Blockchain Technology: Architecture, Features, Applications and Challenges

Running head: NETWORKED APPLICATION MANAGEMENT
NETWORKED APPLICATION MANAGEMENT
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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Part 1: Blockchain..................................................................................................................2
Architecture........................................................................................................................2
Features..............................................................................................................................3
Challenges..........................................................................................................................4
Part 2: Applications of Blockchain........................................................................................4
Currency.............................................................................................................................4
Smart contracts...................................................................................................................6
Part 3: Socio-Technical aspects.............................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................7

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Introduction
Blockchain is a universal ledger where all transactions of cryptocurrencies are
maintained. Unlike traditional ledgers, the Blockchain ledger is however public,
decentralized and digitised. The technology includes the transactions as blocks and records
them in a chronological order (in a chain) which allows the users to keep track of their
transactions without a third party [1]. This technology eradicates the need for a centralized
authority to maintain the transactions.
In this assignment, the Blockchain Technology has been evaluated. The architecture
of the Blockchain has been discussed and several features of the Blockchai technology has
been evaluated. In this report, the challenges that Blokchain technology is facing has been
discussed in detail. In the next section, the applications of Blockchain has been discussed.
One of the most renowned application of Blockhain is smart contracts. The other application
is its use in currency especially cryptocurrency. Both of these applications have been
discussed in this report in detail. With the move towards decentralised architecture of
Blockchain from the traditional storage and computing power, a social bearing can be
expected from its users and how these applications are perceived by them. In the last section
of the report, the socio technical aspects of Blockchain has been discussed.
Discussion
Part 1: Blockchain
Architecture
The architecture of Blockchain consists of a Blockchain platform, nodes, blocks and
security implementation. It is an application that runs on a network of servers which are
distributed. Blockchain is applied as a transactional database that acts like a secure ledger.

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The data base is shared by all the servers (nodes). This makes the system totally decentralized
allowing any node that runs the software to locally run the Blockchain [3]. The LevelDB
database of Google is used for metadata storage by the Blockchain client. The data of the
Blockchain can be stored in a relational database or in a flat file. Once the Blockchain client
is installed in a server it syncs with the rest of the nodes that are present in the network. After
that all the transactions are maintained by the particular server using cryptocurrencies.
The technology relies on P2P or peer to peer network which does not have any
centralized node and has a flat topology [7]. Through a consensus mechanism, all the nodes
consume and provide services equally. The nodes play the role of a trusted third party. In
each node, the entire history of every Bitcoin that has been created is stored as a database
copy with the ownership information. A full copy of the database is saved in the full nodes
where the external lookup is not needed. The transactions are packed in a data format and
structure known as block for the transactions to be confirmed as valid. The block has to go
through strict cryptographic rules that are mentioned by the Blockchain network. To maintain
system integrity, the cryptography also makes sure that the blocks are not modified [16]. Due
to the Blockchain overlay network, increased level of semantics is provided which allows for
various crypto currencies to co-exist together and offer management abstraction.
Features
Some features of Blockchain are written as follows:-
Faster settlement- The settlement process in traditional banking system is very slow
and can take days. With Blockchain, the transaction can be completed at real time speed. This
helps the financial institution to save money as well as time [11].