Blockchain – Future of Decentralized Systems

Abstract

Blockchain technology is digitally revolutionizing the transfer and storage of assets. It is forming the backbone of all modern exchange and database reliant applications. The reliance on blockchain is pivoted on its property of being immutable. This prevents possibilities of corruption, fraud, and theft observed in current systems. Our study reviews the Blockchain technology and articulates the need and concept, which establishes it as a suitable alternative to conventional methods, its distinct types, the actors involved, the working of blockchain and the execution of a transaction on the blockchain. The main methods of finding consensus are explained. A brief comparison to centralized systems has been done and its strengths and weaknesses have been outlined. Furthermore, its applications in various domains are discussed in detail. An overview of currently live applications in these domains like bitcoin for cryptocurrency is made, and the role of blockchain in these applications is discussed. We also lay out its future scope and vulnerabilities including lack of regulation and potential security flaws. This study is relevant to both the novice and informed reader, as the need, basic fundamentals and the concept behind the technology and the advanced applications and protocols are discussed in detail.