This paper aims at exhausting the various concepts of Blockchain technology. Blockchain technology refers to a system of shared ledger that is accessed remotely by users. The system provides a secure and safer way of carrying out transactions. The introduction part of this paper gives the general outline and significant amounts of this study. An elaborated focus on the significant challenges and limitations of using blockchain technology follows the introduction, containing a detailed explanation of various challenges with proposals of different solutions and including An elaborate discussion of ways to curb the limitations in the future. The second last section gives the emerging trends of Blockchain technologies. It addresses how Blockchain and Big data are applied in various fields currently. It further outlines different concepts that have adopted the Blockchain in conjunction with big data.
The conclusion of this part suggests the best ways that organizations should respond to the emerging use of Blockchain so that they don’t end up losing. The paper’s decision gives the report’s overall outlook, how relevant Blockchain technology is currently, and what we should expect in the future. Finally, it recommends to the organization best practices of accommodating the Blockchain.
A blockchain is a time-stamped file of permanent records of data controlled by a group of computers not held by any private entity. Each of these blocks of data is protected and joined via cryptographic principles. Blockchain is mainly secure and guarantees the safety of digital assets. However, it has some notable limitations. There exist little awareness and understanding of the technologies used in Blockchain. There is a lack of formal organization of blockchain technology. It has caused a total shift in the traditional ways of doing business, thus interfering with the standard ways of doing things. The cost of Blockchain technology is so huge and sometimes unbearable. How this technology is practiced has posed a primary challenge in enforcing regulations and governance. Although the technology is presumed to be secure, its use still has potential security and safety risks. These Blockchain challenges and limitations, if not amicably solved, may cause a significant loss to the technology’s users.
The core mission of the Blockchain is to steer a responsible system among solitary users in a distrust-able decentralized surrounding. A Blockchain system is secure and independently supported on its bound blocks. The technology has an electronic cash system known as bitcoin. Bitcoin, the central unit of digital currency, is used for most transactions on the cryptocurrency. Currently, the use of Blockchain technologies has dramatically increased. Therefore, several concepts have been adopted to use it alongside big data. Blockchains and big data are applied in payment and cryptocurrency, product tracing, supply chains, predictive analysis, business applications, and public services. Blockchain is indeed the future of the global economy. Many enterprises have resorted to using it, thus increasing its adoption globally.
Challenges and Limitations of Blockchain Technologies.
Lack of awareness of the Blockchain technology and lack of a clear understanding of how it works are the principal limitations of Blockchain. These limitations are mainly witnessed in sectors other than the banking sector. A significant number of people still don’t understand Bitcoins, Blockchain, and the whole concept of cryptography. Much of the Blockchain discussions tend to be complex, thus not accommodating to the masses (Pilkington, 2016). Subsequently, there is a need to think of this technology related to the web and the Internet. This way, the whole concept may seem understandable to the people. For instance, before the web arrived, the Internet seemed hard to understand by people. Suppose the current complex approach to explaining the Blockchain approach is replaced with a simple and straightforward explanation, the simplicity of the whole concept will inevitably be realized.
Secondly, there is no collaborative organization in the use of Blockchain technology. Blockchain has proved valuable for organizations when working together on common problems or collaborative opportunities, especially issues specific to all industry facets. Unfortunately, the organizations lack standard technologies to work on, thus developing their Blockchains and business applications that suit their problems. As a result, an organization ends up developing several blockchains with varying standards for each sector. The lack of a common measure of the blockchains defeats the purpose of the distributed ledgers. This limitation has inconvenienced several organizations in business since they have to develop a Blockchain for every problem. The standard technology is recommended to resolve this. The emergence of bitcoin has brought some standards in the technology. It is used a the central standard unit of digital currency. The emergence of other common digital currency units such as Litecoin will improve the market standard of Blockchain globally, thus leading to its increased adoption and subsequent use.
Since the emergence of Blockchain technology, a significant shift in the industrial culture has been witnessed. The way of doing this has drastically shifted from the traditional methods. The change has been observed in companies with little use of technology and the notable global giants. Rather than establishing a solid central entity, Blockchain instills trust and authority in a distributed network. A more significant objective of Blockchain is to change the business process rather than technology. Therefore, the shift has mainly been in the way organizations conduct business. To curb this, organizations should find ways to conform to the change to avoid any losses that might result. Therefore, employing an innovative way to evaluate the opportunities and the effects of the change is critical. Thus, an organization should identify the sectors most affected by the shift and find the best ways of incorporating the change.
The speed and the process with which Blockchain executes its activities comes with a high aggregate cost, more significant for some Blockchains than others, thus limiting many organizations from venturing into it. Even though most blockchain implementations, like Hyperledger, are free software, they demand significant funding from the company that wishes to pursue them. Hiring engineers, maintaining a team that excels in various facets of blockchain technology, license costs if you choose a paying blockchain solution, and so on, have prices. All nodes perform similar tasks on their private copies of the data to be the first to find the answer, thus resulting in high costs. Individual nodes may work so hard but fail to contribute to the overall network substantially; hence, the decisions to implement Blockchains should be carefully thought. The returns of single processing nodes may decrease as the web grows in size, implying that blockchain software should enable the network to present quality to consumers. Organizations must acknowledge these limitations and devise the best approaches to curb them not to bump into whooping losses.
Blockchain and Big Data are two innovations that are high on the agendas of many businesses. Both are likely to fundamentally alter the way companies and organizations operate in the coming years. There is an increasing hope that distributed ledgers can assist businesses in finally dealing with Big Data, which has been plagued by various problems so far. They are both strong on their own, but when paired, they have the potential to open up a plethora of new possibilities. These two technologies are used for making payments and cryptocurrency, tracing products in the health sector, supply chains, predictive analyses, business applications, and public services (Zheng et al., 2017, June). The future will mainly be shaped by the implication of these two cryptography giants. With various concepts adopting Blockchains and the use of big data, it is without a doubt that it’s the way to go.
The acceptance of Bitcoins as electronic cash enables them to be used in the payment of transactions. Blockchain provides a secure, decentralized, and open transaction layout. Bitcoins that apply Blockchain technologies, therefore, provide a safe, honest, and decentralized payment infrastructure. Several blockchain concepts are derived from the Bitcoin blockchain. Because very few of them succeed and Bitcoin is illegal in certain nations, cryptocurrencies and payment projects continue to be the most common application fields (Bandara et al., 2018, December). Recently, various institutions and organizations are focused on launching digital wallets without bank accounts.; creating a global electronic payment medium. With what Bitcoin has accomplished in the last few years, digital wallets are unquestionably key accelerators for far more blockchain-based technology and implementations transforming the planet.
Blockchain technology is ideally suited for accurate activity monitoring. Blockchain-based healthcare technology has been proposed to eliminate prescription drug abuse, incorporate patient records, and link the dental industry. The Blockchain is being used to address medical records being owned by particular practitioners or personal data miners lacking complete patient access; hence Blockchains can track transactional data in every step transparently and permanently (Hölbl et al., 2018). For instance, several commercialized Internet of Things solutions that make transactions transparent has been introduced into the market. Given an IoT paradigm, Blockchain gives an efficient and trusted business communication system based on a shared ledger (Kumar & Mallick, 2018). Furthermore, it is common to use Blockchains to create anti-counterfeit technologies. The validity of goods is checked by the Blockchain network, which includes all industry players in e-transactions.
Since many actors in a distribution chain require a financially stable process to collaborate with an enterprise, the distribution network is among the most significant Blockchains fields. Blockchain platforms provide safe, economically savvy, and complete information about supply chain participants. The economically wise information helps small and medium-sized businesses obtain banking services, which would be a painful problem in conventional sectors (Saberi et al., 2019). Due to creditworthy buying orders, the financing company will give loans to minor customers and suppliers. Furthermore, with smart contracts, blockchains can facilitate increasingly secure and trustworthy transactions or cooperative trade among supply chain participants. Digital currencies are used to write the whole transaction and be executed automatically in a cost-effective, open, and stable manner.
While several Blockchain projects have collapsed, Blockchains are expected to be applicable across a wide range of market fields. A viable implementation scenario is essential for a conceivable Blockchain application. The system should be developed to investigate the exceptional Blockchain functionality and to obey invented market rules inside the set rather than the traditional corporate environments. It is inspiring to see so many efforts and projects worldwide. A global education payment Blockchain platform, for example, is introduced as an internationally trustworthy, transparent tertiary education payment and rating framework that will provide an internationally united perspective for learners, tertiary education agencies, as well as other future participants. The Blockchain platform is being created to build a stable and trustworthy online identity to eliminate identity fraud and enhance safety, allowing users to conduct elevated and regular online transactions.
Moreover, the use of Blockchains and big data is massive in public services. Because of different broker structures, consolidated, non-pertinence, stagnant appraisal systems, and inadequate supporting information, current credit structures are not well known. A few creditworthiness-related ventures suggested an independent currency system to capitalize on the possible viability and efficiency gains that blockchain and intelligent transactions could provide for electronic sales. The decentralized blockchain system is imagined as the next phase of the money system because it is trading-oriented and aims to balance all trading-related players. It is being designed to be a fully embedded, interactive, customizable, and identifiable blockchain environment. Blockchain enables financially stable enterprise obligations by live stream and interactive tracking data without relying on credit brokers.