concept of Blockchain and bitcoin

Table of contents

Topic Page no.
1. Introduction 2-3
2. Introducing blockchain technology in
digital economy
3- 4
3. Blockchain as a platform to share data with
4. Relevance of blockchain, cybersecurity and
5. A storage reduced blockchain protocol 6
6. References 7-8

In 2008, the concept of Blockchain and bitcoin was first proposed. Previously, it was recognized
as complex system, however, after analyzing its’ advantages, countries enhanced their
attention toward it. Taking merits of Blockchain in to account, a few advantages are
information transparency, openness, decentralization as well as temper-proof construction.
There are three generations of Blockchain. It has evoluted in recent years as a progressive
phenomenon which has extended from finances ( digital currency) to supply chain, monitoring
of market, copyright protection as well as health care. Different aspects of Blockchain has been
studied by researchers till now including Blockchain technology, cryptography, storage and
As far as applications of Blockchain are concerned, most authors classify them in to two major
categories: financial and non financial, though there are many. Firstly, in various financial areas,
Blockchain technology is being applied. These areas include economic transactions, business
services and financial assets. Blockchain is known to be an integral element in developing world
economy. Besides financial applicability, another application of Blockchain is concerned with
integrity verification. Blockchain, by storing product and services information, is emerging as a
field of integrity verification. To cite an example, insurance is getting highly reliable over
Blockchain technology in various ways such as customer onboarding, transactions, sales
etcetera. Moreover, governance is one more application of Blockchain with the help of which
international governments will be able to change the ways, they keep records and make
transactions. By securing data and information especially on communication platforms,
Blockchain is likely to bring higher level of efficiency. Also, in the public sector, concerned
authorities are looking for adaptation models of Blockchain technology in order to maintain

authenticity of official documents. Apart from this, in voting system, decentralized voting
systems enforce a more reliable decision making. Next, concerning with internet things,
symbiotic relationship of Blockchain and Iot technologies tend to bring innumerable advantages
related to technological inventions. Wireless sensor networks is one of those merits. Then, in
Blockchain technology, public health sector is one of the leading sectors that has increasing use
of technology in health care management, online patient access, clinical trial etcetera. Further,
Blockchain technology might be used in privacy and data security operations through software
and hardware solutions. Moving further, it is also likely that Blockchain technology might
enhance transparency in supply chain management. Also, in energy sectors, potential
applications of Blockchain technology might minimize costs and enhance transparency by
creating new marketplaces. Lastly, Blockchain technology application can also have an impact
on reducing vulnerabilities in education field.
Introducing blockchain technology in digital economy- Countries take innumerable measures
to attract foreign currency, modernize and build high tech industries, however various analysis
made makes it clear that some issues cause hindrance in transparency of the information and
financial management such as misuse of resources. With regards to these issues, introducing
Blockchain technologies can be helpful to enhance effectiveness of analysis and ensure
transparency of procedures. These digital technologies’ development is further associated with
structural changes in the economy and public administration in public areas. This topic tends to
explore the potential of Blockchain technology and researches on high tech economies by using
this technology. In the relevant research study, three main methods were used to assess the
influence of blockchain technology in digitalizing the economies which were assessing the role

of e- commerce in the corporate financial management, directing efficient ditalization of
national economies and analyzing blockchain technologies nationally. According to findings, it
was found that there are some characteristics influenced by achieving digitalized national
economies such as sustainable economy growth, development of new workplace, growth of all
sorts of businesses, increase in productivity, reduced poverty, improved medical services, and
better environment. Furthermore, there are some basic principles of digital technology such as
accessibility to global resources, resource rentals, open source and trade according to global
demand. Apart from this, there is set of technically trends in the digital economy such as big
data, cloud technologies, internet resources, new material, intellectual robots.
Blockchain as a platform to share data with protection- Public and private transaction ledger
are created by using blockchain technologies which are shared with network of multiple
computers. Information is stored in a distributed manner in blockchain which verifies node
after every transaction. Because blockchain does not need any server, it is referred as trustless.
Its’ most basic software pattern is database with record of each and every transaction. There is
also requirement of a cryptographic signature. Because a chronological sequence is created by
blockchain technologies, it is impractical to go back to previous details and make any change.
Relevance of blockchain, cybersecurity and industry-Previously, blockchain was known and
created only for virtual currencies, but now, many industries such as supply chain, healthcare,
banking sector are intending to incorporate blockchain technology for data management which
can be relatively more transparent and promising to users. There are three categories of
blockchain, multichain, ethereum and smart contracts. Multichain is a privately permitted
blockchain which offers control and privacy which supports window servers. It restricts

unauthorized access to block chain’s activity, permits selected transactions to conduct secure
mining. As regards ethereum, it is public, without permission blockchain which creates
decentralized applications. It takes place on censorship basis. Ethereum has virtual currency
which is used to exchange digital assets by transactions. Transactions made through ethereum
contain a receipt and a digital signature of sender. Ethereum is made up of accounts each
containing four fields, the nounce, ether balance, contract code and account’s storage. Thirdly,
there are small contracts which are e-commerce protocols to negotiate terms, verify and
execute them. It is made up of different functions that are called outside the chain with
incorporation with the technology, can reject the reliance on central systems between two
transaction parties. A smart contract would agree to store process on being triggered by
authority. In case, one of the parties tend to make any change in transaction, others get
notified immediately and are likely to prevent it. If one party fails, there is no risk of data loss
and it continues to function.
A storage reduced blockchain protocol
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