BN208: Networked Applications - Blockchain Applications Report

This report provides an overview of blockchain technology and its applications, focusing on Libra and Ethereum. It begins with an introduction to blockchain, highlighting its role in enhancing security within linked records and its applications in cryptocurrencies. The report then delves into the applications of Libra, discussing its function as a decentralized database for low-volatility cryptocurrency, its working mechanism, scalability issues, features, weaknesses, and socio-technological aspects. Similarly, the report explores Ethereum, examining its distributed public blockchain network, operational processes, scalability, features, weaknesses, and socio-technological implications. The report concludes by emphasizing the potential of blockchain in enhancing system performance and transparency, summarizing the key functionalities of both Libra and Ethereum. The report is supported by references to relevant sources.

Running head: NETWORKED APPLICATIONS
NETWORKED APPLICATIONS – BLOCKCHAIN
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction..................................................................................................................................2
2. Applications of Block chain........................................................................................................2
2.1 Application of Libra..........................................................................................................2
2.2 Working of Libra application............................................................................................2
2.3 Scalability issues with Libra..............................................................................................3
2.4 Features of Libra................................................................................................................3
2.5 Weakness of Libra.............................................................................................................3
2.6 Socio technological aspects related to Libra.....................................................................4
2.7 Application of Ethereum....................................................................................................4
2.8 Working of the Euthereum block chain.............................................................................4
2.9 Scalability issues with Ethereum.......................................................................................4
2.10 Features of Ethereum.......................................................................................................5
2.11 Weakness of Ethereum....................................................................................................5
2.12 Socio technological aspects of Euthereum......................................................................5
3. Conclusion...................................................................................................................................5
4. Bibliography................................................................................................................................7

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1. Introduction
Blockchain is one of the new transforming technologies that are mainly designed for the
purpose of enhancing the security within the linked records. Block chain is being developed in a
connected form creating an irreversible and immutable chain. The blocks are being designed in
such a way that it prevents the block from being altered in future [2]. In other words it can be
stated that blockchain is simply a database that stores all the necessary transactions that are
further validated by the network community. The main use of block chain is the application in
bitcoin and ethereum. The main aim of this report is to describe the two major applications of
block chain. There are several applications of block chain however this report will discuss about
the benefits and socio technical aspects of Libra and Ethereum.
2. Applications of Block chain
2.1 Application of Libra
Libra block chain is referred to the decentralized and programmable database that is
mainly designed for the purpose of supporting the low-volatility cryptocurrency. It is expected
that with the help of Libra the exchange process will become efficient [2]. The main application
of Libra is that it helps in making cross border payments and money transfers.
2.2 Working of Libra application
The Libra block chain is basically referred to the cryptographically authenticated
distributed database that works by following the set of protocols generated by the Libra. The
blockchain in Libra is being maintained by a distributed network of validator nodes [7]. In order
to perform the transactions the clients of Libra block chain can submit the transaction request for

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updating the ledger state. For the purpose of making the transaction there is a need to know the
sender address, sender public key, program, sequence number and signature.
2.3 Scalability issues with Libra
Libra application of block chain is mainly launched for the purpose of improving the
financial inclusion. However as the technology is being developed recently the reliability and
scalability related to the application is difficult [6]. However the Libra application of block chain
offers a decentralized server for managing the activities that are taking place within the system.
Scalability plays a crucial role as it focuses on developing the system effectively and ensures that
each component has being fulfilled successfully.
2.4 Features of Libra
The main reason behind Libra being one of the famous cryptocurrency is that it is a
special currency that ensures the value is being stable throughout the real world asset. Libra does
not offer all the features of block chain [5]. Apart from this Libra also ensures that it is being
backed by the basket of low volatility assets for the purpose of ensuring the stability.
2.5 Weakness of Libra
Libra block chain is being designed like an actual block chain however it is not a true
block chain. Libra is initially designed for the purpose of a small list of approved organizations
so that they can run a node. There is a need to develop it in way that it offers different networks
to run a node. It is stated that the Libra is not a true block chain and is not fully decentralized.

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2.6 Socio technological aspects related to Libra
It is observed that the Libra protocol is being designed for the purpose to support 1000
payment transactions per second. The minimum amount of nodes that are required includes 40
Mbps internet connection, 16TB SSD and 1 commodity CPU [3].
2.7 Application of Ethereum
Ethereum is referred to the distributed public block chain network. The Ethereum varies
in the properties of sustainability [1]. The main aim of using Ethereum block chain is that it
focuses on running the programming code that are associated with decentralized application.
Ethereum is mainly used for the purpose of running the application and also focuses on
monetizing the work.
2.8 Working of the Euthereum block chain
Euthereum works on sharing the entire records of the data associated with transaction
history. Ethereum mainly works by storing all the recent state data along with the details of the
each transaction. In the process of Ethereum application, there is a need to keep track of the
activity or the current information that are associated with each application. Thus euthereum
ensures that all the data are being handled effectively within the system.
2.9 Scalability issues with Ethereum
Ethereum offers better scalability and ensures that the payment volume is made scalable
enough. The Ethereum proposes one of the best solutions for the purpose of overcoming the
scaling issues that arises with complex contract interactions [4]. The Ethereum scale is being
developed in such a way that it is able to handle the increased load of transaction. This also

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reduces the load that is being created on the main chain by shifting all the bulk of transactions to
the next layer.
2.10 Features of Ethereum
The basic features that are offered with Euthereum are that it is decentralized. The benefit
includes better security and reliability towards the users. The reliability of Euthereum is high as
it has the potential to validate the transactions with the help of huge number of computers.
Euthereum is being developed with a proper embedded programming language [8]. The
Euthereum provides a cryptocurrency that are mainly used for the purpose of making proper
payments and these payments are made automatic.
2.11 Weakness of Ethereum
The main weakness that is being located with the Euthereum block chain is that the
sluggish transaction speed. The scalability issue has also become a major concern as it becomes
difficult to handle many transactions at a time.
2.12 Socio technological aspects of Euthereum
Ethereum allows the developer to construct and organize decentralized applications. With
the help of a decentralized application it becomes easy to address the basic needs of the users.
3. Conclusion
Thus from the above report it can be stated that with the use of block chain the
performance of a system can be enhanced. The concept of block chain is mainly developed for
the purpose of increasing the transparency within the system and also ensures that the
transactions are made faster. The report has described the basic functionality of two applications

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of block chains. The report has focused on describing the basic fundamentals related to the block
chain.

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4. References
[1]A. Rosic, "What is Ethereum? [The Most Comprehensive Step-by-Step-Guide!]", Blockgeeks,
2016. [Online]. Available: https://blockgeeks.com/guides/ethereum/. [Accessed: 07- Aug- 2019].
[2] M. Crosby, P. Pattanayak, S. Verma and V. Kalyanaraman, “Blockchain technology: Beyond
bitcoin.” Applied Innovation, 2(6-10), p.71, 2016.
[3] M. Pilkington, 11 “Blockchain technology: principles and applications.” Research handbook
on digital transformations, 225, 2016.
[4] Z. Zheng, S. Xie, H. Dai, X. Chen and H. Wang, “An overview of blockchain technology:
Architecture, consensus, and future trends.” In 2017 IEEE International Congress on Big Data
(BigData Congress) (pp. 557-564). IEEE, 2017, June.
[5] S. Raval, Decentralized applications: harnessing Bitcoin's blockchain technology. " O'Reilly
Media, Inc.", 2016.
[6]F. Log, "The Libra Blockchain | Programming Language | Database Transaction", Scribd,
2019. [Online]. Available: https://www.scribd.com/document/413731667/The-Libra-Blockchain.
[Accessed: 07- Aug- 2019].
[7] P.W. Abreu, M. Aparicio and C.J. Costa,“Blockchain technology in the auditing
environment.” In 2018 13th Iberian Conference on Information Systems and Technologies
(CISTI) (pp. 1-6). IEEE, 2018, June.
[8] S. Ølnes, J. Ubacht and M. Janssen, Blockchain in government: Benefits and implications of
distributed ledger technology for information sharing, 2017.

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