Use of Blockchain Technology

By- Kunal Khandelwal

Vikas Saini
Arshdeep
Rajnish Kumar

Abstract-
If you are following banking, cryptocurrency, investment, supply chain, delivery
management, you may be familiar with “blockchain”. Blockchain is the record-
keeping technology behind the Bitcoin network. Though it may sound complex at first
but blockchain is literally just a chain of blocks. Other definition would be: ‘Blockchain
is a distributed, decentralised, public ledger’.
Since the inception of idea behind blockchain in 1991 as secure chains of blocks
with timestamps we have come very far. Blockchain had its better advancement in
2008 after popularity of cryptocurrencies. With advancement in blockchain
technology, we are developing new uses of the technology every day. Various
industries and sectors are moving towards the use of blockchain to make the
process and transactions more peer to peer.
The aim is to reveal all the various fields, sectors and industries where blockchain
can be used. First, some basic description and methodology is discussed. Next a
detailed analysis of use blockchain in decentralised Payment Systems. Finally due to
unique and underlying technology, it has still some technical challenges and
boundaries there is a detailed discussion of future scope of this technology.
Index Terms- Blockchain, Use of Blockchain, Scope of blockchain, Cryptocurrency
Introduction-
The internet brought an evolution in the relationship between people and groups, in
the supply of new products and services. As the relationship between people
changed, they want to transact without any third party in between. Hence came the
concept of centralised and decentralised system of transactions. Bitcoin emerged as
a virtual electronic currency in 2008 addressing the issue of centralisation of all the
transaction. Claiming that this will improve aspects related to sustainability in
communities, bitcoin is addressing many forbidden issues during a transaction.
Whatever the claims, it is clear that blockchain is useful for us and in various sectors.
Before moving further we should understand entities of a blockchain transaction. The
three basic entities of a transaction are- the blockchain, the protocol and the
currency. Blockchain stores all the performed transactions of coins while following all
the protocols.

Blockchain—Distributed Ledger Technology

 A blockchain can be defined as a chain of blocks that are time-stamped and
linked using cryptographic hashes. These blocks are sealed in a secure and
immutable manner. The chain is constantly growing and new blocks are being
appended to the end, whereby each new block holds a reference (i.e., a hash value)
to the content of the previous block. The shareholders, also referred to as nodes of
the blockchain are organized in a peer-to-peer (P2P) network. Each node in the
network is in the possession of two keys: a public key that is used for encrypting the
messages sent to a node and a private key that is used to decrypt the messages and
allows a node to read it. Thus the public key encryption mechanism is used to
ensure the consistency, irreversibility and non-repudiability of a blockchain . Only the
proper private key can decrypt the messages encrypted with the corresponding
public key. This concept is know as asymmetric cryptography. As a detailed
explanation is out of the scope of this paper, further details can be found in
All the blocks in the blockchain are linked using the so-called hash which is
generated using a cryptographic one-way hash function (e.g., SHA256). It also
ensures anonymity, immutability and compactness of the block
Each transaction carried out by a node is signed before it is broadcasted to the
network for later confirmation. The digital signing of a transaction using the private
key enables authentication and provides integrity of a transaction. The first is due to
the fact that only a user with a specific private key can sign the transaction and the
second is due to the fact that an error during transmission of the data results in the
inability of decryption (i.e., verifying a digital signature).
Transactions disseminated in the network and considered valid by the network
are ordered and packed into time-stamped blocks by specific nodes, which are
called miners when the network is using specific consensus mechanisms, such as
proof-of-work or proof-of-stake. How the miners are chosen and what data is
included in the block depend on the consensus protocol (a more detailed definition of
a consensus protocol is given later). The blocks are then broadcast to the network,
where the validation nodes verify that the received block contains valid transactions
and that it references the previous block in the chain by using the corresponding
hash. If both requirements are fulfilled, the nodes add the block to the blockchain. If
the requirements are not fulfilled, the block is discarded.
This brings us to the role of network nodes. Since the blockchain network is a
P2P network, a node can be regarded as a peer when it starts to connect and
communicate with other nodes in the network, thus the appropriate name would be a
peer-node. We will henceforth denote it as a “node” for easier comprehension. In
layman’s terms, a full node is any computer that has the core blockchain client
installed and operates a full copy of the whole blockchain ledger.
A user wishing to engage with the blockchain connects to the blockchain
network through a node. The previously mentioned miners are a subset of nodes,
since all miners must also operate a fully functional node. Hence, each miner is a
node, but not every node is also a miner. This scenario is known from a specific
public blockchain type employing the PoW (proof-of-work) consensus (more on this
later in this section). Other types of blockchain networks, using other distributed
consensus types, do not require mining, e.g., PoS (proof-of-stake) .
The basic tasks of a blockchain node are:
 connecting to the blockchain network,
 storing an up-to-date ledger,
 listening to transactions,
 passing on valid transactions into the network,
  listening for newly sealed blocks,
 validating newly sealed blocks—confirming transactions,
 creating and passing on new blocks.
Types of Blockchains
Generally, there are different types of blockchains depending on the managed
data, on the availability of such data, and on what actions can be performed by the
user. These include:
 public permissionless,
 consortium (public permissioned),
 private.
All the data in the public permissionless (often called just public) blockchain is
accessible and visible to the public. However, some parts of the blockchain could be
encrypted in order to preserve a participant’s anonymity . In a public permissionless
blockchain anyone is able to join the blockchain without any approval and can act as
a simple node or as a miner (node). These types of blockchains are usually given an
economic incentive, such as in cryptocurrency networks. Examples of such a
blockchain include Bitcoin, Ethereum or Litecoin
The consortium type blockchain enables only a selected group of nodes to
participate in the distributed consensus process . It can be used within one or across
several industries. When a consortium blockchain is established within one industry
(e.g., financial sector), it is opened for limited public use and partially centralized. On
the other hand, a consortium between industries (e.g., insurance companies,
financial institutions, governmental institutions) is opened for public use while still
having established a partially centralized trust.
A private blockchain only enables chosen nodes to join the network. It is
therefore a distributed yet centralized network . Private blockchains are
permissioned networks in order to control which nodes can perform transactions,
execute smart contracts or act as miners. They are managed by one organization
which is the trusted party. It is used for private purposes. Hyperledger Fabric and
Ripple are examples of blockchain platforms that only support private blockchain
networks. Note that such classifications are still being debated and different
definitions might be found in literature.
A distinction between blockchains can also be made based on their purpose:
 for tracking digital assets (e.g., Bitcoin) and
 for running certain logic (i.e., smart contracts).

The use of BlockChain-

1. Payment processing and money transfers
Arguably the most logical use for blockchain is as a means to expedite the transfer of
funds from one party to another. As noted, with banks removed from the equation,
and validation of transactions ongoing 24 hours a day, seven days a week, most
transactions processed over a blockchain can be settled within a matter of seconds.

2. Monitor supply chains

Blockchain also comes in particularly handy when it comes to monitoring supply
chains. By removing paper-based trails, businesses should be able to pinpoint
inefficiencies within their supply chains quickly, as well as locate items in real time.
Further, blockchain would allow businesses, and possibly even consumers, to view
how products performed from a quality-control perspective as they traveled from
their place of origin to the retailer.
3. Retail loyalty rewards programs
Blockchain could further revolutionize the retail experience by becoming the go-to for
loyalty rewards. By creating a token-based system that rewards consumers, and
storing these tokens within a blockchain, it would incentivize consumers to return to
a certain store or chain to do their shopping. It would also eliminate the fraud and
waste commonly associated with paper- and card-based loyalty rewards programs.
4. Digital IDs
More than 1 billion people worldwide face identity challenges. This would allow folks
in impoverished regions to get access to financial services, or start their own
business, as an example. Of course, Microsoft's attempts to create a decentralized
digital ID are still in the early stages.
5. Data sharing
Cryptocurrency IOTA launched a beta version of its Data Marketplace in November,
demonstrating that blockchain could be used as a marketplace to share or sell
unused data. Since most enterprise data goes unused, blockchain could act as an
intermediary to store and move this data to improve a host of industries. While still in
its early stages, IOTA has more than 35 brand-name participants (with Microsoft
being one) offering it feedback.
6. Copyright and royalty protection
In a world with growing internet access, copyright and ownership laws on music and
other content has grown hazy. With blockchain, those copyright laws would be
beefed up considerably for digital content downloads, ensuring the artist or creator of
the content being purchased gets their fair share. The blockchain would also provide
real-time and transparent royalty distribution data to musicians and content creators.
7. Digital voting
Worried about voter fraud? Well, worry no more with blockchain technology.
Blockchain offers the ability to vote digitally, but it's transparent enough that any
regulators would be able to see if something were changed on the network. It
combines the ease of digital voting with the immutability (i.e., unchanging nature) of
blockchain to make your vote truly count.
8. Real estate, land, and auto title transfers
One of the primary goals of blockchain is to take paper out of the equation, since
paper trails are often a source of confusion. If you're buying or selling land, a house,
or a car, you'll need to transfer or receive a title. Instead of handling this on paper,
blockchain can store titles on its network, allowing for a transparent view of this
transfer, as well as presenting a crystal-clear picture of legal ownership.
9. Food safety
Yet another intriguing use for blockchain could be in tracing food from its origin to
your plate. Since blockchain data is immutable, you'd be able to trace the transport
of food products from their origin to the supermarket. What's more, should there be a
food-borne illness, blockchain would allow the source of the contaminant to be found
considerably quicker than it can be now.
10. Immutable data backup
Blockchain might also be the perfect way to back up data. Even though cloud
storage systems are designed to be a go-to source for data safekeeping, they're not
immune to hackers, or even infrastructure problems. Using blockchain as a backup
source for cloud data centers -- or for any data, as Boeing is considering with GPS
receivers on its planes -- could resolve this concern.
11. Tax regulation and compliance
Have I mentioned how important transparency and immutability are yet? For
example, marijuana companies can use blockchain as a means to record their sales
and demonstrate to lawmakers that they're abiding by local, state, and/or federal
laws. More importantly, these sales act as a clear record for the IRS that they've paid
their fair share of taxes to the federal government, assuming they're profitable.

12. Medical recordkeeping

The good news is the medical sector has already been moving away from paper for
recordkeeping purposes for years. However, blockchain offers even more safety and
convenience. In addition to storing patient records, the patient, who possesses the
key to access these digital records, would be in control of who gains access to that
data. It would be a means of strengthening the HIPAA laws that are designed to
protect patient privacy.
13. Weapons tracking
One of the hot-button topics on any news network at the moment is gun control
and/or weapons accountability. Blockchain could create a transparent and
unchanging registry network that allows law enforcement and the federal
government to track gun or weapon ownership, as well as keep a record of weapons
sold privately
14. Wills or inheritances
Blockchain may also be able to put your end-of-life concerns to rest. Rather than
creating a paper will, people may have the option of creating and storing their digital
will on a blockchain network. When used with smart contracts, which could divvy out
inheritances based on when certain criteria are met (such as when a grandchild
reaches a certain age), wills should become crystal clear and legally binding, leaving
no questions as to who should receive what assets when you pass away.
15. Equity trading
At some point, blockchain could rival or replace current equity trading platforms to
buy or sell stocks. Because blockchain networks validate and settle transactions so
quickly, it could eliminate the multiday wait time investors encounter when selling
stock(s) and seeking access to their funds for the purpose of reinvestment or
withdrawal.

Fields Where Blockchain is used currently

1. Decentralized cryptocurrencies
 At its simplest, cryptocurrencies, or digital coins, are coins that are
passed through an electronic network. You can make transactions by
check, wiring, or cash. You can also use a type of virtual currency, most
famously Bitcoin (BTC) but also Litecoin, Peercoin, or Dogecoin, among
others, where you use an electronic coded address to make the
transaction.
Each transaction is a digital ‘block’ that needs to be verified before
it’s allowed to enter the system. Each computer on the network competes
on unscrambling the answers, and the winning computer adds this ‘block’
to the ‘blockchain’ in the order that the ‘block’ arrived. The winner
broadcasts his proof to the rest of the network, which checks that proof
and verifies it before queuing the ‘block’ to complete the transaction.
Parties involved are assured that participants have screened and okayed
the transaction.
The process not only cuts down on fraud, such as double spending or
spams, but also transfers funds simply, safely, and fast.More discussion
on Crypto will not be possible in this paper.
2. Payments: Cross-Border Payments
The global payments sector is error-prone, costly, and open to money
laundering. It takes days if not longer for money to cross the world. The
blockchain is already providing solutions with remittance companies such
as Abra, Align Commerce and Bitspark that offer end-to-end blockchain
powered remittance services. In 2004, Santander became one of the first
banks to merge blockchain to a payments app, enabling customers to
make international payments 24 hours a day, while clearing the next day.
Blockchain makes cross border payment fast and secure. As far as
decentralised currencies are concerned these two are the biggest
problem.

3. Smart Property
Primitive forms of smart property exist. Your car-key, for instance, may be
outfitted with an immobilizer, where the car can only be activated once you
tap the right protocol on the key. BigChainDB- one such startup develops an
ownership transfer service called CarPass in an effort to centralize all
information about a vehicle to fight fraud. The pass includes title, service
providers, prior damage, maintenance, and inspection history.

4. Smart appliances
A smart appliance is a device that connects to the internet and gives you
more information and control than before. For instance, a code connected
to your appliance can be linked to the internet and alert you when your
cookies are ready or if your laundry has stopped. These alerts keep your
appliances in good condition, they save you money regarding energy
efficiency and help you control your devices when away from home,
among other benefits. Encrypting these appliances on the blockchain
protects your ownership and enables transferability.
NXM one such start-up provides scalable IoT security and data protection
 through the use of blockchain systems to help deploy trustworthy devices
and applications that communicate securely and automatically with each
other without manual intervention. They have a working hardware product
for the autonomous driving industry.

5. HealthCare
The blockchain is already conquering the healthcare industry and helping
it overcome its shortcomings by making medical care more customer-
centric, personalized, pleasant to interact with and thus, much more
effective in treating diseases and disabilities.
PokiDok- one such start-up develops APIs for healthcare verticals such as
claims, pharmacy and identity management. Their platform, DokChain, is
a distributed network of transaction processors operating on both financial
and clinical data across the healthcare industry.
6. Digital Identity
The first digital passport launched on Github in 2014 and could help
owners identify themselves online and off. How does it work? You take a
picture of yourself, stamp it with a public and private key, both of which are
encoded to prove it is legitimate. The passport is stored on the ledger,
given a bitcoin address with a public IP, and confirmed by Blockchain
users.
Future scope
1.Blockchain in digital advertising: In today’s world, one of the biggest
problems in digital advertising is challenges such as domain fraud, bot traffic,
lack of transparency and long payment models. Blockchain can provide
solutions to these problems as the technology will only allow the right
companies to succeed. It will decrease the number of bad players in the supply
chain and minimising the case of fraud and others.

2. Blockchain in cybersecurity: The innovative cryptography feature of the

Blockchain Technology will help in encrypting and verifying the data. In this
manner, the data is less likely to be attacked or altered without authorisation.

3. Blockchain in Forecasting: The Blockchain technology is set to alter the

complete methodology for research, consulting, analysis and forecasting. Most
of the global distributed prediction markets are created with the help of online
platforms.

4. Blockchain in cloud storage: The distributed/decentralised security feature

of Blockchain will make cloud storage more protected and robust against
hacking as the data on a centralized server is exposed to hacking, loss of data,
or human error.

Conclusion
Blockchain technology become really updated since its inception and first big use in
2010 as birthstone of crypto currency. We have come a long way from having
centralized systems to a decentralized system, from slow and unsecure transactions
to fast and secure transaction.
Since its inception, blockchain was not considered as useful as it become after
launch of bitcoins. Developers around the world learned and researched about
blockchain to make it more and more useful for world. Today there are many uses of
blockchain in almost every industry we can think of.
Instead of being very useful the problem is, most of the uses are theoretical and still
there are no practical products or projects. We have to go a long way. The main
reason of this problem is lack of knowledge of blockchain, lack of experience smart
contract programmers.

If this problem is set aside, blockchain have a very vast use and scope in near
future. Blockchain is starting to get famous in various sectors and people are
learning to use them for good. Sooner or later blockchain will be at their full potential.