Blockchain Sample

Topic: Knowledge management in economy
Headline of paper: Application of blockchain technology in development of business – modern

ways of business
Resume: Nowadays modern business cannot be imagined without application of IT

Communication technologies (ITC), which develop rapidly in such a speed that many newer
technical – technology solutions get outdated in a short period of time. Development of
Blockchain technology provided development of decentralized business models during last ten
years. These models present turning point in way of realization of business ideas. There are more
often examples of tokens involvement which are used as shares in the market. Their trade and
involvement of interested parties provide incomes of money which can be used for realization of
a business idea, development of business of certain company. This work presented example
related to hotel business, in which company by placing tokens on the market accumulates
financial funds for purchasing of certain number of hotels all around the world, in order to
become part of chain of hotels.
Keywords: Blockchain technology, token, business idea, hotel chain
1. INTRODUCTION
Modern ways of business are under effect of global trends. These trends are mostly based on
dynamical development of technologies, mostly ITC technologies, which develop rapidly in such
a speed that many newer technical – technology solutions get outdated in a short period of time.
It is impossible to avoid the fact that ITC technologies are a trigger for further development of
technology and obtained level of development of certain society [14]. Modern society which is
based on IT and which can be described as a society of a high level of creativity (opposite from
industrial society which represents a society with high level of mass consumption). The final
effect of informational society is reflected in technological connection of the entire society in
which boundaries between countries do not represent an obstacle for business anymore. It is
proven that each new technology can be such a force which can create creative destruction.
Within “new economy”, the greatest danger for companies are not other companies but lack in
application of new technological solutions [5].
No matter which term authors use for definining of ongoing phase of human society
development, there are several important features which define its frame: 1) information as
strategic resource for business, economy exists and develops on creation and distribution of
information, 2) globalization, technological unity of the entire society, 3) knowledge as a main
basis of the new society.
Within modern society, the knowledge is a strategic source of power and wealth. The main social
group are users of knowledge or persons which are capable to use knowledge in function of
realizing of business activity. It is society in which “responsibility for application of knowledge
and performance achieved through that” is used instead of “responsibility for performance of
people” [2].
Through its development, ITC introduce changes in all phases of life. Therefore, there are
changes in management of business quality of companies. According to the new concept, quality
of new business is oriented on planning, prevention and improvement which prevent causes of
lacks, cancellations and delays in all business processes of the organization. It is important to
strive to constant alignment and integrity of IT system and management of quality system. They
are mostly supported by informational technologies: financial processes, professional processes,
sales, realization, warehousing, procurement etc.
Until recently, improvement of transactions services was conducted always through additional
legislations for such area of work and increasing of powers of participants. Limitation of powers
of participants, at least partially was provided by state. Technology which would provide
liberalization of model of transactional business with ensuring of needed functional features such
as safety, speed, protection from misuses, would have the potential to change the model of
conduction of transactions from centralized to direct, so called peer-to-peer model (P2P, Peer to
peer) [7].
Blockchain technology actually introduced solution for mentioned problem. Although it is still
considered as a new technology, it involves significant changes in so far approach to realization
of transactions and business of companies. It makes them more approachable, process is
transparent and opened to public. The consequence of transfer to the Blockchain technology can
be fundamental change of many socio-economy flows and transition to decentralized form of
realization of transaction, which can significantly contribute to improvement of quality of
business of companies [13].
2. MAIN FEATURES OF BLOCKCHAIN TECHNOLOGY

Blokchain and cryptocurrencies are tightly connected. The first Blockchain was created by person
Satoshi Nakamoto – his real identity is a mistery and it is still unknown whether it is an
individual or organization behind this name. The concept on which development of digital
cryptocurrency is established was introduced in article “Bitcoin” in 2008: A Peer-to-Peer
Electronic Cash System", and it was placed in the market in January 2009. New kind of digital
crypto currency was formed in way that distributed system of verification was established.
Bitcoin is created in process of “mining”. Its uniqueness lies in a fact that it is decentralized
currency which is not supported by any state of bank. The bitcoin is a digital currency which is
developed and kept in electronic form [3]. Regarding the name itself, the term “blockchain” is
composed of words “block” and “chain” and it represents the chain of blocks. In that way,
transactions of bitcoins are packed in blocks and blocks are connected in chain (Figure 1) [24].
Blockchain works as decentralized system

which means that there is no central server or
anything similar to which users can be
connected. All users are connected in peer-to-
peer network and each user presents a node of
that network. Since peer-to-peer provides
chance for each user to be directly connected
with only several other users, it means that it is
connected with other users indirectly. (Figure 1
– Chain of blocks) Source: https://www.norips.org
Cryptography is used for connecting of blocks. More precisely, it is HASH function and it
provides connecting in way that it is impossible to change the content of one block without
changing of content of all block after it. It is extremely important feature of blockchain since it
provides constancy of entered data. Information travels through peer-to-peer network in a way
that each participant sends message only to its direct connections. After that, each of his
connections sends that message to their direct connections. This process evolves until message
reach all participants in network [10].
In order to maximize security, cryptocurrencies use method - proof-of-work, which is based on
information that are hard to create but which provide easy check and verification of transactions
to other participants [7]. Transactions are chronologically placed in blocks and each of them
includes digital encription of previous block. In that way, alignment is provided. Also, there is
guarantee that new block can access the chain only if it starts on place of ending of previous
block. One of main factors of safety of bitcoins is the fact that copy of each realized transaction is
recored on each account on which bitcoin software is installed. Blockchains are constantly
verified by computers of all users of software so the system knows how many bitcoins is in the
wallet of each user in any moment [6].
During first several years of its existence, the blockchain technology attracted less attention and
not many people considered it as a serious option. Five years ago, situation slowly started to
change and increased number of institutions and companies started to become more interested in
blockchain technology. Its innovative way of sending and warehousing of data is very attractive,
including the way of solving of problem of trust in the system with more participants.
Transparency and availability of public blockchain are features which are not favorable to many
potential businesses developed an idea on private blockchain with most properties of public
blockchain. Also, this blockchain removed everything which companies considered as lacks [7].
Main advantages of private blockchains include extremely high capacity, high internet
connection which supports numerous transactions, management is more efficient and smaller
number of participants provide easier reaching of consensus on each decision. Therefore, changes
of protocol can be easily and faster implemented.

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Topic: Knowledge management in economy

Headline of paper: Application of blockchain technology in development of business – modern

Resume: Nowadays modern business cannot be imagined without application of IT

Keywords: Blockchain technology, token, business idea, hotel chain

2. MAIN FEATURES OF BLOCKCHAIN TECHNOLOGY

Blockchain works as decentralized system

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