![International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 4 Issue 6, September-October 2020 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD33693 | Volume – 4 | Issue – 6 | September-October 2020 Page 1420
A Study on Applications of Blockchain
Nitin1, Dr. Lakshmi J. V. N2, Sharique Raza1
1Student, 2Associate Professor,
1,2MCA Computer Science Department, Jain (Deemed-to-be) University, Bengaluru, Karnataka, India
ABSTRACT
Blockchain technology has changed therevolutionofdata storageandprivacy.
Decentralized data storage technique in Blockchainintroducedthedependent
ledger system. The main motive of Blockchain is to avoid the third party
authorization and validation process and intermediaries. This research
process shows the different areas where Blockchain can be implemented and
some guidelines. And what are the factors need to be considered while
deploying the distributed ledgers.
KEYWORDS: Blockchain, Bitcoin, Ledger, Validation
How to cite this paper: Nitin | Dr.
Lakshmi J. V. N | Sharique Raza "A Study
on Applications of
Blockchain"
Published in
International Journal
of Trend in Scientific
Research and
Development(ijtsrd),
ISSN: 2456-6470,
Volume-4 | Issue-6, October 2020,
pp.1420-1422, URL:
www.ijtsrd.com/papers/ijtsrd33693.pdf
Copyright © 2020 by author(s) and
International Journal ofTrendinScientific
Research and Development Journal. This
is an Open Access article distributed
under the terms of
the Creative
CommonsAttribution
License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)
1. INTRODUCTION
The current data storage and processing methods which is
centralized and involvement of intermediaries is not
trustworthy as the data creation and storing is increasing
rapidly. The Blockchain introduces thedecentralizationdata
and ledger maintenance. Blockchain was invented by a
person (or group of people) using the name Satoshi
Nakamoto in 2008 to serve as the public transaction ledger
of the cryptocurrency Bitcoin. Finance industry is the
primary area where Blockchain is more focused. Bitcoin
(Satoshi Nakamoto invention) was the first cyptocurrency
which is deployed on the Blockchaintechnology.Thecurrent
finance industry has some challenges over the ownership
maintenance and retracing records. As there ishighgrowing
rate of financial assets is leading to new problems. in every
transaction there is involvement of intermediaries
(merchants/banks) which authorizes and validates theuser
credentials before successfully completing the transaction,
this process is time consuming and less efficient. Instead of
third-party validation process, the Blockchain helps the
participants to validate the request and append the
transaction detail to their ledger and here the network itself
is validating. The Blockchain mechanism can be deployed in
many areas where it can easily eliminate the fraudulent
possibility[7].
1.1. Public and Private Blockchain
Decentralized distributed ledger on the Blockchain network
is the heart of every transaction in it. Centralized data
storage and processing is not efficient compare to
distributed, avoiding the failure of central node, backup and
there will be very less down time, but the cost is high than
centralized. And there should be redundancycontrol needto
be done. The cryptocurrency Bitcoin uses public key
(Asymmetric method) to make the transaction happen,
example the sender need public key of receiver which is
available in the network without real worldidentitymapped
to it to maintain the anonymity, the sender sends the
transaction detail over the network (broadcasting) to
append on the ledger over every node(participant) in the
Blockchain network, this process is little challenging as
every participant need to validate the transaction,finallythe
value(coin) will be transferred[9][10].
Basically the Bitcoin is generated using mathematical
function (hash) and using Proof-of-work and using thesame
it’s able to verify the transaction, if these requirements is
fulfilled then the Bitcoin is accepted in the Blockchain
network. The hash value of each Bitcoinisalsomaintainedin
the ledger (mapped to the wallet address) for traceable
purpose. The Blockchain network can be public or private.
Public Blockchain network is open to everyone, anyone can
participate to make and validate the transactions on the
internet, here the participant authorization and access
control is poor as compare to private, everyone has write
permission. But in private Blockchain network there are
limited participant can take part, if the purposeissomething
where the public needs more access, then the write
permission is only authorized to some nodes in the network
IJTSRD33693](https://image.slidesharecdn.com/255astudyonapplicationsofblockchain-201128084117/85/A-Study-on-Applications-of-Blockchain-1-320.jpg)
![International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD33693 | Volume – 4 | Issue – 6 | September-October 2020 Page 1421
like validating process[8][7]. The node which has write
permission can restrict the data appending to participants.
The objective of the business defines the need and level of
decentralization. AsthemarketisgettinghypeonBlockchain
implementation the restriction should be created
thoroughly. In simple terms the data which is not necessary
for the normal users should not beshared,whichmayleadto
future loss for the business.
Integration of different technologies with Blockchain can
extend the limit of areas of implementation. Like between
Blockchain and Artificial Intelligence (AI) and Big data
Analytics is likely to reshape the current and future
operational and management practices in most of the
organizations.Themostimportantarea ofimplementationof
Blockchain can in information security to store network log
and monitor the entire organization IT infrastructure [1].
2. General Operational Architecture of Blockchain
Fig 1 Ethereum’s Blockchain general architecture
The architecture of sample working Ethereum Blockchain
illustrates the operations carried out throughout a
trasanction cycle.Thedeployedsmartcontract(one-time and
written in Solidity programming language) acts as
predefined operation functions that are calledbyexternal or
internal object’s, based on the request EVM handles all the
bytecode, opcode, and generate hash of values/variable to
carry further CRUD(create, read, update, delete) operations.
User directly sends trasanction comission fee to smart
contract address for making changes on existing data or
creating a new one, and for viewing the data the smart
contract doesn’t charge. The smart contract must go under
testing for serveral times because once the smart contract is
deployed, the team cannot modify or fix any later found
bugs, or else the complete network should be reset and re-
deploy the new smart contract. And its possible to deploy
multiple smart contracts on single network for an
appication. In general the smart contract is the main object
to interact with blockchain network andwithitsdata,andits
responsible for complete validation of trasaction’s. The
architecture does also shows the commonized way of most
of the Blockchain development platform [5][10].
3. Applications Of Blockchain Technology
3.1. Finance Industry
There are tons of challenges that are currently the
Banking/Finance sector is facing, as service provider needs
to maintain the customer privacy, accountability and able to
trace back the transaction ownership because the digital
assets from the customer is rapidly growing which comes
with new problem for maintenance andownershipchaining.
The biggest problem that Blockchain technology cansolveis
it provides the ability to traceback thetransactionandinitial
fraudulent activity. It can revolutionize the finance industry
completely. And current startupsworkingondevelopingthe
Blockchain based private network connecting to partnered
organization. Like Fintech, Linux Foundation, IBM which is
working on open sourcing their Blockchain architectureand
many more. Another Financial factor can eased with
Blockchain is to develop the global Blockchain public ledger
to perform any financial operation across the countrieswith
the help of an application integrated with decentralized
mobile network[3][4].
With the help of Smart-contractmechanismcaneasilycreate
the user level of operational applications on the Blockchain
network, It completely avoid the third party validation
process that can save plenty amount of time and cost
authorization. The Smart-contract can also becustomizedto
the specified requirement of the organization.
3.2. Healthcare
The patient’s data is very confidential, the information on
wrong hands can risk the patient’s life. The Blockchain
technology can fulfill all the need by deploying privately,
because the private Blockchain network can avoid the third
party or any external organizations to access the patient’s
current disease information, the business can useusersdata
for their benefits like promotions and advertisements. The
private network can give the privilege to user on data
control. Only the physicians can access with updated (last
append on ledger) information this can savelotofresource’s
cost. All the physicians can access the patient’s data
anywhere differing from one hospital to another with user
permission (private key required) [6].
Pharmacists can also access the patient’s data from the
decentralized database directly so the useful operations can
be done with less cost. Pharmacist’s can assist the patient’s
perfectly on the required medical course.
3.3. Supply Chain Management
The E-commerce companies facing the problem of product
tracking from the manufacturing of products till the](https://image.slidesharecdn.com/255astudyonapplicationsofblockchain-201128084117/85/A-Study-on-Applications-of-Blockchain-2-320.jpg)
![International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD33693 | Volume – 4 | Issue – 6 | September-October 2020 Page 1422
customer delivery, which sometimes leadtolossinbusiness,
the Blockchain technology can help the businesstotrack and
store the position on the ledger. The productpositiondetails
will be stored in decentralized areas where each node can
validate each process, Proof-of-Work is electronically
recorder on the ledger. Can save cost and it is more efficient
compare to the existing storage.
3.4. Internet of Things (IoT)
Adopting a global standardizedpeer-to-peercommunication
to process the hundreds of billions of transactions between
devices will effectively reduce the cost in installing and
maintaining the large centralized data centers and will
distribute computation and storage needsacrossthe billions
of devices that form IoT networks. This will prevent failure
in any single node in a network from bringing the entire
network down. Providing thesecurityfactorsfor eachdevice
in a network is very challenging like the data collected from
the sensors observation should maintain the confidentiality
and integrity. This problem can easily be solved using
Blockchain technology with decentralized distributed data
storage technique [1].
3.5. Cloud storage platform
The current cloud storage providers are concerned and
focused on the user data privacy, which leads to time
consuming authorization process, the decentralized
distributed storagesystemcanhavepeer-to-peerconnection
and information sharing.
3.6. Identity and Voting system
Global identity of a person is going to be must thing, trading
between countries needs the legitimate person’s identity
from both the sides. This is a very concerned problem being
faced by many people nowadays, the Blockchain technology
can help to store the any person’s identity details in a
decentralized manner and it is easy to access from
anywhere. The great initiative taken by Indian government,
assigning a unique 16-digit number with person’s identity
details. It is very easy to access the refer between different
platform. In the same way the global identity record can be
implemented using Blockchain. It can save access time and
cost involved in current systems. Here the user has also
control on his/her personal details, with whom they can
share the details and how much [2].
The voting system is very confidential, the person’s vote
should not be modified by anyone. The distributed ledger in
a private network can eliminate this problem completely.
The voting status is being shared in the Blockchain network,
validated and appended to ledger, this way only authorized
node in the network can legitimate the entire process.
4. Conclusion
There are plenty of other fields where the Blockchain
technology can help to maintain the confidentiality and
integrity of each operation over the network. Like student
document submission records, smart home appliances,
music industry to maintain the copy rights, insurance
claiming process etc. Decentralized distributed data
management is currently being used in many industries but
there is validation and access control on each operation. The
Blockchain technology has the ability to handle the usage
databases with proper authorization andvalidationprocess.
It introduces the global ethical standards with node-to-node
data storing. In future this technology can help in improving
the business, legitimate data sharing and trading and can
also help the countries to democratizing the economy.
REFERENCES
[1] Banafa, A. (2017, January 10). /newsletter/January-
2017. Retrieved from iot.ieee.org:
https://iot.ieee.org/newsletter/january-2017/iot-
and-blockchain-convergence-benefits-and-
challenges.html
[2] Guy Zyskind, O. N. (2015). Decentralizing Privacy:
Using Blockchain to Protect Personal Data. IEEE, 2, 5.
[3] Joe Abou Jaoude, R. G. (2019). Blockchain
Applications -–Usage in Different Domains. IEEE,
3,4,8,10.
[4] Lu, Y. (2018). Blockchain: A Survey on Functions,
Applications and Open Issues. World Scientific
Publishing Co Pte Ltd, 1,2,3,4,5.
[5] Maher Alharby, A. A. (2019). Blockchain-based Smart
Contracts: A Systematic Mapping Study of Academic
Research. IEEE, 2,3.
[6] Mettler, M. (2016). Blockchain Technology in
Healthcare – The Revolution Starts Here. IEEE, 2,3,4.
[7] Michal Nofer, P. G. (2017). Blockchain. SpringerLink,
2,3.
[8] Pilkington, M. (2016). Blockchain Technology:
Principles and Applications. SSRN, 5,6,7,8,10,11.
[9] Underwood, S. (2016, October).
doi/10.1145/2994581. Retrieved from dl.acm.org:
https://dl.acm.org/doi/pdf/10.1145/2994581
[10] Zibin Zheng, S. X. (2017). An Overview of Blockchain
Technology: Architecture, Consensus, and Future
Trends. IEEE, 1,2,3,4.](https://image.slidesharecdn.com/255astudyonapplicationsofblockchain-201128084117/85/A-Study-on-Applications-of-Blockchain-3-320.jpg)
A Study on Applications of Blockchain
- 1. International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 4 Issue 6, September-October 2020 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470 @ IJTSRD | Unique Paper ID – IJTSRD33693 | Volume – 4 | Issue – 6 | September-October 2020 Page 1420 A Study on Applications of Blockchain Nitin1, Dr. Lakshmi J. V. N2, Sharique Raza1 1Student, 2Associate Professor, 1,2MCA Computer Science Department, Jain (Deemed-to-be) University, Bengaluru, Karnataka, India ABSTRACT Blockchain technology has changed therevolutionofdata storageandprivacy. Decentralized data storage technique in Blockchainintroducedthedependent ledger system. The main motive of Blockchain is to avoid the third party authorization and validation process and intermediaries. This research process shows the different areas where Blockchain can be implemented and some guidelines. And what are the factors need to be considered while deploying the distributed ledgers. KEYWORDS: Blockchain, Bitcoin, Ledger, Validation How to cite this paper: Nitin | Dr. Lakshmi J. V. N | Sharique Raza "A Study on Applications of Blockchain" Published in International Journal of Trend in Scientific Research and Development(ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6, October 2020, pp.1420-1422, URL: www.ijtsrd.com/papers/ijtsrd33693.pdf Copyright © 2020 by author(s) and International Journal ofTrendinScientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative CommonsAttribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0) 1. INTRODUCTION The current data storage and processing methods which is centralized and involvement of intermediaries is not trustworthy as the data creation and storing is increasing rapidly. The Blockchain introduces thedecentralizationdata and ledger maintenance. Blockchain was invented by a person (or group of people) using the name Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency Bitcoin. Finance industry is the primary area where Blockchain is more focused. Bitcoin (Satoshi Nakamoto invention) was the first cyptocurrency which is deployed on the Blockchaintechnology.Thecurrent finance industry has some challenges over the ownership maintenance and retracing records. As there ishighgrowing rate of financial assets is leading to new problems. in every transaction there is involvement of intermediaries (merchants/banks) which authorizes and validates theuser credentials before successfully completing the transaction, this process is time consuming and less efficient. Instead of third-party validation process, the Blockchain helps the participants to validate the request and append the transaction detail to their ledger and here the network itself is validating. The Blockchain mechanism can be deployed in many areas where it can easily eliminate the fraudulent possibility[7]. 1.1. Public and Private Blockchain Decentralized distributed ledger on the Blockchain network is the heart of every transaction in it. Centralized data storage and processing is not efficient compare to distributed, avoiding the failure of central node, backup and there will be very less down time, but the cost is high than centralized. And there should be redundancycontrol needto be done. The cryptocurrency Bitcoin uses public key (Asymmetric method) to make the transaction happen, example the sender need public key of receiver which is available in the network without real worldidentitymapped to it to maintain the anonymity, the sender sends the transaction detail over the network (broadcasting) to append on the ledger over every node(participant) in the Blockchain network, this process is little challenging as every participant need to validate the transaction,finallythe value(coin) will be transferred[9][10]. Basically the Bitcoin is generated using mathematical function (hash) and using Proof-of-work and using thesame it’s able to verify the transaction, if these requirements is fulfilled then the Bitcoin is accepted in the Blockchain network. The hash value of each Bitcoinisalsomaintainedin the ledger (mapped to the wallet address) for traceable purpose. The Blockchain network can be public or private. Public Blockchain network is open to everyone, anyone can participate to make and validate the transactions on the internet, here the participant authorization and access control is poor as compare to private, everyone has write permission. But in private Blockchain network there are limited participant can take part, if the purposeissomething where the public needs more access, then the write permission is only authorized to some nodes in the network IJTSRD33693
- 2. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD33693 | Volume – 4 | Issue – 6 | September-October 2020 Page 1421 like validating process[8][7]. The node which has write permission can restrict the data appending to participants. The objective of the business defines the need and level of decentralization. AsthemarketisgettinghypeonBlockchain implementation the restriction should be created thoroughly. In simple terms the data which is not necessary for the normal users should not beshared,whichmayleadto future loss for the business. Integration of different technologies with Blockchain can extend the limit of areas of implementation. Like between Blockchain and Artificial Intelligence (AI) and Big data Analytics is likely to reshape the current and future operational and management practices in most of the organizations.Themostimportantarea ofimplementationof Blockchain can in information security to store network log and monitor the entire organization IT infrastructure [1]. 2. General Operational Architecture of Blockchain Fig 1 Ethereum’s Blockchain general architecture The architecture of sample working Ethereum Blockchain illustrates the operations carried out throughout a trasanction cycle.Thedeployedsmartcontract(one-time and written in Solidity programming language) acts as predefined operation functions that are calledbyexternal or internal object’s, based on the request EVM handles all the bytecode, opcode, and generate hash of values/variable to carry further CRUD(create, read, update, delete) operations. User directly sends trasanction comission fee to smart contract address for making changes on existing data or creating a new one, and for viewing the data the smart contract doesn’t charge. The smart contract must go under testing for serveral times because once the smart contract is deployed, the team cannot modify or fix any later found bugs, or else the complete network should be reset and re- deploy the new smart contract. And its possible to deploy multiple smart contracts on single network for an appication. In general the smart contract is the main object to interact with blockchain network andwithitsdata,andits responsible for complete validation of trasaction’s. The architecture does also shows the commonized way of most of the Blockchain development platform [5][10]. 3. Applications Of Blockchain Technology 3.1. Finance Industry There are tons of challenges that are currently the Banking/Finance sector is facing, as service provider needs to maintain the customer privacy, accountability and able to trace back the transaction ownership because the digital assets from the customer is rapidly growing which comes with new problem for maintenance andownershipchaining. The biggest problem that Blockchain technology cansolveis it provides the ability to traceback thetransactionandinitial fraudulent activity. It can revolutionize the finance industry completely. And current startupsworkingondevelopingthe Blockchain based private network connecting to partnered organization. Like Fintech, Linux Foundation, IBM which is working on open sourcing their Blockchain architectureand many more. Another Financial factor can eased with Blockchain is to develop the global Blockchain public ledger to perform any financial operation across the countrieswith the help of an application integrated with decentralized mobile network[3][4]. With the help of Smart-contractmechanismcaneasilycreate the user level of operational applications on the Blockchain network, It completely avoid the third party validation process that can save plenty amount of time and cost authorization. The Smart-contract can also becustomizedto the specified requirement of the organization. 3.2. Healthcare The patient’s data is very confidential, the information on wrong hands can risk the patient’s life. The Blockchain technology can fulfill all the need by deploying privately, because the private Blockchain network can avoid the third party or any external organizations to access the patient’s current disease information, the business can useusersdata for their benefits like promotions and advertisements. The private network can give the privilege to user on data control. Only the physicians can access with updated (last append on ledger) information this can savelotofresource’s cost. All the physicians can access the patient’s data anywhere differing from one hospital to another with user permission (private key required) [6]. Pharmacists can also access the patient’s data from the decentralized database directly so the useful operations can be done with less cost. Pharmacist’s can assist the patient’s perfectly on the required medical course. 3.3. Supply Chain Management The E-commerce companies facing the problem of product tracking from the manufacturing of products till the
- 3. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD33693 | Volume – 4 | Issue – 6 | September-October 2020 Page 1422 customer delivery, which sometimes leadtolossinbusiness, the Blockchain technology can help the businesstotrack and store the position on the ledger. The productpositiondetails will be stored in decentralized areas where each node can validate each process, Proof-of-Work is electronically recorder on the ledger. Can save cost and it is more efficient compare to the existing storage. 3.4. Internet of Things (IoT) Adopting a global standardizedpeer-to-peercommunication to process the hundreds of billions of transactions between devices will effectively reduce the cost in installing and maintaining the large centralized data centers and will distribute computation and storage needsacrossthe billions of devices that form IoT networks. This will prevent failure in any single node in a network from bringing the entire network down. Providing thesecurityfactorsfor eachdevice in a network is very challenging like the data collected from the sensors observation should maintain the confidentiality and integrity. This problem can easily be solved using Blockchain technology with decentralized distributed data storage technique [1]. 3.5. Cloud storage platform The current cloud storage providers are concerned and focused on the user data privacy, which leads to time consuming authorization process, the decentralized distributed storagesystemcanhavepeer-to-peerconnection and information sharing. 3.6. Identity and Voting system Global identity of a person is going to be must thing, trading between countries needs the legitimate person’s identity from both the sides. This is a very concerned problem being faced by many people nowadays, the Blockchain technology can help to store the any person’s identity details in a decentralized manner and it is easy to access from anywhere. The great initiative taken by Indian government, assigning a unique 16-digit number with person’s identity details. It is very easy to access the refer between different platform. In the same way the global identity record can be implemented using Blockchain. It can save access time and cost involved in current systems. Here the user has also control on his/her personal details, with whom they can share the details and how much [2]. The voting system is very confidential, the person’s vote should not be modified by anyone. The distributed ledger in a private network can eliminate this problem completely. The voting status is being shared in the Blockchain network, validated and appended to ledger, this way only authorized node in the network can legitimate the entire process. 4. Conclusion There are plenty of other fields where the Blockchain technology can help to maintain the confidentiality and integrity of each operation over the network. Like student document submission records, smart home appliances, music industry to maintain the copy rights, insurance claiming process etc. Decentralized distributed data management is currently being used in many industries but there is validation and access control on each operation. The Blockchain technology has the ability to handle the usage databases with proper authorization andvalidationprocess. It introduces the global ethical standards with node-to-node data storing. In future this technology can help in improving the business, legitimate data sharing and trading and can also help the countries to democratizing the economy. REFERENCES [1] Banafa, A. (2017, January 10). /newsletter/January- 2017. Retrieved from iot.ieee.org: https://iot.ieee.org/newsletter/january-2017/iot- and-blockchain-convergence-benefits-and- challenges.html [2] Guy Zyskind, O. N. (2015). Decentralizing Privacy: Using Blockchain to Protect Personal Data. IEEE, 2, 5. [3] Joe Abou Jaoude, R. G. (2019). Blockchain Applications -–Usage in Different Domains. IEEE, 3,4,8,10. [4] Lu, Y. (2018). Blockchain: A Survey on Functions, Applications and Open Issues. World Scientific Publishing Co Pte Ltd, 1,2,3,4,5. [5] Maher Alharby, A. A. (2019). Blockchain-based Smart Contracts: A Systematic Mapping Study of Academic Research. IEEE, 2,3. [6] Mettler, M. (2016). Blockchain Technology in Healthcare – The Revolution Starts Here. IEEE, 2,3,4. [7] Michal Nofer, P. G. (2017). Blockchain. SpringerLink, 2,3. [8] Pilkington, M. (2016). Blockchain Technology: Principles and Applications. SSRN, 5,6,7,8,10,11. [9] Underwood, S. (2016, October). doi/10.1145/2994581. Retrieved from dl.acm.org: https://dl.acm.org/doi/pdf/10.1145/2994581 [10] Zibin Zheng, S. X. (2017). An Overview of Blockchain Technology: Architecture, Consensus, and Future Trends. IEEE, 1,2,3,4.