Blockchain Technology: A Comprehensive Analysis and Evaluation

This report provides a comprehensive overview of blockchain technology, beginning with its fundamental concepts as a distributed ledger system. It delves into the benefits of blockchain, such as enhanced security, transparency, and efficient data management, while also addressing its weaknesses, including scalability issues and energy consumption. The report explores the societal perception of blockchain, highlighting its role in managing digital identities and combating fraud. Furthermore, it examines the purpose of adopting blockchain, emphasizing its ability to streamline transactions and reduce reliance on third parties. The report also discusses the expected norms of behavior within blockchain systems, concluding with a summary of the key findings and their implications. The report includes references to academic sources to support the analysis.

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Blockchain Technology

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Table of Contents
Introduction.................................................................................................................................................2
Fundamental of blockchain technology.......................................................................................................2
Benefits of blockchain.................................................................................................................................4
Weaknesses of blockchain technology........................................................................................................5
How is blockchain perceived by society?....................................................................................................6
Purpose of adopting the blockchain.............................................................................................................6
What are the expected norms of behavior from the blockchain?.................................................................8
Conclusion...................................................................................................................................................8
References.................................................................................................................................................10

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Introduction
Blockchain is defined as a dispersed ledger that has the ability to records the provenance
of a digital asset and helps companies to manage larger datasets easily. It is also named a
distributed ledger technology that makes the history of any digital asset and transparent through
the utilization of cryptographic and decentralization methods. In this modern era, the use of
blockchain technology is increasing rapidly due to its potential to develop a decentralized
distribution chain that provides access to the datasets at a similar time period (Crosby,
Pattanayak, Verma, & Kalyanaraman, 2016). The aim of the exploration is to examine the
concept behind blockchain technology and review the impact of research philosophies and
theories on the research. In terms of effectiveness, blockchain technology is more reliable and
appropriate due to which many companies are moving towards the blockchain-based systems.
This report will include various sections such as fundamental of blockchain knowledge, benefits,
and challenges of blockchain, the purpose of blockchain and evaluate how is blockchain
technology perceived by society?
Fundamental of blockchain technology
Blockchain is a kind of IT system that provides a way to exchange information from one
network to another easily and manage the financial transactions of the companies effectively. In
which blocks contain the digital pieces of data that help the companies to store information in
regards to the transactions and manage complexity from the systems. Pilkington, (2016) reported
that using blockchain technology the security of financial transactions can be enhanced as it uses
cryptography networks that help to securely perform transactions and store data effectively. In
this modern era, the uses of blockchain networks are beneficial for the companies by which they
can control and store the financial transactions effectively and also protect from the criminals.
In the previous studies, blockchain technology explained through various philosophies
including epistemology, ontology, and axiology and evaluated their significances in the
investigation. Yli-Huumo, et al., (2016) adopted epistemology and reported that blockchain
technology can be evaluated and explained as an advanced technology that helps to enhance the
effectiveness of the transitions completed by the companies and also enhance the level of

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knowledge. Blockchain technology characterized as a computing technology that includes
numerous blocks in order to store or record the information of the users in the companies. From
recent literature, it is found that blockchain networks are mainly created through digital pieces of
information in which the cryptography networks are used that helps to secure blocks that contain
information from the hackers.
Sikorski, Haughton, & Kraft, (2017) reported that a blockchain is a kind of database that
is transferred across the computing networks. Once a record has been included in the chain it is
very complex for the companies to change. In order to ensure all the copies of the database are
similar, a computing network is linked to the system. Blockchain helps to undercover cyber-
currencies including bitcoin but also helps to manage the transactions and business processes of
the companies. In this generation, blockchain technology is now used in many companies like
Amazon, Google and many more for handling the transaction-related information of the
consumers and manages the complex tasks easily. In the case of business communities, when a
block records new data, it is included in the blockchain that contains numerous blocks strung
each other. In blockchain technology, the transaction should be occurred and verified with the
public record of information including securities conversation commission in order to effectively
handle the information of the users.
The trust can be enhanced using blockchain technology in the companies due to their
capability to protect data form the criminals and cyber-crimes effectively. Using such
technology, business communities can effectively manage the sensitive data of the users and
develop trust with the consumers effectively. Sun, Yan, & Zhang, (2016) conducted research and
included ontology philosophy that helped to obtain effective information in the research and also
supported to control and reduce the research gaps that occurred in recent studies. The major part
of the ontology philosophy is that it helps the writers to obtain depth information about the topic
and address the research concerns effectively. For understanding the fundamental of blockchain
technology, ontology philosophy is applied that focuses on the trust and knowledge in the
research and helps to achieve the developed objectives effectively.
Ahram, et al., (2017) determined that the major characteristic of blockchain is that it does
not contain central authority by which the companies can easily control and handle the
information and transactions easily. It is examined that blockchain technology is simply a chain

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of blocks that includes information and every block has a cryptographic hash in order to secure
the information of the users and transactional data. such kind of technology is mainly handled by
a peer-to-peer network working simultaneously in order to resolve the complex mathematical
issues for validating the latest blocks. Once stored, the information in any provided block may
not be updated without changing all the blocks that need the confirmation of the many
computing networks. Therefore, the uses of such networks and systems are beneficial for the
companies by which they can protect transactional information effectively.
Benefits of blockchain
Blockchain is beneficial for the companies by which the larger datasets can be managed
and evaluated effectively. Atzori, (2015) reported that the chief benefit of blockchain is that it
enables for confirmation without having to be reliant on the third-parties by which the companies
can easily perform business operations and evaluate transactions. The data construction in the
blockchain technology is appended only which means the data may not be deleted easily that is
helpful for the companies and data can be managed easily. It utilizes a secured cryptography
technique in order to protect the data ledgers. Moreover, the current ledger is dependent on its
adjacent finished block using cryptography techniques. So, it is highlighted that the uses of
blockchain technology and networks are helpful for the companies by which the security of data
and transactions can be enhanced. Zhang, & Wen, (2017) examined that in the blockchain
technology, all the communications and data are linked to the block after the procedure of
supreme trust confirmation.
The transactions are stored and handled effectively in the situation of blockchain
technology so the adoption of such skill is beneficial for the business communities. Transparency
is a major problem in the current business sectors and for improving transparency, business
communities have tried to develop more rules and regulations that can produce difficulties and
complexity for the companies. In order to solve such problems blockchain technology can be
adopted by the companies that provide transparency to perform transactions and help the
companies to manage the data handling issues. The presence of blockchain technology does not
require larger computing networks and systems that helped the companies to decrease the costs
and expenses which is another effective advantage of blockchain technology.

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Saberi, Kouhizadeh, Sarkis, & Shen, (2019) determined that using blockchain
technology, business communities can focus on developing a supply chain network that works
with suppliers and vendors. In the traditional supply chain, it is complex to trace items that may
lead to numerous issues such as loss of goods, counterfeit and theft. Using blockchain, the supply
chain becomes more effective and transparent which also allows each party to trace the goods
and helps to perform business operations in an appropriate manner. Moreover, enterprise
blockchain technology allows communities to utilize various levels of accessibility and
companies can perform business operations effectively as it evaluates and manage the
transactions of the consumers effectively in the workplace. Treleaven, Brown, & Yang, (2017)
reported that in the case of blockchain technology, the transactions completed are transparent
which means it is easy for the companies to track records and manage complex tasks easily. So,
all these are major compensations of using blockchain in the case of business groups.
Weaknesses of blockchain technology
The key drawback of blockchain is that it uses larger computing networks and systems
that require more excessive energy for performing business operations and handling data of the
consumers. Meng, et al., (2018) conducted research and included epistemology philosophy for
evaluating the significance of blockchain. The theory of knowledge can be applied to the
blockchain technology as it includes effective information and computing systems which are
useful for the companies. The presence of such technology required a lot of experience and
knowledge that can produce the problems for the companies and leadership challenges for
handling the operations.
It is found that miners control the security and stability of blockchain technology but the
problem is that miners are not capable to control and handle the privacy of computing networks.
The presence of blockchain can support the criminals to transfer the malicious codes easily due
to which the effectiveness of privacy can be reduced easily. Scalability is another major problem
associated with the blockchain technology due to which the companies can suffer from the
problems effectively. Around 51% of the cyber-crimes occur due to blockchain technology in the
companies which is a key problem that needs to be managed effectively. Once data has been
included in the blockchain technology it is more complex to modify it. While stability is a major

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benefit, it is not always better and effective. Altering blockchain data or code is mainly very
demanding and often needs a hard fork, where one cable is wild and a new one is taken up.
Turk, & Klinc, (2017) reported that the knowledge of theory can be applied using major
three philosophies including ontology, axiology, and epistemology. In which epistemology can
be used for evaluating and reviewing the blockchain technology by which the validity, scope,
and distinction can be justified in an appropriate manner. It is found that blockchain uses public-
key for delivering consumers with possession over their cryptocurrency units. Every blockchain
speech has a conforming private key. While the address may be shared, the private key must be
kept secret but using blockchain technology, the secret can be hacked easily as it does not
contains authorization and authority systems. Therefore, the presence of blockchain technology
can produce hacking issues in the companies and data can be breached effectively.
How is blockchain perceived by society?
In this modern era, blockchain technology is adopted in society for controlling and
managing the transactions completed on the websites and online servers. Blockchain technology
is capable to lead security and enhance effectiveness in the management of digital identity and
supports the companies and society for managing fraud cases effectively. In society, blockchain
technology is perceived as an effective and reliable technology due to its capability to control
and handle financial transactions in an appropriate manner (Mettler, 2016). Blockchain records
an ongoing list of transactions across the network and numerous computing devices effectively
and helpful for the society to evaluate the business operations effectively.
Purpose of adopting the blockchain
It is highlighted that blockchain is an online ledger that is able to manage the data of the
consumers and simplify the transactions of the users. It enables consumers to manipulate the
ledger in an effective manner without the help of any authority. The purpose of blockchain is to
provide larger transparency that can help the companies to accomplish the data of the users
effectively and reduce the complexity of the systems. Using blockchain, business communities
can manage the larger datasets and do not require third parties by which the level of cost can be
reduced effectively.

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Moreover, the companies can securely perform the data transmission and manage the
fraud cases from the systems effectively. All these are major purposes of blockchain technology
due to which companies are moving towards such technology and adopting in the business
operations. Biswas, & Muthukkumarasamy, (2016) determined that the blockchain contains the
cryptography technology which is more capable to control and detect the unwanted signals from
the systems and help companies to address the cyber-crimes effectively. Blockchain technology
is immutable that means no one can tamper with the data which is added into the blockchain
networks. The major purpose of adopting blockchain technology is that companies can manage
financial transactions and store the larger datasets of the users in blocks that are able to protect
and manage such information.
Zheng, et al., (2017) found that blockchain is transparent by which the companies can
handle the tracking issues from the business and also provide reliable services that can help to
protect data and manage the information of consumers. It is found that there are major three
pillars due to which companies are adopting blockchain including decentralization, immutability,
and transparency. The idea behind blockchain is very easy, consumers have a centralized entity
that stored all the data and they have to communicate solely with the entity. For example,
banking is a major sector that uses blockchain for storing larger money and manages the
communications of the customers effectively.
One of the major concepts in the blockchain is transparency due to which companies are
moving towards blockchain technology. The previous writers reported that blockchain provides
security and transparency to the consumers effectively. Immutability is the case of blockchain is
a key point by which the transactions and data of the companies can be stored and secured
effectively. Therefore, it is reported that the uses of blockchain networks are beneficial for the
companies by which they can manage the business operations and address the data handling
issues easily.
What are the expected norms of behavior from the blockchain?
The common behavioral norm for the consumers is that blockchain technology provides a
way to manage the transactions and illegal information of data easily which can help to manage
and save tax-related problems. The blockchain providers also help the companies to perform

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transactions without using third parties but hackers also use such technology for performing
cyber-crimes and hacking activities. From the perspective of hacking, the behavioral norm of the
criminals is to perform data breach activities effectively and obtain cryptocurrencies from the
victims easily. It is significant for the blockchain providers to focus on the security rules and
regulations in order to manage such concerns. Zheng, et al., (2017) reported that the companies
use blockchain for performing transactions without requiring third parties and handle the datasets
effectively. Therefore, from the perspective of the business, the behavioral norm of the
companies is to complete the financial transactions securely and manage the data handling issues
effectively.
Conclusion
From the evaluation, it can be concluded that blockchain is effective for the business by
which the companies can secure transactional data easily. This paper determined and evaluated
the fundamental concept of blockchain technology along with their working principles. It is
found that larger transparency and security are major benefits of blockchain technology due to
which companies are moving towards the blockchain networks. However, complexity and larger
power energy are major challenges faced by companies while integrating blockchain networks
with businesses. This paper also determined the purpose of adopting blockchain for the
companies and reviewed the various behavioral norms of the users while accessing blockchain
services.
It is determined that the previous studies provided less information about blockchain that
produced research gaps but this paper delivered depth information and also supported the
arguments with the previous studies. Therefore, it is suggested that companies should implement
blockchain networks in their businesses in order to manage the transitional data of the consumers
and reduce the problems from the systems effectively. it uses cryptography techniques that can
help the companies to convert the data of users into cipher codes by which the security or
privacy of data can be enhanced easily.

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