Blockchain Technology: Applications, Working Mechanism, and Future

IS SECURITY AND RISK
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Introduction of Blockchain technology...................................................................................1
2. The working mechanism of blockchain...................................................................................1
3. Application the blockchain can support..................................................................................3
4. demonstrate how the confidentiality, integrity and availability (CIA) can be achieved using
the Blockchain.............................................................................................................................4
5. Discuss the support hashing technique provides in the implementation of the blocks in the
blockchain....................................................................................................................................5
6. Highlight the capabilities and limitations of blockchain technology......................................5
7. Discuss the future block chain technology within banking industry.......................................6
CONCLUSION................................................................................................................................7
8. Summary of report...................................................................................................................7
REREFENCES................................................................................................................................8

INTRODUCTION
Today most of the organizations are focusing upon using Information systems in order to
ease their work. Due to advancement in technology risk associated with information systems is
also increasing (Behnke and Janssen, 2020). It has become increasingly important for
organizations to focus upon security of their information, data and especially data related to
financial transactions done. Due to increasing ease in accessing advance technology financial
theft or data theft has increasing drastically. In order to decrease this theft many organizations
are working on developing such IS system with the help of which all kinds of information, data
hacking can be reduced. One of those technologies is Blockchain. This report will lay emphasis
upon Blockchain, its applications, CIA in blockchain, hashing technique, limitations, capabilities
and future of blockchain technology.
MAIN BODY
1. Introduction of Blockchain technology
Blockchain technology can be defined as a kind of structure that stores all kinds of
transactional records that are also known as blocks of public in several distributed databases
which is also known as a chain in a network connected though peer- to- peer nodes. This
technology is also known as digital ledger (Hofmann, Strewe and Bosia, 2017). Each and every
transaction within this digital ledger is authorized by digital signature of the owner. This digital
signature helps in safeguarding transactions and works as an authentication for the transactions
so that it can be protected from any kind of tempering because of which all the information
stored within this digital ledger is highly secure. Each transaction done in this is also verified by
several other parties of the system. All the information stored within digital ledger is distributed
all over the network because of which information stored within it becomes incorruptible. This
blockchain technology first came into lime light in 1991 when two researchers wanted to
implement a system in which all the document timestamp cannot be tampered. In 2009 first real
world application of blockchain was implemented ‘Bitcoin’. Blockchain is the main technology
behind Bitcoin. Bitcoin’s pseudonymous creator Satoshi Nakamoto referred it as new electronic
cash system that’s fully peer-to-peer, with no trusted third party.
2. The working mechanism of blockchain
In recent years usage of Blockchain has increased drastically and it is being used globally
by various organizations. But it is important to understand ways in which blockchain technology
1