Opportunities and Challenges of Blockchain Technology

Document Type:Research Paper

Subject Area:Technology

Document 1

This paper will examine the challenges and propose viable solutions to problems. Table of Content Abstract 2 Introduction 5 Methodology 6 Discussion 6 Conclusion 10 References 12 Introduction A blockchain is an incorruptible diary or ledger. The ledgers are decentralized in a way that they can perform every recording independently without depending on a centralized source of instruction from one central source. This kind of a system is incorruptible because all the intermediaries are eliminated and therefore there can be no interference from an outside source. There are quite a lot of people that know what a blockchain is but very few people understand how the system works. Now, as earlier mentioned, these ledgers are decentralized in several computers and each function independently. These computers are the ones known as Nodes.

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Every hash has to be approved by every Node to ensure the validity of the hash. The Nodes function such that each has a copy of the ledger in question and for a ledger to be registered into a block a majority of the nodes have to approve of the hash. A block is an entry of the characters after approval by the many nodes. There have been areas where the blockchain systems have been a success already. A good example is an application of block-chain in financial service systems to improve efficiency and security of the transactions ("17 Blockchain Applications That Are Transforming Society - Blockgeeks", 2018). Leading World financial have come together to take advantage of the benefits of block-chain systems.

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Several banks came together in 2017 under the consortium Unity Settlement Coin (USC). The coin is a digital means of trade made by UBS bank of Switzerland and Clearmatics of the United Kingdom. Such processes thrive due to end-to-end block-chain encryption services which make the method reliable and very secure as well as transparent. HC Corporations make B2B international payments using the block-chain encryption systems ("8 Experts on the Future of Blockchain Technology & Applications", 2018). Block-chain systems have also been used in the development of driverless cars. Although the government is yet to sanction the driverless cars, they have been put to test and their functionality is very superb. They are encrypted with data regarding the destinations of the passengers. S elections were done without this kind of technology and it was way too contentious because there were allegations that the Democrats were rigged out by the Republicans who colluded with the Russians hackers to manipulate the election results.

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Had the U. S used the block-chain technology these grievances would not have come up. Challenges Facing Block-Chain Technologies Block-chain is seen as the cure to all the problems that have marred the conventional way of operations within many sectors of the world but the technology is also problematic in a way. The most common challenge associated with the block-chain technology is the issue of environmental danger that the technology causes. A good example of such a deal is the Once-Coin to which a lot of people fell prey. The pyramid scheme ended up fleecing people of their finances; people who looked at the project as a Bit-coin in the making and therefore wanted to get ahead of other people who had not discovered the value of the coin.

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