Essay: Report On Blockchain Technology: Advantages, Challenges, And Application." (70 Characters)

Write a report on the blockchain technology.

Literature Review

Introduced in the year 2008, block chain technology is a very important technology which is used in financial transactions. Different types of transaction systems use this technology for managing their transactions. Different types of problems and issues associated with the transaction such as the double spending problem of the transactions can be solved purposefully with the help of this advanced technology (Lemieux). There are different types of security issues from the financial perspective with the use of block chain technology over the years such as the volatile transactions. The public transactions can be maintained effectively now with the latest advancements in the block chain technology (Biswas and Vallipuram). There are different types of cryptocurrencies which consider the use of block chain technology such as the bitcoins, Litecoins, Dash and Steem.  

The prime determination of this unit of the paper is to focus on the selected topic which is Block Chain Technology. This technology is used in different aspects of our life such as the financial perspective which maintains different types of transactions such as the economic transactions and the complexities of the license, intellectual property. The traceability of any kinds of transaction system can be improved significantly with the use of the block chain technology. Thus it can be said that the block chain technology can be defined as the type of technology which is very much useful for maintaining a long list of records which can be also termed as blocks. Each block of a transaction is connected with each other with the help of encryption technique. However, there are few issues from the financial perspective associated with this technology such as higher initial costs, data redundancy and volatile transaction. The paper will be focussing on how this issue can be solved so that the effective of this technology can be maintained.

As discussed by Ross and Elizabeth, block chain technology plays a huge role in the financial service industry as it involves complex economic transactions which is records essential data. The researcher of the paper focussed on the importance of this advanced technology in terms of the current regulations in the financial industry also. The main prospect of the paper is that it focuses mainly on the issues of the block chain technology for the current regulations of each of the business organizations (Zheng et al.). The researcher focused on the improved transparency of the transactions in that industry. There are lots of security issue with the electronic transaction of the finance industry and each of those issues can be improved significantly with the help of this technology. The effectiveness of the public cryptographic key is discussed in the paper in a detailed manner. The limitation of the paper is that it fails to provide the details of the issues and challenges associated with this technology. Thus, from the paper, the problems of block chain technology in business organizations can be determined in a generalized format.

As stated by Peter, Haiss and Andreas, block chain technology have a huge role to play in the financial services as it involves distributed ledger in the economic transactions, the issues associated with the intellectual property of the finance industry can be solved purposefully with the use of the block chain technology. The researcher focused on the basic needs of the financial services such as the participants or the users associated with the system, the transactions involved and the smart contracts. The researchers focussed on the improved durability, reliability and longevity of the data with the help of this technology. The paper is also helpful to understand the financial use of the block chain technology such as the smart contracts, letter of credit, repurchase agreements and supply chains. The application of the smart contracts is stated with the paper with primary importance such as the market, settlement and oracles. The researcher focussed on the reduction in the added costs such as the overhead costs one of the prime advantages of this technology. The other limitation of this technology is volatile transactions and data redundancy which can be solved if the security of the data transaction can be improved. The researcher focussed on short-term goals of the transaction systems as it is a very effective procedure to tracks and convert the volatile transaction in a safe mode (O'Leary et al.). The researcher focused on the application of repeating groups in the transaction systems in order to avoid the problem of data redundancy.

Research Methodology

The researcher stated that the limitations of the block chain technology from the financial perspective can be effectively solved with the use of effective planning which will be looking after all the probable risks and limitations associated with the incorporation of this technology (Sikorski, Joy and Markus). The overhead costs and the initial infrastructural cost in the financial services can be reduced with the help of the governance plan. However, according to the researcher, there are issues such as redundancy, huge initial installation cost and uncertainty in most of the systems using this technology. Thus, it can be said that the paper helped in understanding the advantages and disadvantages of this technology.

According to Tapscott and Alex, business to business contracts of the financial perspective where the block chain technology is implemented successfully. The researcher focussed on the use of the block chain technology in the corporate debts and the repurchase of the agreements. The researcher focused on the importance of limitations of the block chain technology from the financial perspective associated with the transactions such as the need of the signature verification in few sensitive transactions. The researcher focused on the replacement of this technique with the help of distributed databases. The researcher focused on the different types of issues associated with the financial instruments such as the private equity, trading records, loan records, micro finance and the servicing records. According to the researcher, there are no discrepancies in those instruments as it involves the use of the block chain technology. The researchers focussed on the effectiveness of each of the blocks in the block chains. The main advantage of the paper focussed on the importance of the financial instruments associated with the block chain technology and the researcher focussed on the use of the stack processes. (Tian). The researcher also focussed on the importance of the block chain technology in the shared ledgers, smart contracts, consensus and cryptography. Each of these aspects has a specific task considering the application of block chain technology. The researchers of this paper focused on clearing of the networks as it is important for the financial services, along with that the researcher also focussed on the international transfer clearing and settlement (Till et al.). The researcher also focussed on the importance of the auditing which is very much important for the financial perspective. Thus the paper was helpful to understand the working principle of block chain technology from the financial perspective.

  The prime objective of this unit of the paper is to focus on the research methodology of this research paper. This research paper was conducted in a systematic order as it involves the different types of investigation techniques for finding the efficiency of the paper. Descriptive research will be conducted based on the theories given by reputed researchers in the peer-reviewed articles. Relevant theories proposed by the researchers will be presented in the paper in a detailed manner. This kind of research methodology will be selected as this will be more helpful than the explorative research. The descriptive research study will be very much useful for this research paper as the latest theories considering the block chain technology will be very much important since the nature of the industries where block chain is generally incorporated is constantly evolving due to the needs and requirements of the end users. The chosen research methodology will be very much useful considering the other types of investigation techniques such as the hypothesis investigation. The chosen data collection method for this research paper is the second type of data collection, which means that the data will be collected from books, articles and journals. This type of data collection method will be very much useful for this research paper as the data will be collected from reliable peer-reviewed articles. There are lots of complexities associated with the primary data collection method such as the quality of the survey which may be compromised under any circumstances. The books which are already published will be considered in this research paper as it will enhance the effectiveness of the paper and the paper could set an example for the future generations. There are other risks associated with the primary data collection method such as the laws associated to the data collected in the form of surveys and questionnaires, these are the ethical considerations of this paper (Yli-Huumo et al.). The paper will be giving credit to all the researchers who’s works or statements will be highlighted in the paper so that there are no issues with the privacy of the data. Breaches in the ethical issues will be considered in this research paper as the contents of the researchers will be considered before including them in this paper. In spite of taking all the necessary measures, there are lots of limitations associated with the paper which is the year of publication of the journal as the technology is growing over the years (Belle). The system where the block chain technology is incorporated needs new sets of requirement every now and then so that working principals of the block chain technology are sometimes needed to be updated, thus it can be said that the findings of this paper will be applicable to only limited amount of time. Availability is one of the main limitations of the paper as resources are not available all the time (Buchanan and Naseem). Taking the permission of the researchers whose statements will be considered in the paper is the other major limitations of this research paper.

Table 1: Time Horizon of the paper

(Source: Created by the author)

This research paper has stated about the different issue of the block chain technology in the financial service industries. The paper help in understanding the issues associated with working financial instruments such as the payments, private equity, derivative of the commodities, efficient spending of the loans (Underwood). The paper helped in understanding the issues of the block chain technology in the finance industries. The paper was also very much important for the readers to understand that there are different types of advantages associated with this technology such as the increased transparency in the financial system, improved security of the blocks, improved traceability of the transactions, reduced added costs. The drawbacks of this technology  from financial perspective which can be concluded from the paper are the high initial cost of the financial instruments and the added costs of block chain technology. These findings were also stated by the researchers in the literature review unit of the paper. The collected data from the journals helped in understanding the issues of the financial instruments of the block chain technology in a detailed manner, it stated about the details of the immutability of the transactions and the other legal documents used in the finance industries (Chanson et al.). The issues associated with the integration of the transactions and the blocks in the block chain technology can be understood in the paper.

Conclusion

From the above paper, it can be concluded that every financial instruments have different types of issues associated with them, some of the issues can be solved effectively with the use of the block chain technology in the finance industry. The application of the block chain technology in the intellectual property industries, stock market exchanges, crowdfunding industries can be successfully understood from the paper. Record keeping and management of the digital currencies are the other major findings of this paper and there are issues with each of them. The paper helps in releasing the importance of the issues of the block chain technology in maintaining the smart contracts and the P2P contracts. The issues of financial service such as the cryptocurrency and crypto banking can be concluded in the paper. The findings of the paper helped in understanding the issue of block chain technology in the financial service. The paper was really important to understand the complex issues of the block chain technology in the smart contracts, keeping of records, digital currency and maintaining the security of the data which are the main aspects of the financial services. The paper is very much helpful to understand the limitations of the block chain technology from financial perspective, also has also provided details about the steps which are needed to be taken to resolves those issues. The volatility of the financial instruments can be improved with help of better record keeping ability and of the elimination of the repeating groups in the individuals of the database tables.

Reference

Belle, Iris. "The architecture, engineering and construction industry and block chain technology." Digital Culture (2017): 279-284.

Biswas, Kamanashis, and Vallipuram Muthukkumarasamy. "Securing smart cities using block chain technology." High Performance Computing and Communications; IEEE 14th International Conference on Smart City; IEEE 2nd International Conference on Data Science and Systems (HPCC/SmartCity/DSS), 2016 IEEE 18th International Conference on. IEEE, 2016.

Buchanan, Bill, and Naseem Naqvi. "Building the Future of EU: Moving forward with International Collaboration on Block chain." The JBBA 1.1 (2018): 3579.

Chanson, Mathieu, et al. "Privacy preserving data certification in the Internet of Things: Leveraging block chain technology to secure sensor data." Journal of the Association for Information Systems (JAIS) Theory Development Workshop Associated with Thirty-eighth International Conference on Information Systems (ICIS 2017), December 10-13, 2017, Seoul, South Korea. 2017.

Lemieux, Victoria Louise. "Trusting records: is Block chain technology the answer?." Records Management Journal 26.2 (2016): 110-139.

O'Leary, Kevin, et al. "Exploring the Application of Block chain Technology to Combat the Effects of Social Loafing in Cross Functional Group Projects." Proceedings of the 13th International Symposium on Open Collaboration. ACM, 2017.

Peter, Haiss, and Andreas Moser. "Block chain-Applications in Banking & Payment Transactions: Results of a Survey." European Financial Systems 2017 (2017): 141.

Ross, Elizabeth Sara. "Nobody Puts Block chain in a Corner: The Disruptive Role of Block chain Technology in the Financial Services Industry and Current Regulatory Issues." Catholic University Journal of Law and Technology 25.2 (2017): 7.

Sikorski, Janusz J., Joy Haughton, and Markus Kraft. "Block chain technology in the chemical industry: Machine-to-machine electricity market." Applied Energy 195 (2017): 234-246.

Tapscott, Don, and Alex Tapscott. Block chain revolution: how the technology behind bitcoin is changing money, business, and the world. Penguin, 2016.

Tian, Feng. "An agri-food supply chain traceability system for China based on RFID & block chain technology." Service Systems and Service Management (ICSSSM), 2016 13th International Conference on. IEEE, 2016.

Till, Brian M., et al. "From block chain technology to global health equity: can cryptocurrencies finance universal health coverage?." BMJ global health 2.4 (2017): e000570.

Underwood, Sarah. "Block chain beyond bitcoin." Communications of the ACM 59.11 (2016): 15-17.

Yli-Huumo, Jesse, et al. "Where is current research on block chain technology?—a systematic review." PloS one 11.10 (2016): e0163477.

Zheng, Zibin, et al. "An overview of block chain technology: Architecture, consensus, and future trends." Big Data (BigData Congress), 2017 IEEE International Congress on. IEEE, 2017.