Exploring Blockchain Technology: Benefits, Challenges, and Future

Blockchain Technology Student Name Course Name Professor Name January 06, 2023

Introduction • The technology behind blockchain will guarantee humanity a prosperous future. • This technology offers significant benefits since it may help various systems accomplish legitimate goals. • The blockchain is undoubtedly a new sort of repository. Since it could address significant money-related issues, this technology is quite intriguing. • It is nearly hard to update or remove these blocks once they are attached to the blockchain. • t takes a tremendous amount of computational power to breach the network. The miners determine the hash function for the new units (Mohanta et al., 2019). • Blockchains are decentralized digital records invulnerable and unaffected by manipulation without a centralized database and often without a controlled public sector.

Problem Statement • As the blockchain environment develops and various use cases materialize, businesses across all industrial sectors will encounter a complex and possibly divisive range of challenges and increased responsibilities. • Blockchain has many drawbacks, and security concerns are just one of them. • The absence of legislation is one of the significant barriers to implementing blockchain in an organization. • Several businesses are using blockchain technology as a commercial tool. • But at the moment, there aren't many clear regulations governing it. • Because of this, no one precisely follows any rules about the blockchain (Perera et al., 2020).

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Purpose of Research • The goal of this study is to clarify the blockchain technology paradigm. • A blockchain is a brand-new database that addresses various issues with centralized systems, including the need for mediators in transactions, the time required for each operation, and the accidental or deliberate loss or change of information in the Blockchain (Perera et al., 2020).

Relevance and Significance • Blockchain technology is dependable and unbreakable due to its benefits, including transparency, trustworthiness, multiple copies of transactions, and a decentralized digital record. • As blockchain technology can simplify the majority of processes across several sectors, it is beneficial and adaptable for modern society. • However, because it is still in its infancy, there is limited research on how to use it. • Because of the advantages of Blockchain technology, a great future free from fraud and deceit is promised to humans (Kouhizadeh et al., 2021). • Since the blockchain may deliver honest and reliable corporate, governmental, and logistical systems, the programmers must invest more effort in the application and integration of the blockchain into the current legacy infrastructure of the primary industry directions.

Research Questions • What blockchain-related scientific topics have been covered recently? • What uses for and applications of blockchain technology have been created? • In what dimensions will blockchain technology go in the future?

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Barriers and Issues • The Blockchains' major flaw is that it uses a lot of energy. • A real-time record needs to be kept, which requires power. When a new node is formed, it immediately establishes a connection with another cluster. In this way, openness is created. • The network's miners are attempting many more answers per second to find the requisite values. • They are making extensive use of computing power. Each node ensures zero outage, offers high fault resilience, and enables data stored on the Blockchain to be censorship- and time-resistant. • However, these actions are a loss of time and effort when every node attempts to duplicate what Consensus has accomplished (Upadhyay et al., 2021).

Review of the Literature • Yli-Huumo et al., 2016 stated that beyond the primarily technological emphasis of the majority of current work, the implementation of blockchain technologies necessitates the examination of a wide variety of variables (Yli-Huumo et al., 2016). • Andoni et al., 2019 elaborated that Blockchain technology's current development has been billed as the next revolutionary that would change the structure and scope of companies as well as how commercial transactions are carried out (Andoni et al., 2019). • Dutta et al., 2020 elaborated that blockchain solutions, a form of distributed transactional and data management technology, offer trust, privacy, safety, and integrity of information without needing a third-party governing body (Dutta et al., 2020). • According to Morkunas et al., 2019, a decentralized database system called a blockchain maintains an expanding list of data records that are validated by the networking websites that are members of it (Morkunas et al., 2019). • According to Janssen et al., 2020, a blockchain is primarily a distributed network of records, or general ledger, of all finished activities or electronic activities that have been shared between relevant parties (Janssen et al., 2020).

Approach/Methodology • A methodical mapping survey was used as the research approach for this analysis. • A systematic mapping study's objectives are to summarize a research field, determine whether research data exists, and measure the quantity of evidence. • In this work, we adhere to the method of systematic mapping. The objective was to examine the current studies linked to Blockchain technology, thus, humans chose the related empirical approach as the research technique. • The mapping project's findings would aid in identifying and mapping potential study needs and fields connected to blockchain technologies. • To lessen the likelihood of researcher partiality, a predetermined methodology is mandatory. • People employed a search procedure developed by researchers to find all the publications pertinent to our study topic in the scientific archives (Min, 2019).

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Data Analysis • The decentralised nature of blockchain technology is its main benefit. • While employing technology might be avoided because blockchain activities have their own proof of legitimacy and power to set the boundaries. • Moreover, it implies that the dealings might be separately checked and handled. • Another problem with blockchains is their failure to reconcile user-friendly costs with an appropriate number of nodes. • Right now, nodes are required for the blockchain to work properly. Since the networks in this example earned greater rewards, the expenses are higher, however the operations finished more gently since the nodes did not effort carefully. • The blockchain has expanded as a result of the addition of additional blocks to the network and rising computational demands.

Findings & Discussion • To build blockchain systems that function, satisfy the needs of operators and service suppliers, and are accepted by civilisation, it is necessary to have a comprehensive grasp of the different variables spanning from administration to technology. • At many levels, such as culture, rules and laws, agreements that direct and organize the conduct of people and the technologies, complicated socio-technical infrastructures may be studied. • Four levels—social embeddedness, organizational setting, administration, and resource provisioning levels— are provided in an institutional paradigm to help comprehend the variables causing changes. • The factors covered in the layers at the summit of the structure require longer to modify than the ones just at bottom.

Analysis • Most emerging technologies have a propensity to be overhyped and over utilized. Numerous projects will make an effort to use the technology, even if it isn't required. • This results from the detail that the technology is still quite new and little understood, from the fact that there are many myths about it, and from the desire to avoid losing out. • The blockchain technology is not exempt. Some of the blockchain technology's drawbacks and misunderstandings are highlighted in this section. In a nutshell, the blockchain is a decentralised ledger, in a characteristic of the blockchain, with or without. • The first applications were digital money networks that circulated a global ledger of all transactions. • Asymmetric-key pairings are utilised to monitor and authenticate transactions, and these exchanges are secured by cryptographic hashes.

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Summary of Results & Discussion • As this study has demonstrated, a blockchain relies on already-existing network, encryption, and archiving technologies but uses them in a creative way. • Businesses will need to be competent to assess technologies and the advantages and disadvantages of using it. • Updating a blockchain once it has been released and is widely utilized might be difficult. When data is added to a blockchain, it frequently stays there forever, even if an error is made. • Applications that utilize the networks as a database model circumvent the fact that the true blockchain content cannot be modified by having fresh blocks and events behave as updates or updates to older blocks and events. • Utilizing this software architecture, which also offers a full history of modifications, working data can be changed (Cole et al., 2019).

Conclusion • Blockchain, also called as distributed ledger technology (DLT), makes the past of every electronic asset transparent and immutable with the help of a decentralized system and cryptographic hash. • By equating blockchain innovation with a Google Docs site, it is simple to comprehend how it operates. • A critical flaw to be mindful of is the reality that the Blockchain's initial data and material cannot be changed once it has been published, improving its level of security. • Blockchain is a really creative and interesting technology since it can increase transparency, stop fraud, and reduce security concerns. • Blockchain technology first sprang to prominence due to its association with cryptocurrency and NFTs, but it has since evolved into a managed service for several multinational corporations. • Today, blockchain technology is being utilised to create innovative games, protect health records, give transparency for the worldwide supply chain, and profoundly change how we handle data and ownership (Ali et al., 2021).

Implications • Enterprise need information to function. It is ideal if it is swiftly acknowledged and accurate. • Since it delivers real-time, shared, and completely transparent data that is held on a digital ledger and only available to members of a permission-less system, blockchain is the greatest solution for providing such data. • A blockchain system can track sales, payments, financing, and output, between other things. • Furthermore, anyone can observe every facet of a deal from start to finish since everybody has accessibility to a single version of the story. This boosts overall confidence and creates new opportunities. • The use of traditional database techniques to store banking transactions has a number of drawbacks. • Consider the sale of a piece of real estate. Once the payment has been transferred, the purchaser owns the property (Ali et al., 2021). • Although neither party can be depended upon, both the buyer and the vendor can separately monitor the financial activities.

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Recommendation • Before constructing a distributed network, it is essential to evaluate the demands of the business and the issue that the industry is attempting to solve. It is simpler to judge if blockchain technology will be crucial in providing efficiency once these demands are understood. • Although there is great promise for this technology to improve industry efficiency, its application is not simple. • Blockchains are distributed networks, which means that several computers share the system's state. Because machines must be in real-time synchronization, distributed systems are typically more flexible yet also more expensive and complex than centralised systems. • The blockchain is intended to be a corporate network where all participants are linked to a single, universal ledger. • Setting up a task force thought up of many other players from the same sector to work on a single cryptocurrency for the entire sector to engage in is crucial before being included in such a venture.

References • Mohanta, B. K., Jena, D., Panda, S. S., & Sobhanayak, S. (2019). Blockchain technology: A survey on applications and security privacy Challenges. Internet of Things , 8 , 100107. https://doi.org/10.1016/j.iot.2019.100107 • Ali, O., Jaradat, A., Kulakli, A., & Abuhalimeh, A. (2021). A comparative study: Blockchain technology utilization benefits, challenges and functionalities. IEEE Access , 9 , 12730–12749. https://doi.org/10.1109/access.2021.3050241 • Kouhizadeh, M., Saberi, S., & Sarkis, J. (2021). Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers. International Journal of Production Economics , 231 , 107831. https://doi.org/10.1016/j.ijpe.2020.107831 • Perera, S., Nanayakkara, S., Rodrigo, M. N. N., Senaratne, S., & Weinand, R. (2020). Blockchain technology: Is it hype or real in the construction industry? Journal of Industrial Information Integration , 17 , 100125. https://doi.org/10.1016/j.jii.2020.100125 • Upadhyay, A., Mukhuty, S., Kumar, V., & Kazancoglu, Y. (2021). Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of Cleaner Production , 293 , 126130. https://doi.org/10.1016/j.jclepro.2021.126130 • Yli-Huumo, J., Ko, D., Choi, S., Park, S., & Smolander, K. (2016). Where is current research on blockchain technology?—a systematic review. Plos One , 11 (10), e0163477. https://doi.org/10.1371/journal.pone.0163477 • Andoni, M., Robu, V., Flynn, D., Abram, S., Geach, D., Jenkins, D., McCallum, P., & Peacock, A. (2019). Blockchain technology in the energy sector: A systematic review of challenges and opportunities. Renewable and Sustainable Energy Reviews , 100 (1), 143–174. https://doi.org/10.1016/j.rser.2018.10.014 • Dutta, P., Choi, T.-M., Somani, S., & Butala, R. (2020). Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation Research. Part E, Logistics and Transportation Review , 142 (1), 102067. https://doi.org/10.1016/j.tre.2020.102067 • Morkunas, V. J., Paschen, J., & Boon, E. (2019). How blockchain technologies impact your business model. Business Horizons , 62 (3), 295–306. https://doi.org/10.1016/j.bushor.2019.01.009 • Janssen, M., Weerakkody, V., Ismagilova, E., Sivarajah, U., & Irani, Z. (2020). A framework for analysing blockchain technology adoption: Integrating institutional, market and technical factors. International Journal of Information Management , 50 , 302–309. https://doi.org/10.1016/j.ijinfomgt.2019.08.012 • Min, H. (2019). Blockchain technology for enhancing supply chain resilience. Business Horizons , 62 (1), 35–45. https://doi.org/10.1016/j.bushor.2018.08.012 • Cole, R., Stevenson, M., & Aitken, J. (2019). Blockchain technology: implications for operations and supply chain management. Supply Chain Management: An International Journal , 24 (4), 469–483. https://doi.org/10.1108/scm-09-2018-0309

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