Blockchain and Its Application

BLOCKCHAIN AND ITS APPLICATION
APPLICATION OF BLOCKCHAIN TECHNOLOGY
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EXECUTIVE SUMMARY
The block chain principal in the modern cryptography field is
discussed and how the block chain application in various
fields and sectors can be used in order to increase the
performance of the various fields of data transaction. The
operations of the blockchain is also described and the
consensus algorithm use by the block chain is also described
in the report. The blockchain is used in the various sectors
and departments in the modern world as because it provides
major data security and data integration to the data that are
present in the various sectors. The various applications of
blockchain technology is mentioned in the below discussions
and also the significant consensus models such as proof of
stake and proof of work are described here. The report also
emphasizes on the various advantages and disadvantages that
is provided by the blockchain technology to the data security
and other aspects to the companies that adapt the blockchain
technologies and the healthcare sector is identified here
where blockchain technology can be used. The various
security issues that are related to the blockchain
implementation in the various sectors are also highlighted in
the report. The fact that blockchain technology is adapted by
the banking and money transfer sectors in the recent days, the
importance and significance of the blockchain technology is
increasing day by day.
I. INTRODUCTION
The report emphasizes on the application of blockchain in
various fields and the use of blockchain in healthcare is
selected for further investigation. The modern world is
successfully implementing the concept of Bitcoin and it is
also regarded as one of the most successful crypto currencies.
The Bitcoin does not need the intervention of any third party
organization and it uses the technology of Block chain to
implement the crypto currencies [3]. The block chain can
also be referred to as list of books to store the transactions
that are committed during the execution of operation of the
crypto currencies. The block chain are used mostly in the
recent payment processing systems and transferring money
online. The blockchain can also be used to monitor the
supply chains as because the block chain allows the
customers as well as the business administrative to view the
result of quality control of a particular product. The use of
block chains can also be observed in the digital id processing
and also in the data sharing processes. The topic of block
chain has been selected in this paper so as to deeply
emphasize on the process of operation of block chains and
also to enlighten the security issues related to Block chain.
DISCUSSION
II. UNDERLYING BLOCKCHAIN
What is Block chain
Block chain can be defined as a block of entities,
comprising of the transactional records and each block chain
is linked to the another block chain and they form a serial
chain like structure and one block contains the hash of the
previous block and each and every block in the structure has
only one parent block. The first block in the list of blocks in
a block chain is regarded as the genesis block and this
particular block do not have any parent block [11]. The hash
blocks size is generally 256 bit and the maximum number of
operations and transactions of the bock chains depend on
these hash values. The blockchain also uses various kinds of
algorithms for the operation of the system and it also helps in
financial and technological fields. The blockchain plays an
immense role in the digital signature transactions and the
block chain uses an asymmetric cryptography technique to
validate the authentication mechanism of such digital
signatures. The use of block chains helps in developing a
centralized transaction and the intervention of any third party
is also not required in the blockchain systems. The
blockchain is also associated with many security and
maintenance issues of the data in a company and thus it can
be also stated that the blockchain are used in various sectors
in the modern finance, sales and marketing industries. The
blockchain is also considered to be secure in various sectors
and also used in many aspects [23]. The fact that blockchain
is used in banking and money transfer system throughout the
globe, thus it is adapted by many industries and organization
and the government organizations as well.
How block chain ensure non-repudiation
The non-repudiation in the information technology field is
the act of assuring that the validity of a piece of data or
anything cannot be denied. The non-repudiation is also the
proof that the data integrity is maintained and also that the
data is original. The blocks in a particular block chain has a
unique stamp of date and this stamp is used as the symbol for
data integrity and originality. The block chain uses the date
stamp of the individual blocks and ensures the non-
repudiation and thus it ensures data integrity. The attackers
also cannot tamper with any of the data due to presence of
this data stamp which again helps in ensuring the non-
repudiation. The copyright of a data can also be ensured with
the block chain technology as because it also provides a
unique fingerprint to the unique blocks of data and these data
are also made secured and integrated by these systems. Thus
the blockchain system can be used for the ensuring of the
non-repudiation.

BLOCKCHAIN AND ITS APPLICATION
How block chain ensures security
The block chains is used in ensuring the security and
integrity of the data in various sectors and as because the
block chain technology is a decentralized technique, it does
not depends on any particular point of control. The block
chain contains blocks of transactional data and these
transactional data cannot be changed from a single computer
and these transactional data are continuously updated and up
graded and thus the use of block chain ensures the data
security. The intruders of the network cannot break in with
the traditional breaching process and take all the data as
because the block are connected to each other and all the data
are not accumulated in to a single place [16]. The fact that
the computers can malfunction or fail at any point of time,
the data are kept secured using the blockchain technology as
because the data are generally saved in multiple number of
computers, therefore, the failure of one or two commuters
does not affect the data. Thus the use of the blockchain in the
various sectors are secured and it must be used in the future
in many more sectors.
The blocks in the block chain are connected with each
other and thus it is very much difficult to breach the records
stored in it and this makes the block chains a secured model.
The cryptographic constraints present in the blockchain
technology also helps in securing the blockchain and the data
present in it. The blockchain are also distributed and
decentralized across peer to peer networks that are
continuously synced and updated. The security is also
enhanced due to the presence of the hash functions of the
previous blocks. However, the security of the data with the
application of the blockchain is depended on the computing
power consumption [27]. The blockchain can be divided into
two segments the public blockchain and the private
blockchain and these two blockchain are different in terms of
providing security to the data. The two networks together
comprises the business network and also with the help of this
the security of the blockchain can be enhanced. The two
blockchain however differs in their operational purpose and
this can be verified by the transaction made. The block chain
also eliminates the use of a centralized system and it makes
the security enhanced as because the centralized systems can
be breached and once a centralized system collapse, the
entire application might collapse. The blockchain also
facilitates the use of code or smart contracts and not just data
and this helps in the enhancement of security of the data. The
security of the data by the application of block chain is also
enhanced as because various verification and encryption
methods are used in the blockchain. The modification of the
data is difficult as because the blockchain encrypts the data
using cryptographic encryption techniques [22]. The copying
of the data from the transaction ledger is also difficult in case
of the sectors which uses the blockchain technology due to
use of decentralized system in the blockchain technology.
The implementation of the innovative consensus protocols in
the various nodes of the blockchain in order to validate the
transactions and also to ensure data security. One of the most
significant application of blockchain in ensuring the security
is that the individual blocks are interconnected and they are
not situated in any central location and thus these data or
bocks of data cannot be tampered from a single computer or
from a single source of use. Thus blockchain technology can
be used for the handling and securing huge amounts of data
at a single point of time.
Proof-of-work and proof-of-stake
The proof-of-work and proof-of stake can be defined as the
consensus mechanism in the transaction procedures of the
blockchain system, without the intervention of any third
party organization or entity between them [2]. The
transactions that are carried out in the block chain technology
needs to be validated and this proof-of-work (PoW) process
helps in the validation process by gathering the blocks which
are linked toget5her to form a block chain. The use of proof-
of-work is increasing and it is used by many crypto currency
techniques and it is also widely referred to as the consensus
algorithm. The PoW also helps to protect any network
against a numerous kinds of attacks [6]. The mining power is
required in the proof of work as because it is consumes huge
amount of electricity and thus it also requires huge amount of
costs. However, the use of Proof-of-work requires expensive
computational hardware which again consumes a huge
amount of power. The
The proof-of-stake (PoS) states that the owners with
more number of bit coins can mine or validate the
transactions of the blocks and it works as an alternative for
the proof-of-work. The PoW is the original block chain
algorithm to validate and add ne blocks however, the PoS is
also used in the same process as an alternative to the PoW
[13]. The proof-of-stake is less risky in terms of the
attachment to the chain and also the miners have more
advantage by using the proof-of-stake tool for data mining or
validation.
However, the proof of work is regarded to be more
growing rather than the PoS and it includes consensus and
spv clients. The detection of mining support in the chains
attached to each other and the clients and user of the block
chain will follow this blockchain operation [18]. The
algorithms used in the proof of work is also used for the
inflation control and here the blocks are produced on a pre-
defined schedule and thus the use of proof of work is better
considered in the growth factor compared to the PoS.
III. BLOCKCHAIN APPLICATION
Blockchain operation
The blockchain mechanism is based on various algorithms
and whenever any transaction comes into the block chain to
be implemented, the block chain uses its algorithms to find
out the history associated with the particular blocks and then
evaluates the blocks of data. The new node or block if is
validated and recognized by the algorithms, then the block is
added to the chain of the blocks and if the algorithms fail to
identify the majority of the block, then the block is not added
to the chain. This is the reason that the block chain does not
need a centralized system to verify which transaction is valid
or not [14]. The mechanism of the ledger entry of the block
chain can be used in many ways, however, the most popular
block chain used is the Bitcoin and it uses an anonymous

BLOCKCHAIN AND ITS APPLICATION
public ledger. Many organizations also use the block chains
to control the number of participants performing in the
transaction activity. The block chains in the modern days are
using the consensus algorithm which is a more advanced
version to solve the problems related to the block chain [9].
Thus the block chain operation is dependent on the hash
value of the previous blocks and also the algorithms that are
used to identify the transactional values.
Fig 1: Operational process of blockchain
The following parameter-formula table can be related to the
mining and other parameters used in blockchain –
Table 1: Parameter and formula table of blockchain
Parameter Formula
Transaction per second (frequency of blocks/60) *
transaction per block
Block frequency Total power of mining /
difficulty cryptopuzzel
Number of transaction per
block
(block size – header size) /
transaction size
Total power of mining ∑ m(i), where i denotes
nodes
*The table denotes the parameters of block chain and their formula
Block chain application which needs further investigation
The block chains are used in the various sectors of the
society and the sector in which the application of block chain
needs more investigation is the health care sector as because
with the proper implementation of the blockchain function in
the health care industry, many more lives can be saved and
also the service in this particular sector can be improved. The
implementation of the block chain will help the doctors to
access the patient’s full record in an instance and the overall
health care transaction can also be revised using the
blockchain [12]. Thus the future of the health care industry
can be improved with the application of the block chain
technology and thus the controlling and monitoring of the
supply chain of drugs and also the adjustment of insurance
claims can be operated by the blockchain system. The block
chain can also provide supply chain integrity and clinical
trials in the health care industry. Thus this field of the
application of block chain needs further investigation as with
the proper study of the block chain in this field can help in
the development of the health care industry.
Apart from this there are various block chain
applications that needs more explorations. Firstly, there is the
payment processing with one transfers. It is argued by
various scholars that the most logical usage of block chain is
the way to expedite of the fund transfer from one single party
to other. Next, they must be monitoring the supply chains.
Though removing the trails that are paper-based, the
organizations must be pinpoint to the inefficiencies under the
supply chains. Next, the data sharing is to be investigated
more [37]. The crypto currency IOTA has launched the beta
version that demonstrates that the blockchain must use that
the marketplace for sharing and selling the unused
information. Having the blockchain, the laws of copyright,
the laws can beefed up in considerable way for downloading
the digital contents. Next, the digital voting can enhanced.
The block chain an offer the capability of voting in digital
way. However, this has been transparent sufficient that the
regulators can see that anything is hanged over the network.
This can assimilate the simplicity of digital voting having the
immutability of the blockchain for making the votes a true
count. Again, another use of the blockchain to is tracing the
food from the source of the plate. As the data is immutable,
one can trace the transport of food products from the source
of supermarket. Another smart application of it is the medical
record keeping. Apart from this it can also manage the Inter
of Things networks [36]. The IoT can demonstrate the
wirelessly connected devices that can receive and send data.
This type of application and determine the trustworthiness of
devices over the network. This can be constantly done for the
devices leaving an entering the networks like smart cars and
smartphones. Moreover, it can also be utilized in expediting
the trading and compliance of future trading. Besides, it can
also secure the access to different type of belongings. Next,
the smart contracts under block chains networks can have the
capability to get customized for consumer and business
needs. Lastly, one can track the prescription drugs. The
blockchain is the measure of tracking the prescription
medicines in transparent way. At the world where the
prescription has prescription never happen, the counterfeit
medications are the actual things. Here, the block chain has
provide the drug makers with the capability of tracking the
products on the basis of batch numbers. This is to assure that
the consumers to get actual deal as they pick up the medicine
from pharmacy.
Consensus blockchain in healthcare: The consensus model
in the blockchain technology is a method by which the blocks
are rejected in the chains and also imposes rules for
validation of transactions. The blockchain in healthcare
industry is necessary for discovery of drugs and in the
pharmaceutical research. The blockchain provides facility in
effectively tracking and managing clinical trials like
management of data and consent management. The supply
chain detection of drugs is also facilitated by the consensus
model as because it allows all the products to pass through its
tracing and tracking mechanisms.
BLOCKCHAIN IN SMART HEALTHCARE MANAGEMENT:
The block chain technologies has their ability of
disrupting the centralized operations of healthcare industry. It
opens the door for the service delivery and optimized
delivery. The DLT or Distributed Ledger technology is the
innovation fertile having the probability of developed