Even though the internet is known for its greatness in aiding all spheres of contemporary digital lives, it is immensely flawed in some ways including inadequate or lack of privacy and security. These flaws have been majorly experienced in the fields of e-commerce as well as Fintech. Blockchain which is the digital technology fundamental for crypto-currency has managed to bring forth a novel revolution through the provision of a mechanism that can be used for peer-to-peer transactions (P2P). This mechanism has been enabled to work without the intervention of any intermediaries like commercial banks (Pilkington, 2016). Blockchain can validate all relevant transactions and also safeguard stable and permanent records of the information; while ascertaining that all the users’ credentials and identification data are kept incognito.
Therefore, the technology ensures that all the personal data of the users are impounded while the system substantiates all the requested transactions. This function is further accomplished through reconciliation of mass collaborations through the accumulation of all sales in the computer coded digital ledger. Therefore, application of Blockchain as well as other similarly functional crypto-currency tools does not require an intermediate or users trusting each other. The trust is thereby patented in the decentralized network of the Blockchain system. Blockchain can hence be referred to as the “Trust Machine” of the ideal paradigm (Pilkington, 2016).
Bitcoin is an outstanding example of Blockchain in practice. Blockchain, being a new revolution in the computing world, is further capable of allowing limitless applications.These applications are including storage as well as verification of legal documentation such as certificates and title deeds, IoT, cloud, healthcare data and many more (Crosby et al. 2016) asserts that Blockchain is a globally accepted ledger that is capable of achieving numerous new applications beyond transaction verification. For instance, the technology is immensely applied in smart deeds, governmental services, autonomous and decentralized organizations.
Also, it is applicable in the cloud environment (Ølnes, Ubacht, & Janssen, 2017). In this perspective, the historical background in the generation of the cloud data objects, as well as its successive functionality performed thereupon, are often recorded through the data structure system known as the ‘data provenance’ which is an essential kind of the cloud metadata. Therefore, this perspective is essential in providing total security to the significant data provenance to ensure data privacy and confidentiality, accountability, viability, and forensics. Ølnes, Ubacht, and Janssen, (2017) describe the architecture of a Blockchain-based cloud data provenance, and how users trust it. ‘ProvChain’ is highly decentralized and meets the requirements of many users, thus promoting the trust. Consequently, adoption of Blockchain in a data cloud environment is vital in providing reliable protection against data records that may be altered, therefore promoting enhanced transparency, and also, further accountability of data. Furthermore, trustworthiness, accountability privacy, and provenance data value are significantly increased.
Also in the environment of IoT, most communications are achieved through machine-to-machine interactions (M2M). This aspect establishes trust issues among the communicating machines. The challenge has not been tackled to completion by the IoT technology. Nonetheless, Blockchain can be used as a catalyst in this situation through the promotion of advanced security, privacy, reliability as well as scalability of the systems (Crosby et al. 2016). This is accomplished through the deployment of the Blockchain technology with a command to track man devices that may be connected to the IoT environment, and also utilized to enhance and coordinate processing transactions. Application of the Blockchain in the ecosystem of IoT is also bound to heighten data reliability through axing the failure point referred to as the SPF (Single Point of Failure). The integrated cryptographic algorithms useful in block data encryption and technique hashing are significant in providing enhanced security. On the other hand, this process may be liable to increased processing power demands, which often lack in the IoT devices. This limitation requires further detailed research.
According to Wright, and De Filippi, (2015) the application of the Blockchain technology is bound to promote a total overhaul of the digital economy. Ascertaining and maintenance of trust is always the primary concern of this technological application. Further, Blockchain has its applicability in gathering chronological as well as sequence data related to transactions. This applicability is often evident in the vast networked systems used for time-stamping. For instance, NASDAQ implements the ‘Linq Blockchain’ in recording the private transactions of securities. Also, the U.S based DTCC works together with Axoni to perform financial settlement services like swaps and post-trade matters. Furthermore, regulators have also shown interest in the ability of Blockchain to promote privacy, traceability as well as real-time transactions monitoring.