RESEARCH PROJECT ON BLOCKCHAIN

Batch: 2024-25

Master’s in business administration

International Business University, Toronto, Canada

Submitted by: Submitted to:

Prof. K. Parand
Komal Pabiyal (2024052096)

Neha Devi (2024052003)

Akwinder Kaur (2024010916)

Jaskaran Kaur (202410944)

Manpreet Kaur Lamba (2024051201)

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 TABLE OF CONTENTS

1. Introduction
a) How Does Blockchain Work?
b) Types of Blockchain: Public and Private
c) Bitcoin
d) Decentralized apps
e) Cryptocurrency
f) Ethereum
g) Smart cards
h) Mining
i) Wallet
j) Hashing
k) SHA-256
l) Fork
m) Token
n) Private key/Private Key
o) Coinbase
p) Trade Finance
q) Future of Blockchain Technology

2. Literature Review

3. Research Methodology
a) Quantitative Research
b) Research Design
c) Source of Data
d) Scope of Research
e) Objectives of study
f) Limitations of study

4. Data Analysis &Interpretation

5.Conclusions

6.Recommendations

7.References
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 INTRODUCTION

Blockchain is a revolutionary technology that has emerged as one of the most talked-about topics
in the IT world over the past few years. Initially, the term was rarely used outside of peer-to-peer
distributed ledger technology discussions, but it has since become a staple in media reports and
industry analyses.

Blockchain is a distributed ledger that records and verifies transactions using cryptography and
peer-to-peer networking technology. This technology makes it extremely difficult to alter
recorded transactions, providing a high level of security and transparency. A blockchain consists
of records or blocks that are linked together in a continuous chain. Each block contains a
collection of information, such as transaction details, and is chronologically ordered. This
structure forms a digital ledger that is transparent, secure, and immutable.

How Does Blockchain Work?

1. Enabling a Transaction

A new transaction is added to the blockchain. The data is double encrypted using both public and
private keys before being transmitted.

2. Transaction Verification

The transaction is sent to a global network of peer-to-peer computers for verification. Each node
verifies the legitimacy of the transaction and the availability of sufficient funds.

3. Creation of a New Block

Multiple nodes validate numerous transactions simultaneously. Verified transactions are added to
a mem pool, which consists of all approved transactions at a specific node. A block is formed
from several mem pools.

4. Consensus Algorithm

Nodes use a consensus algorithm to ensure that each new block added to the blockchain
represents the single, accepted version of the truth. The selected node that adds a block to the
blockchain is called a "miner," and they are rewarded for their efforts. The consensus algorithm
creates a hash code for the block.

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5. Adding the New Block

The newly formed block is added to the blockchain once it receives its hash value and passes
authentication. Each block includes the hash value of the previous block, linking all blocks
cryptographically.

6. Transaction Completion

The transaction is considered complete once the block is added to the blockchain. The
transaction details are stored permanently, making them accessible for verification by anyone.

Types of Blockchain: Public and Private

Public Bitcoin
Types of
Blockchain
Private Hyperledger

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Public Blockchain
A public blockchain is decentralized, transparent, and secure, allowing anyone with an internet
connection to participate.

Example: Bitcoin

BITCOIN:

Bitcoin is both a digital currency and a decentralized payment system. Here’s a simple
breakdown:

Digital Currency: Bitcoin is a type of cryptocurrency that can be used to buy goods and services
or as an investment. It exists only in digital form and is not controlled by any government or
financial institution.

Blockchain Technology: Bitcoin functions using a system known as blockchain, a decentralized

record-keeping mechanism that logs every transaction on a computer network. This guarantees
both transparency and security without requiring a central authority.

Decentralized: Bitcoin transactions are verified by a network of miners who use computational
power to solve complex puzzles. This handle secures the arrange and approves exchanges.

DECENTARLIZED APPS
An overarching approach to utilizing blockchain concepts involves extending their application
outside their original context into government, health, science, literacy, culture, and art. Open
Bazar, a healthcare app, for voting

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Private Blockchain
A private blockchain is a decentralized ledger accessible only to a select group of people or
organizations. It is controlled by a single entity that manages access and data on the blockchain.

Example: Hyperledger

HYPERLEDGER:
 Hyperledger is a group of developers who work on creating a collection of robust
frameworks, tools, and libraries for secure, business-level blockchain implementations,
all of which are freely available.

 The collaboration is worldwide and consists of member organizations who are experts in
finance, banking, Internet of Things, supply chains, manufacturing, and technology.

APPLICATIONS OF BLOCKCHAIN
CRYPTOCURRENCY
Cryptocurrency is a form of digital currency that relies on cryptography for security and
functions on a decentralized peer-to-peer network, free from any government or central bank
influence. Transactions are logged on a blockchain, a public ledger, eliminating the necessity
for intermediaries, which has led to its popularity in trading, storing value, and investing in
cryptocurrencies like Bitcoin and Ethereum. Digital currencies like Bitcoin and Ethereum
have become popular for trading, storing value, and investing.

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 The closest competitor to Bitcoin's technology and currency is Ethereum.

ETHEREUM:

Ethereum is a blockchain platform that is decentralized and allows for secure transactions
using smart contracts without the need for trust. It enables for:

 Transactions that cannot be changed and can be confirmed.

 Secure transfer of transaction logs.
 Control and visibility for the user
 Payment with Ether (Ethereum's digital currency)

Simply put, Ethereum is a decentralized platform designed for secure, trustless transactions and
the execution of smart contracts.

SMART CARDS
 A set of guidelines within a smart contract on a blockchain dictating the interaction terms
agreed upon by the involved parties.

 The smart contract will automatically execute the transaction once the predefined rules
are satisfied.
 The concept of separating the contract layer from the blockchain layer was brought in by
the Ethereum project.

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  Distributed ledger technology that securely records transactions in a decentralized
manner.
 The intelligence of a smart contract depends on the coding individuals' knowledge and
consideration of all available information during coding.

MINING /MINOR

Mining involves adding blocks to the Blockchain, verifying transactions, and ensuring the
security of the network. Miners contribute their computing power to verify transactions and
receive cryptocurrency as compensation. They are responsible.:

 Confirm and document recently made transactions on the worldwide ledger.

 Include transactions in the Blockchain, verifying them as "confirmed"

 Generate fresh coins by validating proof-of-work (POW) algorithms.

Simply put, mining ensures and verifies transactions, including them in the Blockchain, and
generates fresh cryptocurrency.

MINING MACHINE

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Ant miner S9 Bitcoin Miner

The process of validating transactions:

Proof of Work (POW): Verifying transactions by performing a computationally demanding

hashing process to validate transactions among network members (public miners) and records
them on the blockchain ledger.

Proof of Stake (POS): validates blocks made by miners and mandates users to demonstrate
ownership of their 'stake'. Creates challenges for monopolies and strengthens security

WALLET
A cryptocurrency wallet is a software program that stores or manage private and public keys and
interacts with one or more cryptocurrencies to enable users to send and receive cryptocurrency
and monitor their balance. Cryptocurrencies are not stored in a single location or exist in any
physical form anywhere. All that exists are records of transactions stored on the blockchain’s
records of exchanges put away on the blockchain.

Different Types of Cryptocurrency Wallets

 Desktop: Wallet software on one computer installed individually

 Online wallets store your private keys on the internet and are managed by a third party.
 Versatile: Mobile wallets operate through a mobile application on your smartphone.

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  Hardware: A USB device used for storing a user's private keys
 Paper: A tangible reproduction or hard copy of your public and private keys

HASHING

What is hashing?

A hash function converts a mixture of letters and numbers into a fixed-size secure result.
Involving cryptocurrencies like Bitcoin, transactions undergo a hashing algorithm to create an
output of fixed length. Blockchain employs a cryptographic hash function to guarantee that the
outcome is both random and foreseeable. This implies that every time the same input is used, it
will result in the same hash value. The process is one-way, so the final hash cannot be used to
create the original input.

SHA-256
SHA-256 is a type of cryptographic hash function that is utilized in blockchain technology for:

 Receive a message or transaction as input and generate a random fixed-length string as

output.
 Guarantee security in one direction (unable to recover input from hash)
 Avoid accidents by making sure that different inputs do not result in the same hash value.
 Within blockchain technology, SHA-256 is utilized for: Protected transactions (distinct
identification and integrity of data)

Verification of transactions and generation of new blocks is achieved through miners solving
puzzles in the Proof of Work protocol.

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FORK
Within the cryptocurrency world, a fork happens when a blockchain parts into two isolated ways.
This may happen due to contrasts in consensus rules or when there's an essential alter within the
convention. Forks can be classified into two fundamental sorts:
difficult forks, which are not in reverse congruous, and delicate forks, which are in reverse
congruous.

TOKEN
Meaning of token: -In the setting of cryptocurrencies, a token may be a computerized resource
made on beat of an existing blockchain. Tokens can speak to different resources or utilities and
are regularly utilized in Starting Coin Offerings (ICOs) to raise stores for ventures. Illustrations
of tokens incorporate ERC-20 tokens on the Ethereum blockchain.

PRIVATE KEY/PUBLIC KEY

Two keys that are connected (public and private key) are utilized
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  The public key can be shared openly, but the private key should be kept confidential.

 Both keys can encrypt a message, while the other key is used for decryption.

 As long as the public key is genuine and unchanged, asymmetric encryption will provide

- Secrecy

-Honesty and ethical behavior.

-Genuine nature

- Inability to deny

COINBASE
 In blockchain and specifically in Bitcoin mining, the term "Coinbase" has two meanings:
 Transaction: The Coinbase transaction is the first transaction in a new block. It’s a
special type of transaction that creates new bitcoins and rewards them to the miner who
found the block This is the manner in which fresh bitcoins are added to the market.
 Input Field: In technical terms, the Coinbase input field is used by miners to include
arbitrary data, such as a message or information about the mining pool.

TRADE FINANCE
Blockchain technology has the potential to revolutionize trade finance by tackling key issues
with its three main characteristics:

 Cryptographic security guarantees records that are unchangeable and reliable,

unable to be altered and confirmed by everyone involved.
 Distributed ledger architecture offers transparency, traceability, and automatic
execution of smart contracts.
 Network consensus mechanism: Provides a sole point of truth, avoiding double
spending, fraud, and reconciliation problems.

This leads to trade transactions that are secure, efficient, and reliable.

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 THE EFFECT OF BLOCKCHAIN ON TRADE FINANCE

The advantages of blockchain in trade finance can be considered in three main areas.

1. The team worked together to complete the project on time. Automating payment
methods to offer sellers payment assurance.

2. Ensuring delivery security for purchasers by tokenizing trade assets.

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3.Reducing risks and boosting revenue streams for banks by digitizing payment
instruments.

FUTURE OF BLOCKCHAIN TECHNOLOGY

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LITERATURE REVIEW

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1. Vincenzo Morabito, it is necessary for everyone to keep up with the constant growth and
evolution of technological advancements and innovations. The revolutionary shift of
Blockchain is included in this transformation. The concept of Blockchain is remarkably
like that of a database in terms of technology. Nevertheless, it remains a crucial concept
that must be comprehended for what lies ahead. Five crucial concepts that must be
comprehended and analyzed for their interconnectedness are smart contracts,
decentralized consensus, Blockchain, trusted computing, and proof of work/state. This
important computing paradigm is crucial as it will play a key role in developing
decentralized applications.
2. In their research paper, Primavera De Filippi stated that the blockchain enables new
forms of economic organization and governance, going beyond just being an ICT
innovation. Proposes two methods for analyzing blockchain economics: innovation-
focused and governance-focused. States that the governance approach, rooted in new
institutional economics and public choice economics, is the most favorable as it depicts
blockchain as a novel technology for forming spontaneous organizations, such as new
economies.
3. In his research paper, Laura Jutila recognizes that industries and traditional business
methods have been transformed or rendered completely outdated by the emerging
digitalization trends. The blockchain technology has the potential to completely transform
and shake up industries that depend on trust, like the financial sector. The fundamental
concept of this technology is a transparent, collective, and secure record that enables
individuals unfamiliar or doubtful of each other to exchange information in a reliable
record, capable of storing various forms of valuable intangible data.
4. Gavin Smith observed that distributed ledger technology has transitioned from
experimental stages to being a priority for our clients across all levels of business, from
small startups to well-established multinational corporations with long histories of
transactions. Although opinions are diverse, the prevailing belief is that distributed ledger
technology can revolutionize economies, businesses, and behaviors. Businesses,
regardless of their position, must comprehend the functionality of the technology, its
potential uses, and its relationship with current legal systems.
5. Anders V. Hua & Jorgen S. Noland state that the blockchain is an innovative open-
source technology (Nakamoto 2008) that was first introduced as the foundational
technology for Bitcoin, the world's original decentralized digital currency. The
blockchain is a decentralized database that is both transparent and unchangeable. Supply
chains in commercial markets are difficult to see through and intricate, consisting of
numerous production stages and various geographical locations. This often results in the
origin and background of a product being a mystery to those further up the chain.
RESERACH AND METHODOLOGY

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Research can be classified in many ways on the basis of methodology of the research, the
knowledge it creates, the user groups, the research problem it investigates, etc. Following
is the methodology that we have used in research:

A. Quantitative Research: Quantitative research is the methodical empirical study

of observable phenomena using statistical, mathematical, or computational methods,
commonly found in natural and social sciences and occasionally in other disciplines.
The goal of quantitative research is to create and use mathematical models, theories,
and hypotheses related to various phenomena. Measurement is crucial for quantitative
research as it links empirical observations with mathematical expressions of
quantitative relationships. Quantitative research is typically associated with concepts
from 'the scientific method', which may involve:
 The creation of models, theories, and hypotheses.
 The development of tools and methods for measuring.
 Experimental control and manipulation of variables.
 Collection of empirical data.
 Modelling and analysis of data.

B. Research Design: -
This research employs a qualitative approach, focusing on the review and analysis of
existing literature, case studies, and expert interviews.

C. Source of Data: -
The data for this research is sourced from academic journals, industry reports, online
publications, and authoritative websites. In this project, the questionnaire method for
survey is used for collection of primary data.

Primary data
Primary data refers to data obtained directly by researchers from original sources such as
interviews, surveys, and experiments. Primary data are usually collected from the source
–where the data originally originated from and are regarded as the best kind of data in
research. In this project, the questionnaire method is utilized to gather primary data
through a survey.

Secondary Data

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Secondary data is data that has already been gathered from other sources and is easily
accessible. This type of data is more affordable and can be obtained more rapidly
compared to primary data, and may be accessible when primary data is unavailable.
Different websites, books, and journals are being consulted for secondary information.

D. Scope of Research
The research covers the fundamentals of blockchain technology, its applications, and
future potential in various sectors.

E. Objective of Study
 To examine the degree of understanding regarding Cryptocurrency and the
Blockchain system.
 To assess Investor’s opinions on Cryptocurrency as a form of investment asset.
 To identify key factors for investing in or using blockchain as a medium of
exchange.
 To identify necessary adjustments when utilizing blockchain and cryptocurrency.
 To grasp Cryptocurrency and blockchain's worldwide standing and assess its
potential as a replacement for the US Dollar in international trade.

F. Limitations of Study: -
 The secondary data gathered could include manipulations that may have
introduced bias into the findings.
 The absence of expertise in creating the project report.
 Insufficient time to finish the project.
 The approach has a deficiency in adaptability. If there is insufficient or not
enough information, the outcome may differ.
 Verifying the accuracy of the information given is extremely challenging.
 Furthermore, documents can be deficient in authenticity, with potential missing
sections making it impossible to verify bias within the document.
 Historical comparisons can be challenging due to changes in measurement
methods over time.
 The scope of the study in the project report is extensive and may not have any
specific boundaries.

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 DATA ANALYSIS & INTERPRETATION
Data analysis involves examining, purifying, changing, and creating models from data in order to
achieve a specific objective.
Data is collected from different sources, examined, and analyzed to generate a conclusion.
The survey method employed entailed using questionnaires for collecting data.
The sample consisted of 50 people in total.
The survey questionnaire posed these questions and here are the corresponding results

Data1:

AGE GROUP

Interpretation – Almost 95 % of the people in the sample were between the age of 15-30
years.

This indicates that the majority of individuals were part of the youth demographic

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Data2:

Occupation

Interpretation -
Of the 50 individuals surveyed, the majority were students while others were employed

A minor portion of the sample came from the business, professional, and other categories.

Data3:

Do you own cryptocurrency?

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Interpretation – Since the majority of individuals in the study were students, the majority
did not possess any form of digital currency, although there were a few who did.

Data4:

Have you heard or read anything about cryptocurrencies such as Bitcoin and
Ethereum?

Interpretation – Most of the individuals in the survey are familiar with cryptocurrency and
possess a solid understanding of it, especially as they are primarily students and members of the
present-day population.

Data5:

Which is the Best Investment For you?

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Interpretation: - The data shown here favors gold with 45% but it also shows that people are
interested in knowing and investing in cryptocurrency with its recent rise in pandemic era. But
the ideology needs to be clearly shown by the government whether it has really any promising
future for our country or still it is hindered.

Data6:

Can cryptocurrency replace the dollar for international trade?

25.00%

53.30%

21.70%

yes no may be

Interpretation: - This data shows that the stand of cryptocurrency is positive and has a
promising future.

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Data7:

If you are a regular investor or want to start investing, does the introduction
of cryptocurrency have impacted your decision of investment?

Interpretation - The advent of cryptocurrency has had varying effects on individuals'

choices when it comes to investing.

Data8:

Do you anticipate cryptocurrency's value will increase or decrease in five

years compared to its current value?

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Interpretation – 80% of the people believe that in the next five years cryptocurrency will be
worth significantly more than it is today.

Data9:

In your Opinion, which is more profitable investing in stock market or

investing in cryptocurrency?

Interpretation - The comparison of profitability between cryptocurrencies does not show

clear biased results; instead, both are deemed profitable based on survey findings.

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Data10:

What is the probability that you will invest in cryptocurrency this year?

Interpretation- The majority of individuals are somewhat inclined to invest in cryptocurrency

this year and are contemplating purchasing it.

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 CONCLUSIONS
A Blockchain within the budgetary framework will lead to work emergency since blockchain is
an autonomous channel and record which can as it were be altered at conclusion-to-conclusion
channels. The development of Bitcoin has started a talk about approximately its future which of
other cryptocurrencies. Despite Bitcoin's later issues, its victory since its 2009 dispatch has
motivated the creation of elective cryptocurrencies such as Ethereum, Litecoin, and Swell. A
cryptocurrency that tries to be gotten to be portion of the standard financial system would need to
fulfill exceptionally unique criteria. Whereas that plausibility looks inaccessible, there's small
question that Bitcoin's victory or disappointment in managing with the challenges it faces may
decide.

Like the early 1990s Internet, Blockchain is currently undergoing similar development in many
aspects. As we have seen the transformation brought by the 'Internet of Information' in our
communities for the last twenty years, we are now moving towards a new era characterized by
Blockchain introducing the concepts of 'Internet of Trust' and 'Internet of Value'. It is anticipated
to change how stakeholders engage within a decentralized trust framework, thereby further
democratizing value. Banks and financial institutions are crucial in society today, and Blockchain
technology is pressuring them to reassess their roles to remain important in this new era.

As per all the essential and auxiliary information discoveries cryptocurrency has still a long way
of advancements to carry that are: -

.
 The valuation of cryptocurrency is another issue since we can't straightforwardly connect
it to universal changes.
 The choice of cryptocurrency that's whether to form a modern cryptocurrency or to
proceed with the existing one.

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  Government tax assessment and wage charge collection perspectives are another vital
issue which we have to address.
 Cryptocurrency trading and control rather like the forex got to be created and a body to
follow and direct crypto exchanges.

RECOMMENDATIONS
There are numerous ways in which blockchains can enhance government accountability,
transparency, efficiency, and fraud prevention, such as contract management, e-voting, and
healthcare. There are already various pilot projects in different countries exploring the
application of block chain technology in areas such as e-health, e-resident systems, elections, and
particularly land and property registration. Estonia is a leading nation that has already
implemented various applications of blockchain technology. Some other countries are Sweden,
Hong Kong, Ghana, Kenya, Nigeria, and Georgia, to give a few examples. Nevertheless, even
with these preliminary initiatives, blockchain technology is still early in its development,
resulting in unknown variables and weaknesses.

Recommended Actions

 To ensure an equilibrium of privacy and confidentiality with transparency.

 Address obstacles like transaction velocity, authentication procedures, and data
restrictions.
 Offer fast, efficient operations with minimal delays
 Make sure that distributed ledgers are able to grow in size effectively, stay
protected, and offer evidence that their information is accurate.
 Efficient use of energy
 Guarantee strong encryption levels.

The need for a reliable government sector remains relevant in society today. This requirement
also pertains to matters such as improved quality of public services, fairness, and customer
service standards in the delivery of public services.

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 REFERENCES

1. Blockchain: Research and Applications | Journal | ScienceDirect.com by Elsevier. (n.d.).

https://www.sciencedirect.com/journal/blockchain-research-and-applications

2. Explaining the concept and mechanism of Blockchain | Synopsys. (n.d.).

https://www.synopsys.com/glossary/what-is-blockchain.html

3. McGraw-Hill Education. (n.d.). New Connect. Retrieved from [McGraw-Hill Education]

(https://newconnect.mheducation.com/)

4. Crypto Prices Today LIVE (28 June 2024): Check Crypto Price News Today & Latest Crypto

Coins Updates | ET Markets. (n.d.).). The Economic Times.

https://economictimes.indiatimes.com/markets/cryptocurrency?from=mdr

5.www.slideshare.net

6.https://www.blockchain.com/

7.https://en.wikipedia.org/wiki/Blockchain

8.https://www.ibm.com/blockchain/

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