BLOCKCHAIN TECHNOLOGY

(Submitted in partial fulfilment of the requirements for MBA)

Submitted by: Nidhi Singh Under the guidance of

Prof. Dr. Mohd Mehdi

Father’s Name: sh. Birendra kumar singh

Batch of 2020-22 (MBA)

LLOYD INSTITUTE OF MANAGEMENT & TECHNOLOGY

PLOT NO.11 KNOWLEDGE PARK-2 , GREATER NOIDA-201306(UP)
 TABLE OF CONTENTS

 Introduction

 Scope of Innovation

 Feasibility

1. Financial Feasibility

2. Operating/Production Feasibility

 Description

 USP

 Any Other Information About the Product

 References
 Introduction

Blockchain is the backbone Technology of Digital

Crypto Currency BitCoin. The blockchain is a
distributed database of records of all transactions or
digital event that have been executed and shared
among participating parties. Each transaction verified
by the majority of participants of the system. It
contains every single record of each transaction.
BitCoin is the most popular cryptocurrency an
example of the blockchain. Blockchain Technology
first came to light when a person or Group of
individuals name ‘Satoshi Nakamoto’ published a
white paper on “BitCoin: A peer to peer electronic
cash system” in 2008. Blockchain Technology Records
Transaction in Digital Ledger which is distributed over
the Network thus making it incorruptible. Anything of
value like Land Assets, Cars, etc. can be recorded on
Blockchain as a Transaction.
 Scope of Innovation

Blockchain technology is the growing invention

which includes a chain of blocks. A Blockchain is a
distributed or a digital ledger, which is primarily
created to record the details of each financial and
non-financial transaction. The absolute and
permanent data is stored in a distributed database.
The entire record is completely transparent which
 means that anyone who is linking to the network is
able to view the transactions. Fundamentally,
the Blockchain technology is the combination of three
technologies, i.e. private key cryptography, P2P
network, and the program.
The Blockchain technology has shown its revolution in
the field of information registration and distribution
which removes the requirement for an intermediary
expert to enable the digital relationships. Blockchain
technology has provided the most popular product,
i.e.
Bitcoin which is a type of cryptocurrency and
functions as a public ledger for all transactions
happening on the network. It has resolved the
problem of double spending, unauthorized spending,
and thus increasing security.
It also helps to remove the need for an intermediary
expert. Since there has been a substantial increase in
the number of cyber attacks recently, the Blockchain
technology help to attract the varied audience
 Feasibility
Evaluating the feasibility of blockchain is a strategic
decision and involves both quantitative and qualitative
factors, which affect the decision process directly.
Multi Criteria Decision Making (MCDM) techniques are
the most commonly used methods in handling such
problems
… Beyond the technical feasibility, blockchain also
seems to be legally applicable to this … Compared
to traditional database systems, blockchain provides a
comprehensive solution (ie, on … less effort
by other stakeholders (eg, other tax
authorities, financial institutions, individual …

The main purpose of this study is to investigate the

feasibility of blockchain technology in logistics industry
using a quantitative approach. To this end, a decision
framework is proposed based on a multi-criteria
decision structure that incorporates AHP into VIKOR
under Intuitionistic Fuzzy Theory.
This integration presents different solutions and
rankings based on different decision-making strategies
and also captures uncertainty in the evaluation
process.
While Intuitionistic Fuzzy AHP calculates the
importance weights of the proposed criteria indicated
as scalability, privacy, interoperability, audit, latency,
visibility, trust, and security, Fuzzy VIKOR ranks the
logistics operations demonstrated as materials
handling, warehousing, order processing,
transportation, packaging, fleet management, labeling,
vehicle routing and product returns management.
The proposed decision framework was applied in a
large-scale logistics company located in Turkey. The
findings of this study suggest that while the most
important criteria are security, visibility and audit, the
most feasible logistics operations proved to
be transportation, materials handling, warehousing,
order processing and fleet management in a possible
blockchain

implementation. The decision framework in this study

may enable decision makers to evaluate the feasibility
of blockchain in logistics operations, which is one of
the main research gaps in the current blockchain
research. Furthermore, this is the first study that
integrates AHP and VIKOR methods under Intuitionistic
Fuzzy Theory in the context of blockchain.
Blockchain is a system of recording information in a
way that makes it difficult or impossible to change,
hack, or cheat the system.

A blockchain is essentially a digital ledger of

transactions that is duplicated and distributed across
the entire network of computer systems on
the blockchain.

DESCRIPTION
Blockchain seems complicated, and it definitely can be,
but its core concept is really quite simple. A blockchain
is a type of database. To be able to understand
blockchain, it helps to first understand what a database
actually is. 

A database is a collection of information that is stored

electronically on a computer system. Information, or
data, in databases is typically structured in table
format to allow for easier searching and filtering for
specific information. What is the difference between
someone using a spreadsheet to store information
rather than a database?

Spreadsheets are designed for one person, or a small

group of people, to store and access limited amounts
of information. In contrast, a database is designed to
house significantly larger amounts of information that
can be accessed, filtered, and manipulated quickly and
easily by any number of users at once.
Large databases achieve this by housing data on
servers that are made of powerful computers. These
servers can sometimes be built using hundreds or
thousands of computers in order to have the
computational power and storage capacity necessary
for many users to access the database simultaneously.
While a spreadsheet or database may be accessible to
any number of people, it is often owned by a business
and managed by an appointed individual that has
complete control over how it works and the data
within it.

Is Blockchain Secure ?
Blockchain technology accounts for the issues of
security and trust in several ways. First, new blocks are
always stored linearly and chronologically. That is, they
are always added to the “end” of the blockchain. If you
take a look at Bitcoin’s blockchain, you’ll see that each
block has a position on the chain, called a “height.” As
of November 2020, the block’s height had reached
656,197 blocks so far.

After a block has been added to the end of the

blockchain, it is very difficult to go back and alter the
contents of the block unless the majority reached a
consensus to do so. That’s because each block contains
its own hash, along with the hash of the block before
it, as well as the previously mentioned time stamp.
Hash codes are created by a math function that turns
digital information into a string of numbers and letters.
If that information is edited in any way, the hash code
changes as well.
Here’s why that’s important to security. Let’s say a
hacker wants to alter the blockchain and steal Bitcoin
from everyone else. If they were to alter their own
single copy, it would no longer align with everyone
else's copy. When everyone else cross-references their
copies against each other, they would see this one
copy stand out and that hacker's version of the chain
would be cast away as illegitimate. 

Succeeding with such a hack would require that the

hacker simultaneously control and alter 51% of the
copies of the blockchain so that their new copy
becomes the majority copy and thus, the agreed-upon
chain. Such an attack would also require an immense
amount of money and resources as they would need to
redo all of the blocks because they would now have
different timestamps and hash codes. 
Due to the size of Bitcoin’s network and how fast it is
growing, the cost to pull off such a feat would probably
be insurmountable. Not only would this be extremely
expensive, but it would also likely be fruitless. Doing
such a thing would not go unnoticed, as network
members would see such drastic alterations to the
blockchain. The network members would then fork off
to a new version of the chain that has not been
affected. 

This would cause the attacked version of Bitcoin to

plummet in value, making the attack ultimately
pointless as the bad actor has control of a worthless
asset. The same would occur if the bad actor were to
attack the new fork of Bitcoin. It is built this way so
that taking part in the network is far more
economically incentivized than attacking it.
How is blockchain used ?

As we now know, blocks on Bitcoin’s blockchain store

data about monetary transactions. But it turns out that
blockchain is actually a reliable way of storing data
about other types of transactions, as well.

Some companies that have already incorporated

blockchain include Walmart, Pfizer, AIG, Siemens,
Unilever, and a host of others. For example, IBM has
created its Food Trust blockchain1 to trace the journey
that food products take to get to its locations.

Why do this? The food industry has seen countless

outbreaks of e Coli, salmonella, listeria, as well as
hazardous materials being accidentally introduced to
foods. In the past, it has taken weeks to find the source
of these outbreaks or the cause of sickness from what
people are eating.
 Using blockchain gives brands the ability to
track a food product’s route from its origin, through
each stop it makes, and finally its delivery. If a food is
found to be contaminated then it can be traced all the
way back through each stop to its origin. Not only that,
but these companies can also now see everything else
it may have come in contact with, allowing the
identification of the problem to occur far sooner,
potentially saving lives. This is one example of
blockchains in practice, but there are many other
forms of blockchain implementation

Banking and Finance

Perhaps no industry stands to benefit from integrating
blockchain into its business operations more than
banking. Financial institutions only operate during
business hours, five days a week. That means if you try
to deposit a check on Friday at 6 p.m., you will likely
have to wait until Monday morning to see that money
hit your account. Even if you do make your deposit
during business hours, the transaction can still take
one to three days to verify due to the sheer volume of
transactions that banks need to settle. Blockchain, on
the other hand, never sleeps.
By integrating blockchain into banks, consumers can
see their transactions processed in as little as 10
minutes,2 basically the time it takes to add a block to
the blockchain, regardless of holidays or the time of
day or week. With blockchain, banks also have the
opportunity to exchange funds between institutions
more quickly and securely. In the stock trading
business, for example, the settlement and clearing
process can take up to three days (or longer, if trading
internationally), meaning that the money and shares
are frozen for that period of time.

Given the size of the sums involved, even the few days
that the money is in transit can carry significant costs
and risks for banks. European bank Santander and its
research partners put the potential savings at $15
billion to $20 billion a year.3
 Capgemini, a French consultancy, estimates that
consumers could save up to $16 billion in banking and
insurance fees each year4 through blockchain-based
applicationsGiven the size of the sums involved, even
the few days that the money is in transit can carry
significant costs and risks for banks. European bank
Santander and its research partners put the potential
savings at $15 billion to $20 billion a year.3
Capgemini, a French consultancy, estimates that
consumers could save up to $16 billion in banking and
insurance fees each year4 through blockchain-based
applications.

Currency
Blockchain forms the bedrock for cryptocurrencies like
Bitcoin. The U.S. dollar is controlled by the Federal
Reserve. Under this central authority system, a user’s
data and currency are technically at the whim of their
bank or government. If a user’s bank is hacked, the
client’s private information is at risk. If the client’s bank
collapses or they live in a country with an unstable
government, the value of their currency may be at risk.
In 2008, some of the banks that ran out of money were
bailed out partially using taxpayer money. These are
the worries out of which Bitcoin was first conceived
and developed.
By spreading its operations across a network of
computers, blockchain allows Bitcoin and other
cryptocurrencies to operate without the need for a
central authority. This not only reduces risk but also
eliminates many of the processing and transaction
fees. It can also give those in countries with unstable
currencies or financial infrastructures a more stable
currency with more applications and a wider network
of individuals and institutions they can do business
with, both domestically and internationally.

Using cryptocurrency wallets for savings accounts or as

a means of payment is especially profound for those
who have no state identification. Some countries may
be war-torn or have governments that lack any real
infrastructure to provide identification. Citizens of such
countries may not have access to savings or brokerage
accounts and therefore, no way to safely store wealth.
Healthcare
Health care providers can leverage blockchain to
securely store their patients’ medical records. When a
medical record is generated and signed, it can be
written into the blockchain, which provides patients
with the proof and confidence that the record cannot
be changed. These personal health records could be
encoded and stored on the blockchain with a private
key, so that they are only accessible by certain
individuals, thereby ensuring privacy.
 Records of Property
If you have ever spent time in your local Recorder’s
Office, you will know that the process of recording
property rights is both burdensome and inefficient.
Today, a physical deed must be delivered to a
government employee at the local recording office,
where it is manually entered into the county’s central
database and public index. In the case of a property
dispute, claims to the property must be reconciled with
the public index.
This process is not just costly and time-consuming—it
is also riddled with human error, where each
inaccuracy makes tracking property ownership less
efficient. Blockchain has the potential to eliminate the
need for scanning documents and tracking down
physical files in a local recording office. If property
ownership is stored and verified on the blockchain,
owners can trust that their deed is accurate and
permanently recorde.

In war-torn countries or areas that have little to no

government or financial infrastructure, and certainly
no “Recorder’s Office,” it can be nearly impossible to
prove ownership of a property. If a group of people
living in such an area is able to leverage blockchain,
transparent and clear timelines of property ownership
could be established.
 USP

The USP of blockchain is that it allows two parties to

execute a transaction without any intermediary.
Blockchain allows financial institutions to execute and
verify transactions discretely without any human
intervention.

The electronic ledger of transactions is continuously

maintained and verified in 'blocks' of records. With the
help of cryptography, the tamper-proof ledger is
shared between parties on computer servers.

Experts believe that blockchain architecture can

significantly bring down the costs and reduce
inefficiencies in the financial sector.
 Any other Information about the product

Blockchain is a system of recording information in a

way that makes it difficult or impossible to change,
hack, or cheat the system.
A blockchain is essentially a digital ledger of
transactions that is duplicated and distributed across
the entire network of computer systems on the
blockchain. Each block in the chain contains a number
of transactions, and every time a new transaction
occurs on the blockchain, a record of that transaction
is added to every participant’s ledger. The
decentralised database managed by multiple
participants is known as Distributed Ledger
Technology (DLT). This means if one block in one chain
was changed, it would be immediately apparent it ad
been tampered with. If hackers wanted to corrupt a
blockchain system, they would have to change every
block in the chain, across all of the distributed
versions of the chain.
Blockchains such as Bitcoin and Ethereum are
constantly and continually growing as blocks are
being added to the chain, which significantly adds to
the security of the ledger.

Why is there so much hype around blockchain

technology?
There have been many attempts to create digital money in
the past, but they have always failed.
The prevailing issue is trust. If someone creates a new
currency called the X dollar, how can we trust that they
won't give themselves a million X dollars, or steal your X
dollars for themselves? Bitcoin was designed to solve this
problem by using a specific type of database called a
blockchain. Most normal databases, such as an SQL
database, have someone in charge who can change the
entries (e.g. giving themselves a million X dollars).
Blockchain is different because nobody is in charge; it’s run
by the people who use it. What’s more, bitcoins can’t be
faked, hacked or double spent – so people that own this
money can trust that it has some value.
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