Network Application Management

This report explores the features, challenges, and architecture of blockchain technology and its applications in currency and smart contracts. It also discusses the socio-technical aspects of blockchain and its impact on sectors like banking and accounting. The report is a comprehensive guide to network application management.

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......................................................................................................................3
Part 1.3 challenges.................................................................................................................4
Part 2 Application......................................................................................................................5
Part 2.1 Currency...................................................................................................................5
Part 2.2 Smart contracts.........................................................................................................5
Part 3: Socio technical aspect.....................................................................................................6
Block chain smart contract.....................................................................................................6
Currency.....................................................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
In recent times the concept of blockchain is playing a very vital role in the area of
record of the database or public ledger. The aspect of the block chain can be considered to be
a part related to the digital event and transactions that have been executed and directly shared
among the participation parties. The information or the data ones it is inserted into the
database cannot be modified or erased. The concept of the block chain consist of the data
which are very much verified taking into aspect every single transaction which are initiated.
One of the best example which can be stated in this context is the bit coin. Being the best
example it can be stated as one of the most controversial one due to the factor that it helps in
the aspect of enabling ““multibillion dollar global market which is related to the anonymous
transaction without and control of the government”. It can be stated here that the concept of
the blockchain is itself cover all and many of the research are being conducted in the field
which directly reflects the overcoming of the issue by which it is highly implemented in the
sectors of finance and non-finance.
The main focus point of the report is to take into consideration the different aspects
which are related to the concept of the blockchain with regards to the features, challenges and
the architecture of the technology. The aspect which is related to the socio technical field are
also majorly discussed in the report.
Part 1 Block chain
Part 1.1 architecture
The architecture which is related to the aspect of the technology of blockchain can be
considered as an application which is ingenious, which is very much like a database of
transactions that run on a server which is distributed designed as a ledger which is distributed.
The system in this context can be considered as a decentralized system which are powered by

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the nodes which run on full stack. In the server the application are installed and it is directly
synchronizing with other nodes which are directly present in the network. The main role of
the server is the aspect of maintaining the rules of cryptography which is based upon
consensus. The validation and the authentication of the transaction of the user are done in a
manner of chronology without any involvement of any third party.
Part 1.2 features
The main feature which is related to the concept of the blockchain are stated below:
 Providing authentication: there are different cases which are related to the
authentication of the document of the user and the data of the user which can be
considered as a very important sector. Most of the organization have different types of
data which may be crucial for them and they may also include assets and contracts.
When any data is stored in the concept of the database, it results in the creation of a
hash function using the concept of the algorithm which of length which is fixed and
very much unique for each and transaction which is made through it.
 Decentralized system: the concept which is applicable to the aspect of the
decentralized technology states that the user would be able to store their own assets in
the network which can be retried from the concept of the internet. The assets can be
anything from the range of tokens, contacts, chain of evidence or property registry
documents. Through the concept of the decentralized system the owner would have
the direct control over the data by means of a private which is unique for every user
who tend to store the information which is directly linked to the assets for their easy
access. The concept of the easy access can be considered one of the most important
sectors related to the use of blockchain technology.
 Distributed ledger: The block chain concept can be considered as a ledger which is for
the public which provide all the information of all the participants who are involved

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into the transaction. The concept of block can be considered as one of the sectors in
the aspect of the block chain technology which has a very important role to play. The
block hold the data of the user and ones the transaction is completed the data would
be transferred to the clock chain. The clock chain can be considered as a sequence of
space which hold the data of the user. A new block is automatically generated ones a
previous block gets entered into the block chain database.
Part 1.3 challenges
There are different types of challenges which are faced in the sector of the block chain
technology which are stated below:
 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. It can be stated that the interaction with the
system can be considered one of the most vital aspects which would be playing a
dominating role. 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.
 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.

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 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].
Part 2 Application
Part 2.1 Currency
It can be stated here that the simplest form of crypto currency or the digital currency
are the concept if the coin. The means of doing transaction in this concept id done by means
of electronic network. The user can make direct transaction by using this process by check,
wiring and cash. The user can use the concept of the virtual currency which is one of the best
example in such type of cases. 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].

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Part 2.2 Smart contracts
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 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 [5]. 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 aspect which is related to the socio technical aspect which is related to the
block chain can be stated in the form of the voting system which impacted the sector of the
common people who did not get any type of assurance relating to the concept [5]. The
concept which is related to the blockchain ledger provided the platform which is related to
the responsive open data according to the report of the 2013 from the McKinney the company
open data concept made in the accessing of the government sourced which was difficult. In
most of the concept relating to the concept of block chain stated that the data would not be
accessible by any other person and the access would be given to the person who has the
overall charge of the system. In most of the cases the unauthorized person can directly access

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the data and use them for their own benefit which may include the sector of the
transformation in the security of the user who had the overall charge of the data.
Currency
The socio impact can be related to the aspect of the bank sector even. In most of the
cases it is seen that the data is stored in the server of the bank and the permission of the
access is given to only those individual who have the overall control of the data. In most of
the cases it is seen that the person would be able to access the features of the system without
any proper knowledge of the aspect which is related to the security of the data. In the sector
of the bank it can be stated that the security of the data play a very vital role which should be
involved in the overall aspect of the operation of the data [3].
Conclusion
The concept of block chain can be considered to be playing a vital role in recent times
as well in the future. It can be stated that in the future more of the technologies aspect would
be related to the sector of the blockchain due to the factor that there are many advantage
aspects which are related to the aspect. In most of the cases it is seen that the concept has
played a dominating role like the bank and the accounting sector as well.

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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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