Blockchain as a Technology - Research Paper

Introduction

The Industrial Revolution brought change to society, and replaced the old methods with the new ones, such as new skills, technology, ways of doing things; all are dynamic in our contemporary world. In the past-World-War II era, government interest increased based on the knowledge used to promote economic development through the technology transfer. The computers, as well as the communication revolution, have both played a significant role in ensuring that there is a shift towards a global economy and knowledge economy. While focusing on the network environment, knowledge is perceived to be a commodity and economic resource at the same time. The world of social media determined the increased significance of the knowledge and content instead of relying on the information dissemination alone. The customization of the information services, designing information packages and replacing it alongside upholding information utility services, added value to products that promoted to the superior utilization. While the community witnessed the swift development of a new knowledge that fastened the creation, diffusion, mass production, and dissemination of knowledge, the utilization process grew to be more complicated, and the information infrastructure's twist brought challenges to utilization.

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We as individuals tend to evolve, so do our society; we are also exponentially evolving on the basis of technological progress. Initially, we had the internet, and presently we are taking a step forward to evolution, and here is where Blockchain technology comes in. Blockchain is viewed as a definite indigenous intervention, which is a brainchild of an individual or a group of people who are referred to as a pseudonym term, Satoshi Nakamoto. Since the time of the invention, the economic technology world has witnessed a tremendous evolution into something greater than anticipated, but still, not everyone acknowledges the impact that has come with the invention of the blockchain. The fascinating aspect of blockchain introduced to the economic and financial world through technology is that permits the digital information to be distributed, and at the same time restricts it from being copied, the new technology that comes with the Blockchain forms a pillar of the new internet ("What is Blockchain Technology? A Step-by-Step Guide for Beginners," 2019). Originally devised from the digital currency, Bitcoin the tech community has realized other potential uses for the technology. The following study seeks to discuss blockChain technology with regard to the change it has toward the Economic Infrastructure

Blockchain as a Technology

According to Oxford Business Group (2019), a blockchain is referred to as a cryptographically protected, decentralized and distributed ledger of transaction. The ledger is safe and secure, since it does not exist on a single computer, neither does it harm the computers or servers, the ledgers are duplicated across different locations, all of them being interconnected in a manner that the change by one use-(authenticated by his or her public password or keyword) is duplicated along the whole ledger. The fact that blockchain is decentralized in nature, makes it highly secured as no particular user can influence or terminate an entry to it since it will need the change of all notes, something that is completely impossible. The study by Fortney (2019) defined blockchain as the platform that introduced crypto-currencies into play today, in that regards blockchain functions as the distributed ledger that forms the network. The network forms the means of transacting and allowing transferring of information and values. The blockchains form the basis of technology, while the cryptocurrencies are the elements of the ecosystem. They are mutually related and operate together during the transactions. Therefore, the absence of blockchains will not guarantee the means for these transactions to be transferred and recorded.

As results of its high encrypted nature of enhancing security blockchain technology have been advanced to form the backbone for the commonly used crypto-currency, Bitcoin. As mentioned by the research by Oxford Business Group (2019), the global blockchain market is anticipated to worth $20billion by the year 2024. Presently, nearly 69 percent of the banks are testing on whether they can enhance the security, unification as well as transparency of their services using blockchain. Curtis (2019) adds that it is expected that banks would save and about $8-12 billion annually. By March 2018, the Blockchain wallet users were 24 million. An investment of $1 billion has been injected to the technology for more than 5 years in a venture of investment. In 2018, a total of $2.1 billion was utilized on the blockchain-solutions. While last year, the US government passed a $700 billion defense bill for the study of the applications of blockchain for cybersecurity (Curtis, 2019).

Research Problems

World Economic Forum (2015) shows that the Blockchain can reduce 30% of banks' infrastructure Costs; Blockchain is a technology that has taken the business world in a storm and elevated it to a different level. Blockchain data is intended to be resilient to modification and offer safety to the record of the transaction. However it will be difficult for one to understand the anatomy of this technology, but sill its popularity in the business world as it keeps on growing. The blockchain can be utilized as the private ledger as well as the public means for inter-company transactions and records. Companies in almost all the main industries are rushing to embrace the perceived benefits of the blockchain sensation and its benefits based on its efficiency, competency and adaptability are being realized across the world.

Due to the increase speculation and interest in the value of the Blockchain technology, there is anticipation that the technology will bring transformation on how people do business and hence influencing social-economic aspects of the business world. For that reason, the research problem for the research is: What are the will the economic infrastructural changes brought by the Blockchain technology?

The research focuses on the following questions

• What are the takes of the different bank around the block regarding the Blockchain technology?
• What are the anticipated advantages of Blockchain technology
• What are the risks associated with Blockchain technology?
• What efforts are made towards the implementation of the Blockchain?

Methodology

This study will apply the qualitative analysis of the existing literature. The kinds of literature will be collected from the internet sources and will be based on the research questions mentioned. The materials that will be used for this research will be scrutinized for credibility and to ascertain whether they relate to the main topic of the study and whether it will bring to a sensible conclusion. Some of the materials such as blogs, Wikipedia, and social media comments will not be considered regardless of whether the information they provide coincide with what is being studied. The materials collected will be based on the analysis and findings. NO information will be repeated, but still, the information will have to relate as per the subtopics.

Analysis

Bitcoin and Blockchain Technology

Cryptography is among initial attempts in developing virtual currencies following well-developed research as well as standards to created Bitcoin Technology. Bitcoin Technology comprises of numerous principles such as peer-to-peer architecture, the consensus machinery framing of regulations together with security strategy, and the application of Blockchain as storage during hash linking plus time stamping. Since Blockchain is a distributed database, it is capable of storing the register of ordered records referred to as blocks that contain transactions. Each transaction holds a distinct mode of data while each block has a timestamp as well as a hash pointer, which connects to the actual block. Each bitcoin is connected together using the transactions; thus the myth believed by most people on Bitcoins being connected using cryptographic linking between blocks that develop the Bitcoin blockchain secure continues to be proven wrong following the consensu...