Information Technology Assignment: Evaluating The Importance OfBlockchain Technology
Information Technology Assignment Tasks:
Select one appropriate technological topic and write a 2,000-word report review on the themes, trends and arguments emerging about that topic.
The report should include:
a. Why do you deem this topic to be of importance
b. How this has topic has developed
c. A detailed description of the technology used in this topic and what it is used for.
d. What technological platforms and software are used in the topic
e. What type of business and organisation uses the technology
f. How is it used as a business tool and is this effective
The present information technology assignment is prepared on the context of Blockchain technology. This technology was developed in 1991 and it created a way for securing and storing digital data. Blockchain is considered as an open ledger that has several parties that can access this leisure advance (Min, 2019). One of the key primary benefits of this technology is that it is difficult for the parties to change the information without any agreement. The purpose of this report is to evaluate the Blockchain technology along with its importance, development and detailed description and use in the modern era. This report will evaluate the technological platforms and software that use this technology and its effectiveness as a business tool. This report will relate this technology with course materials to explain it through old and newly emerging theories and understand its implications on business and management structure and practices.
Importance of the topic
The importance of Blockchain technology is that it is an immutable public digital Ledger that cannot be modified and its transactions are recorded and secure. Due to its encryption feature, this technology allows a secure platform to its users. It is a decentralised system and transaction are done transparently as well as instantly. Participants of a transaction are able to verify and confirm the authenticity of their transactions with this technology. The worldwide market of Blockchain technology is expected to reach $39.7 billion by 2025 (as shown in graph below) (Statista, 2021).
Figure 1: Blockchain technology market growth worldwide
Source: Statista, 2021
Development of the topic
The development of Blockchain occurred in 1991 by Stuart Haber and W Scott Stornetta after which Nick Szabo used this technology in 1998 to create a decentralised digital currency called ‘bit gold. In 2000, kept a cryptographic secure chain was created by using Bitcoin whereas in 2008 a white paper was released by Satoshi Nakamoto that established a model of Blockchain technology for developing reproaching (Padmavathi and Rajagopalan, 2021). In 2009, Nakamoto used first Blockchain as a public leisure front transaction by using Bitcoin. In 2014, Blockchain 2.0 was born and this technology revolutionised and assist in recognising potential of Blockchain technology in finance and interorganizational transition that are beyond currency.
Detailed description and use
A definition was given by IBM that explained bet the new record in this technology becomes a block and it is unique in nature and linking blocks into a chain of records is referred as a Blockchain (IBM, 2022). The most common and popular use of Blockchain technology is in cryptocurrencies such as Bitcoin. This technology helps in verification as well as traceability of multi-step transactions that require traceability and verification. This technology also enables platform for secure transactions while speeding up the transfer process and reducing compliance cost. This technology can be used by parties for the purpose of helping in contract management but also conducting the audit of a product. It can also be used in voting platforms as well as managing deeds and titles.
Technological platforms and software
One of the most popular uses of Blockchain technology is in cryptocurrencies. This technology is highly secure and it allows to maintain transparency and efficiency within transactions; therefore, it is consistently used in creating new cryptocurrencies by people across the globe. Ethereum, Hyperledger, Ripple, Cordano, and Bitcoin are few examples of platforms that utilises Blockchain technology for offering various benefits to owners of these cryptocurrencies (Emeç et al., 2019).
Type of business organisations that use the technology
The most common type of organisation that uses Blockchain into their operations include network organisations, information organisation, Internet of Things organisations, energy organisation, transportation organisation and others. these organisations leverage the security and traceability feature of Blockchain as it allows them to develop a platform where they can easily communicate and share their data without compromising it to cybercriminals. As per Iansiti and Lakhani (2020), financial service groups that rely on online transactions has increased substantially. Banking and financial organisations utilise the potential of Blockchain technology and companies such as Visa, Barclays, HSBC Bank and others have implemented Blockchain platforms that allows them to record fully digital and centralised records without having to worry about compromising them to cybercriminals.
Use as a business tool and its effectiveness
Blockchain technology can be used as an effective business tool due to its potential to secure transactions while also record them instantaneously. business organisations can effectively use this technology to make sure that they are not using paper-based records and instead using digital records that not only save the environment but also allows them to access them anywhere they want (Malyan and Madan, 2021). Due to the secure nature of Blockchain technology, it allows businesses to increase their transparency, security, trust and traceability for the data shared between their Business Network while also delivering a higher level of cost savings and efficiencies in the operations.
Relation with course content and relationship with emerging theories on business and management structures and practices
There is a direct relation between Blockchain technology as well as emerging tourism business and management structure as well as their practises. Blockchain technology is an effective example of creative disruptive technology that has the potential to completely change the existing business framework. This technology has the potential to open up new opportunities for businesses to exploit and also build new industries globally. The impact of this technology has revolutionised the way of working and skill and organisations that embrace this technology have the potential to succeed in the future (De Kare-Silver, 2014). From a commercial perspective, this technology has the potential to connect new customers globally while facilitating new platform for trade and commerce. In this aspect, the concept of ‘paradigm shift’ given by Thomas Kuhn can be applied, which is an old emerging theory that argues that scientific knowledge moves beyond a specific state after which the older established ways of thinking are challenged and new ways are introduced in a period of chaotic disruption, which resulted in change of people's knowledge and way of operating (Anand, Larson and Mahoney, 2020). This resulted in creating new paradigm and this is a part of the Kuhn Cycle.
Figure 2: The Kuhn Cycle
Source: Thwink, 2022
Blockchain technology is a good example of a new paradigm that has shifted the way existing business practises happen. The old emerging theory given by Kuhn explains how Blockchain technology is a key digital technology that will disrupt old digital technologies that are used today for online transaction and data transfer because currently, business transactions that are done on online platforms are highly unsecure in the hands of cybercriminals and third parties can access the private information of business parties in these transactions even if they are encrypted.A report stated that cybercrimes increased by 600% during the COVID-19 pandemic and one of the key reasons for this spike is lack of security on online transactions (Purplesec, 2022). Businesses often struggle when their confidential information is leaked in the public or when it is collected by cybercriminals for the purpose of getting a ransom from the company or adversely affecting its market image. When it comes to financial transactions, organisation and people struggle to completely rely on online transactions because cybercriminals can utilise new technologies to hack into this transaction and caused financial loss to individuals or organisations. These are the current challenges of utilising online modes of communication as well as financial transactions. However, these issues can be overcome with the introduction of Blockchain technology, as if it facilitates highly secured transactions that cannot be modified by third parties and it will require information from the existing owners to make changes (Kwilinski, 2019). This can be seen from the popularity of cryptocurrencies such as Bitcoin because people learn to realise the potential of these technologies as well as their level of security. This will challenge the existing paradigm that people have about online transaction and technologies and it will completely revolutionise their thinking.
Therefore, the theory of paradigm shift given by Thomas Kuhn applies to the Blockchain technology. When it comes to driving digital disruption, there are two fundamental elements and newly emerging theories that facilitate the same which includes Moore’s law and Negroponte’ Convergence Model, which are newly emerging theories. As per Moore’s law, microchip have the potential to double their power within a period of 18 to 24 monthsand this newly emerging theory argues that newly digital technologies will continue replace older technologies (Moore, 2019). On the other hand, Negroponte’ Convergence model states that Moore’s law facilitates the convergence of separate entities into one; this model states that digital disruption allows technologies that were originally unrelated to become closely related with each other, which contribute in their advancement and development (Yujie, 2021). This newly emerging theory applies in the case of Blockchain technology as well because this technology has the potential to link up with other technologies and applications and open up new opportunities for individual and business uses. As per this newly emerging theory, this technology has the potential to being ‘creative destruction’ to existing technologies for Transferring data and making online financial transactions. These industries will be destructed by the introduction and adaptation of Blockchain technology because of its ability to offer better, secure, fast and reliable way of doing those transactions.
This technology will have a direct impact on business structures because of its ability to be transparent while also being secured. As of now, organisations prioritise hierarchical business structure, which is an old approach of business structure, where companies are able to take control on their communication and ensure that they remain secured. However, with the adaptation of Blockchain technology, companies will be able to have highly secured communication and transaction within organisations without having the ability to control each and every aspect of those transaction and communications (Srinivasu et al., 2021). This will open up new platforms and newly business structures and practices for companies to communicate with their employees. This will completely change the organisational structure because there will be no need for implementing a hierarchical organisation structure. Other old organisational structures such as flat organisation structure and functional organisation structure will not be required because companies will be able to create an environment of effective communication without losing the security in their transactions.
It will introduce new business structures as remote working will be possible, which will popularise matrix and grapevine structures. For example, companies will be able to provide better messaging and communication tool to their employees which will allow them to instantly connect with each and every aspect of the organisation without losing the security of their communication. This will completely change management practises because the company will be able to instantly communicate with their employees without having them being physically present in the office premises. This will also allow the management to ensure that the transactions that they done with their employees remain highly secured even if they are working remotely (Tayal et al., 2021). This will open up new business opportunities for companies because they will be able to hire employees across the globe while also working with them securely and without a meeting their ability to compromise on their data. This will open up new opportunities for businesses to build new relations with talented employees globally and they will be able to work on projects that are highly secured and confidential without compromising their security with the use of Blockchain technology.
Based on the above observations, it can be concluded that the Blockchain technology is very important in the future because it provides a secure and instantaneous at form 4 conducting transactions globally without having to compromise on the security or the speed. Since its development in 1991, the technology has been utilised by companies in various industries for the purpose of securing their online transactions and also building a network of international applications. Mainly, this technology is used in finance sector by banking organisations for the purpose of securing their transactions however in the future, this technology will have the potential to revolutionise other business organisations as well. This is an effective business tool because it allows companies to improve the transparency, trust, security and traceability of the data that they shared within their Business Network. This technology relates with emerging theories such as the Kuhn’s Cycle, Moore’s law and Negroponte’ Convergence model, which shows its true potential to bring up digital revolution globally. This technology will change business structures and management practises by introducing new ways to communicate within the business organisations and opening up new opportunities for remote working. This technology will open up new ways for businesses to communicate securely so that they are able to build talented teams and implement management practises that benefits not only them but also employees as well.
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