Computer Science

Computer Science

The vast majority of the population associates Blockchain with the cryptocurrency Bitcoin; however, there are many other uses of blockchain; such as Litecoin, Ether, and other currencies. Describe at least two cryptocurrencies with applicable/appropriate examples and discuss some of the similarities and differences.

A brief about the terms, Blockchain is a decentralized system that records all information relating to it. This response includes names, addresses, transactions, accounts, and data. All this information is placed on a distributed network which forms part of the Internet and can be accessed by anyone (Shatz, 2012). There are several blockchains, including public, private, and permissioned blockchains. These three types are distinct because they use different protocols but are linked together without any restriction from either party on the protocol used to access the chain.

Blockchain is applied in both financial institutions and corporations. It has become significant over the past 20 years due to its low cost of operation or transaction, high security, ease of use, transparency, and accountability (Shatz, 2012). In addition, it allows for easy monitoring of customer behavior through an internet search and social media. Most companies and financial institutions have ventured into using blockchain for business purposes. They include PayPal and MasterCard with their cards as digital wallets, eBay’s “Litecoin” and Visa with their credit card technology systems. Corporations and financial institutions are beginning to incorporate them in their payment methods, especially in offering payments and financing. As the trend continues to grow, several governments have opened up their economies to the world of tech firms and organizations so that they can increase and reduce expenses on legal and physical infrastructures (Shatz, 2012). Currently, most countries in the West, East, and Central Asia are utilizing or testing the application of blockchain technology to their laws, policies, and regulations. For example, China is now accepting some form of cryptocurrency to make use of its limited resource of land. Additionally, Australia also uses blockchain technology to make sure that its mining operations remain ethical and transparent. More countries will be incorporating blockchain technology into their payment and accounting systems with these efforts in place.

Blockchain applications are utilized where people need greater flexibility over their assets and assets (Shatz, 2012). Examples of possible applications of blockchain in modern-day businesses are the electronic commerce industries, banking systems in developing nations, trade finance markets, securities exchanges, and healthcare and pharmaceutical industries. Many Fortune 500 companies and financial institutions employ the use of cloud computing to store data. Using blockchain can allow for faster processing of large volumes of data than traditional databases (Shatz, 2012)

Blockchain application technologies are being increasingly utilized in the global economy. Due to the growing popularity of cryptocurrencies like Bitcoin, Ethereum, etc., there are new ways in which the industry embraces change. This means, for instance, allowing companies to manage product costs when making products, creating new software by combining existing code and code that already exists (Shatz, 2012). Another way is to put blockchain in charge of supply chains, whereby blockchain is added to the supply chain. According to Shatz (2012), supply chain management is crucial to making sure that products and services are delivered to consumers quickly and efficiently, and companies do not receive negative publicity. Blockchains are expected to lead global supply chains, and the opportunities with blockchain could be enormous. Therefore, most organizations are turning to them to gain a competitive advantage. In addition, many major multinationals are investing in the concept of blockchain and trying to improve their processes, processes, and structures. Moreover, some institutions are even putting in place research initiatives to find out how blockchain can transform various sectors in their organizations (Shatz, 2012).

Blockchain solutions in international trade

Blockchain provides a unique opportunity by decreasing friction in international trade. Economists argue that removing friction in trade is one of the key goals of capitalism; therefore it makes sense to remove friction between the buyer and seller. Although there is no single definition of what constitutes "free" or "fair", it is generally believed that free trade and fair competition are good approaches to economic growth and development in societies where the government does little to protect consumers. However, critics still agree that there needs to be some level of regulation for free trade to work well, particularly when dealing with private equity interests and foreign investors. Consequently, the International Monetary Fund is using blockchain's potential as its currency and as such, it is also building a strong position as a currency. The organization plans to introduce a unit to use for a commercial exchange called Libra (Shatz, 2012). Such a unit was announced in November 2016 via a video conference with the United States Congress to encourage the adoption of the U.S. dollar. At first, U.S. President Donald Trump has argued that he wants to "restore U.S. strength and credibility" while adding that "the future of U.S. dollars is tied to its future success." The proposal was met with resistance from other lawmakers, resulting in a delay until 2022. On January 16, 2017, then-U.S. Senate Minority Leader Mitch McConnell proposed that there should not be any further delays in working on the infrastructure needed to implement a national digital currency (Shatz, 2012).

Currently, a $120 billion bond issuance with JPMorgan Chase and Company (JPMorgan Chase), Bank of America (BofA), and Wells Fargo will offer a tranche of loans to support the expansion of the company’s capabilities and the creation of jobs (Shatz, 2012). Of course, the banks were among the earliest supporters of the idea when it came to issuing bonds, but with the introduction of JPMC and BofA, the interest in applying blockchain and making changes to the banking system has increased dramatically (Shatz, 2012). As these new entities move forward and continue to develop, they must establish clear boundaries between their respective constituencies. This will help them make decisions in areas such as investment in R&D, funding innovations, consumer protection, energy sources, innovation, and other areas of special focus. Once both parties get familiar with the rules, rules that apply to a particular asset, they will start talking about where the new assets might come in. Because the assets that will be deployed will be new and untested, they are likely to benefit from an environment where nobody knows much about it compared to say, stocks and bonds.

The biggest challenge facing any new kind of ledger system is not just understanding the technology. Creating a secure record in the wrong hands can result in the loss of valuable money, reputation, reputation, and reputation. As mentioned earlier, blockchain can help achieve these objectives. As a new technology, it is important to learn who this new type of ledger system is meant for and create rules that help both sides understand how the benefits will outweigh the risks associated with adopting it. One of the advantages is speed and reliability (Shatz, 2012). Even though the new system may be slow, it could be the fastest method that has ever been adopted in an organized society. New types of machines will be developed for certain tasks, meaning if a farmer wanted to process his crop and wanted it to be stored for future reference, he would deploy new technology that takes away most of the time necessary to wait for the grains. He can transfer the tasks at hand to smart sensors that do most of the work by analyzing his feed and providing him with data that saves time and resources. Then, he does not wait for the crops to soak up water or ripen to harvest them but instead provides goods to other customers without waiting for the sun to shine. A second benefit is that this new type of ledger could eliminate risk from being tied to a particular asset all the time. If a person were to lose track of his investments in stocks, bonds, and property, and if he ended up having trouble running his business and paying taxes on his gains, this would cause a major problem. A third benefit is that the new model of managing documents will cut out the middle man and allow everyone to keep his personal information, whether they want to share it or not. Finally, a fourth advantage is a transparency and accountability, which is often mentioned as a negative aspect of using cash. Using cryptocurrency would give everyone who owns or holds it the same ability for exchanging and storing their assets, saving each stakeholder time and effort (Shatz, 2012).

While the advantages of deploying a blockchain system in trade and finance have been discussed above, the disadvantages also exist and therefore it all comes down to how stakeholders will react to the new type of finance system. First, it takes much longer for a new currency to establish itself. As with the old, paper-based financial instruments, adopting the crypto-system will take time, but once it becomes apparent that there is value in using the cryptocurrency, it takes only a few days to see if investors want to adopt it and buy, sell, trade, hold or borrow in the new, fast-moving market. Second, the implementation of a new monetary structure requires a lot of paperwork, paperwork that needs to be approved and audited so that a new form of currency can be sent to users and trusted by others. Lastly, the risk involved has no definite way to stop once a system becomes too prevalent (Shatz, 2012). Despite the uncertainties about the new form of finance that the recent announcement of a blockchain solution brings to light, it has enormous promise as a tool for trade finance and financing worldwide. As shown by the results from JPMC’s survey, nearly half of respondents want to use the blockchain system in their businesses (Shatz, 2012). Furthermore, most companies that have not already implemented a blockchain-like technology report success stories using it and expect others to follow suit. Investors are aware of the great potential that lies in the emerging sector, and they hope that this momentum continues to build. Thus, the need for leaders in government and business who can understand the full benefit of blockchain and recognize the threat that it poses will determine whether the system becomes mainstream in the near.