Blockchain Technology: Introduction, Working Mechanism, Applications, and Future in Business and Banking

This document provides an overview of blockchain technology, including its introduction, working mechanism, applications, and future in business and banking. It discusses how blockchain ensures confidentiality, integrity, and availability (CIA) and explores its capabilities and limitations. The document also highlights the potential of blockchain technology in reshaping the banking industry.

Blockchain technology

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Blockchain technology Introduction............................................................................................3
Working mechanism of blockchain.............................................................................................4
Application the blockchain can support......................................................................................4
Ways in which confidentiality, integrity and availability (CIA) can be achieved using the
blockchain....................................................................................................................................5
Discussion of support hashing technique provides in the implementation of the blocks in the
blockchain....................................................................................................................................6
Capabilities and limitations of blockchain technology................................................................6
Future of blockchain technology in business and particularly in banking industry....................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Information system have been considered as the technology which have been significantly
designs in order to have the appropriate collection of data storage and process with respective
information distribution. Technology advancement need to have proper level of focus in the
various level of risk which have been associated with terms of security increasingly (Crosby and
et.al., 2016). This risk has been increased in the organization at exponential rates in which block
chain technology have been considered as perfect remedy. In this report, there will be focus on
the block chain technology, its respective mechanism, achieving CIA in blockchain along with
capabilities and limitation of block chain technology all with its further growth and development
in future.
MAIN BODY
Blockchain technology Introduction
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions
and tracking assets in a business network. This is sometime have been referred as there as
Distributed Ledger Technology (DLT), which is more important making the history of been a
digital level of assets which are unalterable and transparent through the descriptive use of the
decentralization and cryptographic hashing. As per the overview, it can be understood as the
through the implementation of the block chain technology the digital assets are more to be
distributes interested of being copied or more level to be transferred (Pilkington, 2016). In
addition to which is assets is decentralized by allowing the full real time of access.
Blockchain technology is being especially termed as more promising and revolutionary
technology which helps in reducing the level of risk along with stamping out their fraud and
bringing more level of transparency which have been in saleable easy for the myriad uses. As
the key element, the technology has the recorded which are immutable as no participants can
have change or tamper in the transaction which have been recorded in the shared ledger. It is the
part of there traditional level of record keeping for creating the value which have been
permissioned of different business transaction in order to promotes more level of trust and
transparency in perfect manner. This technology creates trust by the shred truth records which
help the new technologies in more dramatic way for increasing the level of efficiency,
transparency ad confidence.
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Working mechanism of blockchain
Blockchain technology have been simply their chain of blocks which contains various level of
information’s as each level of block is known as the cryptographic hash of the previous block
along with transaction data and respective time stamp. It is considered to be simple design which
is turning out to be more vulnerable to the respective data tempering.
The block chain has the consisting of the three important level of concepts which are such as
block, nodded ad miners (Yaga and et.al., 2019). The block are series of the chain consisting of
multiblock by following three basic elements that is data in block, nonce the 32 bits while
numbers and hash which is 256-bit number which is wedded to the non. As the mechanism the
fist block of chain is being created by generating the nonce. The later one id creating the
cryptographic hash. The data in the block is considered signed and forever tied to the nonce and
hash unless it is mined.
The follow up in miner which creating more new blocks as own unique nonce and hash as
miners have the use of special level of software which is helpful in incredibly complex problem
in kore way generating the accepted hash. The last and important aspect is node which make
block chin technology is decentralized as the distributed ledger via the nodes connected to the
chain. Since the block chains have been more transparent as every action of the ledger is being
easily checked and viewed with respective a unique alphanumeric identification number that
shows their transactions.
So by combining all level of information’s have the respective system check and understanding
balance which helping maintaining the integrity and trust among other (Beck and et.al., 2017).
So, essentiality it can se said there the blockchains have been the clear thought to increase the
scalability of trust via implementing of technology.
Application the blockchain can support
This technology of blockchain have been considered as the more level of existing secure level of
transactions in the alternative of traditional currency which can be such as the centralized
banking to have the handling of financial transactions in more safely and secure manner. This
have been recorded as the degree of alternative where very network is tented to be distributed in
more than 10000 of computers which turned out to be impossible to hack. There have been
recovered as the large number of applications of the block chin technology in which some areas:
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Cloud storage – This is being used by the companies and individuals for securing the data with
decreases level of dependency (Underwood, 2016). As it has been told by Shawn Wilkinson the
space drivers is capable of storing 300 times more data as compared to traditional ones which
can be stated to have the reduction in cost all around $22 billion alone for average users by
reducing stage cost for data.
Banking industry: - Now a days, blockchain technology is moreover replacing the current level
of banking system which can be used in for transferring the fund form one to another with proper
validation of transaction by using of Blockchain and cryptography. This is helpful to have
reduction in cost of around 19.8 Billion Dollar by middle man with addition o reducing the risk t
null of hacking account.
Block chin identity – this have been used by the government organization and individual to have
the protections of the encrypting infinity in order to have securing it form the spammers and
marketing schemes. This can be useful in the developing passports as the digital ones to be
encoded and stored in ledgers by the govern bitcoin addressing as the conformed blockchain
users. This can be extended to Birth, wedding, and death certificates and personal identification.
Ways in which confidentiality, integrity and availability (CIA) can be achieved using the
blockchain.
The effective level of optical of blockchain technology is bitcoin by gaining tremendous level of
attention over last few year as the system is been diversified with proper level of category of the
confidentiality, integrity and availability (Treleaven, Brown and Yang, 2017). In the firm, there
are various issues which is been faced as the implementation of blockchain technology as in term
of security confidentiality and availability are uniform but integrity is many times quite
uncertain. On the blackchin have the enticing of overall technology by achieving the concept of
CIA which helps in there reducing the level of uncertainties and vulnerabilities.
The triad mode of CIA (confidentiality, integrity and availability) will be maintained
which will be such as development of the decentralized system are making data elements more
transparent with one other single blockchain. Hence the confidentially is not enforced as on the
other have the availability of data have the linkages to be stored don’t have the editing options as
it is helpful in achieving the integrity of respective data elements. So, this is helpful in achieving
this category as the sting of information have been secured inside it in perfect manner.
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As per the various level of research, it has been sated that’s all the three category of the security
elements are together and keeping their transaction privates within the respective blockchain in
effect manner.
Discussion of support hashing technique provides in the implementation of the blocks in the
blockchain.
The fundamental of blockchain technology have the hash functions which is to get their output
of fixed length o have the development of hashing algorithm (Zheng and et.al., 2018). The has
been used for the aggress between all the parties to be in significant state which bring the large
level of changes in the input. Tis is basically being used in the bitcoin transaction in the hashing
techniques which is helpful in providing the fixed level of output. The output has the generation
of the first block which will be input for second which continues and maintains to have the
securing of all transaction process in significant manner. Pointer and linked list have the two
important level of data structures which is been used in blockchain as the point have the
responsibility to store the hash values of the previous lack including the address.
On the other hand, liked list have the each level of nodes which have the storing of hash points
and data header.So, it has been tricky trice for the block chian instead of remembering large
amount of input data but sampling have the remembering of the hash and keeping accurate level
o track in perfect order (Gupta and Gupta, 2018). This is helpful in increasing over all level of
security in the respective system but also keeping the accurate level of tracking in reducing the
level of changes which can be result into collision an overall level of integrity and variability of
respective data in perfect and accurate manner.
Capabilities and limitations of blockchain technology
As per the way to have the discussion on the capabilities and limitation of the block chains
technology have been the integral level of connect which is needed to be understood in the
merging level of technology in perfect manner.
As per the discussion of capability it is needed to be have blockchains is all about the
disintermediation which have the enabling of the data base to be shared without having any level
of centralization. This have their own proof of the validity in order to enforce the constraint. In
addition to that’s it has enacted more level of capabilities which are such as empowering the
user, higher quality of data, process integrity with transparency and immutability by its faster
level of transaction.
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On the other hand, as per the consideration of limitation performance as in have been always to
be slower as compared to the tradition ones as blockchains have the take regular data bases by
carrying the three additional burden which are such as the signature verifications as the digitally
signed using a public-private cryptography scheme (Cocco, Pinna. and Marchesi, 2017). The
second burden is about the consensus mechanism which have involved there significants back
and forth communications dealing with their consequent rollbacks which is been processed and
queued in single location.
The last one is about the redundancy as the performance of individual nodded have the
requirement of large amount of the databases prove cess transaction to every independent node in
network.
Future of blockchain technology in business and particularly in banking industry.
The blockchain technology is the significant in changing and reshaping the banking industry in
perspective manner. Blockchain technology is moreover replacing the current level of banking
system which can be used in for transferring the fund form one to another with proper validation
of transaction by using of Blockchain and cryptography. This technology has been very fast by
singing major level of popularisers regarding the development of cryptocurrencies and ICOs.
This have enhanced major level of safety in terms of data storages and transmutation which
availing more decentralization and building up of transpired network infrastructure b reducing
the cost in operation as remarkable attributes (Laufs and Sandner, 2019). All the level of
financial and credit intuition has adopted the decentralised approach which is viable to the cent at
restive reduced prices. the banking industry have the maximum level of usage in the aspect of
their payments which have replace their SWIFT bank transfers by the speed of making bank to
bank transfers along with international one. The credit amount, insurance ere is the client
information system, loan and may more which is reshaping banking industry.
CONCLUSION
From the above file, it can be concluded as Technology advancement need to have proper level
of focus in the various level of risk which have been associated with terms of security
increasingly. Blockchain technology is being especially termed as more promising and
revolutionary technology which helps in reducing the level of risk along with stamping out their
fraud and bringing more level of transparency which have been in saleable easy for the myriad
uses. Blockchain technology is moreover replacing the current level of banking system which
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can be used in for transferring the fund, in addition to that increasing over all level of security in
the respective system but also keeping the accurate level of tracking in reducing the level of
changes and reshaping the business in more perspective manner.
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REFERENCES
Books and Journals
Online
Crosby, M and et.al., 2016. Blockchain technology: Beyond bitcoin. Applied Innovation, 2(6-
10). p.71.
Pilkington, M., 2016. Blockchain technology: principles and applications. In Research handbook
on digital transformations. Edward Elgar Publishing.
Yaga, D and et.al., 2019. Blockchain technology overview. arXiv preprint arXiv:1906.11078.
Beck, R and et.al., 2017. Blockchain technology in business and information systems research.
Underwood, S., 2016. Blockchain beyond bitcoin.
Treleaven, P., Brown, R.G. and Yang, D., 2017. Blockchain technology in finance. Computer,
50(9). pp.14-17.
Zheng, Z and et.al., 2018. Blockchain challenges and opportunities: A survey. International
Journal of Web and Grid Services, 14(4). pp.352-375.
Gupta, A. and Gupta, S., 2018. Blockchain technology application in Indian Banking Sector.
Delhi Business Review, 19(2). pp.75-84.
Cocco, L., Pinna, A. and Marchesi, M., 2017. Banking on blockchain: Costs savings thanks to
the blockchain technology. Future internet, 9(3). p.25.
Laufs, D. and Sandner, P., 2019. Implementing Blockchain Projects in Banks.
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