A review paper on characteristics of blockchain

Abstract

Blockchain is being hailed as a technical breakthrough that has the potential to transform the way society trades and communicates. This reputation stems from its ability to enable mutually distrusting entities to exchange financial value and communicate without the need for a trusted third party. Furthermore, a blockchain enables for the preservation of data with integrity and the transparency of processes. In this article, we examine whether or not a blockchain is the best technological solution for a certain application situation. We compare the characteristics of permissionless (such as Bitcoin/Ethereum) and permissioned (such as Hyperledger/Corda) blockchains to those of a centrally controlled database. We provide a systematic approach for determining the best technological solution for a given application issue. We examine three use cases in detail, namely Supply Chain Management, Interbank and International Payments, and Decentralized Autonomous Organizations, using our approach, and end the paper with a forecast for future possibilities.