is given a unique alphanumeric
identification number that shows their transactions.

Combining public information with a system of checks-and-balances helps

the blockchain maintain integrity and creates trust among users. Essentially,
blockchains can be thought of as the scalability of trust via technology.
Another major advantage of the Blockchain technology is that it is
decentralized. It is decentralized in the sense that:

• There is no single device that stores the data (transactions and associated blocks),
rather they are
distributed among the participants throughout the network supporting the Blockchain.

• The transactions are not subject to approval of any single authority or have to abide
by a set of
specific rules, thus involving substantial trust as to reach a consensus.

• The overall security of a Blockchain eco-system is another advantage. The

system only allows new blocks to be appended. Since the previous blocks are
public and distributed, they cannot be altered or revised.

8
 lOMoARcPSD|34291840

Fig 2.2 operation of blockchain

For a new transaction to be added to the existing chain, it has to be validated

by all the participants of the relevant Blockchain eco-system. For such a validation
and verification process,

the participants must apply a specific algorithm. The relevant Blockchain eco-
system defines what is perceived as “valid”, which may vary from one eco-system
to another. A number of transactions, thus approved by the validation and
verification process, are bundled together in a block. The newly prepared block is
then communicated to all other participating nodes to be appended to the existing
chain of blocks. Each succeeding block comprises a hash, a unique digital
fingerprint, of the preceding one. Figure 2.2 demonstrates how Blockchain
transactions takes place, using a step- by-step example. Bob is going to transfer
some money to Alice. Once the monetary transaction is initiated and hence
triggered by Bob, it is represented as a “transaction” and broadcast to all the
involved parties in the networks. The transaction now has to get “approval” as

9
 lOMoARcPSD|34291840

being indeed “valid” by the Blockchain eco-system. Transaction(s) once approved

as valid along with the hash of the succeeding block are then fed into a new
“block” and communicated to all the participating nodes to be subsequently
appended to the existing chain of blocks in the Blockchain digital ledger.

10
 lOMoARcPSD|34291840

CHAPTER--3
TYPES OF BLOCKCHAINS
8
At a glance, there are four different major types of blockchain technologies.
They include the following.

 Public
 Private
 Hybrid
 Federated

3.1 PUBLIC BLOCKCHAIN

A public blockchain is one of the different types of blockchain technology.
A public blockchain is the permission-less distributed ledger technology where
anyone can join and do transactions. It is a non-restrictive version where each peer
has a copy of the ledger. This also means that anyone can access the public
blockchain if they have an internet connection.
One of the first public blockchains that were released to the public was the
bitcoin public blockchain. It enabled anyone connected to the internet to do
transactions in a decentralized manner.
The verification of the transactions is done through consensus methods such
as Proof-of- Work(PoW), Proof-of-Stake(PoS), and so on. At the cores, the
participating nodes require to do the heavy-lifting, including validating transactions
to make the public blockchain work. If a public blockchain doesn’t have the
required peers participating in solving transactions, then it will become non-
functional. There are also different types of blockchain platforms that use these
various types of blockchain as the base of their project. However, each platform
introduces more features in its platform aside from the usual ones.

11
 lOMoARcPSD|34291840

Examples of public blockchain: Bitcoin, Ethereum, Litecoin, NEO

Advantages:
Public blockchains are good at what they do. Its advantages include the following.
 Anyone can join the public blockchain.
 It brings trust among the whole community of users
 Everyone feels incentivized to work towards the betterment of the public
network
 Public blockchain requires no intermediaries to work.
 Public blockchains are also secure depending on the number of participating
nodes
 It brings transparency to the whole network as the available data is
available for verification purposes.
Disadvantages:
Public blockchain does suffer from disadvantages. They are as follows:
 They suffer from a lack of transaction speed. It can take a few minutes to
hours before a transaction is completed. For instance, bitcoin can only
manage seven transactions per second compared to 24,000 transactions per
second done by VISA. This is because it takes time to solve the mathematical
problems and then complete the transaction.
 Another problem with public blockchain is scalability. They simply cannot
scale due to how they work. The more nodes join, the clumsier, and slow the
network becomes. There are steps taken to solve the problem. For example,
Bitcoin is working on lighting the network, which takes transactions off-
chain to make the main bitcoin network faster and more scalable.
 The last disadvantage of a public blockchain is the consensus method
choice. Bitcoin, for example, uses Proof-of-Work (PoW), which consumes a
lot of energy. However, this has been partially solved by using more
efficient algorithms such as Proof-of-Stake (PoS).

12
 lOMoARcPSD|34291840

Use Cases:
There are multiple use-cases of the public blockchain. To get a better idea, let’s list
some of them
below.
 Voting: Governments can do voting through public blockchain employing
transparency and trust.
 Fundraising: Companies or initiatives can make use of the public
blockchain for improving transparency and trust.

3.2 PRIVATE BLOCKCHAIN

A private blockchain is one of the different types of blockchain technology.
A private blockchain can be best defined as the blockchain that works in a
restrictive environment, i.e., a closed network. It is also a permissioned blockchain
that is under the control of an entity.

Private blockchains are amazing for using at a privately-held company or

organization that wants to use it for internal use-cases. By doing so, you can use
the blockchain effectively and allow only selected participants to access the
blockchain network. The organization can also set different parameters to the
network, including accessibility, authorization, and so on!
So, how is it different from a public blockchain? It is different in the way
it is accessed. Otherwise, it offers the same set of features as that of the
public blockchain, providing transparency, trust, and security to the
selected participants.
Another major difference is that it’s kind of centralized as only one authority
looks over the network. So, it doesn’t have a decentralized theoretical nature.
There are also various types of blockchain platforms that use private blockchain as
the base of their platform. More so, each one of them tends to be unique and offer

13
 lOMoARcPSD|34291840

different features.In many cases, a private blockchain is considered

permissioned blockchain. But the concept of permissioned blockchain is much
broader as it can include public blockchain as well.
Examples of Private blockchain: Multichain, Hyperledger Fabric, Hyperledger
Sawtooth, Corda

Advantages:
 Private blockchains are fast. This is because there are few participants
compared to the public blockchain. In short, it takes less time for the
network to reach consensus resulting in faster transactions.
 Private blockchains are more scalable. The scalability is possible
because, in a private blockchain, only a few nodes are authorized to
validate transactions. This means it doesn’t matter if the network grows;
the private blockchain will work at its previous speed and efficiency. The
key here is the centralization aspect of decision making.

Disadvantages:
 Private blockchains are not truly decentralized. This is one of the biggest
disadvantages of private blockchain and goes against the core philosophy
of distributed ledger technology or blockchain in general.
 Achieving trust within the private blockchain is tough because the
centralized nodes make the last call.
 Lastly, as there are only a few nodes here, the security isn’t all that good. It
is important to understand that it is possible to lose security if a certain
number of nodes go rogue and compromise the consensus method utilized
by the private network.

14
 lOMoARcPSD|34291840

Use Cases:
There are multiple private blockchain’s use-cases. Some of them are listed below.
 Supply chain management: Organizations can deploy a private blockchain
to manage their supply chain.
 Asset ownership: Assets can be tracked and verified using a private blockchain.
 Internal Voting: Private blockchain is also effective at internal
voting. Anyhow, you can use the article as types of blockchain
technology pdf when in need.

3.3. CONSORTIUM BLOCKCHAIN

A consortium blockchain is one of the different types of blockchain
technology. A consortium blockchain (also known as Federated blockchains) is a
creative approach to solving organizations’ needs where there is a need for both
public and private blockchain features. In a consortium blockchain, some aspects
of the organizations are made public, while others remain private.The consensus
procedures in a consortium blockchain are controlled by the preset nodes. More
so, even though it’s not open to mass people, it still holds a decentralized nature.
How?
Well, a consortium blockchain is managed by more than one organization. So,
there is no one single force of centralized outcome here.
To ensure proper functionality, the consortium has a validator node that
can do two functions, validate transactions, and also initiate or receive
transactions. In comparison, the member node can receive or initiate
transactions.
In short, it offers all the features of a private blockchain, including
transparency, privacy, and efficiency, without one party having consolidating
power.

15
 lOMoARcPSD|34291840

Examples of Consortium Blockchain: Marco Polo, Energy Web Foundation, IBM

Food Trust.

Advantages:
 It offers better customizability and control over resources.
 Consortium blockchains are more secure and have better scalability.
 It is also more efficient compared to public blockchain networks.
 Works with well-defined governance structures.
 It offers access controls.

Disadvantages:
 Even though it is secure, the whole network can be compromised due to
the member’s integrity.
 It is less transparent.
 Regulations and censorship can have a huge impact on network functionality.
 It is also less anonymous compared to other types of blockchain.

Use Cases:
There are multiple use-cases of consortium blockchain. Some of them include the
following
 Banking and payments: A group of banks can work together and create a
consortium. They can decide the nodes that will validate transactions.
 Research: A consortium blockchain can be used to share research data and
results.
 Food tracking: It is also great for food tracking.

16
 lOMoARcPSD|34291840

3.4 HYBRID BLOCKCHAIN

Hybrid blockchain is one of the different types of blockchain technology.
More so, Hybrid blockchain is the last type of blockchain that we are going to
discuss here. More so, hybrid blockchain might sound like a consortium
blockchain, but it is not. However, there can be some similarities between them.
Hybrid blockchain is best defined as a combination of a private and public
blockchain. It has use-cases in an organization that neither wants to deploy a
private blockchain nor public blockchain and simply wants to deploy both worlds’
best.
Example of Hybrid Blockchain: Dragonchain, XinFin’s Hybrid blockchain
Advantages:
 Works in a closed ecosystem without the need to make everything public.
 Rules can be changed according to the needs.
 Hybrid networks are also immune to 51% attacks.
 It offers privacy while still connected with a public network.
 It offers good scalability compared to the public network.
Disadvantages:
Not completely transparent.
 Upgrading to the hybrid blockchain can be a challenge.
 There is no incentive for participating and contributing to the network.
Use Cases:
Some of the best use-cases of the Hybrid blockchain are as follows:
 Real estate: You can use hybrid networks for real-estate purposes where
real-estate companies can use it to run their systems and use the public to
show information to the public.
 Retail: Retail can also use the hybrid network to streamline their processes.
 Highly regulated markets: Hybrid blockchains are also ideal for highly
regulated markets such as financial markets.

17
 lOMoARcPSD|34291840

CHAPTER--4
4.1ADVANTAGES

The crucial advantages of implementing Blockchain Technology for the industry are:

 Decentralization : This is one of the primary benefits of this technology

because, in a Blockchain-powered system, the need for third-party or
intermediaries is eliminated by its working mechanism that manages the
process of validating, verifying, and clearing the various transactions.
 Process Integrity : Due to the security reasons, this program was made in
such a way that any block or even a transaction that adds to the chain cannot
be edited which ultimately provides a very high range of security.
 Traceability : The format of Blockchain designs in such a way that it can
easily locate any problem and correct if there is any. It also creates an
irreversible audit trail.
 Trustworthy: A distributed ledger in blockchain technology records all
crucial transactions in such a manner that they are readily available to all the
blockchain members. As now the ledgers are being shared publicly, this
brings more transparency and trust in the entire system.
 Simplification: Present working model in various organizations, in
whichever sector like an automobile, healthcare, banking, etc. every
department is maintaining their own databases. Blockchain technology
serves a single shared ledger that makes data sharing fast and simpler
involving all departments.
 Faster Trades: Any kind of trade or contract has to pass through various
verification processes before reaching its final destination. Blockchain
technology can assist in saving time here, by offering a single ledger to all
the associated parties by providing faster settlement of trades.

18
4.2 DISADVANTAGES
 lOMoARcPSD|34291840

Of course, every system has both merits and drawbacks.With some crucial
advantages, Blockchain Technology has some drawbacks too for an industry:

 Nascent Technology: With having several benefits of Blockchain

Technology, the primary disadvantage of this cutting-edge technology is that
there are some nasty challenges like transaction speed, the verification
process, and data limits that should be resolved before making blockchain
widely applicable.
 Uncertain: As most of the modern currencies of today have been created and
regulated by national governments, financial institutions, etc. Blockchain or
bitcoin faces a hurdle in widespread adoption as their financial transactions
would be restricted because not authorized by the government institutions
and as a result remain unsettled.
 Higher Costs: Developing a Blockchain into your organization is not an easy
task, it involves massive energy consumption, a decent amount, colossal
capital cost, etc. that might be not possible for medium-scale as well as low
scale businesses. It is a fact that it offers tremendous savings in transaction
costs, but at the same time, its implementation cost is too high.
 Power Use: The consumption of power in the implementation of Blockchain
Technology is comparatively high. Keeping a real-time ledger is one of the
underlying reasons for this higher consumption because every time it
produces a new node, it communicates with every node at the same time.

Despite all these drawbacks, blockchain is one of the most advanced and secured
technologies of the decade. If you are struggling while deciding whether to adopt
blockchain or not, shade-off your doubts and integrate the blockchain technology
into your business infrastructure. If you are finding it difficult to get a blockchain
development company that can help you create a highly functional and feature-rich
blockchain-enabled solution, then SARA could be a one-stop destination.
19
 lOMoARcPSD|34291840

4.3 APPLICATIONS

Blockchain has a nearly endless amount of applications across almost every

industry. The ledger technology can be applied to track fraud in finance, securely
share patient medical records between healthcare professionals and even acts as a
better way to track intellectual property in business and music rights for artists.

Fig 4.3 Applications of

blockchain

Blockchain technology can be utilized in multiple industries including Financial

Services, Healthcare, Government, Travel and Hospitality, Retail and CPG.

 Financial Services: In the financial services sector, Blockchain technology has

already been implemented in many innovative ways. Blockchain technology
simplifies and streamlines the entire process associated with asset management
and payments by providing an automated trade lifecycle where all participants
would have access to the exact same data about a transaction. This removes the
need for brokers or intermediaries and ensures transparency and effective
management of transactional data.
 Healthcare: Blockchain can play a key role in the healthcare sector by
increasing the privacy, security and interoperability of the healthcare data. It
holds the potential to address many interoperability challenges in the sector and
enable secure sharing of healthcare data among the various entities and people
20
 lOMoARcPSD|34291840

involved in the process. It eliminates the interference of a third- party and also
avoids the overhead costs. With Blockchains, the healthcare records can be

stored in distributed data bases by encrypting it and implementing digital

signatures to ensure privacy and authenticity.
 Government: Blockchain technology holds the power to transform
Government’s operations and services. It can play a key role in improving the
data transactional challenges in the Government sector, which works in siloes
currently. The proper linking and sharing of data with Blockchain enable better
management of data between multiple departments. It improves the
transparency and provides a better way to monitor and audit the transactions.
 CPG and Retail: There is a huge opportunity for Blockchain technology to be
applied in the retail sector . This includes everything from ensuring the
authenticity of high value goods, preventing, fraudulent transactions, locating
stolen items, enabling virtual warranties, managing loyalty points and
streamlining supply chain operations.
 Travel and Hospitality: It can be applied in money transactions, storing
important documents like passports/ other identification cards, reservations and
managing travel insurance, loyalty and rewards.

21
 lOMoARcPSD|34291840

CHAPTER—5

5.1CONCLUSION

The application of the Blockchain concept and technology has grown beyond its
use for Bitcoin generation and transactions. The properties of its security, privacy,
traceability, inherent data provenance and time-stamping has seen its adoption
beyond its initial application areas. The Blockchain itself and its variants are now
used to secure any type of transactions, whether it be human-to-human
communications or machine-to-machine. Its adoption appears to be secure
especially with the global emergence of the Internet-of-Things. Its decentralized
application across the already established global Internet is also very appealing in
terms of ensuring data redundancy and hence survivability. 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. BC technology still has
not reached its maturity with a prediction of five years as novel applications
continue to be implemented globally.

5.2THE FUTURE OF BLOCKCHAIN

According to the Gartner Hype Cycle for Emerging
Technologies 2017, shown in Figure 2, below,
Blockchain still remains in the region of “Peak of
Inflated Expectation” with forecast to reach plateau in
“five to ten years”. However, this technology is shown
going downhill into the region of the “Trough of
Disillusionment”. Because of the wide adoption of the
Blockchain
in a wide range of applications beyond cryptocurrency, the authors of this paper
are forecasting a shift in classification from “five to ten years” to “two to five
years” to reach maturation. Blockchain possesses a great potential in empowering
22
 lOMoARcPSD|34291840

the citizens of the developing countries if widely adopted by e-governance

applications for identity management, asset ownership transfer of precious
commodities such as gold, silver and diamond, healthcare and other commercial
uses as well as in financial inclusion. However, this will strongly depend on
national political decisions.

23
 lOMoARcPSD|34291840

Reference

Blockchain Technology Explained: The Ultimate Beginner’s Guide

About Blockchain Wallet, Mining, Bitcoin, Ethereum, Litecoin, Zcash,
Monero, Ripple, Dash, IOTA and Smart Contracts, Alan T. Norman
Blockchain: Blueprint for a New Economy, Melanie Swan
https://builtin.com/blockchain
https://www.computerworld.com/article/3191077/what-is-blockchain-
the-complete- guide.htm http://graphics.reuters.com/TECHNOLOGY-
BLOCKCHAIN/010070P11GN/index.html

24