Network Application Management

This report discusses the features, architecture, and challenges of blockchain technology in network application management. It covers currency and smart contracts, and the socio-technical aspects of blockchain. The report also explores the impact of blockchain on government and banking.

Running head: NETWORK APPLICATION MANAGEMENT
NETWORK APPLICATION MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................3
Part 1: Block chain.....................................................................................................................3
Part 1.1 Architecture..............................................................................................................3
Part 1.2 Features.....................................................................................................................4
Part 1. 3 Challenges................................................................................................................5
Part 2 Application......................................................................................................................6
Part 2.1 Currency...................................................................................................................6
Part 2.2 Smart Contacts..........................................................................................................6
Part 3: Socio technical aspect.....................................................................................................7
Block chain smart contract.....................................................................................................7
Currency.................................................................................................................................8
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The concept of blockchain can be considered very much essential for the concept of
database of records or public ledger relating to all the digital events and transactions that have
been shared and executed among participating parties. The transactions of the public ledger
are verified by the consensus of the majority of the participants of the system. The
information ones it is entered into the system cannot be erased. The concept of blockchain
contains certain and record which are verified taking into consideration every single
transaction, which is made [2]. One of the most popular example relating to the blockchain
technology is the Bit coin. On the other hand, it can be stated that it is most controversial one
due to the factor that it helps the concept of enabling a “multibillion dollar global market
which is related to the anonymous transaction without and control of the government”.
However it can be stated that the technology of blockchain itself is very much join
controversial and has flawlessly worked over the years and is being very much successfully
applied to both the sector of non-financial and financial [5].
The focus point in the report is to take into consideration the aspects of block chain
technology taking into consideration the sectors of features, architecture and challenges. The
second focus point of the report is to conduct an analysis in the sector of currency and
internet of things. The term socio technical aspect is also one of the focus point of the
technology, which is also focused.
Part 1: Block chain
Part 1.1 Architecture
Blockchain architecture can be considered ingenious application, which function very
much like a database of transaction, and runs on a server, which is distributed, designed as
distributed ledger. The system can be considered as decentralized system, which is powered

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by nodes that run on full stack. The application is installed on the server and it synchronizes
with other nodes, which are present in the network. The server is responsible for the
maintaining purpose of the transaction using the rules of cryptographic rules and algorithm,
which is based on consensus. The user can authenticate and validate transaction in an order of
chronological without the need for any of the third party authentication.
Part 1.2 Features
The main features, which is related to the concept of block chain, are stated below:
 Decentralized system: The decentralized technology directly enables the user to store
assets in the network, which can be used over the concept of the internet. The assets
can be anything from the contracts, tokens, chain of evidence documents or property
registry documents. Through the concept if decentralized technology the owner have
the direct control by the means of private keys, which are directly linked, to the assets.
 Distributed ledger: The block chain concept can be considered as a public ledger
hat directly provides information of all the participants and all the transaction, which
are digital that have ever been executed. The block can be considered as “prevailing”
part relating to the block chain, which is supposed to be keeping record of the recent
transaction, and ones the transaction is completed it would be transferred to the clock
chain. The block chains are added in a sequential manner with the next block, which
contains the hash of previous block. A new block is basically generated as soon as the
previous block gets entered into the block chain database.
 Providing authenticity: There are different types of cases, which is related to the
cases of the authenticity of the document and the user, which is very much important.
It can be stated here that many of the organization have very critical information,
contracts and assets. When any type of file or document is stored, a hash is created for
each of the files. A hash can be considered as fingerprint that through the concept of

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an algorithm turns data into output, which is of fixed length, which is unique for every
kind of transaction [3].
Part 1. 3 Challenges
In the concept of block chain, there are different types of challenges, which can be
faced, which are stated below:
 Initial cost: The concept of block chain can be considered as an approach, which
have different types of benefit such as efficiency, productivity, timeliness and reduced
cost it can be considered expensive in the initial set up process. The software
requirement which is related to the concept of the block chain must be typically be
developed for the specific firm and is therefore stated as expensive from the purchase
point of view, developed in- house or acquire.
 Integration with the legacy system: In order to move towards the concept of the
block chain an organization must either completely overhaul their previous system or
find a way to integrate the existing system with the block chain solution. It can be
stated here that the process of blockchain. Is very much difficult to handle taking into
consideration the different functions, which are related to the organization. In order to
get a good and smooth process there should be considerable amount of changes in the
infrastructure of the existing structure.
 Consumption of energy: The ethereal network and the bit coin network both use the
concept of proof of work mechanism to validate the transaction, which are made in
the concept of the blockchain. The mechanism has a requirement of computation of
complex mathematical problems to process and verify the transaction and directly
secure the network. This type of calculation require large amount energy, which
would be used to power the computers to solve the problem [1].

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Part 2 Application
Part 2.1 Currency
It can be stated as the simplest form of crypto currency or digital coin are coins,
which are passed through the concept of the electronics network. The user can make direct
transaction through the process by check, cash and wiring [6]. The user can use a type of
virtual currency, one of the best example in the case can be the bit coin but also lite coin,
doge coin, peer coin and among others, this is where the user can use the electronic coded
address to make the direct transactions. The more the value of the currency more would the
user want security of the transaction. In most of the cases, it is seen that traditional system
usually hire a mediatory such as a remittance company or a banker to ensure the concept of
the trust, which would be applicable in the transaction. The concept can be a global concept
ranging from the user from Rome, Yemen, Vermont and so forth. Records in this concept can
be considered as comprehensive, permanent and public. This is the main reason why the user
actually want to involve into the concept. The concept of block chain directly reduces the cost
due to the factor of transparency and the use of the cryptographic methods which allow to
certify with the low cost and the verify without the cost. The transaction, which can be
directly guaranteed, are not just for the concept of currency but also transfers of anything
digital representation. Intermediate when necessary would be secured by the means of
transaction with multiple signers [5].
Part 2.2 Smart Contacts
Smart contracts can be considered as a digital device, which are embedded with an if-
this-then-that (IFTTT) code. The block chain concept not only waives the direct need for the
third parties but also it ensures that all the ledger participation know the contract details and
that terms which are related to the contractual implement automatically ones the conditions
are meet. The user can use the concept of the smart contacts for different sort of situations

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such as the property law, insurance premium, crowd funding agreement and many more. Few
of the example relating to the concept may include the blockchain healthcare, blockchain
music and blockchain government. The health care aspect can be used for saving the data of
the person, which is encrypted and mainly very much secured from the interference of any of
the third party. In most of the cases, it is seen that the blockchain concept gives a better
infrastructure of the system, which can be directly implemented to get advantage.
Part 3: Socio technical aspect
Block chain smart contract
The main socio technical aspect, which is related to the blockchain, may be considered in the
following sectors:
Blockchain government: The Democrats and the republicans in the year 2016
questioned the security aspect of the voting system. This made a socio impact due to the
factor that the system was not very much sure, of the authenticity, which can be applied to the
concept. The concept of the blockchain ledger provided a platform for what it can be stated as
a responsive open data” according to the report of 2013 from McKinsey and Company open
data concept made the accessing of the government sourced very difficult. The concept of the
data would be encrypted in the process so that the data is not accessible by other personals.
The main socio technical aspect, which can be related to the case, is that the blockchain is a
public ledger, which can open this data to the citizen whenever and wherever, they actually
want [7].
Currency
The socio impact, which can be related to the concept, can be directly applied to the
sector of Bank. This is where the data is usually stored and encoded with a private key, which
would grant only access to specific individual. This is mainly in the form of the person who is

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involved into the concept of socio impact due to the factor of access permission, which is
being send in most of the cases. People tend to access the personal information and they do
not have the access right into the concept. In most of the cases, it tends to be socio impact,
which directly affect the common people.
Conclusion
The concept of block chain can be considered to having a power of completely
rewriting the way the societies carry out their own functions. The aspect of transparency can
be directly beneficial for the aspect of allowing anyone to register and transfer data and value
and in certain cases execute functions to increase the efficiency of the system. The efficiency
can be achieved in the sector of both public and private sector. The concept is achieved by the
means of reduction of the risk and the cost factors.

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References
[1] Cachin, Christian, Marko Vukolic Sorniotti, and Thomas Weigold. "Blockchain,
cryptography, and consensus." (2016).
[2] Cachin, Christian. "Architecture of the Hyperledger blockchain fabric." Workshop on
Distributed Cryptocurrencies and Consensus Ledgers. 2016.
[3] Dunphy, Paul, and Fabien AP Petitcolas. "A First Look at Identity Management Schemes
on the Blockchain." arXiv preprint arXiv:1801.03294 (2018).
[4] Eyal, Ittay, et al. "Bitcoin-NG: A Scalable Blockchain Protocol." NSDI. 2016.
[5] Kosba, Ahmed, et al. "Hawk: The blockchain model of cryptography and privacy-
preserving smart contracts." Security and Privacy (SP), 2016 IEEE Symposium on. IEEE,
2016.
[6] O'Leary, Kevin, et al. "Exploring the Application of Blockchain Technology to Combat
the Effects of Social Loafing in Cross Functional Group Projects." Proceedings of the 13th
International Symposium on Open Collaboration. ACM, 2017.
[7] Pilkington, Marc. "11 Blockchain technology: principles and applications." Research
handbook on digital transformations (2016): 225.
[8] Swan, Melanie. Blockchain: Blueprint for a new economy. " O'Reilly Media, Inc.", 2015.
[9] Vukolić, Marko. "The quest for scalable blockchain fabric: Proof-of-work vs. BFT
replication." International Workshop on Open Problems in Network Security. Springer,
Cham, 2015.
[10] Zheng, Zibin, et al. "Blockchain challenges and opportunities: A survey." Work Pap.–
2016 (2016).

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