Blockchain Technology: A Comprehensive Analysis of Its Impact

This report provides a comprehensive overview of blockchain technology, examining its structure, applications, and future potential. It begins with an abstract highlighting the increasing importance of technology in the 21st century and the role of blockchain in distributed databases and shared ledgers. The report then delves into the core concepts of blockchain, including its cryptographic underpinnings, decentralization, and immutability. It explores the misconception that blockchain and Bitcoin are the same, clarifying that Bitcoin is just one application of blockchain technology. The report further examines the structure of blockchain technology, emphasizing its distributed, decentralized, and immutable nature. It discusses the pillars of blockchain technology, including decentralization, transparency, and immutability, and how these features contribute to its widespread adoption. The report concludes by highlighting the importance of blockchain technology, particularly its ability to facilitate secure and transparent transactions by eliminating the need for third parties. This report is a valuable resource for understanding blockchain technology's impact on various industries and its potential for future applications.

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BLOCKCHAIN TECHNOLOGY
Name of the student
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Abstract
The 21st century is all concerned with the usage of technology. With the improvement in
desire for modernization in daily operations, individuals are open to accepting new technologies.
A blockchain is useful in the distributed records of the database or shared ledger of all dealings
or digital actions that have been performed as well as common among joined parties. Every
operation in the unrestricted ledger is established by agreement of the popular of the contestants
in the scheme. Besides, once data is inserted it can never be removed. Blockchain comprises the
particular and provable evidence of every solitary operation ever completed. Bitcoin,
decentralized friend-to-peer digital exchange is the most common instance that utilizes the
technology of blockchain. The digital exchange bitcoin is very controversial, although the
essential skill of blockchain has worked perfectly and established various functions in both fiscal
alongside the non-economy globe. From the use of remote for scheming devices to utilizing
accent notes for offering several authorities, modern skill has created space in an individual’s
regular lives. There has been a shared misconception among individuals that Bitcoin and
Blockchain are a common element. However, that is not the case as development of
cryptocurrencies is one of the applications of Blockchain technology along with other than
Bitcoin. There exist several applications that are being created based on blockchain technology.
Therefore, this research paper aims to examine blockchain by focusing on its applications and its
current uses and future uses, and how it works. This paper also addresses the structure and pillars
of Blockchain technology.
Blockchain Technologies

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Blockchain had been established as a blockchain that refers to the rising list of a report
known as blocks linked together by the use of cryptography. Every block comprises of a hash of
cryptographic of the subsequent block, the time brand, together with transactional information1.
Blockchain refers to the system that deals with the process of distributing database that acts as
the “open ledger” utilized for management as well as storage of various operations of
transactions within a business. Each record within the database is described to be the block. The
block in most cases consists of details that include transaction timestamp together with the
connection to the past block. Such activities make the concept of blockchain to be impossible for
each person to change data that relates to the records retrospectively2. Besides, blockchains that
consist of immutable, encrypted, along with decentralization ledger posses the prospect of
creating each centralized organization, procedures, together with an activity completely
autonomous.
In the simplest idea, Blockchain can be described as the structure of data that holds
transactional records towards the idea of ensuring transparency, security, together with
decentralization. It is always linked with Bitcoin together with other cryptocurrencies, but that is
just the tip of the iceberg3. According to the perception of various individuals, they think that
blockchain could end up transforming the number of essential corporations’ right from politics to
1 Mueller, Paul. 2018. "Application Of Blockchain Technology". It - Information Technology 60 (5-6): 249-251.
doi:10.1515/itit-2018-0035.
2 Kane, Ethan. 2017. "Is Blockchain A General Purpose Technology?". SSRN Electronic Journal.
doi:10.2139/ssrn.2932585.
3 Carlin, Tyrone. 2018. "Blockchain And The Journey Beyond Double Entry". Australian Accounting Review.
doi:10.1111/auar.12273.

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the wellbeing of individuals. Moreover, Blockchain has various effects on Big Data, some of the
essential effects comprise of the elimination of trusted third parties, improved application of
cloud, and it will create Big Data go far away from the international society of information
technology. Blockchain skills a fairly new idea and rapidly rising piece of initial technology
such as cloud computing alongside the internet. Common structures of information had been
present long prior admired cryptocurrency bitcoin was envisaged, but the major hypothesis of
architectures of blockchain utilized presently was initially summarized and described in the
inventive bitcoin white manuscript printed as well as published by Satosi Nakamoto in early days
of 20084. The white paper described the technology of blockchain to have a huge impact on
business operations. Nevertheless, Blockchain is the progressive growing list of different records
in packages that are connected and secured using cryptography. The concept is planned to
document not just economic dealings but almost everything of great worth5. The network of
blockchain possesses no central right. It is the very description of the democratized scheme6.
Given that it is common as well as an absolute ledger, data in it is unrestricted for any individual
to go through. Moreover, every item that is created on the skill of blockchain is by the very
character clear while every individual concerned is responsible for their dealings.
Structure of blockchain technology
4 Al-Kahtani, Noura. 2019. "Technology Demonstration: How Cryptography, Blockchain And Distributed Ledger
Technologies Can Transform B2B/G2B Electronic Payments In Healthcare?". Computer Methods And Programs In
Biomedicine 171: 1. doi:10.1016/j.cmpb.2018.12.004.
5 Ishmaev, G. 2017. "Blockchain Technology As An Institution Of Property". Metaphilosophy 48 (5): 666-686.
doi:10.1111/meta.12277.
6 Kołodziej, Monika. 2017. "Blockchain Technology As A Quantifier Of Changes In The Financial Sector".
Informatyka Ekonomiczna, no. 46: 79-89. doi:10.15611/ie.2017.4.07.

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Blockchain technology is the distributed, decentralized, and innovative common ledger
that is applied to document different dealings across several laptops so that any concerned proof
cannot be changed retroactively. Technology allows the participants to be capable of verifying
and auditing business dealings separately and moderately cheap7. The database of blockchain
equipment is supervised separately using the friendly network along with the dispersed server
time trampling. The technologies of Blockchain are legitimated through a mass partnership
driven by combined self-interests. The kind of plan eases a strong flow of work where
contributors’ doubt concerning security of data is marginalized. The application of blockchain
eliminates the traits of endless reproducibility from the innovating asset. The technology of
blockchain has been described as the protocol of value exchange. The blockchain technology can
keep rights of titles since when appropriately associates to detail the swap accord. It also offers
the evidence that induces acceptance together with the offer. Therefore, the major reason as to
why the structure of blockchain has increased so much respect is that the single entity does not
own it. Hence its operations are decentralized. The other reason is that the information is
cryptographically stored inside8. Additionally, blockchain technology is absolute so no
individual can interfere with the information that is within the system of blockchain. The other
reason as to why blockchain gaining so much admiration is that it is transparent so no individual
can be capable of tracking if they need to track given data.
7 Yoo, Soonduck. 2017. "Blockchain Based Financial Case Analysis And Its Implications". Asia Pacific Journal Of
Innovation And Entrepreneurship 11 (3): 312-321. doi:10.1108/apjie-12-2017-036.
8 Small, Mike. 2016. "Blockchain – Risk And Reward". Engineering & Technology Reference 1 (1).
doi:10.1049/etr.2016.0086.

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Pillars of Technology of Blockchain
The major assets of the Blockchain skill that has assisted it to attain extensive approval
are diverse9. These properties comprise of the idea that:-
Blockchain technology is decentralized
Blockchain technology is transparent
9 Clauson, Kevin A., Elizabeth A. Breeden, Cameron Davidson, and Timothy K. Mackey. 2018. "Leveraging
Blockchain Technology To Enhance Supply Chain Management In Healthcare:". Blockchain In Healthcare Today 8
(2): 60-213. doi:10.30953/bhty.v1.20.

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Blockchain technology is immutable
1st pillar: Decentralization
Prior Bitcoin together with BitTorrent existed along, and individuals were more
accustomed to federal operations. The design is very easy regarding blockchain technological
usage. The people in the society need to centralize entity that kept information, and they have to
act solely with this unit to attain any data they need for their operations. For instance, a particular
example of the centralized system is a bank10. The operations of different banks concentrate on
storing all individuals’ currency, and solely manner that an individual compensates somebody is
by moving all through the banking halls. The ancient model of client-attendant is an appropriate
instance of this. The example is well illustrated in the figure below
10 Mir, Waseem Akram. 2017. "Necessity And Implementation Of Blockchain Technology". International Journal
Of Scientific Research And Management 5 (7). doi:10.18535/ijsrm/v5i7.61.

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When an individual Google search for any issue, they send the inquiry to the attendant
that moves back at them with the pertinent data11. That is what is referred to be the simple client-
server. Presently, the centralized system has treated society well for an extended time. However,
they have several vulnerabilities12. For instance, the vulnerability has risen since they are federal
where information is stocked up in a single mark. The plan makes them simple to intention spots
11 Dos Santos, Renato P. 2017. "On The Philosophy Of Bitcoin/Blockchain Technology: Is It A Chaotic, Complex
System?". Metaphilosophy 48 (5): 620-633. doi:10.1111/meta.12266.
12 Guo, Ye, and Chen Liang. 2016. "Blockchain Application And Outlook In The Banking Industry". Financial
Innovation 2 (1). doi:10.1186/s40854-016-0034-9.

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for different latent hackers13. If the federal system were to pass throughout the software
improvement, it would stop the whole system of operations.
2nd Pillar: Transparency
One of the generally attractive together with misinterpreted notions in the technology of
blockchain is ‘clearness.’ Some individuals report that blockchain offers individual secrecy while
others are of the view that it is clear14. Therefore, an individual’s distinctiveness is concealed
through complicate cryptography as well as presented only by their public address. While an
individual identity is secured, it will be easy for one to view every the dealing that was
completed by their common address. Such a range of intelligibility has never been real before the
economic scheme. Taking purely from cryptocurrency, if an individual knows the shared address
of any existing huge organizations, they can merely explode it in a voyager and observe all the
dealings that they have connected in during their operations.
3rd Pillar: Immutability
The idea of immutability in the framework of blockchain signifies that when figure has
been keyed into the blockchain, it can never be interfered with in any way. The purpose of why
blockchain obtains this possession is that of the cryptographic muddle operation. In the simplest
term, the process of hashing in operations refers to taking the effort string of any extent and
given out the yield of the changing length15. In the framework of cryptocurrencies such as
bitcoin, the dealings are in use as the effort and run throughout the algorithm of hashing that
13 Sun, Jianjun, Jiaqi Yan, and Kem Z. K. Zhang. 2016. "Blockchain-Based Sharing Services: What Blockchain
Technology Can Contribute To Smart Cities". Financial Innovation 2 (1). doi:10.1186/s40854-016-0040-y.
14 Clack, Christopher D. 2018. "A Blockchain Grand Challenge: Smart Financial Derivatives". Frontiers In
Blockchain 1. doi:10.3389/fbloc.2018.00001.

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offers the yield of an unchanging length. The hash of cryptographic purpose is a unique class of
hash duties that as several possessions creating it appropriate for cryptography. There are some
possessions that the hash function of cryptographic requires to possess in order to be deemed
secure16. When the block stores new information it is added to the blockchain. Blockchain, as its
name suggests, comprises of multiple blocks that are stuck in a single module.
Importance of blockchain technology
Blockchain technology allows different consumers together with the dealer to associate
precisely by eliminating the desire for the 3rd party. The skills offer the decentralized record or
innovative ledger of different business dealings that every individual on the system can be able
to view17. Moreover, blockchain technology is linked with cryptocurrencies such as bitcoin and
others. It offers the Microsoft Excel Sheet file in personal computers or laptop with different
details of individual transactions that are referred to as the ledger. Therefore, blockchain is
nothing but digital ledger. The ledger within this technology refers to the book that contains
different accounts to which debits, as well as credit, is posted from books of original entry18.
Therefore, blockchain remains to be the anonymous online ledger that utilizes the structure of
data to simplify the manner society transact. Without the help of the third party, blockchain
15 Dudek, Dariusz. 2017. "Possibilities Of Using Blockchain Technology In The Area Of Education". Informatyka
Ekonomiczna, no. 45: 55-65. doi:10.15611/ie.2017.3.05.
16 Andreev, R A, P A Andreeva, L N Krotov, and E L Krotova. 2018. "Review Of Blockchain Technology: Types
Of Blockchain And Their Application". Intellekt. Sist. Proizv. 16 (1): 11. doi:10.22213/2410-9304-2018-1-11-14.
17 Johnstone, Syren. 2018. "How Can Blockchain And Other Consensus Driven Cryptographic Technology Be
Regulated?". 4 (2): 16-62. SSRN Electronic Journal. doi:10.2139/ssrn.3278403.
18 Peck, Morgen E. 2017. "Blockchain World - Do You Need A Blockchain? This Chart Will Tell You If The
Technology Can Solve Your Problem". IEEE Spectrum 54 (10): 38-60. doi:10.1109/mspec.2017.8048838.

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technology allows different users to manipulate the ledger securely. It also protects the identities
of the users19. Through such techniques, blockchain stays to be a more secure approach to hold
out transactions. Every list of records in the blockchain is referring to block20. That is the main
reason why the technology is referred to as blockchain because the various growing lists of
records making the blocks to be connected and secured.
Secure Platform
The shortcomings of the conventional network can be overcome by means of a new online
platform which is introduced by Blockchain itself. Introduction of a new online platform will
allow the intellectuals to protect their intellectual property from being used by others without
their consent. The technology offers various ways such as certification of authenticity,
ownership, digital certification, and etc so as to secure the intellectual property of users. The
technology is immensely acknowledged by the upcoming music companies as the artists find it
convenient for them to register their work by means of the same and derive payments out of it21.
The technology also allows the users to assign a digital signature on their creation and upload the
same on the network. This allows users to get their work recognized and reach masses. Earlier,
the artists, writers, and bloggers were not receiving acknowledgment and appreciation for their
19 Lee, Pui Yuen, and Kung Wong Lau. 2017. "How Technology Affects Our Ways Of Shopping? A Historical
Analysis On The Use Of Technologies In Retailing". International Journal Of Research, Innovation And
Commercialisation 1 (2): 158. doi:10.1504/ijric.2017.10012189.
20 Paech, Philipp. 2017. "The Governance Of Blockchain Financial Networks". The Modern Law Review 80 (6):
1073-1110. doi:10.1111/1468-2230.12303.
21 Stratopoulos, Theophanis C. 2018. "Blockchain Technology Adoption". SSRN Electronic Journal 2(1): 3-30.
doi:10.2139/ssrn.3188470.

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content but now with this technology things have changed. Musicians, Engineers, architects,
writers, composers, architects, and directors are all the beneficiaries of this technology. Earlier
there were huge probabilities and occurrence of content to be stolen from the original creation
which is now reduced to a larger extent due to Blockchain network.
Prevents payment scams
The Blockchain network prevents scams related to payment. The network offers information
about how one can prevent payment related scams. In order to sell and purchase products, both
buyer and seller may use smart contracts. In Blockchain network a coin cannot be reused. This
makes the Blockchain network immensely powerful as it eliminates the risk of corruption by
means of disallowing a coin to be used again.
The probabilities of corruption are minimal as everything is reported and tracked from time to
time. In order to prevent payment related scams, the technology also makes it necessary for the
participants of a transaction to sign the same in the form of a digital signature.
Development of a better sharing economy
The Blockchain network also aids in the development of a better sharing economy. The
technology offers a trusted network to its participants so that they can trade freely without any
presence of fear22. The conventional system is way much expensive than the Blockchain system.
22 Yoo, Soonduck. 2017. "Blockchain Based Financial Case Analysis And Its Implications". Asia
Pacific Journal Of Innovation And Entrepreneurship 11 (3): 312-321. doi:10.1108/apjie-12-
2017-036.