Review of Blockchains Applications for Disruptive Technologies

Question: Write about theReview of Blockchains Applications for Disruptive Technologies. Answer: Introduction Technology has brought in a digital revolution, and hence, everything has started to get digital. One such thing to get digital is a ledger. The blockchain is the term used for digital ledger where the transactions are made by equipping the cryptocurrency, and the records are kept chronical and public [1]. The application of the blockchain are vast and one of such application is the cryptocurrency. Cryptocurrency is electronic medium of transaction where the transaction are done through virtual wallet or cards. The devised report will focus on evaluating two of such blockchain applications bitcoin and ethereum to understand their workability, scalability. Features, weakness and other relevant factors. The paper will even discuss the socio-technical aspects of the discussed blockchain applications before concluding the paper. Purpose Cryptoeconomics is one of the most disruptive advancements made in the todays world. The discussed term contributes to economic theory and cryptography that together governs the contributors in a decentralised network. Bitcoin and Ethereum have been considered as the subjects of the paper which are used for the transaction. The purposes that they are following is asset wealth management, insurance and most significantly for the transaction purpose. The transaction has been significantly simplified, since the inception of cryptocurrencies (blockchain application). It offers the advantage of cost and time efficient transactions. Additionally, the trading purposes are also equipping bitcoin and ethereum which have proved to be hugely successful. Working Model The working of bitcoin is very simple, in this when the user installs bitcoin wallet, a bitcoin address is generated which can be shared with others for the transaction. A secret chunk of data in the bitcoin wallet known as a seed or private key which is used for signing the transactions [2]. Followed by the processing of the transfer known as the mining process is done after which the process is complete. The working model of the ethereum is similar to that of the bitcoin. However, one of the significance difference between the working model is that instead of mining, here a smart contract is made in which a computer coding is used for the purpose of transactions [4]. The advantage of using computer coding is that it makes the transaction process automated when specific criterion standards are met. Scalability Issues The characteristics of a system, function or model that defines its capability of matching up and sustaining its performance level in an increased workload are defined as scalability. The scalability issues of the bitcoin are due to the insufficient limit of the block size. The challenge of scaling aroused due to increase in the number of the transaction. The increasing transaction has led to waiting for transaction completion to hours and even days [3]. Similarly, in case of the ethereum, the scalability issues have aroused due to increasing in the number of the transaction which has led to increase in the transaction cost along with compromised transparency, delayed payment and wastage the donation associated with the mining fee. Features and Weakness: The features and weakness of both the subjects are almost similar to each first the features of the subjects are that they are blockchain applications and have proven to be of great assistance in transactional uses. Additionally, both the subjects are time-saving and even saves transaction cost across countries to a great extent [3]. The weaknesses of subjects are also quite similar as both of them offer scalability challenge. Additionally, the challenges related to hacking is associated with the ethereum. It is evident from the case when due to weak coding almost $50 million was stolen. Another notable weakness offered by the ethereum is the centralisation of its data which makes simple for the hackers to hack in the data because they have to attack a single layer instead of several systems, unlike bitcoin. Bitcoin also does not limit itself to scalability limit additional issues such as volatility is associated with the discussed blockchain application. Due to high demand and limited offering bitcoin continuously suffers from volatility [4]. At instances, glitches and bugs are visible in the bitcoin which is raising questions about the reliability of the subject. Hence, it can be stated that the systems do offer significant benefits to its consumers but also shares its weaknesses.Socio-Technical Aspects: Socio-technical aspects refer to the aspects of a subject taking consideration of both the social and technical aspect together. Commonly, it is defined as the social and technical interaction that is done to pursue a defined objective. The socio-technical aspects of the blockchain are facing some contradictions as the deemed technology considers more of the social aspect than its counterpart in the socio-technical aspect. The subjects of the paper bitcoin and ethereum are financial assets, and according to [6] the social importance of the financial system are more dominant. Additionally, as the transaction processes after the introduction of the discussed blockchain applications have moved to electronic means that enables saving of the raw materials along with reducing the quantity of wastage. Hence, it can be emphasised to state that blockchain technology and its application are citing a positive impact on the social factors and managing a suitable level of socio-technical aspect. Conclusion: The paper has discussed one of the most disruptive technology in todays world, blockchain and how its application is changing the world. Bitcoin and ethereum two of the blockchain have been taken into consideration to get an insight on the discussed topic. The paper has discussed the features, challenges and other significant factors that are associated with the subjects and from the discussion, it is evident that the deemed technologies do offer critical challenges along with enormous benefits. Hence, it can be stated that there the technology discussed in the paper is in its infant stage and has a lot of scope for improvement, after which the former can be used to its full potential. So, the users of the technology should be aware of the challenges and then only should they, decide on equipping the technology. Bibliography: [1] M. Vukoli?, "The Quest for Scalable Blockchain Fabric: Proof-of-Work vs. BFT Replication",Open Problems in Network Security, pp. 112-125, 2016. [2] Iansiti, Marco, and Karim R. Lakhani. "The truth about blockchain."Harvard Business Review95, no. 1, pp. 118-127, 2017 [3] Zhao, J. Leon, Shaokun Fan, and Jiaqi Yan. "Overview of business innovations and research opportunities in blockchain and introduction to the special issue." Pp:1-28, 2016 [4] Kosba, Ahmed, Andrew Miller, Elaine Shi, Zikai Wen, and Charalampos Papamanthou. "Hawk: The blockchain model of cryptography and privacy-preserving smart contracts." InSecurity and Privacy (SP), 2016 IEEE Symposium on, pp. 839-858. IEEE, 2016. [5] Kim, Henry M., and Marek Laskowski. "Towards an ontology-driven blockchain design for supply chain provenance.", 2016. [6] Manocha, Jitendra. "Using innovation from block chain technology to address privacy and security problems of Internet of Things.", 2017.