Faculty of Management Sciences

In the partial fulfilment of the course,

Introduction to Computer

‘Computer Assignment’

Submitted to:
Sir Shehryar Hussain
Submitted on:
11th of May 2024
Submitted by:
Walid Ahmed (993-2023)
 Blockchain: Emerging Applications and Use Cases
Abstract—Blockchain, also known as distributed ledger technology, stores various transactions
and operations in a chain of blocks in a decentralized manner, eliminating the need for a trusted
third-party. Its immutability ensures integrity and accountability, while confidentiality is
maintained through a pair of public and private keys. Blockchain gained prominence following
the success of Bitcoin and has since been explored for various applications and use cases. This
paper provides a comprehensive survey of blockchain technology applications and use cases,
offering readers a thorough understanding of its practical implementations.

I. BRIEF OVERVIEW OF BLOCKCHAIN TECHNOLOGY

Blockchain technology serves as the underlying framework for cryptocurrencies like Bitcoin.
Bitcoin, introduced in 2009, reached a historic valuation peak in December 2017, sparking
widespread interest in digital currency. Following Bitcoin's debut, numerous cryptocurrencies
with market caps in the billions have emerged. Blockchain, introduced in 2008 and implemented
as Bitcoin's infrastructure in 2009 by Satoshi Nakamoto (an unknown individual or group),
functions as a distributed ledger or database documenting transactions among participating
parties. Each transaction forms a block in a chronological chain, akin to pages in a ledger. The
chain expands continually as miners discover and append new blocks to the existing blockchain.
Transactions are broadcasted across the network through cryptographic communication, while
miners strive to collect and verify transactions using a process called "proof-of-work" to create
new blocks. Miners compete to produce these blocks, and once a winning block is appended, it is
broadcasted to the entire network, establishing a decentralized public ledger. Miners are
incentivized with rewards for verifying transactions and updating the blockchain. Unlike
traditional ledger technologies requiring a trusted third-party, such as a bank (as depicted in Fig.
1), blockchain operates on a peer-to-peer network (as shown in Fig. 2), eliminating the need for a
centralized trusted entity to manage transactions. This design addresses issues like double
spending is mitigated through the consensus of miners, eliminating the need for an intermediary,
such as a centralized trusted third party, as shown in Fig. 2.
While Blockchain is primarily associated with cryptocurrencies like Bitcoin, it has broader
applications. Blockchain technology enables financial services without the need for traditional
financial institutions like banks or other intermediaries, as illustrated in Fig. 2.

Figure 1 illustrates the traditional centralized ledger technology with a trusted third-party.

Figure 2 illustrates a typical example of blockchain technology, specifically distributed ledger

technology, without a trusted third-party.

Blockchain technology has diverse applications beyond financial transactions. Its key features,
including decentralization, immutability, integrity, and anonymity, enable its use in various non-
financial domains. These include smart contracts, the Internet-of-Things (IoT), reputation
systems, security services, wireless network virtualization, and more.

This paper provides an overview of the history and architecture of blockchain, followed by an
exploration of its applications and use cases in different domains. Despite extensive discussions
in academia and industry about its potential applications, comprehensive documentation of its
emerging applications and use cases is rare in the literature.

II. BRIEF HISTORY OF BLOCKCHAN TECHNOLOGY

The history of blockchain technology traces back to the early 1990s, with the development of
foundational technologies such as cryptographically secured chains of blocks and Merkle trees.
However, the concept of blockchain as we know it today was first conceptualized and
implemented by Satoshi Nakamoto in 2008. Nakamoto's work was published in a paper titled
"Bitcoin: A Peer-to-Peer Electronic Cash System." This paper introduced a peer-to-peer version
of digital cash that could function without the need for a central authority, such as a bank, to
verify transactions. Bitcoin was the first implementation of this technology. Following the
publication of the paper, Nakamoto released an open-source program that began with the Genesis
block containing 50 coins.

III. BLOCK ARCHITECTURE

Blockchain is a chronological sequence of blocks, with each block containing a complete list of
transactions, as depicted in Fig. 4. It follows the data structure of a linked list, where each block
points to a previous block through the reference of the hash value of the previous block, also
known as the parent block. The first block of a blockchain, known as the genesis block, has no
block to point to. A block consists of metadata (block header) and a list of transactions (block
body). The metadata includes the block version, parent block hash, Merkle tree root hash,
timestamp, and nonce. Nonce is an arbitrary number used in cryptographic communication
within the user network.

Digital signatures are required to establish secure communication between users in the
blockchain network. Each user is assigned a public and a private key. When a user broadcasts a
transaction to the network, the user signs the transaction using the private key. Later, recipients
use the user’s public key to verify the transaction. This cryptographic communication preserves
the integrity of the transaction within the network.

IV. APPLICATIONS AND USE CASES OF BLOCKCHAIN

After the successful implementation of blockchain in Bitcoin due to its salient features,
blockchain has been proposed for use in various applications and use cases, as illustrated in Fig.
3. We provide a brief overview of each domain in the following section.

A. Finance Traditionally, financial transactions are verified and processed by intermediaries

such as banks. However, such a centralized system places a significant burden on intermediaries,
and transactions are prone to errors as multiple uncoordinated parties are required to keep
records and adjust them. Consequently, the entire process becomes time-consuming and costly.
Blockchain simplifies these complications associated with financial services by introducing a
distributed public ledger, where transactions are verified by miners using "proof-of-work". Since
each node in the blockchain network has a copy of the updated blockchain, there is transparency
regarding transactions, as depicted in Fig. 2. Because blocks are arranged chronologically, once a
block is added to the blockchain with a verified transaction, the entire blockchain becomes
immutable. Consequently, attackers cannot manipulate transactions once they are registered into
the system.

In the event of a conflicting blockchain where branching may occur, miners always opt for the
longest chain, as it is considered more reliable. With such a secured communication protocol and
robust verification method, an effective system is created to enhance existing financial services.

i. Cryptocurrency: Cryptocurrency, which holds a market cap in billions of dollars, has

been made possible with the help of blockchain, which doesn't require a trusted third-
party like a bank in traditional systems. All transactions are verifiable and immutable.
ii. Global Payments (Global Currency): Global payments become complicated and time-
consuming due to the involvement of many intermediaries in verifying transactions. The
entire process can be prone to errors and costly. These issues arise primarily due to the
centralization of monetary transactions, where institutions such as banks and other
financial firms dictate processes and are responsible for verifying transactions.
Blockchain technology reduces such complexities by introducing a decentralized public
ledger and a robust verification method to verify transactions. Within this peer-to-peer
network, global payments are quicker, verifiable, immutable, and safer. Several
remittance companies such as Abra and Bitspark are already using blockchain technology
for remittance services.

Insurance Claims and Processing: Insurance claims often deal with several fraudulent claims,
and processing them efficiently requires updated policies and associated data for each claim,
which is challenging in traditional approaches. With blockchain technology, the process can be
efficiently handled through a distributed ledger, securely and efficiently. Any fraudulent claims
or transactions can be detected and dropped with confidence, as multiple participants/miners
need to agree on the validity of each transaction. This ensures that insurers settle claims quickly
and effectively.

B. Blockchain Government: To build trustworthy and effective government operations through

collaborative and transparent networks, different government organizations and units can use
blockchain technology. Blockchain technology, with its salient features, helps provide
accountability, transparency, and trust among stakeholders such as citizens, leaders, government
officials, and their different operations. Governments are required to make their affairs
transparent to address the accountability of their bodies. Releasing data to the public can benefit
the economy, but it also has its challenges. An alternative to this is a blockchain government,
where data is distributed in a public ledger and open to the public all the time. Smart contracts
can be used to ensure that elected officials work in the favor of the electors.

C. Internet of Things (IoT): The Internet of Things (IoT) is rapidly increasing every year, with
numerous devices getting connected to the Internet, creating an interlinked network. While this
phenomenon is expected to make lives easier, it poses significant cybersecurity and privacy
issues. Blockchain can be crucial for securing IoT, ensuring that information flowing through it
remains secured and participants are accountable.

i. Energy Cyber-Physical System: Smart energy grid systems are becoming complex cyber-
physical systems, where interactions among power generation, distribution, utility offices,
and users occur bidirectionally. Blockchain's features provide a secure and verifiable
environment to support interactions in energy cyber-physical systems.
ii. Vehicular Cyber-Physical System: Vehicular cyber-physical systems are essential for
intelligent transportation systems and autonomous driving. Security and privacy in
vehicular cyber-physical systems are central issues, and blockchain can be leveraged to
build a secure and smart autonomous intelligent transportation system.
iii. Blockchain in Aviation Systems: Blockchain in the aviation industry can offer robust
collaborative partnerships among service and product providers to offer travel services
and products in a distributed secure way. Smart contracts could streamline interactions
among businesses and different units within the business.
iv. Supply Chain Systems/Sensors: Blockchain technology can be disruptive for efficient and
secure supply chains and networks, particularly with the expected growth of smart
sensors tracking supplies around the globe.
v. Smart Homes: Blockchain in smart homes with IoT devices can ensure secure and
reliable operations. However, implementing blockchain in resource-constrained IoT
systems is challenging due to high resource demands required for proof-of-work, limited
storage capacity, low latency, and low scalability.
 vi. Internet of Battlefield Things (IoBT): The IoBT is crucial for smart defense and warfare
applications, where devices such as combat equipment, unmanned aerial vehicles, ground
vehicles, and fighters collect intelligent information for real-time decision-making in a
secure and immutable manner. Blockchain technology can ensure secure and reliable
operations for IoBT.

D. Cybersecurity: Blockchain can be used in cybersecurity to share threat information among

participants/organizations to combat future cyber-attacks. While blockchain cannot fix
everything, its features can be leveraged to harden systems against a multitude of cyber threats.

E. Smart Property and Public Value: Blockchain can represent all entities/property such as
houses, land, automobiles, and stocks in ledger technology, keeping track of all operations and
property records. Once records are kept in the blockchain, they are shared with all concerned or
participating parties, facilitating the establishment and verification of contracts. With a
decentralized ledger, any lost record can be duplicated from the network and immediately used to
recover the loss.

i. Hard Money Lending: Hard money lending, which requires property such as real estate as
collateral, can benefit from blockchain. Both the property and policies can be encoded in
the ledger and distributed among users, creating transparency and security. Smart
contracts deployed using blockchain can facilitate such scenarios.
ii. Cars and Phones: Blockchain can ensure the security of personal devices such as phones
and cars by allowing users/miners to replace and replicate lost credentials.
iii. Smart Appliances: Blockchain can encode smart appliances as smart property, ensuring
ownership and secure operations.
 iv. Asset Management: Asset management involving multiple parties can be made efficient
and error-proof with a distributed ledger, improving efficiency and reducing costs.

F. Cloud Storage and Provenance: Metadata recording the history of creation and all
operations, including file/data accessing activities, can be stored in the blockchain and shared
with all stakeholders. Data provenance through blockchain is crucial for applications like
accountability and forensics.

G. Intellectual Property: Blockchain technology can enforce provable intellectual property

rights, ensuring verifiable, immutable, and secure operations in disputes.

H. Food Safety: Blockchain can prevent counterfeiting issues in food supply chains, providing
visibility and access to information such as food content, origins, and expiration, thus enhancing
food safety.

I. Blockchain Notary: Blockchain can replace trusted third parties such as notaries in traditional
systems, executing processes automatically in a cost-effective, transparent, and secure manner.

J. Blockchain in Healthcare: Personal health records and research data can be securely stored
and accessed using blockchain, ensuring confidentiality and compliance with regulations such as
HIPAA.

K. Fundraising and Transparency: Blockchain as a distributed ledger technology can ensure

transparency, security, and integrity in fundraising activities, leveraging features such as
immutability, verifiability, and security.

L. Wireless Networks and Virtualization: Blockchain can be used to sublease wireless

resources in a verifiable way, ensuring quality of service and preventing double
spending/subleasing of the same wireless resource to multiple parties.

M. Real Estate: Blockchain technology, as a distributed ledger database system, can offer
benefits for the real estate industry. Property title recording can be done using blocks with
transactions in blockchain rather than using traditional/current record-keeping systems. This
ensures a secure, transparent, and immutable record of property ownership, reducing the risk of
fraud and dispute.
N. Smart Contracts: Smart contracts are digital entities written in a Turing-complete byte
language, known as EVM bytecode. They consist of a set of functions, each with a sequence of
instructions and embedded conditional statements that enable them to self-execute. Smart
contracts can replace intermediaries, ensuring that all parties are obliged by the agreed terms.
With blockchain, regulatory bodies become redundant as smart contracts automatically
implement agreements once conditions are fulfilled. Miners, a group of mutually "untrusted"
peers, verify transactions related to the contract. Each transaction broadcasted to the blockchain
network is collected by miners, verified, and appended to a new block. Any potential conflicts
are resolved through a consensus protocol based on "proof-of-work". This ensures
decentralization in the network. Miners are rewarded for creating new blocks, and any miner's
work is discredited if they do not follow the protocol, providing an incentive for each miner to
adhere to the rules.

O. Identity Management: Blockchain technology can revolutionize identity management,

offering a secure, transparent, and immutable system for various applications:

i. Academic Records: Blockchain can be used to store academic records for students and
universities in decentralized ledgers. This academic record-keeping system is tamper-
proof, verifiable, immutable, and secure. It ensures the integrity of academic credentials,
reducing the risk of fraud and misrepresentation.
ii. Blockchain Music: In the music industry, ownership rights and royalty distribution are
significant challenges. Blockchain and smart contracts technology can create a
decentralized database of music rights, ensuring accurate royalty distribution and
transparency for all involved parties. Smart contracts enable real-time distributions and
payments in digital currency, based on contract terms.
iii. Birth, Marriage, and Death Certificates : These records are crucial for confirming
citizenship and granting rights such as voting and work permits. Traditional record-
keeping methods can be slow and error-prone, whereas blockchain technology can
provide a more reliable and encrypted ledger for storing such records.
iv. Passports: Blockchain technology can enhance the security and reliability of passports.
Digital passports stored in a distributed ledger can be verified by both users and
 government entities. The use of cryptographic communication and digital signatures
ensures secure sharing and verification of passport information.
v. Personal Identity and Privacy: Blockchain can protect personal identity and privacy by
encrypting data and securing it from attackers. It can store various forms of identification,
replacing physical IDs with digital ones. This ensures a higher level of security and
privacy for users.
vi. Voting: Blockchain offers a secure and verifiable voting system. Its immutable and
decentralized nature ensures that votes cannot be tampered with. Voters can cast their
votes with confidence from anywhere in the world, leading to a more transparent and
trustworthy electoral process.

P. Reputation System: A reputation system evaluates an individual's trustworthiness based on

past transactions and interactions. Blockchain's distributed ledger ensures the integrity of data
and fair evaluation of reputation by consensus. This is crucial for systems like credit scores,
where data integrity is paramount.

Q. Other Applications and Use Cases: Blockchain technology finds application in scenarios
where a trusted third-party is not required or where a peer-to-peer system is needed. It offers
transparency, decentralization, integrity, immutability, security, and privacy. However, it has
limitations such as high consensus process delay and large block sizes.
 V. SUMMARY

This paper has provided a comprehensive overview of Blockchain technology, explaining its
fundamental workings and exploring various emerging applications and use cases. Readers will
gain a better understanding of what Blockchain is and how it is being utilized in different
domains.

Blockchain, as described in this paper, is a distributed ledger technology that stores data in a
chain of blocks, ensuring immutability, transparency, and security through cryptographic
techniques. The paper outlines the history and architecture of Blockchain, detailing its
implementation in Bitcoin and subsequent advancements.

Furthermore, the paper delves into the diverse applications of Blockchain beyond
cryptocurrency:

a. Finance: Blockchain revolutionizes financial services by providing a decentralized and

transparent platform for transactions, eliminating the need for intermediaries like banks.
b. Government: Blockchain enhances government operations by ensuring transparency,
accountability, and trust among stakeholders through a decentralized network.
c. Internet of Things (IoT): Blockchain secures IoT networks by providing a tamper-proof
and verifiable ledger for device interactions, enhancing cybersecurity and privacy.
d. Identity Management: Blockchain safeguards personal identity and privacy by
encrypting data and enabling secure digital identification, reducing the risk of identity
theft.
e. Smart Contracts: Blockchain automates contract execution through smart contracts,
ensuring trust and transparency in agreements without the need for intermediaries.
f. Voting: Blockchain offers a secure and verifiable voting system, improving electoral
processes by preventing tampering and ensuring transparency.
g. Reputation System: Blockchain evaluates trustworthiness through reputation systems,
ensuring data integrity and fair evaluation of individuals' reputations.

Additionally, the paper discusses other applications and use cases of Blockchain, such as in
music rights management, digital passports, academic records, and supply chain management. It
emphasizes Blockchain's role in enhancing transparency, decentralization, integrity,
immutability, security, and privacy in various sectors.

In conclusion, this paper provides a valuable insight into Blockchain technology and its wide-
ranging applications. Readers will gain a deeper understanding of Blockchain's potential to
revolutionize numerous industries and processes, paving the way for a more secure, transparent,
and efficient future.
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