FUNDAMENTALS OF BLOCKCHAIN AND

APPLICATIONS

Mr.V.Yuvaraj
Assistant Professor – Department of Computer
Applications
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
Dr. N.G.P.-KALAPATTI ROAD
COIMBATORE-641 048
Tamil Nadu, India
Mobile: +917502919891,
E-mail: [email protected]

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 UNIT-V

Unit V
Applications
Bitcoins: Introduction – Working of Bitcoin -
Blockchain Vertical Solutions and Use Cases:
Blockchain in Insurance, Healthcare, Smart
Assets, Manufacturing. Blockchain and Allied
Technologies: Cloud computing, Artificial
Intelligence, Internet of Things.
Dr. NGPASC
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Chapter 8
Bitcoins

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LEARNING OBJECTIVES

• Describe the working of Bitcoin.

• Define Merkle trees.
• Identify the structure of Bitcoin block.
• Understand Bitcoin address, transaction,
network, wallet, and payments.
• Discuss about the Bitcoin client and Bitcoin
supply.

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COIMBATORE | INDIA
 INTRODUCTION
• Bitcoin blockchain is developed as a public ledger that records Bitcoin
transactions.
• Communicating nodes form a network, where each node runs Bitcoin
software and maintains the blockchain.
• New group of accepted transactions, known as block, is created without
requiring central oversight.
• A report regarding centralized and decentralized “virtual currencies” and
their legal status within “money services business” and Bank Secrecy Act
regulations was issued by the bureau of the United States Department of
Treasury.
• The US Treasury subsequently extended its antimoney laundering
regulations to include the processors of Bitcoin transactions.

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 WORKING OF BITCOIN
• A chain of Bitcoin transactions depicts simple illustration of a chain of transactions from
one node to another.
• Every single Bitcoin contains complete history of all its transactions in past, and change in
the ownership becomes part of the code.
• It is one of the first digital currencies using peer-to-peer technology for payments, and it
also consists “miners”.
• The network can verify the transactions once broadcasting the new transactions takes
place.
• The miners are rewarded with new Bitcoin at a fixed, but periodically declining rate.
• An ordinary desktop computer sufficed for the mining process.

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 MERKLE TREES
• There are a few building blocks
for Bitcoin – Hash Function,
Digital Signature, TimeStamp,
and Merkle tree.
• The final hash value of the root
node is known as Merkle root,
which is stored in the block
header.
• One of the strengths of Merkle
tree is that there is no
requirement of recomputing
the hash of all data if one data
block changes.

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 BITCOIN BLOCK STRUCTURE

• The block header that contains metadata of a block with three different sets in
six fields: 1. Hash of the previous block, 2. Merkle tree root., 3. Mining
challenge.

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BITCOIN BLOCK STRUCTURE

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 BITCOIN ADDRESS
• Bitcoins can be sent to a person having a Bitcoin address.
• A Bitcoin address is an identifier of 26–35 letters and numbers, it begins with the number
1 or 3 or bc1 and is case sensitive.
• There are three address formats in use:
1. P2PKH that begins with number 1, for example: 1BMSEYstWetqTFn5 Au4m4GFg7xJaNVBvN2.
2. P2SH type starting with number 3, for example: 38t1WpEZ73CNmQviecrnyiWrnqRhWN J9Ly.
3. Bech32 type is case insensitive and starts with bc1, for example:
bc1rPsrrr7xfkvy5l643lydnw9re59gtzzwf5mqadq.
• Addresses in Bitcoin are neither accounts nor wallets.
• It is hard to tell who owns the address unless someone opts to link their name in Bitcoin.
• The easiest way to create a Bitcoin address is to use well-tested, open source, peer-
reviewed wallet software.

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BITCOIN TRANSACTIONS

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 BITCOIN TRANSACTIONS
Input Output
• Has a reference to an output of a previous • An output section contains instructions
transaction. for sending Bitcoins.
• If the current transaction value is not the
• When there is more than one output,
same as one input to it, then several inputs
they will share the combined value of the
are often listed in a transaction.
input.
• All the values of new transaction’s input
are added up, that is, the total coin value • The entire combined input value has to
of the previous output is referred by the be sent in an output, as each output
new transaction’s inputs. from one transaction can only ever be
• The script contains two components, a referenced once by an input of a
signature part and a public key part. subsequent transaction.
• Transactions are allowed to contain
multiple inputs and outputs, enabling
Bitcoins to be split and combined.
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 BITCOIN NETWORK
• The Bitcoin network is a peer-to-peer payment network based on unambiguous
cryptographic protocol.
• Users of this network can send and receive Bitcoins by broadcasting digitally signed
transaction to the network using Bitcoin wallet.
• A valid proof-of-work is found by incrementing a nonce until a value is found that
provides the block’s hash the required number of leading zeros.
• A majority consensus in Bitcoin network is represented by the longest chain that required
the greatest amount of effort to produce.
• Bitcoin network also solves a specific problem of the Internet payment system, whereby
a user pays the same coin to two or more different recipients.
• The Bitcoin network guards against double-spending by recording all Bitcoin transfers in
an open ledger that is visible to all users, and ensuring that all transferred Bitcoins have
not been previously spent.

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 BITCOIN WALLETS
• A collection of private keys of the public key cryptography.
• It is also referred to as client software that is used to manage those keys
and make secure transactions on the Bitcoin network.
• The Bitcoin wallet provides:
1. Storage of Bitcoin addresses and corresponding open/closed public keys on users computing
device in a typical file “wallet.dat”.
2. Conduct both credit and debit transactions of Bitcoins even when Internet connection is not
available.
3. Provide information about the balance Bitcoins at all available addresses, transactions
history, user preferences, etc.
• Desktop (Thick client) wallets have two which are prominent: Bitcoin-Qt and Armory.
• Desktop (Thin client) wallets have two which are prominent: Multibit and Electrum.

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 BITCOIN PAYMENTS
• Bitcoin is a decentralized, peer-to-peer network that enables its users to conduct
transactions related to money.
• It facilitates to send and receive digital payments from anyone, in any part of the
world, and that too almost instantly.
• The only requirement is to give an address and indicate how much Bitcoin users
need to pay.
• Methods to accept Bitcoin payments on merchant site and manual payments:
Coinbase, BitPay and Manual Payments.
• If anyone wants to accept Bitcoin payments on a website, it is a simple two-step
process:
• Step 1: Generate a Bitcoin address for each sale you make on your site.
• Step 2: Convey the instructions for how much money people should pay for it.

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BITCOIN CLIENTS

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BITCOIN CLIENTS

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 BITCOIN SUPPLY

• Currency is issued by a central bank of a country in a centralized economy.

• The issuance rate is supposed to match the growth of the amount of goods that
are exchanged such that these goods can be traded with stable prices.
• Any currency generated by deviating the rules will be rejected by the network.
• Radeon HD 5800 Series graphics card was used to solve block 210000 and was
broadcasted on 28 November 2012 at 15:24:38 UTC.
• After mining for less than a week, a miner named laughingbear contributed the
solution while Slush’s pool was responsible for finding the solution. Later until
block 420000, the block reward would be 25 BTC instead of the original 50 BTC.

Dr. NGPASC
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BITCOIN SUPPLY

Dr. NGPASC
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BITCOIN SUPPLY

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BITCOIN SUPPLY

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Dr. NGPASC
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Blockchain Vertical Solutions and Use Cases

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LEARNING OBJECTIVES

• Explore various verticals where blockchain technology can be

utilize.
• Several use cases will enable to draw analogy in different
areas.
• Draw analogy in different areas after studying the use cases.
• Appreciate the cross intersection of different technologies in
blockchain applications.
• Explore the cases where further research can be applied.

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 BLOCKCHAIN
• The appeal of blockchain and its use cases can be best evaluated by the type of
consideration it reaps from new start-ups and competitors.
Blockchain in Financial Institutions
Financial institutions are confronted with matters such as follows:
1. Increasing operations expenditure.
2. Growing vulnerability to duplicitous outbreaks on centralized servers.
3. Problems in safeguarding transparency.

There are various financial institutions operations that involve the following:
1. Worldwide financial institutions-based customer account opening.
2. Exhaustive labour-intensive human intervention-based paperwork.
3. Encompass expensive mediators.
4. Inefficient long-time based transactions authentication.
5. Non-existence of scam-resistant concurrent resolution.

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 BLOCKCHAIN

Features
1. Decentralization 2. Digital signature 3. Mining 4. Data integrity
Benefits
1. Decrease in clearance time to mere fraction seconds by eliminating mediators.
2. Sparing reliable intermediaries with access by all contributors’ node in the value chain to digital assets
that authenticate each individual’s identity.
3. Substantial security augmentation in fields such as payments and credit card scam using decentralized
public ledgers that provisions particulars of each transaction and endures constant authentication by
miners.
4. Decrease in physical cost through elimination of exclusive patented and registered structure.
5. Elimination of error management using simultaneous concurrent tracing of transactions, thus avoiding
double spending.
6. Complete automation of transactional developments, from expense to clearance.
7. Elimination of paperwork-based jams caused by redundancy.
8. Risk management using data integrity safeguarded by sequential storing of data prescribed with
cryptography.

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 BLOCKCHAIN

Instances of Use Cases

1. Permissioned blockchains
2. Liquidity originator
3. Equity capital
4. Hybrid loaning
Role in New Business Arenas
1. Internet of Things (IoT)
2. Following healthcare payments
3. Exchange anything

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 BLOCKCHAIN

Business Transformation Using Blockchain

• Blockchain’s radical nature is consequential from its
capability to change practically any process, from
elementary paperwork to work for intricate
contracts/agreements across the globe.
• Blockchain’s innovative effect will encompass financial
institution back offices to worldwide financial
organizations.

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COIMBATORE | INDIA
BLOCKCHAIN

Decentralized Business Payment Clearance

• Reduced operative investment
• Worldwide business
• Augmented faith
• Diminished risk
• Compliance publications

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BLOCKCHAIN

Decentralized Business Finance

1. Shippers receipt of shipping on the blockchain as a digital
property.
2. Financial institutions provide memo of credit as a digital
property on blockchain platform.
3. Multiple party-based digitally signed smart contracts.
4. Smart contract empowered, event reliant capital release
to guarantee swiftness, and transparency.

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 BLOCKCHAIN
Paper Authorization (Signing) and Accounts
Administration
1. Easy distribution of validated papers.
2. Decreased time to take users on to the platform.
3. Definite execution of the latest version of papers.
4. Faster shared multiple members-based system
authentication.

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BLOCKCHAIN

Distributed Identity and Access Management

• Identity management is a tedious task and increases
operational cost.
• By recording information in blocks and consuming it in a
hash format that cannot be tampered, financial
institutions can optimize the safety of stowed identity,
advance portability of information, and decrease the time
taken for KYC pains.

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN

Blockchain Deployment
1. Innovation identification.
2. Feasibility analysis.
3. Experimentation and prototype.
4. Governing and data security ecosystem.
5. Blockchain characteristics open/permissioned.
6. Economies of scale.

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BLOCKCHAIN IN INSURANCE

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BLOCKCHAIN IN INSURANCE
Asset Insurance
• Blockchain can be leveraged to catalogue, record, and examine the
accountability for high-value properties such as jewellery.
Use Cases
• Asset insurance can use technologies such as blockchain, smart contracts,
and M2M vision to mitigate risk and diminish scam.
• Data is also accessible for insurance business and titleholders.
• It also helps with insurers when assets are stolen and are perhaps passing
boundaries and entering black marketplaces.

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BLOCKCHAIN IN INSURANCE
Marine Insurance
• The shipping method often includes a substantial number of members that
create the processes, which are very complex, and increases the fault
boundaries due to deficiency of documentation, data gaps, etc.
Use Cases
• The blockchain launches a method to trace possessions in its different phases
(workshop, field, and destination), allowing every contributor to examine the
development of the product online.
• A collection of fundamentals to ease information distribution within diverse
units such as harbours, shipping firms, etc.
• Application programmer interface to write new tools on top of the
blockchain-powered platform.

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 BLOCKCHAIN IN INSURANCE
Bail Bond Withdrawal
• Document of credit guaranteeing imbursement of the entitlement.
Home Insurance
Assessing and dispensing entitlement-based claims can be somewhat problematic due to the non-existence
of data and information that is completed manually, which results in numerous mistakes
Use Cases
• Lets owners to get a provisional temporary insurance guaranteed by the insurance company and which
is liable on the rent period.
• Work as a captive insurance powered by blockchain. It helps to consume API.
Auto Insurance
• Roles can work like nodes: Automobile manufacturer, Parts ancillary, Sole dealer, Repair workshop,
Guarantor and Driver.

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 LIFE INSURANCE AND CLAIM PROCESSING IN CASE OF DEATH
• Developing technologies are driving insurers to reconsider their instruments and practices
across the system.
1. Documentation-based human intervention reliant processing: This includes the following
parameters.
(a) Physical authentication and data entry.
(b) Non-existence of structured process.
(c) Data in different systems.
(d) Multifaceted preservation of papers.
(e) Bulky labour-intensive manual effort for claim payment.
2. Automation-led processing: This includes the following parameters.
(a) Guidelines-based systems for claim settlement.
(b) Lessening of manual intervention.
(c) Automated credentials systems.

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 LIFE INSURANCE AND CLAIM PROCESSING IN CASE OF DEATH

(d) Resource reduction for claims settlements.

3. Recipient-focused processing: This includes the following
parameters.
(a) Refining recipient experience.
(b) Enhanced on-time payment.
(c) Diminished touchpoints.
(d) Improved fraud discovery.

Dr. NGPASC
COIMBATORE | INDIA
 LIFE INSURANCE AND CLAIM PROCESSING IN CASE OF DEATH

Death Registration
The process works at a high level as follows.
1. Reason and type of death report/declaration qualified by the last appearing physician is
required.
2. The above-mentioned doctor declaration is sent to an administration agency state-sanctioned
cremation centre, which issues the declaration of cremation. The municipality issues the death
certificate.
Process
• The insurance company authenticates the particulars to execute the claim.
• Death registration and claim filing are long, monotonous processes for the recipient,
particularly at the time when an he/she has just suffered the loss of loved ones.
• Because of manual interventions, various claims are overdue up to several months, which can
dishearten the recipient.
• The probability of fraudulent claims are increased since there are numerous information
sources existing in separation across the sequence.

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COIMBATORE | INDIA
 LIFE INSURANCE AND CLAIM PROCESSING IN CASE OF DEATH

Blockchain Solution
Developing an integrated solution would necessitate deliberation on the following:
1. Information security: This requires the following parameters.
(a) Regulation-based execution to guarantee information security, compliance governance, and
access-reliant control.
(b) Transaction information audit to obey guidelines and to achieve compliance trials.
2. Shared network: This requires the following parameters.
(a) Deliver change/modify access to transaction information to various contributors.
(b) Guarantee information access to proposed contributors at any juncture, thus reducing the
turnaround time.
3. Disintermediation: This requires the following parameters.
(a) Start a public platform by permitting numerous shareholders to directly change transaction
information.
(b) Create trust between members by guaranteeing safe and transparent transaction procedures.
4. Integrated, rationalized process: Integrate distinct but reliant death registration and claim
processes into a sole, rationalized process.

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 LIFE INSURANCE AND CLAIM PROCESSING IN CASE OF DEATH

Blockchain Solution
The operation choices comprise of the following:
1. Several insurers have claims systems that could be united via APIs and governed by event reliant
on causes in smart contracts.
2. The unconnected method would have the logic integrated for death registration, claim processing,
and policy on the blockchain.

The following are advantages of such a system:

1. The time of the entire death claims execution is significantly decreased to 3–4 days, from several
weeks and months.
2. The recipient is not troubled with gathering death-related papers, depositing numerous forms, and
working with the insurer for payment of the claim sum. Death registration and claims are started and
executed by the nodes in the network.
3. All the accounts are accessible on a public ledger and can be inspected at any time with simple
tracking.
4. The solution can be ascended to comprise several agencies such as governing bodies, insurers,
hospitals, and citizen charter services, which will increase the scope of the insurer.

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 HEALTHCARE
• A one-side provider feels hesitant to share information due to the following main
reasons.
• Observations that patient health and credentials data protection guidelines avert such
distributions.
• Possible accountability and financial penalties related to information distribution.
• There are various complications to realize interoperability in healthcare system,
including mismatched software and absence of access to information external to a
healthcare system.
• A possible solution to these glitches encompasses the use of blockchain technology,
which delivers trustless transactions through decentralization with autonomous
functionality.
• Intricacies within the healthcare industry create additional difficulties to deploy
blockchain technology.

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HEALTHCARE

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 ASSETS MANAGEMENT
• Asset management could use security features of blockchains,
which comprise the following:
• 1. Inconceivable of imitation.
• 2. Unassailability.
• 3. No mediation and effortlessness in transfer.
• 4. Transparency and effortlessness of inspecting with audits.
• 5. No burden associated to transaction dealing.
• 6. Network result carried by the integrated infrastructure for
several types of tokens.

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 ASSETS MANAGEMENT

Assets on Blockchain
• Minimum requirements for bookkeeping (ledger) of digital assets:
1. Safety
2. Forged confrontation
3. Auditability
• Blockchain permits to lose (but binds) the elementary activities achieved by centralized
digital currency providers. These tasks include the following:
1. Transaction control
2. Asset distribution
3. Safeguarding user’s assets

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 ASSETS MANAGEMENT
Assets on Blockchain Contd…
4. Service identity and access management
5. Application management
• The core elements of a blockchain-reliant ledgers are:
Blockchain Description, Asset Attorneys, Network Nodes,
Assets Authentications, Asset Allotment, and Asset
Deployment.

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 FINANCIAL INSTITUTIONAL ASSETS
• Digital assets could characterize publicly-operated financial Institutional assets such as
share and securities.
• These assets are deeply controlled and utilized in business-to-business (B2B)
backgrounds, consequently necessitating permissioned blockchains in a short duration.
• Financial institutional assets can be operated in a decentralized fashion without
necessitating mediators.
• Permissionless blockchains can be suitable for innovative financial institutional assets
such as crowdfunding.
• For example, an enterprise can allocate digital assets and its shares, and trade these
stocks in a crowdfunding or a scheme operation.
• Moreover, the enterprise can recompense proportionate payments to respective
shareholders.

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 SMART ASSETS

• The possession of practical entities with the benefit of blockchain

information.
• The possessor can use an app on his/her smart device to link the
car using near-field communication (NFC).
• The possession demarcated in this method could be shifted using
an operation with an input holding the token.
• Smart assets have slow operation speed and require safety prior
to scalability.
• Smart assets could reasonably be deployed with the assistance of
devoted possession procedures.

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 ELECTRONIC CURRENCY
• Digital assets can characterize e-currency such as substitute
currencies in digital games or entitlements of sanction currency.
• Electronic currency attached to practical currencies usually have
high-operation speed.
• They would need scalable, high-end compute infrastructure
availed by blockchains based on several assets: Business-to-
Customer Assets, Event Management Assets, Digital Registration
and Subscription, Digital Democracy, Transportation and Logistics,
Cargo Tracking, Carter Onboarding, Load Board Reliability and
Rationalized Factoring.

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 MANUFACTURING
• Blockchain is employed to deliver applications to long-lasting business challenges,
which include the following:
• 1. Supply chain assessment for better transparency into intricate, cross-
community supply chains where adjournments and tracking limitations influence
production and cost-effectiveness.
• 2. Origins of materials and forged detection to decrease the effects of forgery and
illegal copy on the worldwide economy.
• 3. Actions such as long-term engineering plan, high-intricacy based goods,
postponements in distributing restructured engineering provisions or portions
replacements can increase revised work and postpone ultimate transfer.
• 4. Identity and access rights for when it is vital to recognize who is taking a
delivery and what are their identifications, including lawyers, accountants,
engineers, and operators.

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MANUFACTURING

Dr. NGPASC
COIMBATORE | INDIA
Blockchain and Allied Technologies

Dr. NGPASC
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 LEARNING OBJECTIVES

• Appreciate blockchain and its integration with other

technologies.
• Understand the finer points of technological applications of
blockchain with other domains.
• Understand practical real-life situations where blockchain and
allied technologies can be envisaged together.
• Understand the complexities of technology integration and how
it can be converted in the service offerings.
• Comprehend the governance mechanisms as required for single
technology platform.

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 BLOCKCHAIN AND CLOUD COMPUTING
• Method to model data without the requirement for a central
governance.
• A blockchain works similar to dispersed database that hosts an
incessantly increasing quantity of records.
• Infrastructure evolving drifts such as software-defined networks,
network virtualization, and containers working on microservices
are all moving towards to a distributed-computing standard that
depends on peer-to-peer communications.
• Blockchain requires network deployments attempting to look for
scalable, accessible, and synchronized transactions.

Dr. NGPASC
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 BLOCKCHAIN AND CLOUD COMPUTING

• Telecom vendors and providers as a market will be clear recipients owing to the growth
of networking bandwidth for increasing volumes of instruments and consumers.
• Network and telecom providers are gradually chasing smart distributed-computing
platforms such as centralized radio access network, cloud radio access network, and
mobile edge computing.
• Containers such as networking area is migrating to a software-defined ecosystem for
cloud-native workloads.
• The following are technologies and services that need to be distributed in the cloud
model.
• 1. Middleware. 2. Storage. 3. Routing.
• 4. Published services. 5. Compliances.
• 6. Network.
• 7. Software development platforms such as containers.

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 BLOCKCHAIN AND CLOUD COMPUTING
• Issues comprise of the following:
• 1. Increasing social cognizance of the hazards and susceptibilities of
keeping citizens’ confidential data on huge centralized computing
resources.
• 2. Inactive income prospects that will payback entities to change the
essential drive to contribute and collaborate.
• 3. Faster interpretation of emergent technologies that will empower
contributors to involve in cooperative mutual networks.
• The existing clouds cannot achieve the needs of decentralized applications
that require wholly decentralized computing resources for their execution.
• Data centers utilize enormous quantities of energy for working on servers
and air conditioning systems.

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 CHARACTERISTICS OF BLOCKCHAIN CLOUD

• The cloud services and characteristics that

provide blockchain service offerings.
• Blockchain Cloud Self-Service Portal
• Worker Resource Pools
• Task-Based Charging Models
• Blockchain Cloud Governance
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BLOCKCHAIN AND ARTIFICIAL INTELLIGENCE

• Blockchain is a revolutionary next generation paradigm authorizing the innocuous and

consistent storage and communication of data, along with other rewards and benefits.
• Artificial intelligence (AI) is a radical knowledge that can learn on its own by examining
and determining forms in immense volumes of (big) data.
• The worth of various blockchain use cases will be restricted and deprived of AI.
• There are predictable advantages, which would also result in huge profits.
• The robot will use AI to make the essential communications with Bitcoin.
• The advantages of AI for Fintech are prevalent, as huge historical volumes of data is
accessible.
• Two significant features of blockchain, smart contracts and decentralization.
• The advantages of such a paradigm will fetch distributed ledger technology (DLT) to
manage blockchain smarter and enhance its capability to transform through self-
learning.

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BLOCKCHAIN AND ARTIFICIAL INTELLIGENCE
• Retail sector has gone through a big transformation by using
blockchain and AI.
• The technology exists for commerce applying for loan using online
services to buy the financial instrument and consume it.
• Some of the automation potential use cases in this area include
payment applications, data storage, risk analysis, and credit and
accounts receivable functions.
• AI and blockchain technology are going to help various use cases
of decentralized organizations.
• Developers will have to think further at a higher level than before.

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 BLOCKCHAIN AND IOT
• IoT is a stimulating developing structure that delivers limitless advantages.
• There are various problems with the present centralized IoT systems such that all devices
are recognized, validated, and linked to centralized servers.
• IoT has limitless advantages and implementing a decentralized method for it would resolve
several problems, particularly safety.
• The decentralized, self-governing, and immutable abilities of blockchain brands it as a
perfect constituent to become an introductory component of IoT architectures.
• Launching peer-to-peer messaging will result in a number of problems, particularly
compliance and security.
• IoT security is bigger than just about shielding sensitive data.
• The cryptographic logic system utilized by blockchains would develop more isolated
customer data.
• Various big enterprises have initiated to accept blockchain with IoT ecosystems to make
use of all the features of blockchain.

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 BLOCKCHAIN AND IoT

Advantages
• Transparency
• Decentralization
• Disaster recovery
• Protection
• Swiftness
• Optimization
• Unalterable
• Secrecy

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 BLOCKCHAIN AND IoT
Limitations and Problems
• Infrastructure capacity
• Storage capacity
• Knowledge scarcity
• Regulations
• Device identification and discovery
• Blockchain and IoT next steps
• Smart contracts
• Compliance and regulations
• Security

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 BLOCKCHAIN AND MACHINE LEARNING
• AI and machine learning based applications require rapid development, data quality,
and data relevancy.
• Private controlled data is typically unexploited and distant as it is recorded in distinct
smart and intelligent devices.
• Big corporates and businesses attempt to access privately possessed data by delivering
unrestricted (free) service to consumers.
• The machine learning result will be accumulated with consequences created from
other devices to develop an impartial, complete, and precise self-derived autonomous
analytics and forecasts that is the backbone of blockchain.
• Monetary enticements and a consistent ecosystem are required to enable
contributions in decentralized algorithms development.
• The entire machine learning in decentralized mode will keep developing.
• The system permits every contributor (node) to correspondingly and impartially
participate in the machine learning community.

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 BLOCKCHAIN AND MACHINE LEARNING

Machine Learning Infrastructure Optimization

• Frequently steered through a centralized server with restricted computational power.
• If extra processing power can be exploited to execute more machine learning logic, the
market potential is incredible.
• An enormous growth can be predicted if several enterprises can deploy machine
learning algorithms and mechanisms in their industries.
• Algorithms are characterized conferring to diverse types of industry use cases or
subjects on the self-service portal where users can obtain the suitable algorithms that
are best suit to the situation.
• The principles, scope delivered by all the contributors (node), and incentive to the
nodes occur with the help of tokens and identifiers.
• This can be achieved using smart contracts delivered using blockchains. It is signed
digitally to eliminate hazards associated among users, developers, and decentralized
nodes.

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN AND MACHINE LEARNING
Machine Learning Powered by Smart Contracts
• Users who wish to subscribe for machine learning algorithms pay
to node tokens to execute it on data possessors and approved
dataset in their specific devices.
• The marketplace that publishes developers machine learning
services to sell are also paid by subscribers using tokens and
identifiers.
• Machine learning algorithms and modelling nodes (teams) that
train the network are also incentivized by consumers who
exclusively desire to customize their algorithm to make it
suitable for specific use.

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN AND MACHINE LEARNING
Smart Contract Usage in Machine Learning Datasets
• It executes on decentralized participants that link data holders.
• Huge volume of data is required in order to produce good
models in machine learning.
• Blockchain’s decentralized characteristics empower data to be
distributed between a participating node.
• External data may be the input from related enterprises.
• Apart from obtaining large amount of data using blockchain at
almost no expense, it is also safe from being decentralized.

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN AND ROBOTIC PROCESS AUTOMATION

• RPA is a software that automates labour intensive, instruction-based

monotonous repeating activities.
• RPA software can optimize execution time, increase data
throughput, advance accuracy, and optimize and reduce time.
• These technologies are self-assured to demonstrate an important
role in the future of many technological advances.
• It is important to understand the ability to automate labour-
intensive activities and deliver novel models.
• To take complete benefit of the RPA software, we need to ensure
that the corresponding individuals and process modifications are
updated on it.

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN AND ROBOTIC PROCESS AUTOMATION

Individuals and Processes

• From an “individual” standpoint, it is important that we provide skills to users to
identify and discover processes that are ready for automation, impart them how to
script, debug the software when it breakdowns, and skill them on how to achieve a
digital workers based enterprise as well as how to communicate with digital
workspaces.
• From a “process” viewpoint, we will require to comprehend the latent effect on the
guidelines and measures and apprise the processes to replicate the practice of new
software.
• The fast transformations in technologies are compelling industries to reconsider the
mode in which they are delivering their services.
• RPA in its basic form is the automation of labour-intensive processes by reproducing
repetitive tasks with a software-based application.

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN AND ROBOTIC PROCESS
AUTOMATION

Individuals and Processes

• The objective is equivalent to:
• Emphasis on human skills relevant to persuasive tasks using
imagination, design, method, clarification, decision-making, and
compassion.
• Reliable digital set-up levers all monotonous mundane tasks and
backend activities processing.

Dr. NGPASC
COIMBATORE | INDIA
BLOCKCHAIN AND ROBOTIC PROCESS
AUTOMATION

Benefits
• RPA can empower blockchain to transfer information with prevailing IT
systems.
• The advantages are include the following:
• 1. Automated transaction processing
• 2. Governance and compliance

Dr. NGPASC
COIMBATORE | INDIA
 BLOCKCHAIN AND ROBOTIC PROCESS AUTOMATION

Constraints and Growth Factors

• Both RPA and blockchain are innovative technologies and are growing in diverse directions and
speed.
• The operation of RPA and blockchain does not exist without problems.
• Several enterprises are not completely exploiting RPA as an enterprise innovation competence
that scales across numerous lines of business.
• These enterprises are identifying benefits from the use of digital workforce, but their inclusive
value proposal is moderated by not taking the proper steps.
• When choosing an application scenario for RPA and blockchain strategy, it is important to
prudently assess an enterprise’s practices and reflection of technology.
• It is good to prefer a scenario that has a rational, mundane routine-based processing, and
paybacks from immutable data storage as a potential applicant for RPA and blockchain pilot.

Dr. NGPASC
COIMBATORE | INDIA
Dr. NGPASC
COIMBATORE | INDIA 73