Blockchain Operational Environment, Its Applications and Issues

Abstract

In recent years, Blockchain technology is gaining huge attention of the researchers. The main reason behind this attention is its various attractive features like decentralization, immutability, auditability, security and wider application areas. Blockchain is a distributed ledger that securely keeps all the transactions on a decentralized peer-to-peer network. The Blockchain technology itself is very complex in nature as it involves several complex sub concepts and its implementation also demands good expertise [1-2]. This is one of the primary reasons behind low adoption of Blockchain. The objective of this paper is to present the basic structure of Blockchain and its key features, classification of Blockchain and then disclosing its vital role in various sectors like health, supply chain, government, education and IoT (Internet of Things). In addition, this study is also explaining precisely the working of various consensus algorithms such as proof of work, proof of stake, proof of authority, proof of burn and their issues. To achieve the objectives, research studies published in reputed journals have been reviewed. This study uncovers several open issues of the Blockchain technology like scalability, high energy consumption and low transaction rate. The implications of this study is that it will surely help the scholars, academicians and practitioners to understand the phenomena of Blockchain and gives useful insights for improvements by using Blockchain with other technologies such as artificial intelligence, internet of things (IoT), big data and cloud computing.

 Satoshi Nakamoto was first introduced the concept of blockchain technology. Blockchain is a decentralized and immutable ledger, which works on peer to peer network. This technology is used in combination with other technologies like cryptography, encryption, consensus protocol and peer-to-peer (P2P) networks. The consensus mechanism is used by the Blockchain that allows everyone to mutually agree on the creation of a new block [3-4]. In Blockchain, every block is cryptographically connected to the previous block except the genesis block as it is the first block of the entire chain. Every single block holds transactions up to 1 MB typically on a bit coin protocol and it may vary from protocol to protocol. Despite of its several benefits, the Blockchain technology itself is very complex in nature as it involves several complex sub concepts and its implementation also demands good expertise in several related tools.