Research Report on Blockchain Technology Benefits: MITS5002, 2019S1

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MITS5002 SOFTWARE ENGINEERING
METHODOLOGY - 2019S1 -ASSIGNMENT 2
- RESEARCH REPORT
Topic: Benefits of Blockchain Technology

Table of Contents
Introduction......................................................................................................................................2
Blockchain Technology...................................................................................................................2
Benefit of Blockchain..................................................................................................................2
Applications of Blockchain technology.......................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
The blockchain is the simplest term where absolute records were managed by the group of
computers that was owned by multiple entities. Every data block was secured and have the
bonding between other blocks with the use of cryptographic principles. This technology is
mainly used for exchanging data and transact the digital assets into distributed networks.
Blockchain technology is trending nowadays for companies that help to influence the business in
the coming years.
In the literature study of the paper, it will address the benefits of the blockchain technology that
will be discussed with their consequences for the governmental processes and the organizations.
Blockchain technology has the possibility of providing benefits to society and the government
sector. It enables the reduced complexity and cost, improvement in audit trails discoverability,
the process of shared trust, and the trusted recordkeeping. In the paper, technology challenges
and the levels will be addressed by the use of blockchain technology for the peer-to-peer process
with the opportunity offered for redesign information and transaction exchange process into the
remote domain. The ability for addressing the needs of society and the blockchain technology
will be focused on in this paper [1].
Blockchain Technology
Blockchain technology is the public, distributed and the decentralized digital ledger which is
used to record the transactions over more than one computer so that no included records were
altered easily without alteration of each subsequent blocks. On October 31st, 2008, the bitcoins
were circulated among the email list of the cryptographers. Bitcoins were launched as the digital
services on January 3rd, 2009. At that time, the system of digital currency was grown with more
than 60 billion dollars in mid-2017 and in recent times, this technology was named as blockchain
technology. This technology will raise the ecosystem of the advanced services and the ideas that
will stretch far outside the financial sector.
Bitcoins is the advanced network of payment and the latest type of cash. Bitcoins will be served
on the basis of all implementation of blockchain to track in the domains as logistics and the
supply chain and the wide range of energy sector.
Benefit of Blockchain
Blockchain is the advanced feature nowadays that is used for creating the digitalized signature of
every unique block. It is the chain of the digital blocks that contain transaction records. There
were several categories in which benefits were divided. These were:
- Strategic
There were several strategic benefits of the blockchain, such as:
o Reducing corruption: Blockchain helps the government in reducing the corruption
as protects the verifies all the transaction before clearing it.
o Protection from frauds: Blockchain prevents the funds transferred to one account to
another protected from any other public. A blockchain transaction is a non-traceable
transaction that cannot be traced back to the source [2].

- Economical
- There were several economic benefits of the blockchain, such as:
o Cost reduction: Blockchain is cost redundant as it only acquires only a few charges
for managing any workflow
o Protection from cybersecurity attacks: Blockchain protect from cyber threats as
every process of blockchain is managed and handled in a confidential manner. No
hope of a blockchain is disclosed to the public.
- Organizational
- There were several organizational benefits of the blockchain, such as:
o Trust increment: Blockchain is a technology that gains the trust of the various
organization as it is very vast and highly manageable technology to handle the
workflow of the organization.
o Control increment: Blockchain hops never brakes as if any of the node or hop of
blockchain braked down the complete data and information of the node is transferred
to another node.
- Technological
- There were several technological benefits of the blockchain, such as:
o Reduction in energy consumption: Blockchain consumes very less energy as the
complete technology is breakdown to various nodes that manage all the tasks of the
blockchain. This results in the consumption of less energy.
o Flexibility: The data was stored in multiple places with the use of manipulation in the
encrypted form is difficult. And at the same time, the data cannot be hacked easily
because of better security or privacy.
- Informational
- There were several informational benefits of the blockchain, such as:
o High quality of data and data integrity: Blockchain provides quality data to the
users without any data loss.
o Information access: Blockchain provides clear and concise data information to the
user.
o Reliability: The complete data or the information in the blockchain is reliable and
also have greater transparency into the analysis and collection of data or information
related to blockchain.
o Privacy: In the blockchain, the data is more secure and have good transparency in it.
It will protect our information that was stored in the computers or yet to be stored and
also related to the individuals.
o Reducing errors by the humans: Automatic controls and the transactions will
reduce the making of the errors by the humans.
Applications of Blockchain technology
Blockchain technology has many applications will signify the effect on the process of
organization that was designed. Blockchain technology is more secure, transparent, efficiency
and trustworthy technology. The application of the blockchain technology was:

- Management of Supply chain: It includes unified planning and different process execution.
It involves the flow of material and the information and the flow of financial capital.
Blockchain is applied to the challenge of the industry of the supply chain such as product
tracking, a complication in record keeping. Blockchain was valuable in the industry of supply
chain management, such as [3]:
o Provenance Tracking
o Cost Reduction
o Establishing Trust
- Accounting: This application was concerned with transferring asset ownership, ledger
maintenance of the accurate information of finance and it also concerned with
communication and measurement of the information of finance. For the accountants,
blockchain was used to provide clarity over the asset ownership, existence of the obligations
and also improve efficiency. Blockchain will increase the accounting scope by eliminating
reconciliation and providing certainty over the transaction history [4].
- Smart Contracts: This application was the line of codes stored in the blockchain and
execute automatically when the predetermined terms & conditions were met. The benefits of
the smart contracts in the blockchain technology were:
o Accuracy and speed
o Security
o Saving
o Trust
- Quality Assurance: Quality assurance in the blockchain technology was intensive on
ensuring the achievement of products and maintain a certain quantity level. These standards
were determined by the internal system of the organization or by the industry, state and
federal regulations.
- Voting: Voting is the application for the blockchain technology. The blockchain will be
created for keeping track of vote tallies with the help of molding votes as transactions.
Everyone will agree on the final count of the votes because of the audit trail of blockchain. It
can be verified that votes were not been removed or changed, only legal votes will be added.
- Energy Supply: Microgrids is most exiting usage of the blockchain in the energy industry. It
is best that fits with whole decentralization ethos. Use of the blockchain technology promise
to increase the interoperability between several sources of energy, customers, and suppliers
that will help to make up the microgrids [5].
- Stock Exchange: In this application, it will lower the problems and the risks of the stock
market – as the integral part of the capital markets. Blockchain was used for transferring the
share ownership directly between participants while putting every transaction through a
centralized hub. Blockchain has a high possibility for stock markets because it suggests risk
reduction, faster exchange, transparency, trust, and security.

Conclusion
Blockchain technology is the complex or underlying technology which is distributed, public and
the decentralized digital ledger which is used for making records of transactions over many
computers. The main blockchain is used nowadays is the bitcoins that allows making records of
transactions into the ledger which is distributed over the networks of the users. Writers,
inventors, artists, and many more can use the blockchain for protecting the intellectual properties
by creating absolute resources. Each data can be tracked easily at the time of creation. Mainly,
the blockchain is used by the bitcoins. Therefore, application of blockchains were the isolated
domains that offer possible benefits into the e-government domain. The possible benefits were
also identified in the paper such as strategic, economical, organizational, technological and
informational. There was much application of blockchain technology that signifies the design of
blockchain technology such as management of supply chain, smart contract, accounting, voting,
quality assurance, and the stock exchange.

References
[1] Atzori, M., 2015. Blockchain technology and decentralized governance: Is the state still
necessary?. Available at SSRN 2709713.
[2] Ølnes, S., Ubacht, J. and Janssen, M., 2017. Blockchain in government: Benefits and
implications of distributed ledger technology for information sharing.
[3] Korpela, K., Hallikas, J. and Dahlberg, T., 2017, January. Digital supply chain transformation
toward blockchain integration. In proceedings of the 50th Hawaii international conference on
system sciences.
[4] Korpela, K., Hallikas, J. and Dahlberg, T., 2017, January. Digital supply chain transformation
toward blockchain integration. In proceedings of the 50th Hawaii international conference on
system sciences.
[5] De Filippi, P. and Loveluck, B., 2016. The invisible politics of bitcoin: governance crisis of a
decentralized infrastructure. Internet Policy Review, 5(4).