Blockchain

Blockchain is a database of informational transactions of various types across different systems, in other words, called servers in a peer-to-peer network stored in a single place. The transactions are verified on their validity and cannot be interfered when once recorded and altered when once added to the block, which is done to develop trust. They are decentralized and transparent (Ademi, 2018). Blockchain has evolved from version 1.0 to 4.0. Blockchain 1.0 was initially used only for online digital payments which make use of distributed ledger technology that is known for its security.

Later version 2.0 is aimed at reducing the cost overhead of fraud detection by introducing the conception, Smart Contracts which are live independent computer programs that carry out instantaneous execution for improved level of internal functioning. Consequently, blockchain 3.0 provides a decentralized regulation which is an important feature as to which why it is being preferred over regular centralized systems involving third parties. Based on the successful developments of the previous versions, blockchain 4.0 has been incorporated into the business sector.

Blockchain technology makes use of peer to peer network concept for data management as it adopts a decentralized mechanism and hence is less prone to hacking and other vulnerable attacks. It uses cryptography to ensure security of information between the sender and receiver. The transactions in the blockchain can be verified using consensus protocols. Security, transparency and immutability of data are guaranteed by utilizing digital signature and hash function. Merkle trees are data structures used to maintain these hashes in an optimal way. There are four types of blockchain networks – public blockchain, private blockchain, consortium blockchain and hybrid blockchain.

Public blockchain allows anyone to own a block using consensus protocols whereas private blockchains operate in a centralized way run by organizations which are likely to possess their own crypto currency to run internal operations. In a consortium blockchain, some users are given read while some are given write rights to a block, works in a semi-decentralized way which can be owned by one or more organizations or central authorities. A hybrid blockchain possesses the properties of both public and private blockchain and decides which information needs to be private and public, operating in a decentralized way.

Some interesting examples include ride-sharing, internet advising, forecasting, education etc. Blockchain is used for payments, keeping track of logistics, voting digitally, monitoring food supply, tax governing and abiding, up keeping of uniform medical records, property ownership accountability, viewing updated stock exchanges, maintenance of IoT networks, immutable personal or normal data storage or backup (Smith, 2019), etc. Personal identity information makes use of blockchain to eliminate inaccessibility, data uncertainty and fallacious identities. Personal information is required almost in all applications and organizations.

Using blockchain to maintain it in an organized and secure way makes it easy to use and retrieve information, making it less to prone to susceptibilities like hacking or other internal system attacks.The technology associated with blockchain is constantly changing as it encounters regular updation. As the technology keeps improving stage-wise, it is hard to locate experienced domain experts good at a particular development stage.

Economic upper hand or disadvantages may happen for a nation because of dissimilarities in factors like reserves, money, labour, skill or entrepreneurship (Morgan and Katsikeas, 1997). But this theory only offers a general idea of what international trade is but it cannot provide answers for what is the underlying cause of such comparative advantages.