Exploring Blockchain Technology and Its Potential PDF
Exploring Blockchain Technology and Its Potential PDF
* Correspondence:
[email protected] Abstract
3
Department of Information
Management, National Sun Yat-sen Blockchain is the core technology used to create the cryptocurrencies, like
University, Kaohsiung, Taiwan bitcoin. As part of the fourth industrial revolution since the invention of steam
Full list of author information is engine, electricity, and information technology, blockchain technology has been
available at the end of the article
applied in many areas such as finance, judiciary, and commerce. The current
paper focused on its potential educational applications and explored how blockchain
technology can be used to solve some education problems. This article first introduced
the features and advantages of blockchain technology following by exploring some of
the current blockchain applications for education. Some innovative applications of
using blockchain technology were proposed, and the benefits and challenges of using
blockchain technology for education were also discussed.
Keywords: Blockchain, Educational evaluation, Instructional design, Learning is earning
Background
Blockchain is the core technology used to create the cryptocurrency, Bitcoin, through
the maintenance of immutable distributed ledgers in thousands of nodes proposed by
Satoshi Nakamoto in 2008 (Nakamoto 2008). It has been considered as part of the
fourth industrial revolution since the invention of steam engine, electricity, and infor-
mation technology (Chung and Kim 2016; Schwab 2017). This disruptive technology
will have a significant impact on national governance, institutional functions, business
operations, education, and our daily lives in the 21st century. It has the potential to
transform the current Internet from “The Internet of Information Sharing” to “The
Internet of Value Exchange.” Blockchain technology is expected to revolutionize the
operating modes of commerce, industry, and education, as well as to promote the rapid de-
velopment of knowledge-based economy on a global scale. Due to its immutability, trans-
parency, and trustworthiness for all transactions executed in a blockchain network, this
innovative technology has many potential applications (Underwood 2016). During the ini-
tial stages of its appearance, blockchain technology was not able to draw a lot of attention.
However, as Bitcoin continues to run safely and steadily over the years, the society
has since become aware of the enormous potential of the underlying technology of
this invention in its application to not only cryptocurrency but also in many other
areas (Collins 2016). Blockchain technology has become a hot topic for more and
more countries, institutions, enterprises, and researchers.
© The Author(s). 2018 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International
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indicate if changes were made.
Chen et al. Smart Learning Environments (2018) 5:1 Page 2 of 10
Presently, blockchain technology has been applied in various fields such as cryptocur-
rencies in the financial area, which includes Bitcoin, Ethereum, and Zcash (Zerocash),
etc. Bitcoin is the first peer-to-peer payment network of electronic cash based on the
blockchain technology. One of the crucial features of blockchain technology is how
many nodes in a distributed blockchain network maintain consensus and the Bitcoin
blockchain network adopts a hash-based Proof-of-Work (PoW) distributed consensus
algorithm (Nakamoto 2008). Ethereum is an open-source, public, blockchain-based dis-
tributed computing platform featuring smart contract functionality using proof-of-stake
consensus algorithm (Beck et al. 2016). Zcash is a decentralized and open-source cryp-
tocurrency like Bitcoin. However, it offers a better privacy and selective transparency of
transactions by using proof-of-zero-knowledge consensus algorithm. Zcash payments
are published on a public blockchain, but the sender, recipient, and amount of a trans-
action remain private (Peck 2016). Besides, some organizations and enterprises are also
trying to develop decentralized platforms based on blockchain technology. For example
Arcade City, so-called “Uber Killer,” is a ride-sharing company that has integrated its
model in Ethereum, including identity and reputation systems (Zheng et al. 2017).
Ubitquity is a digital property management company that offers secure recording and
tracking records built on a blockchain platform.
Swan (2015) indicated that the development of blockchain applications could be di-
vided into three stages; Blockchain 1.0, 2.0, and 3.0. Blockchain 1.0 is the deployment
of cryptocurrencies as a peer-to-peer cash payment system. Blockchain 2.0 is the exten-
sive blockchain applications than simple cash transactions, including stocks, bonds,
loans, smart property, and smart contacts. Blockchain 3.0 is developing blockchain ap-
plications beyond currency, finance, and markets, such as in the areas of government,
health, science, literacy, culture, and art.
According to the previously mentioned principle, the current applications of
blockchain is still in the 1.0 and 2.0 stages. Most people do not know about the
term “blockchain,” not to mention the potential applications of using blockchain
technology. Although researchers discussed the usage of blockchain in the com-
mercial area (Swan 2015), several studies focused on how blockchain technology
can be applied in education (Devine 2015; Sharples and Domingue 2016).
The remainder of this article will discuss the critical terminologies of blockchain
technology such as “distributed ledger,” “block and chain,” and “the verification mech-
anism.” In section 3, the current applications of blockchain technology in education is
reviewed. Following on to the four innovative applications of using blockchain
technology in education and the advantages are presented.
Literature review
What is blockchain?
Blockchain technology is also known as distributed ledger technology. It allows partici-
pants to secure the settlement of transactions, achieve the transaction, and transfer of
assets at a low-cost (Tschorsch and Scheuermann 2016). A sample flow of cryptocur-
rency blockchain transaction can be seen as follows. User A initiates a transaction to
User B via a peer-to-peer blockchain network. A cryptographic proof of identity (a pair
of public key and private) is used to the network to identify user A and user B uniquely.
Chen et al. Smart Learning Environments (2018) 5:1 Page 3 of 10
The transaction will then be broadcasted to the memory pool of the blockchain net-
work waiting for transaction verification & validation. The new block is generated by
obtaining a certain number of approved nodes; this is called reaching consensus. After
reaching consensus, new “block” on the entire blockchain network is formed, and each
node updates its respective copy of the blockchain ledger. This block contains all the
transactions that occurred during this time. It is “linked” to the original block in the
network through the digital signature (Yli-Huumo et al. 2016). The consensus stage is
achieved through the use of a consensus algorithm. This process is called mining.
Namely, Peer-to-Peer network reaches consensus on the current state of the dis-
tributed ledger (Kraft 2016). Each node can vote through its CPU power to accept
valid blocks by taking extensions or reject invalid blocks by denying expansions.
Any required rules and incentives can be implemented through this consensus
mechanism (Nakamoto 2008). Each transaction in a block is tagged by a specific
timestamp. The two blocks are also linked by a timestamp. Therefore, the data on
the blockchain has a property of time, and the length of the chain is continuously
growing. It means that blockchain is a distributed variant that implements the
timestamp service (Haber and Stornetta 1991). Blockchain uses specialized hard-
ware to construct sizeable cryptographic data chain, and SHA-256 hash function is used
to prevent the tampering of data of third-party users (Tschorsch and Scheuermann 2016).
Any attempt to change even just a bit of information will break the existing chains. In
short, blockchain is a decentralized and trustworthy digital public ledger. It uses distribu-
ted techniques and consensus algorithms that were maintained by all participants.
Blockchain is not only a new type of internet infrastructure based on distributed ap-
plications but also a new type of supply chain network. Essentially, blockchain is a dis-
tributed network of computers (nodes) used to maintain the source of information
sharing. Each node maintains the security and accuracy of the information by keeping a
complete set of ledgers of past transactions. When a new block is being created by a
miner, who is the first one to validate all the transactions in the block and solve the
mathematical problem by generating a digital signature for the block which meets a
pre-defined rule using the hash function. The newly created block will be broadcasting
to the whole blockchain network, allowing all nodes to maintain the same complete
ledger (Tschorsch and Scheuermann 2016).
Consensus mechanism is achieved through three major verification mechanisms.
Bitcoin uses a verification mechanism called Proof of Work (Nakamoto 2008). The
miners are nodes working in a blockchain peer-to-peer network. Their task is to
validate all transactions included in one block and solve the mathematical problem of
the digital signature using a hash function. The miners compete with each other, and
once someone solves the problem, the solution will be shared with other mining nodes.
The winning miner receives additional bitcoins as rewards. Other miners accept
the Proof of Work, and the new block will be added to the blockchain network
(Fanning and Centers 2016). Ethereum has four development stages, including
Frontier, Homestead, Metropolis, and Serenity. The first three stages use the verifi-
cation mechanism of Proof of Work, and the fourth stage uses Proof of Stake. The
Proof of Stake requires the certifier to show the ownership of a certain amount of
cryptocurrency (Sharples and Domingue 2016). “Proof of Zero Knowledge” is the
consensus mechanism used in Zcash which can provide better privacy to its users.
Chen et al. Smart Learning Environments (2018) 5:1 Page 4 of 10
Compared with other verification mechanisms, Proof of Zero Knowledge has improved
both regarding functionality and efficiency (Tschorsch and Scheuermann 2016).
commercial banks, blockchain network acts as new trust bearers with decentralized
ledgers. These ledgers are shared among a network of tamper-proofed nodes
(Underwood 2016).
Security: blockchain network uses the one-way hash function which is a mathematical
function that takes a variable-length input string and converts it into a fixed-length bin-
ary sequence. The output bears no apparent relationship to the input. The process is
hard to reverse because, given just the output, the input is impossible to determine
(Yli-Huumo et al. 2016). Furthermore, the newly generated block is strictly following
the linear sequence of time.
Efficiency: all data are automatically run through pre-set procedures. Therefore,
blockchain technology can not only significantly reduce the cost of labor but also
improve efficiency. For the digital currency of Blockchain 1.0, the automation of dis-
tributed ledger is mainly the automation of settlement. Blockchain technology could
speed the clearing and settlement of certain financial transactions by reducing the
number of intermediaries involved, and by making the reconciliation process faster and
more efficient (Wang et al. 2016).
miners from all over the world. Blockchain distributed ledger is immutable and trust-
worthy. Thus, the reliability and authority are both ensured, which will significantly re-
duce degree fraud.
Also, blockchain can be used as a “capacity-currency transformation bank.” Specific-
ally, blockchain learning ledger records detailed information about the users’ learning
experience and follows the development of their knowledge and skills. All of them can
be transformed into a sort of digital currency and stored on a blockchain network accord-
ing to a series of comprehensive standards. Students will gain rewards through their ef-
forts on studies, which is called “learning is earning” (Sharples and Domingue 2016).
Some schools have also started the application with this concept, for example,
Sharples and Domingue (2016) claimed a kind of Education Reputation Currency
named Kudos. It can be used to measure learning outcomes and stored in a
virtual wallet.
Conclusion
Blockchain is essentially a distributed ledger technology, which uses the crypto-
graph techniques and distributed consensus algorithms to create the features of
decentralization, traceability, immutability, and currency properties. It’s currency
properties has the potential to trigger many innovative applications for education.
For example, by realizing “learning is earning,” blockchain technology can foster
students’ learning motivation. It can store a complete, trustworthy set of record of
educational activities including the processes and results in formal as well as infor-
mal learning environments. It can also record teachers’ teaching behaviors and per-
formance thus providing a reference for teaching evaluation. In a word, for both
learners and teachers, blockchain has great potential applications in instructional design,
behaviors recording, and analysis as well as formative evaluation. At the same time, it
brings challenges and opportunities to researchers, developers, and educators.
For researchers, blockchain has excellent potential to be broadly applied in education.
However, very few researches have been conducted. It would be challenging to study
more closely on topics like, what opportunities can it offer for education revolution?
How to better utilizing the digital currency property to enhance learning motivations
and achievements?
Chen et al. Smart Learning Environments (2018) 5:1 Page 9 of 10
For developers, these creative ideas are just the first steps of applying blockchain into
education. It is also an important part to develop educational platforms and software,
which brings challenges for developers. How to build a blockchain platform that meets
users’ personalized needs? How to combine hardware with blockchain to create an en-
vironment for data acquisition and recording? How to maintain a massive volume of
educational transaction data and integrate blockchain technology into the existing edu-
cational tools and systems?
For educators, some of the benefits of adopting blockchain technology to design smart
contact-based learning activities are smart contract-based learning activities can be verifi-
able, robust, and traceable. This transparency feature is a strong protection for teachers
who have done a good job. Furthermore, the school management regarding the evaluation
of teaching performance should also be changed to embrace this new technology.
The realization of 21st century’s security, privacy, trust, and equality can be implemented
by blockchain technology. Security refers to the protection of valuable properties and infor-
mation. Nowadays some people have property but cannot prove ownership, such as intel-
lectual property disputes. It may lead to conflict with others. Blockchain technology can be
used by checking the records in the database to prove the properties. Some business infor-
mation, such as design drawings, corporate planning, may be stolen by industrial spies.
Blockchain technology can be used to protect these valuables business by recording data in
a blockchain network. Blockchain technology protects teachers’ instructional design from
usurpation, thus improving the security of protecting intellectual properties.
Privacy means each node save the complete ledger, including all the information ex-
cept for the real identity. For the sake of privacy, users’ identifications are all presented
by ID numbers. It means that blockchain technology protects the privacy of the trader,
as no one else would have the private key. In the education scenario, all the informa-
tion about learning experience recorded on blockchain can only be gained by its unique
user’s private key. Others are not accessible, which means blockchain users’ privacy can
be well guaranteed.
As for trust, blockchain technology can transform people’s ways of constructing trust from
building it by the third-party institution to building it by technology. Teachers’ and students’
behaviors are both recorded and monitored when smart contract and blockchain are ap-
plied. The trust between the subjects is based on the technology itself, not the third-party.
Equality refers to the equal rights and opportunities that everyone has on a block-
chain network. The openness, borderless and permissionless natures of blockchain
technology can provide everyone equal access to the technology and the network built
with it. Anyone can apply for an electronic wallet on blockchain network. Blockchain
technology does not set any limits for the users. All schools, teachers, and students can
apply it to daily, thus avoiding authority-bias.
Acknowledgements
Not applicable
Funding
Not applicable
Authors’ contributions
My co-authors have all contributed to this manuscript and approve of this submission.
Chen et al. Smart Learning Environments (2018) 5:1 Page 10 of 10
Authors’ information
Dr. Guang Chen is Assistant Professor in the School of Educational Technology, Faculty of Education, Beijing Normal
University. His current research interest is cognitive development in information age and smart learning environments.
Bing Xu is a Master in the School of Educational Technology, Faculty of Education, Beijing Normal University. Her current
research interest is smart learning environments and digital reading.
Manli Lu is a Master in the School of Educational Technology, Faculty of Education, Beijing Normal University. Her current
research interest is online synchronous learning and smart learning environments.
Dr. Nian-Shing Chen is Chair Professor in the Department of Information Management at the National Sun Yat-sen
University, Taiwan. His current research interests include assessing e-Learning course performance; online synchronous
teaching & learning; mobile & ubiquitous learning; Natural user interface & Game-based learning.
Competing interests
The authors declare that they have no competing interests.
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Author details
1
School of Educational Technology, Faculty of Education, Beijing Normal University, Beijing, China. 2Beijing Key
Laboratory of Education Technology, Beijing Normal University, Beijing, China. 3Department of Information
Management, National Sun Yat-sen University, Kaohsiung, Taiwan.
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