RESEARCH REPORT

On

“UNDERSTANDINGAWARENESS LEVELOF BLOCKCHAIN”

Submitted to:

Kurukshetra University, Kurukshetra

In the partial fulfillment of the degree of Master of Business Administration

(Session 2020-2022)

Submitted To: Submitted by:

Kurukshetra University Sumit Sidana
Kurukshetra MBA 4th semester
Univ. Roll No:- 201162016

SETH JAI PARKASH MUKAND LAL INSTITUTE OF ENGINEERING AND

TECHNOLOGY, RADAUR – 135133 (YAMUNANAGAR)
 SETH JAI PARKASH MUKAND LAL INSTITUTE OF ENGINEERING &
TECHNOLOGY
A SELF FINANCED ISO 9001: 2008 CERTIFIED INSTITUTE
(APPROVED BY AICTE & AFFILIATED TO KURUKSHETRA UNIVERSITY)
KURUKSHETRA
(CHHOTA BANS, RADAUR – 135133, YAMUNANAGAR)

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr. Sumit Sidana S/O Mr.Ramesh Kumar bearing University, Roll No
201162016 University Registration no 17-MR-97 a bona fide student of MBA 4 thsemester has
completed his work on Research Project Report (MBA 403) entitled “Understanding awareness level
of Blockchain”

His work is original, satisfactory and fit for the purpose of further evaluation towards the partial
fulfillment for the award of degree of Master in Business Administration.

( Ms. Anuja Goyal )

Head of Department
Management Department
JMIT, Radaur
 DECLARATION

I hereby certify that the work which is being presented in the research report, entitled “Understanding
awareness level of blockchain” in fulfillment of the requirements for the award of the degree of Master
of Business Administration submitted in Department of Management, JMIT, Radaur affiliated to
Kurukshetra University, under the supervision of Ms. Anuja Goyal.

The matter embodied in this research report has not been submitted by me for the award of any other
degree of this or any other University/Institute.

(Sumit Sidana)
Roll No: 201162016
MBA 4th Semester
 ACKNOWLEDGEMENT

With the deep sense of gratitude, I wish to place on record my profound thanks to all those who

supported and encouraged me to come out with this project work successfully.

I express my sincere thanks to my Project guide Ms. Anuja Goyal (H.O.D), for her valuable guidance,

time and continuous efforts for completion of my project.

Last but not the least, I am very thankful to my friends who continuously supported me during my

project.

(Sumit Sidana)
Roll No: 201162016
MBA 4th Semester
 CONTENT

Sr. NO. Particulars Page No.

Title Page
Declaration
Acknowledgement
Introduction
Chapter – 1 1.1 Introduction of Industry
1.2 Introduction of Blockchain
1.3 Components of Blockchain
1.3 History and Background
1.4 How Blockchain technology works
1.5 Role of Blockchain in financial sector

Chapter – 2 Literature Review

Chapter – 3 Research Methodology

3.1 Objectives
3.2 Research Design
3.3 Data Source

Chapter – 4 Data analysis and Interpretation

Chapter – 5 5.1 Findings of Study

5.2 Suggestions
5.3 Limitations of Study
5.4 Conclusion

Bibliography
Questionnaire
 CHAPTER-1

INTRODUCTION TO TOPIC
 INTRODUCTION TO FINANCIAL INDUSTRY

The financial services industry manages money for individuals and corporations. It comprises such
organisations as commercial and investment banks, insurance companies, hedge funds, credit-card
companies, consumer finance firms, accounting agencies, and brokerage firms. The industry’s services
are mainly related to banking and insurance services, asset management, investments, foreign exchange,
and accounting. Financial services form the lifeblood of economic growth and development. They
facilitate the setting up of big and small businesses and the expansion of businesses. Employment and
entrepreneurship created with the help of the services enable people to earn and save. Financial services
show the poor ways out of poverty and of leading better lives. To the wealthy, financial services offers
opportunities to make money grow.

The financial services industry is the largest-earning sector in the world. Through interventions in
industry and agriculture and other formal sectors, they provide lines of credit and investment. However,
financial services have largely eluded the poor and small and micro units, and there is great potential to
extend the services to the informal sector, too. Perhaps, the future of the financial sector lies here.

The chief controller of the finance in India is the Reserve Bank of India (RBI) and is regarded as the
supreme organization in the fiscal structure. Other significant fiscal organizations are business banks,
domestic rural banks, cooperative banks and development banks. Non-banking fiscal organizations
entail credit and charter firms and other organizations like Unit Trust of India, Provident Funds, Life
Insurance Corporation, Mutual funds, GIC, etc.

 Financial Sector of India – Eligibility for government autonomy:-

Mentioned below are certain criterions that are required to be fulfilled for acquiring government
autonomy in India:
 Availability of sufficient fund of up to 8%
 Accessibility of total non-performing wealth of below 9%
 Minimum net possessed funds of more than USD 2.5 million and net revenues of minimum past three
years.
  Financial institutions that satisfy the abovementioned requirements will be authorized functional
independence in almost all managerial areas.
 Financial Sector of India – RBI guidelines for NBFC's:-
The Reserve Bank of India has relaxed its guidelines for the operation of non-bank finance companies
(NBFCs) in India considering the various investments from the investors. It has also permitted leasing of
machinery and rent-buying credit firms with endowment level rankings to avail public savings increase
the maximum limit on the amount of public investments on these NBFCs that may allow and expand the
closing date for observance on its norms by two years.
The fiscal competitiveness of several NBFCs persists to be of importance to the administration and
reserve bank of India controllers. There is a significant merging activity in this industry as NBFCs are
regulated by stringent yardsticks that are obligatory to fulfill.

In addition, India has entered into new agreements with WTO in the area of fiscal services in Geneva on
December 1997.

 Financial Sector of India – Chief Characteristics:

Some of the major characteristics of Financial Sector of India are:
 The financial sector of India allows Most Favored Nation (MFN) reputation to all international banks
and firms offering financial facilities.
 The sector has relaxed previous MFN tax exemption on banking activities.
 Allows 12 new financial bank division authorizations every year to international banks, that is higher
as compared to the existing 8 every year.
 Raises the 10% limit of reinsurance by insurance firms in India.
 Permits 51% foreign endowment in fiscal advisory, issuing, hiring, business enterprise capital, business
banking and non-banking credit firms.

FINANCIAL SECTOR IN BLOCKCHAIN: The financial services industry manages money

for individuals and corporations. It comprises such organisations as commercial and investment banks,
insurance companies, hedge funds, credit-card companies, consumer finance firms, accounting agencies,
and brokerage firms. The industry’s services are mainly related tobanking and insurance services, asset
management, investments, foreign exchange, and accounting.
Financial services form the lifeblood of economic growth and development. They facilitate the setting
up of big and small businesses and the expansion of businesses. Employment and entrepreneurship
created with the help of the services enable people to earn and save.

Financial services show the poor ways out of poverty and of leading better lives. To the wealthy,
financial services offers opportunities to make money grow.

The financial services industry is the largest-earning sector in the world. Through interventions in
industry and agriculture and other formal sectors, they provide lines of credit and investment.

However, financial services have largely eluded the poor and small and micro units, and there is great
potential to extend the services to the informal sector, too. Perhaps, the future of the financial sector lies
here.
 INTRODUCTION OF BLOCKCHAIN TECHNOLOGY

A blockchain is a distributed, peer-to-peer database that hosts a continuously growing number of

transactions. Each transaction, referred to as a “block,” is secured through cryptography, timestamped,
and validated by every authorized member of the database using consensus algorithms (i.e., a set of
rules). A transaction that is not validated by all members of the database is not added to the database.
Every transaction is attached to the previous transaction in sequential order, creating a chain of
transactions (or blocks). A transaction cannot be deleted or edited, thereby creating an immutable audit
trial. A transaction can only be changed by adding another transaction to the chain.

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.

Blockchains are tamper evident and tamper resistant digital ledgers implemented in a distributed fashion
(i.e., without a central repository) and usually without a central authority (i.e., a bank, company or
government). At their basic level, they enable a community of users to record transactions in a shared
ledger within that community, such that under normal operation of the blockchain network no
transaction can be changed once published. In 2008, the blockchain idea was combined with several
other technologies and computing concepts to create modern cryptocurrencies: electronic cash protected
through cryptographic mechanisms instead of a central repository or authority

This technology became widely known in 2009 with the launch of the Bitcoin network, the first of many
modern cryptocurrencies. In Bitcoin, and similar systems, the transfer of digital information that
represents electronic cash takes place in a distributed system. Bitcoin users can digitally sign and
transfer their rights to that information to another user and the Bitcoin blockchain records this transfer
publicly, allowing all participants of the network to independently verify the validity of the transactions.
The numerous components of blockchain technology along with its reliance on cryptographic primitives
and distributed systems can make it challenging to understand. However, each component can be
described simply and used as a building block to understand the larger complex system.

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and
tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible
(intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and
traded on a blockchain network, reducing risk and cutting costs for all involved.
Why blockchain is important: Business runs on information. The faster it’s received and the more
accurate it is, the better. Blockchain is ideal for delivering that information because it provides
immediate, shared and completely transparent information stored on an immutable ledger that can be
accessed only by permissioned network members. A blockchain network can track orders, payments,
accounts, production and much more. And because members share a single view of the truth, you can
see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and
opportunities.

The 21st century is all about technology. With the increasing need for modernization in our day-to-day
lives, people are open to accepting new technologies. From using a remote for controlling devices to
using voice notes for giving commands; modern technology has made space in our regular lives.
Technologies like augmented reality and IoT that have gained pace in the past decade and now there’s a
new addition to the pack i.e. Blockchain Technology.
Blockchain- The revolutionary technology impacting different industries miraculously was introduced in
the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital
currency (cryptocurrency) which can be used in the place of fiat money for trading. And the underlying
technology behind the success of cryptocurrencies is termed as Blockchain.
There’s a common misconception among people that Bitcoin and Blockchain are one and the same,
however, that is not the case. Creating cryptocurrencies is one of the applications of Blockchain
technology and other than Bitcoin, there are numerous applications that are being developed on the basis
of the blockchain technology.
BLOCKCHAIN:-In the simplest terms, Blockchain can be described as a data structure that holds
transactional records and while ensuring security, transparency, and decentralization. You can also think
of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A
blockchain is a distributed ledger that is completely open to any and everyone on the network. Once an
information is stored on a blockchain, it is extremely difficult to change or alter it.
Each transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to
the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot
be changed.
Blockchain technology allows all the network participants to reach an agreement, commonly known as
consensus. All the data stored on a blockchain is recorded digitally and has a common history which is
available for all the network participants. This way, the chances of any fraudulent activity or duplication
of transactions is eliminated without the need of a third-party.
In order to understand blockchain better, consider an example where you are looking for an option to
send some money to your friend who lives in a different location. A general option that you can
normally use can be a bank or via a payment transfer application like PayPal or Paytm. This option
involves third parties in order to process the transaction due to which an extra amount of your money is
deducted as transferring fee. Moreover, in cases like these, you cannot ensure the security of your
money as it is highly possible that a hacker might disrupt the network and steal your money. In both the
cases, it is the customer who suffers. This is where Blockchain comes in.
Instead of using a bank for transferring money, if we use a blockchain in such cases, the process
becomes much easier and secure. There is no extra fee involved as the funds are directly processed by
you thus, eliminating the need for a third party. Moreover, the blockchain database is decentralised and
is not limited to any single location meaning that all the information and records kept on the blockchain
are public and decentralized. Since the information is not stored in a single place, there’s no chance of
corruption of the information by any hacker.
TYPES OF BLOCKCHAIN:-Though Blockchain has evolved to many levels since inception, there are
two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.

Now that we know the similar elements of both these blockchains, let’s learn about each of them in
detail and the differences between them.

Public Blockchain- As the name suggests, a public blockchain is a permissionless ledger and can be
accessed by any and everyone. Anyone with the access to the internet is eligible to download and access
it. Moreover, one can also check the overall history of the blockchain along with making any
transactions through it. Public blockchains usually reward their network participants for performing the
mining process and maintaining the immutability of the ledger. An example of the public blockchain is
the Bitcoin Blockchain.
Public blockchains allow the communities worldwide to exchange information openly and securely.
However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules
around it are not executed strictly. Moreover, the rules decided and applied initially have very little
scope of modification in the later stages.

Private Blockchain- Contrary to the public blockchain, private blockchains are the ones which are
shared only among the trusted participants. The overall control of the network is in the hands of the
owners. Moreover, the rules of a private blockchain can be changed according to different levels of
permissions, exposure, number of members, authorization etc.
Private blockchains can run independently or can be integrated with other blockchains too. These are
usually used by enterprises and organizations. Therefore, the level of trust required amongst the
participants is higher in private blockchains.
 CRYPTOCURRENCY

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly

impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based
on blockchain technology—a distributed ledger enforced by a disparate network of computers. A
defining feature of cryptocurrencies is that they are generally not issued by any central authority,
rendering them theoretically immune to government interference or manipulation.

Cryptocurrencies are digital or virtual currencies underpinned by cryptographic systems. They enable
secure online payments without the use of third-party intermediaries. "Crypto" refers to the various
encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve
encryption, public-private key pairs, and hashing functions.

Cryptocurrencies can be mined or purchased from cryptocurrency exchanges. Not all ecommerce sites
allow purchases using cryptocurrencies. In fact, cryptocurrencies, even popular ones like Bitcoin,
are hardly used for retail transactions. However, the skyrocketing value of cryptocurrencies has made
them popular as trading instruments. To a limited extent, they are also used for cross-border transfers

Types of Cryptocurrencies:-
Bitcoin is the most popular and valuable cryptocurrency. An anonymous person called Satoshi
Nakamoto invented it and introduced it to the world via a white paper in 2008. There are thousands of
cryptocurrencies present in the market today.

Each cryptocurrency claims to have a different function and specification. For

example, Ethereum's ether markets itself as gas for the underlying smart
contract platform. Ripple's XRP is used by banks to facilitate transfers between different geographies.

Bitcoin, which was made available to the public in 2009, remains the most widely traded and covered
cryptocurrency. As of November 2021, there were over 18.8 million bitcoins in circulation with a total
market cap of around $1.2 trillion. Only 21 million bitcoins will ever exist.

In the wake of Bitcoin's success, many other cryptocurrencies, known as "altcoins," have been
launched. Some of these are clones or forks of Bitcoin, while others are new currencies that were built
from scratch. They include Solana, Litecoin, Ethereum, Cardano, and EOS. By November 2021, the
aggregate value of all the cryptocurrencies in existence had reached over $2.1 trillion—Bitcoin
represented approximately 41% of that total value.

RELATION BETWEEN CRYPTOCURRENCY AND BLOCKCHAIN:-

In simple terms, blockchain is a database of all crypto transactions done anywhere in the world at any
time. It's a system of storing information in a way that makes it nearly impossible to change, hack, or
cheat the system. A public ledger, blockchain distributes the information of all crypto transactions across
the network of all connected computers, so that everyone can view the data, including crypto mining and
trading. It does not have a central control or single authority.

Blockchain technology is not an option for Cryptocurrency but is a fundamental part of Cryptocurrency.
In the end, Blockchain and Cryptocurrency are linked via common origins. They are not of the same
calibre. However, when one is against the other, Blockchain beats Cryptocurrency. Blockchain is not
limited to the economic sector. It offers many solutions that will likely disrupt different markets over the
coming years. The terms are so interchangeable because when Blockchain was introduced as a database,
all Bitcoins were stored in a database. Blockchain was not known by its original name in 2009. It was
named because transactions were organized into blocks and then linked together using a mathematical
function that generates a hashcode.

Security:-
It's more complex than a traditional database created and maintained by a central authority, but
blockchains are more secure as no individual or entity can access the data without the appropriate
cryptographic private key, or without the owner's permission.The interesting idea was developed before
the crypto coins came into existence, but Bitcoin's popularity after it came into existence in 2009
skyrocketed it into the mainstream. While blockchain technology can be used to store any kind of data,
like medical and health information, it is being widely used for trading in cryptocurrency currently.
 COMPONENTS OF BLOCKCHAIN

Following are the components of a Blockchain network –

 NODE
 MINERS
 WALLET
 HASH FUNCTION
 PUBLIC KEY CRYPTOGRAPHY
 A PEER TO PEER NETWORK
 LEDGER

1) Nodes:-
A network of computers - the nodes - run a blockchain. They are constantly exchanging information on
new transactions and blocks. Nodes make up the infrastructure of the blockchain. A full node is a node
that maintains a copy of the blockchain. A light node does not keep a copy of the blockchain. The light
node must connect to a full node before it can interact with the blockchain, e.g., to send a transaction.
You could compare the distributed network of a blockchain to the infrastructure supporting your mobile
phone in this sense.

A full node is like a cell phone tower that your phone - the light node - is connecting to. All the antenna
stations (full nodes) are connected to each other and make up the communication network infrastructure.
If you want to make a call with your phone, you need to connect to a cell phone tower first, before you
can interact with any other mobile phone.

Similarly, in the distributed network of a blockchain, the full nodes are up and running most of the time
and make up the distributed network. They also maintain a copy of the entire blockchain. You are likely
to use a light node if you use a wallet on your phone or computer. In this case, you are going to connect
to a full node first before you can interact with the blockchain.
You can run a full node if you want to contribute to the stability and security of your network, but to use
cryptocurrencies, you don’t have to. Most wallets out there are light nodes, which meansthey store your
keys but don’t maintain a copy of the blockchain. With our flagship app Sphere by Horizen, you can
choose to run it as a full or light node.

2) Miners:-
Miners are nodes as well. They support the network by forwarding information and
maintaining a copy of the blockchain, just like all the other nodes. Additionally, the miners
are responsible for creating new blocks.
The purpose of miners for the network is the following: Each new block can be understood
as a collective decision on the history of the last few minutes. The network comes to
a consensus on the order of transactions for that time period. For Horizen, this time period is
2.5 min on average, for Bitcoin, it is 10 minutes.

Each miner has a slightly different block than the other miners. The difference is because it
takes some time for a new transaction to spread across the entire network, and different
miners might receive those transactions in a different order.
Miners have to solve a cryptographic puzzle to create a valid block. The miners start
working on a new block - and therefore new puzzle - immediately after the previous block is
added to the chain. They gather all the transactions on the network that have not been
included in a block yet and put them in their version of the next block.
 3) Wallet:-
Sometimes there is a little confusion about what a wallet can and cannot do, so we will start with what it
can’t. Wallets generally don’t allow you to buy cryptocurrencies; that is what exchanges are for. All
exchanges provide you with wallets to store your coins in after you buy them, but wallets usually don’t
provide you with an exchange service.

What a Wallet Does

A wallet is a program that has three main functions:

 Generating, storing and handling your keys and addresses

 Showing you your balance
 Creating and signing transactions to send funds
The first function is the main function and main differentiator of all wallets: generating, storing, and
handling your keys. As we said in the last article about identity in blockchain, having access to your
private keys means to be able to spend your money.

Where you store your keys determines the safety of your funds and, at the same time, the convenience of
using them. With wallets, there is usually a trade-off between security and convenience: Having some
funds on your mobile wallet (your smartphone) makes them easy to spend, but not very secure. Keeping
larger amounts of money on a hardware wallet is very secure, but not as convenient when you want to
spend it. In the Advanced Level, we explain the different types of wallets out there.

A wallet is an app for generating, managing, and storing cryptographic keys - your public and private
key. You can check your balance, receive, and send funds with a wallet.

The Different Types of Wallets

In this article, we want to give you an overview of what types of wallets there are and help you find the
right wallet for you.

4) Hash Functions:-
A hash function is a mathematical function with a few special properties but like any other function, it
does one job. The hash function takes an input and produces an output (also called hash value, hash
digest or simply hash).
The input doesn’t have to be a number, it can be any sort of data from a single character up to a large file
like a video. The output of a given hash function has a constant length no matter the input. There are
many hash functions out there and most of them carry the length of the output they produce in their
name.

One of the most commonly used hash functions is SHA256 (Secure Hash Algorithm 256 bit). The
number indicates the output of the hash function has 256 bit. A hash value can serve as a fingerprint of
data. One can verify the integrity of files and detect changes by comparing their hashes.

A cryptographic hash function must fulfill the following set of criteria to be viable for use in a
blockchain:

 One-wayness - It has to be easy to calculate an output from a given input but impossible to
calculate the input from a given output.
  Pseudorandom - A change in the input must result in an unforeseeable change of the output. If
the hash value of the input 2 was 4, the hash of 3 better not be 6.
 Collision-resistant - It should be hard (read impossible) to find two inputs to a hash function
producing the same output.
 Deterministic - A given input always needs to produce the same output

5) Public-Key Cryptography
Public-key cryptography is also known as asymmetric cryptography. The term asymmetric stems from
the property of keys always coming in pairs and them being used complementary. If you encrypt
something with one of the keys, you need the other one to decrypt it and vice versa. The keys are
called public key and private key (also spending key or secret key). Your keys translate to your identity
on the blockchain. You receive funds with your public key and send funds with your private key.

6) A Peer-to-Peer Network:-
You have probably come across the term Peer-to-Peer (P2P) network before, most likely in the context
of file-sharing services like BitTorrent. In a distributed P2P network the users don’t connect to a central
server to access a service but to many peers. The peers are other network participants and all of them
provide the service to each other. P2P networks are very resilient, as there is no single point of failure.

Blockchains make use of this concept and it is one reason why they are so robust. You will often hear
the attributes permissionless and censorship-resistant when reading about the value propositions of
public blockchains. The Peer-to-Peer network plays a significant part in giving blockchains these
properties.

7) Ledger:-
It is a digital database of information.  Here, we have used the term ‘digital’ because the currency
exchanged between different nodes is digital i.e cryptocurrency. There are three types of ledger.
They are –

i. Public Ledger – 
It is open and transparent to all. Anyone in the blockchain network can read or write
something.
ii. Distributed Ledger – 
In this ledger, all nodes have a local copy of the database. Here, a group of nodes
collectively execute the job i.e verify transactions, add blocks in the blockchain.
iii. Decentralized Ledger – 
In this ledger, no one node or group of nodes has a central control. Every node participates
in the execution of the job.

HISTORY AND BACKGROUND

1979-2007: Creation of blockchain and the early years

Many of the technologies on which blockchain is based were in the works long before bitcoin appeared.
One of these technologies is the Merkle tree, named after computer scientist Ralph Merkle. Merkle
described an approach to public key distribution and digital signatures called "tree authentication" in his
1979 Ph.D. thesis for Stanford University. He eventually patented this idea as a method for providing
digital signatures. The Merkle tree provides a data structure for verifying individual records.

But Merkle was not the only one to help set the stage for blockchain. David Chaum described a vault
system for establishing, maintaining and trusting computer systems by mutually suspicious groups in his
1982 Ph.D. dissertation for the University of California, Berkeley. This was a system that embodied
many of the elements that make up a blockchain. Chaum is also credited with inventing digital cash, and
in 1989, he founded the DigiCash corporation.

In 1991, Stuart Haber and W. Scott Stornetta published an article about timestamping digital documents.
The article proposed a solution for preventing users from backdating or forward-dating electronic
documents. The goal was to maintain complete privacy of the document itself, without requiring record-
keeping by a timestamping service. In 1992, Haber and Stornetta updated the design to incorporate
Merkle trees, which enabled multiple document certificates to live on a single block.

During these early years, there was plenty of other activity that also helped make blockchain possible.
For example, this era saw the rise of the P2P network, a concept popularized in 1999 by the now defunct
Napster. Some would argue that Napster was not a true P2P network because it used a centralized
server. However, the service still helped breathe life into the P2P network, making it possible to build a
distributed system that could benefit from the compute power and storage capacity of thousands of
computers.
The concept of proof-of-work (PoW) was also introduced in this era to verify computational effort and
deter cyberattacks. This gave way to hashcash, a PoW algorithm that provides denial-of-service counter
measures. Adam Back introduced hashcash in 1997 to limit email spamming.

Then, in 2004, Hal Finney introduced reusable PoW, a mechanism for receiving a non-exchangeable --
or non-fungible -- hashcash token in return for an RSA-signed token. The PoW approach plays a vital
role in bitcoin mining.

2008-2009: Bitcoin and blockchain get their start

In 2008, Satoshi Nakamoto published a white paper introducing the concepts behind bitcoin and
blockchain. Nakamoto is thought to be a pseudonym used by the individual -- or group of individuals --
who proposed the technology. Blockchain infrastructure would support secure, peer-to-peer transactions
without the need for trusted third parties such as banks or governments, according to white paper.
Nakamoto's true identity remains a mystery, but there has been no shortage of theories.

The bitcoin/blockchain architecture introduced in 2008 built on technologies and concepts from the
previous three decades. Nakamoto's design also introduced the concept of a "chain of blocks." This
made it possible to add blocks without requiring them to be signed by a trusted third party. In fact,
Nakamoto defined an electronic coin as a "chain of digital signatures," where each owner transfers the
coin to the next owner. According to his white paper, this is done by "digitally signing a hash of the
previous transaction and the public key of the next owner and adding these to the end of the coin."

But Nakamoto's white paper was just the beginning. In 2009, bitcoin went from concept to reality.

 Jan. 3, 2009. Nakamoto mined the first bitcoin block, validating the blockchain concept. The block
contained 50 bitcoins and was known as the Genesis block -- aka block 0.

 Jan. 8, 2009. Nakamoto released Bitcoin v0.1 to SourceForge as open source software. Bitcoin is
now on GitHub.

 Jan. 12, 2009. The first bitcoin transaction took place when Nakamoto sent Hal Finney 10 bitcoin in
block 170.

 Oct. 12, 2009. The #bitcoin-dev channel was created on Internet Relay Chat for bitcoin developers.
 Oct. 31, 2009. The first bitcoin exchange -- Bitcoin Market -- was established, enabling people to
exchange paper money for bitcoin.

 Nov. 22, 2009. Nakamoto launched the Bitcointalk forum to share bitcoin-related news and
information.

Nakamoto set up the system so there would never be more than 21 million bitcoin. More than 18 million
have already been mined. Based on the current rate of mining, bitcoin should reach the 21-million limit
sometime around 2140. In the meantime, their value continues to grow, despite continuous fluctuations
in price. In October 2009, a bitcoin was worth less than 1 cent. Today, each bitcoin is worth more than
$35,000 (USD).

2010-2012: Bitcoin and cybercurrency take hold

On May 22, 2010, bitcoin made history when Laszlo Hanyecz paid 10,000 bitcoin for two Papa John's
pizzas. The pizzas were valued around $25, a trade that would now be worth more than $350 million.

Not long after, a programmer named Jed McCaleb launched Mt. Gox, a Tokyo-based bitcoin exchange.
Mt. Gox was short for Magic: The Gathering Online eXchange -- a carryover from a fantasy card game.
At its peak, Mt. Gox handled more than 70% of all bitcoin transactions. But in August 2010, a hacker
exploited a bug in the blockchain code and created more than 184 billion bitcoin in block 74,638,
tarnishing bitcoin's reputation. Nakamoto published a new version of the bitcoin software, but by the end
of the year, he disappeared from the bitcoin scene completely.

Despite Nakamoto's disappearance, the bitcoin trajectory continued at a steady pace. By the end of
January 2011, one-quarter of the 21 million bitcoin had been mined. And by early February 2011, the
value of a bitcoin was equal to the U.S. dollar. Shortly thereafter, Jed McCaleb sold

Mt. Gox to Mark Karpelès. And soon after that, bitcoin reached parity with the Euro and British Pound
Sterling. Later that year, WikiLeaks started accepting bitcoin donations. However, Mt. Gox was hacked
and bitcoin was stolen, causing an artificial drop in value and resulting in suspension of trading. Then in
October 2011, Litecoin was released, representing one of the earliest bitcoin spinoffs.
By 2012, the taste for cryptocurrencies was well established. The bitcoin price hovered around $5 for
most of the year, with many fluctuations up and down. Early that year, Mihai Alisie and VitalikButerin
launched Bitcoin Magazine and published their first issue in May. The Bitcoin Foundation was also
established to promote bitcoin and improve public perceptions.

That same year, Coinbase raised more than $600,000 in its crowd-funded seed round, leading the way to
become one of the top bitcoin exchanges. In addition, Chris Larsen and Jed McCaleb founded
OpenCoin. This led to the development of the Ripple transaction protocol for currency transactions and
real-time payments.

2013-2015: Ethereum and blockchain rise to fame

When 2013 arrived, bitcoin was well-established and continued on its upward trajectory. In February,
Coinbase reported selling $1 million worth of bitcoin in a single month at more than $22 each. By the
end of March, with 11 million bitcoin in circulation, the currency's total value exceeded $1 billion. And
in October of that year, the first bitcoin ATM launched in Vancouver, B.C.

But it wasn't all good news for digital currency. Both Thailand and China banned cryptocurrencies. The
U.S. Federal Court seized Mt. Gox's funds in the U.S. And the FBI shut down Silk Road, confiscating
26,000 bitcoin.

Despite these setbacks, one of the most important events in blockchain's history occurred. Vitalik
Buterin, co-founder of Bitcoin Magazine, published a white paper that proposed a decentralized
application platform. This led to the creation of the Ethereum Foundation, which launched in 2014.
Ethereum paved the way for blockchain technology to be used for purposes other than crypto currency.
It introduced smart contracts and provided developers with a platform for building decentralized
applications.

The year 2014 was a turning point for blockchain, as financial institutions and other industries began to
recognize and explore its potential, shifting their focus from digital currency to the development of
blockchain technologies.
But this didn't push bitcoin out of the limelight. The UK tax authority classified bitcoin as private
money. The Mt. Gox bitcoin exchange filed for bankruptcy. And the Bitcoin Foundation vice chairman
was arrested for money laundering. Even still, several companies accepted bitcoin by the year's end,
including the Chicago Sun-Times, Overstock.com, Microsoft, PayPal and Expedia. Bitcoin's acceptance
only added fuel to the blockchain fires.

In 2015, the Ethereum Frontier network launched, enabling developers to write smart contracts and
decentralized apps that could be deployed to a live network. Ethereum was on its way to becoming one
of the biggest applications of blockchain technology. It drew in an active developer community that
continues to this day.

But other important events also occurred that year. NASDAQ initiated a blockchain trial. The Linux
Foundation launched the Hyperledger project. And nine major investment banks joined forces to form
the R3 consortium, exploring how blockchain could benefit their operations. Within six months, the
consortium grew to more than 40 financial institutions.

2016-present: Blockchain goes mainstream

Today, a growing number of industries view blockchain as a valuable technology -- separate from
bitcoin or other cybercurrencies. Despite this trend, however, each year from 2016 to present had its ups
and downs.

2016

 The word blockchain gained acceptance as a single word, rather than being treated as two concepts,
as they were in Nakamoto's original paper.

 The Chamber of Digital Commerce and the Hyperledger project announced a partnership to
strengthen industry advocacy and education.

 A bug in the Ethereum decentralized autonomous organization code was exploited, resulting in a
hard fork of the Ethereum network.

 The Bitfinex bitcoin exchange was hacked and nearly 120,000 bitcoin were stolen -- a bounty worth
approximately $66 million.
2017

 Bitcoin hit a record high of nearly $20,000.

 Japan recognized bitcoin as legal currency.

 Seven European banks formed the Digital Trade Chain consortium to develop a trade finance
platform based on blockchain.

 The Block.one company introduced the EOS blockchain operating system, designed to support
commercial decentralized applications.

 Approximately 15% of global banks used blockchain technology in some capacity.

2018- 2019

 Bitcoin turned 10 this year.

 Bitcoin value continued to drop, ending the year at about $3,800.

 The online payment firm Stripe stopped accepting bitcoin payments.

 Google, Twitter and Facebook banned cryptocurrency advertising.

 South Korea banned anonymous cryptocurrency trading but announced it would invest millions in
blockchain initiatives.

 The European Commission launched the Blockchain Observatory and Forum.

 Baidu introduced its blockchain-as-a-service platform.

2020

 Walmart launched a supply chain system based on the Hyperledger platform.

 Amazon announced the general availability of its Amazon Managed Blockchain service on AWS.

 Ethereum network transactions exceeded 1 million per day.

 Blockchain research and development took center stage as organizations embraced blockchain
technology and decentralized applications for a variety of use cases.
2021

 Nearly 40% of respondents incorporated blockchain into production, and 55% viewed blockchain as
a top strategic priority, according to Deloitte's 2020 Global Blockchain Survey.

 Ethereum launched the Beacon Chain in preparation for Ethereum 2.0.

 Stablecoins saw a significant rise because they promised more stability than traditional
cybercurrencies.

 There was a growing interest in combining blockchain with AI to optimize business processes.

Throughout these five years, there was a growing interest in using blockchain for applications other than
cybercurrency. This trend continues into 2021 as governments and enterprises look to blockchain to
handle a variety of use cases. This includes voting, real estate, fitness tracking, intellectual rights, the
internet of things and vaccine distribution. Moreover, multiple cloud providers now offer blockchain as
a service, and the demand for qualified blockchain developers is greater than ever.
 LET’s SEE

HOW

BLOCKCHAIN TECHNOLOGY

WORKS ?

Blockchain works via a multistep process, which in simple terms happens as follows:

1. An authorized participant inputs a transaction, which must be authenticated by the

technology.

2. That action creates a block that represents that specific transaction or data.

3. The block is sent to every computer node in the network.

4. Authorized nodes verify the transaction and add the block to the existing blockchain. (Nodes
in public blockchain networks are referred to as miners; they're typically paid for this task --
often in a process called Proof of Work, or PoW -- usually in the form of cryptocurrency.)

5. The update is distributed across the network, which finalizes the transaction.

These steps take place in close to real time and involve a range of elements. Figure 1 shows the block
creation and verification steps in more detail.
For example:- Say that company X wants to send money to company Y to pay an outstanding invoice
related to the purchase of software (Exhibit 1). Company X inputs the transaction in the database,
thereby creating a block. The block (or transaction) is broadcasted to every authorized member of the
network. Once all the members validate the transaction (i.e., approve the payment) a block is then added
to the chain of transactions, which provides an immutable and transparent record of the transaction. The
money is then transferred from company X to company Y, and the transaction is complete. The security
of the blockchain prevents a hacker from acting as an authorized member of the network.

Exhibit 1

A Blockchain Transaction
All transactions are replicated across the network of users and then stored in each member’s computer
system, enabling a distributed ledger—which may be shared across numerous locations, organizations,
or countries.

 A blockchain ledger consists of two types of records, individual transactions and blocks. The first block
consists of a header and data that pertain to transactions taking place within a set time period. The block's
timestamp is used to help create an alphanumeric string called a hash.

 After the first block has been created, each subsequent block in the ledger uses the previous
block's hash to calculate its own hash.
 Before a new block can be added to the chain, its authenticity must be verified by a
computational process called validation or consensus. At this point in the blockchain process, a
majority of nodes in the network must agree the new block's hash has been calculated correctly.
Consensus ensures that all copies of the blockchain distributed ledger share the same state.
 Once a block has been added, it can be referenced in subsequent blocks, but it cannot be
changed.
 If someone attempts to swap out a block, the hashes for previous and subsequent blocks will also
change and disrupt the ledger's shared state.
 When consensus is no longer possible, other computers in the network are aware that a problem
has occurred and no new blocks will be added to the chain until the problem is solved.

 Typically, the block causing the error will be discarded and the consensus process will be repeated.

ROLE OF BLOCKCHAIN IN FINANCIAL SECTOR

The financial sector is the backbone of every country's economy. It is the key force behind a
country's GDP (Gross Domestic Product), and GNP (Gross National Product). Banks, stock exchanges,
and insurance are some industries that are leveraging the power of blockchain to improve the efficacies
of the working system.While banks are using blockchain’s technology to maintain a smart ledger
system, insurance companies are focusing on quick settlement of claims via the decentralized blockchain
system.

Blockchains are new technology layers that rewire the Internet and threaten to side-step older legacy
structures. Trust resides at the core fabric of the blockchain network which has the ability to potentially
remove intermediaries or disrupt their current operating models. This revolutionary and simple protocol
allows transactions to be simultaneously and securely maintained utilizing a decentralized public or
private ledger.

Blockchain framework has the ability to virtually record everything of value and will challenge and
disrupt present centralized business models and the financial services sector – no doubt.

The present financial system is very complex and that complexity creates risks. A newly decentralized
blockchain financial system made possible with the use of cryptocurrencies (Bitcoin, Ether, future
Crypto $ | £ | €…) could be much simpler by removing layers of intermediation. This could help
increase cooperation between banks and engrave trust & integrity at the core of the new blockchain
financial system. Furthermore, the opportunity to reduce systemic risk will emerge by moving towards a
tamper-proof decentralized public/private ledgers where a single version of the truth will triumph.

By moving money in different ways could open up the possibility for different types of financial
products. We could see financial inclusion increasing across the world as a result of the new blockchain
financial system. New digital currencies will bridge individuals who are currently excluded to the new
financial system, lower barriers to entry and enable greater competition.
Fintech and startup hipsters are already experimenting and successfully cracking the blockchain code,
while banks are jumping on the game too as their core business model is continuously being disrupted.
We can see collaboration forming between hipsters and suits,

where thirty banks, tech giants, and other organizations are getting behind Ethereum (a decentralized
computing network based on digital currency) forming Enterprise Ethereum Alliance. Big business
giants such as Accenture, Banco Santander, BNY Mellon, Intel, JP Morgan, Microsoft, BBVA, BP,
Credit Suisse, Fubon Financial, ING, Thomson Reuters, UBS, BNP Paribas, Cisco are uniting to build
business-ready versions of the software behind Ethereum.
Below are some of the areas that will be disrupted by the new “Blockchain Financial System”:

 Authenticating Identity and Value – At present trust and identity verification is done by
intermediaries and incumbents. Blockchain will shift or even eliminate the trust element to the core
fabric of the network. Know Your Customer KYC will be performed as a single digital entry and
cryptographically secured and distributed across the network eliminating duplicate entries and
verification. Key stakeholders that would be affected by this innovative solution are retail banking,
wholesale banking, investment banking, asset managers, broker-dealers, payment networks, lending
marketplaces, equity crowdfunding, regulators and auditors.
 Distribution of Value – They say money makes the world go round…can blockchain do the same?
The financial system moves trillions of dollars daily while ensuring that no single dollar is spent
twice. Blockchain can be the standard going forward using smart contracts for the distribution of
value be it assets, currency, bonds, diamonds, gold, silver, stocks…The distribution of value using
blockchain technology will dramatically reduce cost, the speed of payment and counterparty risk as
transactions get verified and cleared instantly.
 Storage of Value – Banking institutions are the custodians of value (commodities, currency,
financial assets) for individuals, institutions and governments. Blockchain and payment mechanisms
combined with permissioned blockchain decentralized cloud storage systems (like YottaCube.io)
would be a more efficient way of storing financial assets minimising cybersecurity risks.
 Lending Value – Since the financial crisis, the lending business has seen a significant amount of
disruption with marketplace lending providers such as Prosper, Lending Club, Funding
Circle spearheading innovation in the alternative finance space. Debt can be issued, traded and
settled on the blockchain which will increase efficiency, reduce frictions and improves systemic risk.
Consumers and SMEs will use their digital reputation fingerprint to access loans from peers.

 Exchanging Value – Financial markets facilitate trillions of dollars of financial assets daily. The
introduction of blockchain within this segment will reduce the transactions settlement times
significantly from days and weeks to minutes and seconds.
 Funding and Investing – The present investing model requires intermediaries to create markets by
matching investors with entrepreneurs, SMEs and enterprises at every stage of growth from angels to
IPOs. This funding model requires intermediaries such investments bankers, venture capitalists,
brokers, lawyers which can have high costs attached. The funding and investing space have seen
disruptive business models emerging such as equity crowdfunding and mini IPOs, similar to the
lending landscape.
 Insuring Value and Managing Risk – Risk management is a fundamental component of the
financial system. Ensuring the protection of individuals and enterprises from losses or catastrophe
has been the bread and butter within the system for decades. Managing risk by using blockchain
reputational systems to better protect assets, derivatives instruments, and business property will
increase transparency and efficiency.
 Finance for Value – Finance activities will see a transformation culture shift. Moving from focusing
on manual and heavy lifting transactional activities to a more finance advisory role by identifying
and adding value to senior management and organization as a whole.
 Accounting – Digitalization of the accounting system is still in its infancy compared to other
industries, some of which have been massively disrupted by the advances of technology. With
the introduction of blockchains and Distributed Ledger Technology (DLT) accounting activities
within the finance functions will see a shift from double entry
accounting to a triple entry one. Blockchain technology enables complete, conclusive verification
without a trusted party, all financial records reside in the blockchain for everyone to see and
verify. Blockchain technology may represent the next step for accounting: Instead of keeping
separate records based on transaction receipts, companies can write their transactions directly
into a joint register (DLT), creating an interlocking system of enduring accounting records.

 Audit – Modern financial accounting is based on a double entry system. Double entry

bookkeeping requires the trust of outsiders, independent public auditors to verify the company’s
financial information. Each audit is a costly exercise, binding the company’s accountants for
long time periods. The Blockchain as a source of trust can also be extremely helpful in today’s
accounting structures. By using a digital fingerprint which is
immutably time-stamped and tampered-proof when recording transactions in the blockchain,
eventually it will remove the need for external auditors. The blockchain will bring transparency
 and trust so the actual network becomes the auditors and the watchdog ensuring financial
integrity.
 Reconciliations – The reconciliations process is the monthly control that ensures balance sheet
integrity within a finance function. The introduction of Distributed Leger Technology will enable
reconciliation and payment to be performed instantly which will reduce counterparty risk,
operational risk, credit risk.
 Reporting & Regulatory Requirements – The distributed ledger would represent a “single
version of the truth” on all financial institutions’ reporting. All transaction data will be readily
available to the trade repositories and regulators in a unified form and there will no longer be any
need for time-consuming reconciliation with the use of smart contracts the quality and
transparency of reported transaction data will increase and the reporting costs substantially
reduced. Blockchain would bring an improved, simplified and increased efficiency to regulatory
reporting. The collection, consolidation and sharing of data will be done from a single source,
automatically and in real time.
 Big Data Value – There are plenty of reasons to gather large amounts of information, especially
in real time. The ability to identify trends, track data from its source to its endpoint, and making
inferred correlations between data points is highly sought after. The introduction of distributive
ledger technology within the financial system would be extremely beneficial while monitoring
information for security and reporting purposes.
Also reporting any suspicious activities to the appropriate authorities for matters of national
security and AML.
 Cybersecurity – Hackers can shut down entire networks, tamper with data, lure unwary users
into cyber traps, steal and spoof identities, and carry out other devious attacks by leveraging
centralized repositories and single points of failure. Blockchains can increase security by
blocking identity theft, preventing data tampering, and stopping denial of ????????

The Future Blockchain Financial System is here…let’s make it a reality!

In the finance industry, this underlying technology allows the transfer of currency with confidence that
the transaction is secure and reliable.

The benefits of blockchain come from the following properties:

 Distribution: Numerous copies of the ledger exist throughout the network. Each time a new
transaction and block are added, everyone within the network receives a copy. No single entity
controls the ledger, but the system is designed to provide everyone with the same information.
 Immutability: A blockchain provides an accurate, chronological history of transactions.
Because each person within the network has a copy, it’s nearly impossible to alter or erase
transactions or to add information that hasn’t been verified. Doing so successfully would require
a coordinated attack on hundreds – or even hundreds of thousands – of computers
simultaneously, which is unlikely.

These features have many obvious benefits for the banking and finance industries. Here are some ways
businesses are harnessing the power of blockchain:

 Money transfers:-Transferring money to other countries presents many problems and

challenges for consumers and financial institutions. People send billions of dollars internationally
each year, and the process is usually expensive, laborious, and error prone.Blockchain can
change all that. Many major banks have adopted international payments with blockchain
technology, which saves time and money. Consumers can also use blockchain money transfers to
complete electronic transfers with mobile devices, avoiding the cumbersome process of visiting a
money transfer facility, standing in line, and paying fees for a transaction.
 Inexpensive, direct payments:-Most funds move through financial institutions, such as
banks or credit card processing centres. Each of these steps adds a layer of complexity, along
with fees that can become costly.

The benefits of blockchain-based transfers for merchants include:

  Reduced fees:When customers pay with a credit card, merchants pay processing fees that cut
into profit. Blockchain payments reduce or eliminate fees by streamlining the transfer process.
 Eliminated insufficient funds: Consumers sometimes pay for goods or services with a bad
cheque, which causes a loss and additional fees for merchants, as well as the possibility of a legal
hassle to recover. Blockchain-based payments can give merchants the confidence of knowing
that the transaction is good within a few seconds or minutes.

The benefits of blockchain-based transfers for individuals include:

 Fewer scams:Online scams are a concern for many individuals, but blockchain-based
payments are quick and reversible. They’re also less expensive than using banking services,
especially for pricey items.
 Less time and money: The safest payment methods are cash, wire transfers, and cashier’s
cheques, but cash is untraceable, wire transfers are time-consuming, and cashier’s cheques can
be forged. With blockchain-based payments, all of these issues are removed for greater
confidence.

Transaction details:-
Money transfers aren’t the only way blockchain can revolutionise banking. Blockchain is an excellent
method of tracking transactions and ensuring accurate, secure information, such as:
1. Title details: A distributed ledger is nearly impossible to alter, making it easier to track
ownership. Transfers of ownership and liens can refer to the ledger to verify the information, so
there’s more trust.
 Smart contracts: Transactions can be costly, complex, and time-consuming, but blockchain
offers an opportunity for automation. Smart contracts can track when a buyer pays and when the
seller delivers, as well as address any problems that come up during the process. Automated
systems also reduce human error and work 24/7.
 Financial inclusion:-Blockchain’s low costs give startups a chance to compete with major
banks, promoting financial inclusion. Many people are looking for an alternative to banks
because of restrictions like minimum balance requirements, low access, and banking fees.
Blockchain can provide an alternative that uses digital identification and mobile devices, free
from the hassle of traditional banking.
 CHAPTER-2

LITERATURE REVIEW
 LITERATURE REVIEW

This section will present the current literature and state of the art in the area of blockchain. This
literature overview have been gathered using both academic search engines such Google Scholar and
IEEExplore. The articles have been found on search and indexing terms such as: blockchain, blockchain
applications, blockchain survey, blockchain consensus, bitcoin, bitcoin survey, etc. The articles found in
these searches have been limited to only include the most cited articles, which for example included
articles with more than 70 citations as of December 2018 according to Google Scholar. We have also
studied which articles that cite these articles to include chains of citations. Finally, we have divided the
articles into categories based on their content and specific blockchain area. These categories are:
• Textbooks, Surveys Articles, and General Reports
• Articles that Analyze Blockchain Technology
• Articles on Blockchain Improvements and Variant
• Articles on Different Blockchain Applications
• Articles Discussing the Future of Blockchains

Wimmer et al, (2021) this research explores the current innovative blockchain usage, structure,
generations, and energy consumption. An energy consumption comparison for consensus protocols is
provided along with a list of recommendations for implementing green blockchains. This paper provides
a significant impact upon previous literature and aids organizations considering implementing a green
blockchain.

Shaik et al, (2021)The main concept of this paper is to define the modernization of traditional process
and service industries, organization of trading and procurement procedure, related financial and
logistical operation, change in the structure of consumption associated with the information technologies
and digitalization of economic processes that creates the basis for formation of new markets conditions.
Currently the digital economy is included in the list of the main aspects of the strategies development in
Russia and many foreign countries. The block chain is a technology that is at the top of entire digital
economy.
Leng et al (2020) To address this research gap from the perspective of information systems, we review
blockchain security research in three levels, namely, the process level, the data level, and the
infrastructure level, which we refer to as the PDI model of blockchain security. In this survey study, we
first examine the state of blockchain security in the literature. Based on the insights obtained from this
initial analysis, we then suggest future directions of research in blockchain security, shedding light on
urgent business and industrial concerns in related computing disciplines.

Dymek (2019) The main goal of research was to investigate to what extent computer science students
are familiar with blockchain technology (BC). The survey was conducted among the students of Cracow
universities. In order to analyze deeply the results of the survey, indicators of the knowledge factor and
the usage factor were developed to assess knowledge and usage of BC respectively. The main findings
point out to the popular internet portals and conversations with other people as the main sources of
information on BC for students. Students are less likely to obtain their information from university
classes and lectures, television, radio, and other media. The percentage of active BC users almost
doubles the percentage of respondents having specialized knowledge, therefore the relationship between
knowledge and usage of BC is rather weak. Traditional banking and trade are the most frequently
indicated areas of BC applications by the respondents.

Dr. V Suma (2019) this paper also presents the security and the privacy mechanism using the block
chain to prevent the misuse and the corruption in the sharing of huge set of data generated from the
judiciary, security, legislature, commercial code registries etc. The proposed system enables reliability
and the trust in the data sharing in the communication channels utilizing the block chain with the RSA
digital signature. The proposed system is simulated as a java programming version to evince the
enhancement in the latency in the sharing of the information’s along with the privacy and the security.

Zheng et al (2018) through this paper gives the blockchain taxonomy, introduces typical blockchain
consensus algorithms, reviews blockchain applications and discusses technical challenges as well as
recent advances in tackling the challenges. Moreover, this paper also points out the future directions in
the blockchain technology.

Tapscott and Tapscott (2016) focuses on the revolution that blockchain technology brings, explaining
the change, transformation, and digitization coming with blockchain technologies. The book primarily
explains this from a business and economics perspective, using many historical quotes to put the
blockchain revolution into historical context. But also highlight the importance of individuals,
technology, and economic forces. Finally, the book ends with a look into different promises and perils of
using the technology, including privacy, leadership, and future challenges.

Swan (2015) This book gives a good overview of the usage of blockchains and bitcoin as whole. As
well as outlines three different versions of blockchain. Blockchain 1.0, 2.0, and 3.0. Where 1.0 can be
seen as the currency, such as the original Bitcoin idea by Nakamoto. Where the blockchain is a method
for a cryptocurrency, which also incorporates its own generation of the cryptocurrency as payments for
the proof-of-work that has been done. Blockchain 2.0 is the next step into contracts. Meaning that it can
be used for so much more than just currency in the finance world. It can for example be used in digital
contracts, stocks, bonds, loans, smart contracts, smart properties, etc.

Miller et al. (2015) focuses on research issues on the stability of Bitcoin. Including stability problem of
the validity rules, the consensus protocol, mining pools, and the peer to peer layer. The article also
highlight problems with client side security, different modifications to bitcoin, alternative consensus
methods, and alternative puzzles.

Nakamoto (2008) though the paper was published as a non peer reviewed white paper, it is one of the
most cited works in the blockchain research area. The paper itself is short and does not include so many
details. It primarily presents the overall idea and structure. Details on the solution, the specific
technologies, and the exact properties on how the bitcoin system would be implemented is not included.
Another interesting note, is that Satoshi Nakamoto never mentions the term blockchain specifically in
his paper. But he does talk about chains of blocks, proof-of-work chains, and lengths of chains.
 CHAPTER-3

RESEARCH METHODOLOGY
 RESEARCH OBJECTIVES

1. To understand the mechanism of blockchain.

2. To know the awareness level of blockchain technology.
3. To assess the security level of transaction done through block chain technology.
4. To analyze the current scenario of cryptocurrency in India.
 RESEARCH METHODOLOGY

Research is common refers to search for knowledge. It is the pursuit of truth with the help of study,
observation, composition and experiment. Research methodology is a systematic way to solve the
research problems. It helps in studying the various steps that are adopted by the researcher to study the
research problems along with the logic behind the It describe mail what must be done, how will be done.
What data will be needed and how the data will be analyzed.

Research Process

1
OBSERVATION
Broad area of
research interest
identified

3
PROBLEM
DEFINITION 4 5 7
Research THEORETICAL GENERATION 6 DATA COLLECTION,
Problem FRAMEWORK OF HYPOTHESES SCIENTIFIC RESEARCH DESIGN ANALYSIS AND
Delineated INTERPRETATION

Variables clearly
identified and
labeled

8
DEDUCTION
2 Hypotheses
PRELIMINARY substantiated?
DATA GATHERING Research
Interviewing question
Literature Survey answered?
NO Yes

11
9 10 Manager
Report Report ial
writing Presenta decision
tion making

To test the research model empirically a quantitative method was applied, and primary data were
collected by online questionnaire (appendix A). This research basically is conducted to know the
awareness among the general people about blockchain.
 RESEARCH DESIGN

A research is the arrangement of the conditions for the collections and analysis of the data in a manner
that aims to combine relevance to the research purpose with economy in procedure. In fact, the research
is design is the conceptual structure within which research is conducted; it constitutes the blue print of
the collection, measurement and analysis of the data. As search the design includes an outline of what
the researcher will do from writing the hypothesis and its operational implication to the final analysis of
data.

The researcher has used the following framework of research design.

Purpose of Study Hypothesis study

Type of Investigation Causal

Study Setting Non Contrived

Time Horizon Cross-Sectional

Measurement Data is collected from a Questionnaire and also

with secondary data
Purpose of the Study:- The purpose of the study is Hypothesis Testing and assist in explaining the
awareness among the general people about the blockchain.

Type of Investigation: The present study is Causal because the researcher has attempted to find out the
awareness of blockchain in general people.

Time Horizon:-The study is Cross-Sectional as the data has been collected at one time duration.

Study Setting:-The study setting is Non-Contrived as the study has been carried out in natural
environment and no researcher interference has been there in data collection.

Measurement &Scaling:-Data is collected from a online questionnaire and also with secondary data
 SAMPLE AND SAMPLING DESIGN

Sampling is the process of selecting a sufficient number of elements from the population, so that a study
of the sample and an understanding of its properties or characteristics would make it possible for us to
generalize such properties or characteristics to the population elements.
A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the
technique or the procedure that is adopted in selecting the sampling units from which inferences about
the population is drawn. Sampling design is determined before the collection of the data.
Several decisions have to be taken in context to the decision about the appropriate sample selection so
that accurate data is obtained and efficient results are drawn.

 Target Population : Unknown

 Sample Unit : General public

 Sampling Size : 186 Respondents

 Sampling Technique : Convenience Sampling

 Sampling Area : India

 DATA COLLECTION

After the research problem has been identified and selected the next step is to gather the requisite data.
While deciding about the method of data collection to be used for the researcher should keep in mind
two types of data viz. primary and secondary.
Research Methodology is the most investigated approach. Research refers to the collection of the
requisite information regarding the topic. The information for the study is collected from both Primary
and Secondary sources for the achievement of objects.

In the present study researcher has made use of the primary data which has been collected through
questionnaire along with the secondary data which has been collected from company’s website and from
their records, books, magazines, newspapers and journals.
 DATA ANALYSIS METHOD

The systematic application of statistical and logical techniques to describe the data scope, modularize
the data structure, condense the data representation, illustrate via images, tables, and graphs, and
evaluate statistical inclinations, probability data, and derive meaningful conclusions known as Data
Analysis. These analytical procedures enable us to induce the underlying inference from data by
eliminating the unnecessary chaos created by its rest. Data generation is a continual process; this makes
data analysis a continuous, iterative process where the collection and performing data analysis
simultaneously. Ensuring data integrity is one of the essential components of data analysis.

In this research the data is analysis with the help of table and graph and with the help of this data is
interprete and results and findings are drawn.
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Data collected using questionnaire which is filled by 186 respondent.

Question: 1) Age of Respondent?

AGE NO. OF RESPONDENT

BELOW 18 12
18-30 162
30-40 6
ABOVE 40 6
 180
162
160
140
120
100
80
60
40
20 12
6 6
0
0-18 18-30 30-40 Above 40

No. of Respondent

Interpretation:-A total of 186 people responded to the survey. There were 12 respondents under the age
of 18, 162 respondents between the ages of 18 and 30, six respondents between the ages of 30 and 40,
and six students beyond the age of 40. It is deduced that the majority of respondents are between the
ages of 18 and 30.

Question; 2) Occupation of respondent?

Occupation Age of respondent

Student 125
Self Employed 23
Business 10
Service 25
Other 3
 140
125
120

100

80

60

40

23 25
20
10

0
Student Self Employed Business Service
Age of respondent Occupation

Interpretation: As a result, answer given by the respondent the majority of the respondents were
students. There are 125 students, 23 self-employed individuals, 10 business owners, 25 service workers,
and three others. As noted in the preceding question, the majority of respondents are between the ages of
18 and 30, and the majority of them are students.

Question: 3) Do you have knowledge about blockchain?

Yes/No No. of Respondent

Yes 116

No 70
 Total 186

No. of Respondent

37.64%
62.36% Yes
No

Interpretation: Out of 186 respondents, 116 have some understanding of blockchain technology. And
70 people haven't heard anything about blockchain technology yet. The blockchain technology is well-
known by 62.36 percent of respondents. This indicates that a larger proportion of respondents are
familiar with blockchain technology.

Question: 4) Have you heard that cryptocurrencies are based on blockchain technologies?

No. of Respondent
Yes 121
No 38
May be 27
Total 186
 No. of Respondent
140

120

100

80 No. of Respondent

60

40

20

0
Yes No May be

Interpretation:-Out of the 186 people that responded to the survey, 121 had an excellent
comprehension of bitcoin and blockchain technology. 38 individuals replied no, and 27 stated they had
no idea what the relationship between blockchain and cryptocurrency is, or that bitcoin is based on
cryptocurrency technology. Cryptocurrencies are really popular at the moment.
Question: 5) Have you ever traded in cryptocurrency?

No. of Respondent
Yes 57
No 129
Total 186

No. of Respondent

30.65
69.35% % Yes
No

Interpretation:-Only 57 people have traded cryptocurrencies out of the entire number of people who
responded. 69.35% of the market capitalization has yet to be transacted in cryptocurrency. It appears that
the majority of individuals are unfamiliar with bitcoin trading. In nations such as India, the government
has taken steps to promote cryptocurrency.
Question: 6) If yes, from how long you are trading in cryptocurrency.

Years No. of Respondent

Less than a year 33

More than a year 17

More than two years 6

Other 1

Total 57

No. of Respondent
Less than a year More than a year
More than two years Other
2%

11%

30% 58%

Interpretation:The last question had 186 responses, with 57 respondents trading in cryptocurrency for
less than a year, 30% trading for more than a year, 10% trading for more than two years, and only 2%
trading for more than 5 or 6 years from the other category. It suggests that the crypto currency trend in
India has lately started, and people are beginning to trade in crypto.
Question: 7) Do you know various types of cryptocurrencies?

Yes/No No. of Respondent

Yes 107
No 79
Total 186

No. of Respondent
Yes No

42%

58%

Interpretation: Because most individuals know about cryptocurrency in today's world, 58 percent of
overall respondents are well informed about the various varieties of cryptocurrency. Cryptocurrency was
debated in parliament recently as part of the budget process.
Question: 8) I would rate my knowledge of blockchain-technologies as follows
(0 = no knowledge | 7 = very high knowledge)

Knowledge level No. of Respondent

0 42

1 24

2 30

3 26

4 28

5 19

6 2

7 15

Total 186
 45
40 42
35
30
30
25 28
26
24
20
19
15
15
10
5
0 2
0 1 2 3 4 5
6 7
No. of Respondent

Interpretation: The question was answered by 186 people, the majority of whom had little awareness
of blockchain technology. As indicated in the table, 42 people (22 percent) had no knowledge of
blockchain technology. Only 8% of people have a thorough understanding of blockchain technology.
The reason for this is that while blockchain technology is not now implemented in India, it may be in the
future.
Question:9) I get information about blockchain-technologies from the following sources.

Source of Information No. of Respondent

Newspaper 51
Books 25
Participating at lectures 28
Twitter 29
Friends and family 79
Colleagues at work 43
Facebook 28
Youtube 93

Youtube 93

Facebook 28

Colleagues at work 43

Friends and family 79

Twitter 29

Participating at lectures 28

Books 25

Newspaper 51

0 10 20 30 40 50 60 70 80 90 100

Interpretation:-They have chosen from a variety of information sources about blockchain technology.
The majority of respondents chose YouTube as their source of blockchain technology information. The
answer is simple: in today's digital age, we all rely on YouTube as our primary source of information on
new terminology. For information about blockchain technology, several respondents chose the
newspaper, family, and friend’s options.
Question: 10) I have already done a transaction using/involving blockchain-technologies myself.

YES/NO No. of Respondent

Yes 40

No 113

I have seen someone doing so 33

Total 186

No. of Respondent

18% 22%
Yes
No
I have seen someone doing
so

61%

Interpretation:-Out of 186 respondents, 61% had not completed a blockchain transaction. This is due to
the fact that the majority of respondents are unfamiliar with blockchain technology, and blockchain
technology is not widely used in India. 40% of those polled are familiar with blockchain technology and
have conducted transactions involving it.
Question: 11) Do you think that blockchain technology more secured than other current
technologies?

Results No. of Respondent

Strongly Agree 16

Agree 49

Neutral 90

Disagree 18

Strongly Disagree 13

No. of Respondent
Strongly Agree Agree Neutral
Disagree Strongly Disagree

7% 9%
10%

26%

48%

Interpretation: Out of a total of 100%, 48 percent are neutral about blockchain technology since they
are better knowledgeable about it. The remaining 35% of respondents believe that blockchain
technology is more secure than existing technology, while 17% believe that blockchain technology is
not more secure than current technology. It appears that the majority of the respondents are unfamiliar
with blockchain technology.
 CHAPTER-5

FINDINGS AND SUGGESTION

 FINDINGS OF THE STUDY:

 The majority of them are between the ages of 18 and 30. The vast majority of respondents (67
percent) come from a student background. Overall, 23 respondents were self-employed, 10 were
business owners, and 25 were from a service background.
 The majority of those polled are familiar with blockchain technology. The blockchain is
understood by 62.36 percent of the population. It is discovered that students are more interested
in new technologies.
 More than half of the respondents are aware of the blockchain and cryptocurrency relationship
when it comes to receiving information on blockchain or cryptocurrency.
 However, another finding is that the majority of respondents have not yet traded in
cryptocurrencies. Only 30% of respondents have traded in cryptocurrency, and out of 57
respondents, half have traded in cryptocurrency for less than a year.
 When it comes to cryptocurrency knowledge, Because cryptocurrencies have been quite popular
recently, 58 percent of respondents are familiar with the various types of cryptocurrencies.
 The majority of the respondents learned about blockchain technology from YouTube. Because
we frequently utilise YouTube, Facebook, and other social media apps in the digital world.
 A little more than 60% of respondents said they haven't done any transactions involving
blockchain technology and are unaware of the technology.
 In terms of security, 90 percent of respondents are neutral, and more than 35 percent are in
favour of blockchain technology, but data collecting quality is the least realised of all the
outcomes.
 People are less aware of blockchain technology because the Indian government has yet to
implement such technology.
 SUGGESTIONS

 As blockchain has not gained importance in India due to lack of awareness, for that the
government has to create awareness on it because it fasters the transactions, removes the
mediators which leads to the economic development.
 Blockchain is a decentralized ledger system which will not entertain any hackings or frauds. So
by making awareness on blockchain the financial system of India will be strong.
 Financial sector development takes place when financial instruments, markets, and
intermediaries work together to reduce the costs of information, enforcement and transactions.
 A solid and well-functioning financial sector is a powerful engine behind economic growth. It
generates local savings, which in turn lead to productive investments in local business.
 Furthermore, effective banks can channel international streams of private remittances. The
financial sector therefore provides the rudiments for income-growth and job creation.
 CONCLUSION
The goal of this research is to look into blockchain awareness and acceptance, as well as the interaction
between bitcoin and blockchain. To learn more about blockchain technology, data was gathered via the
primary approach of a questionnaire from the general public, in which 186 people responded. It also
looks at why people use it and what they know about it, which is summarized in the results section.
People between the ages of 18 and 30 are the most aware of all the age groups. Similarly, the majority of
people in the 18-30 age range come from a student background.

The concept of blockchain is very new in India, as well as other developing countries, where people are
less familiar with the technology. It must be widely publicized in order for people to become aware of
Bitcoin and other types of cryptocurrencies, which are extremely beneficial, easy, and decentralized, and
keep financial institutions out of the transaction process. However, among those who are aware of the
blockchain, adoption of the technology is quite low; however, this may suggest that consumers should
prefer blockchain technology for increased security.

This research also looks at the users and non-users of cryptocurrency trading. There are users who are
familiar with blockchain technology, have traded for more than a year, and are well-versed in the many
types of cryptocurrencies. Blockchain adoption is still in its early stages, and there are scarcity of
knowledgeable resources on the market.

This study adds additional knowledge, but it has significant drawbacks, such as the fact that most
individuals are unaware of blockchain technology. Blockchain technology is not currently employed in
developing countries such as India. People are aware of crypto currenices, but not of the relationship
between crypto currenices and blockchain, according to the survey. Because the sample size was
modest, future research studies could aim for a larger sample size and include as many individuals as
feasible in order to achieve better results. Future studies might also investigate the many methods
through which they can draw conclusions on public awareness of blockchain technology.
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ANNEXURES

Annexures:- 1) Questionnaire

Questionnaire

i. Name of Respondent
ii. Age of Respondent
iii. Occupation of Respondent
iv. Do you have knowledge about blockchain?
8. Yes
9. No
v. Have you heard that cryptocurrencies are based on blockchain technologies?
 Yes
 No
 May be
vi. Have your ever traded in cryptocurrency?
 Yes
 No
vii. If yes, from how long you are trading in cryptocurrency.
 Less than a year
 More than a year
 More than two years
 Other
viii. Do you know various types of cryptocurrencies?
 Yes
 No
ix. I would rate my knowledge of blockchain-technologies as follows (0 = no knowledge | 7 = very
high knowledge)
 x. I get information about blockchain-technologies from the following sources.
 Newspaper
 Books
 Participating at lectures
 Twitter
 Friends and family
 Collegues at work
 Facebook
 Youtube
xi. I have already done a transaction using/involving blockchain-technologies myself.
 Yes
 No
xii. Do you think that blockchain technology more secured than other current technologies?
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree