Block Chain Technology

This essay seeks to understand the concept of block chain technology and how it originated within the lives of the people. Furthermore, the essay tries to analyze the importance of block chain technology within the lives of the people.

Running head: BLOCK CHAIN TECHNOLOGY
Block Chain Technology
Name of the Student
Name of the University
Author Note

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One of the major development within human history is that of the aspect of technology. It
started in the end of the nineteenth century and is still continuing in the modern time period
(Crosby). In the contemporary time period, technology is still developing so that the life of the
different individuals is made easier and comfortable. In this respect, the development of block
chain technology can be analyzed to a significant extent. Block chain is one of the most
important technological development within the human civilization as it has brought about
significant changes within the lives of the people (Pilkington). This essay seeks to understand the
concept of block chain technology and how it originated within the lives of the people.
Furthermore, the essay tries to analyze the importance of block chain technology within the lives
of the people. In this context, the essay concludes with the understanding of how technology has
changed the societal structure and also the politics of a particular country of the nation.
Block chain technology was first introduced in the world in the year of 2008 with the help of a
person named Satoshi Nakamoto (Yli-Huumo et al). It was meant to be used a ledger for public
transaction. The main objective of such Block chain technology was to allow the different users
to have complete control over their own data and transaction without depending of any other
third party. This ensures privacy of the data of the concerned parties and their protection. The
first Block chain technology arrived in the form of bit coins which is in the form of digital
currency (Zheng et al.). This eliminated the need for a central authority in the form of a unified
server which would aid in the transaction process. Bit coins could be transferred from one
individual to another without having to access any kind of such central authoritative figure.
Block chain technology aids the different producers, suppliers and customers in the
market place to be connected to each other in a direct manner. As a result, it eliminates the need
for a third party or an intermediary in the transaction of a particular business deal (Biswas and

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Muthukkumarasamy). Block chain technology provides the different parties involved with a data
base which is digital in nature and also decentralized so that all the different transections that
have occurred in the particular network are visible to all the concerned parties. No one has the
power to alter the data once they have been put in in to the Block chain technology (Wright and
De Filippi). As a result, it can be noticed that Block chain technology is associated with that of
other crypto currencies such as that of bit coins.
Block chain technology are considered in the form of a digital ledger. It enables an
individual to keep all important data in this technology so that it can be referred back to when
required. In this manner, Block chain technology can be seen in the form of a book of accounting
where different debits and credits are made after making the initial entry in to the system
(Lemieux). It is important to note that Block chain technology is anonymous in nature in the
sense that it cannot be followed back to any particular individual. All the data is structured in a
particular manner and simplified for the individual for better understanding. In this regard, Block
chain technology ensures the protection of the identity of the individual using such technology
and it also allows the different users to change the data in the ledger without the aid of any other
third party (Huh, Cho and Kim).
Block chain technology is one of the single most important technological advancement
within the twenty first century so far. It refers to the keeping of records of the people and its
continual growth as more and more information is added to it, which is known as ‘block’. Each
individual block in this chain of block is safeguarded with the aid of the use of cryptography
(Sun, Jianjun and Zhang). In other words, the information contained in the succeeding blocks are
coded in such a manner with the help of what s known as ‘hash’ that it becomes impossible for
other software and malwares to hack in to the data. As a result, block chain technology is

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extremely useful for guaranteeing the safety of the data. Each block has a particular time stamp
upon it which shows when this block was created and also contains the transaction data,
represented in the form of a Merkle plant (Beck). Block chain technology has been designed in
such a manner that once a data has been inputted, there is a no possibility to change the data or
modify it. Another block consisting of another data has to be created. The time stamp which is
put on each block shows the data and time of their formation. All of these different aspects helps
in the recoding of the data or transaction that has occurred in between two different parties or
individuals.
Block chain technology is needed in the contemporary world due to its unique and
characteristic features. This technology has the potential of giving every involved authoritative
fissure a sense of the highest responsibility (Ahram et al.). Since the data that it contained in each
block of the Block chain technology, the concerned parties have access to only their blocks of
data. Furthermore, no third party or any other sources of individual can ever have access to the
data of some other party without their consent. In this manner, the Block chain technology has
the option of providing utmost secrecy of data to the people involved. It also guarantees that the
data cannot be changed by the concerned individuals without prior consent of all those who are
involved in the situation (Raval). This eliminates the need for a central figure of authority such
as banks and other similar functionaries. For instance, Block chain technology can be used by
people to store their transaction details and other kids of monetary details without the fear that
the agents of the banks would have access to such data. Banks involve the working of individuals
whereas Block chain technology includes the aspect of technology (Meng et al.). All records can
be kept without the fear or the threat of losing it.
This poses a serious potential threat to the political security of the country. Without the

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aspect of a central figure of authority, there is a threat that the citizens of a particular nation state
of the world would engage in unscrupulous activities. For instance, the challenge of tax evasion.
In almost all the countries of the world, the people have to pay a certain percentage of their
income and other expenses to the government of their country (Treleaven, Brown and Yang).
Due to the economic disparity that exists in the different parts of the world, especially within the
third world countries, there is a tendency among the people to hide their transaction from such
central authoritative figure. This arises as a result of the present institution of a capitalist market
place which makes the forum of market extremely competitive in nature (Atzori). As a
consequence of such high level of competition within the economic sphere, the inconsistent
people are not able to keep themselves within the race. They cannot perform so economically
well as the other people and end up losing the expectations for a high standard of living.
Moreover, due to their obligation to pay taxes to the government as a result of their expenses and
incomes, their disposable income further reduces to a considerable extent. As a result of this,
such people would be highly interested to engage in Block chain technology. They would try to
transact in manner where their details would be hidden from any kind of central authority figure.
This would, in turn, result in the loss of the revenue f the government of that particular nation
state. This shows how the political structure of a country is threatened as a result of the
introduction of a Block chain technology. This also shows how the economic frame work of a
country can also be changed as a result of the usage of Block chain technology (Ølnes, Ubacht
and Janssen). The case of tax evasion can destabilize the economy of a nation state by ensuring
that the information of the different transactions under taken by the citizens of the country, are
kept hidden from the government of that country. As a result of this, not much revenue is
available with the government and government spending and expenditure can reduce to a

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considerable extent as a consequence.
However there are several disadvantages that are associated with the use of Block chain
technology. The first disadvantage is that the usage of requires the administration of a lot of
electricity. Each block needs to be created when a new information needs to be inputted in the
Block chain technology belonging to one particular party or parties. This means that every time a
transaction takes place, Block chain technology needs to be used. As a result of this, there is high
consumption of electricity in the process (Ølnes, Ubacht and Janssen). The second challenge that
is involved within the application of Block chain technology is that of maintenance of security.
Since the data is made available only to the concerned parties and there is a necessity to hide it
from the other concerning parties, a private key is provided to the parties so that the required
blocks of data can be accessed by them only. In the event that the private key is lost, the entire
block of data would become lost and it cannot be retrieved in any manner.
In conclusion it can be observed that block chain technology is quite important for the
management of the data and information among the people of the world. Technology has
revolutionized the living standard of the people in various important and significant way. The
main objective of such technological innovation is to aid in the growth and development of the
human beings. In this manner, technology is used not only within the field of private sector but
also within the personal life of the individuals such as the usage of air conditioner sand mixer
grinders within the homes of the individuals. This shows the extent of technological
developments within the lives of the individuals. At times it is observed that the different
governmental agencies try to breach the privacy of the citizens under the guise of maintenance of
security. With the application of Block chain technology, this can be avoided as the different
information about the transactions carried out by the people would remain confidential.

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However, there is a need on the part of the nation states to keep a minimum regulation on the
aspect of Block chain technology so that unscrupulous activities are not indulged in by the
citizens of such countries.

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