Emergence of Blockchain Technology: Fundamentals, Working and its Various Implementations

Abstract

In this paper, we discuss that blockchain is a decentralized system which provides peer-to-peer network over which thousands of clients get connected without the involvement of trusted third parties. Involvement of trusted third parties provides security, privacy and trust and also limits the transaction size and increases time and cost to settle transaction. Blockchain is made up of several blocks and these blocks contain several transactions before initiating a transaction from sender, it is first authenticated and after successful authentication, a block is created. This block is again authenticated by all the nodes in the network and later this block is connected to a chain of blocks and all the blocks in the network are updated about this transaction and finally receiver at other end receives money. Layers of blockchain play significant role in designing architecture of blockchain since each layer filters out unnecessary info and lighters node traffic. Further we discuss blockchain applications, benefits for effective businesses and its adoption in several industrial sectors, financial sector, health and research sector.