Week 15 The Final Portfolio Project is a comprehensive assessmen ✓ Solved

The Final Portfolio Project is a comprehensive assessment of what you have learned during this course. The Final Project has two parts: Limitations of Blockchain and Emerging Concepts. Blockchain continues to be deployed into various businesses and industries. However, Blockchain is not without its problems. Several challenges have already been associated with the use of this technology.

Identify at least 5 key challenges to Blockchain. Additionally, discuss potential solutions to these challenges. Lastly, please discuss if we will see the limitations to blockchain be reduced or mitigated in the future. There are several emerging concepts that are using Big Data and Blockchain Technology. Please search the internet and highlight 5 emerging concepts that are exploring the use of Blockchain and Big Data and how they are being used.

Conclude your paper with a detailed conclusion section which discusses both limitations and emerging concepts.

The paper needs to be approximately 6-8 pages long, including both a title page and a references page (for a total of 8-10 pages). Be sure to use proper APA formatting and citations to avoid plagiarism. Your paper should meet the following requirements:

  • Be approximately 6-8 pages in length, not including the required cover page and reference page.

  • Follow APA7 guidelines.

  • Your paper should include an introduction, a body with fully developed content, and a conclusion.

  • Support your answers with the readings from the course, the course textbook, and at least four scholarly journal articles from the UC library to support your positions, claims, and observations, in addition to your textbook.

  • Be clearly and well-written, concise, and logical, using excellent grammar and style techniques.

Paper For Above Instructions

Introduction

Blockchain technology has revolutionized the way transactions are conducted across various sectors, enhancing transparency and security. However, it is essential to recognize the limitations and challenges associated with blockchain implementation. This paper explores five key challenges to blockchain and discusses potential solutions to these challenges. Additionally, we will examine whether these limitations will be mitigated in the future. Furthermore, we will highlight five emerging concepts that integrate blockchain and big data, showcasing how these technologies are being utilized in innovative ways.

Key Challenges to Blockchain

1. Scalability: One significant challenge facing blockchain technology is its scalability. As more users join the network, the size of the blockchain grows, leading to increased transaction times and costs. For instance, Bitcoin can process approximately seven transactions per second, whereas traditional financial systems can handle thousands. Potential solutions include the implementation of layer-two scaling solutions like the Lightning Network and sharding technology that divides the blockchain into smaller, more manageable pieces (Gans, 2019).

2. Energy Consumption: Blockchain networks, particularly those that utilize Proof of Work (PoW) consensus mechanisms like Bitcoin, consume enormous amounts of energy. The electricity used in mining operations raises concerns about environmental sustainability. A potential solution encompasses transitioning to alternative consensus mechanisms, such as Proof of Stake (PoS), which require significantly less energy (Hsieh, 2019).

3. Regulatory Challenges: Blockchain operates in a regulatory grey area in many jurisdictions. The anonymity provided by cryptocurrencies poses challenges for regulation and compliance, particularly concerning anti-money laundering (AML) and know your customer (KYC) laws. Solutions may include developing clear regulations that balance innovation with consumer protection, as well as employing advanced identification technology to enhance compliance measures (Zohar, 2020).

4. Interoperability: There are numerous blockchain platforms, each operating in isolation, which creates challenges in data sharing and collaboration. The lack of interoperability limits the integration of blockchain into existing systems. To overcome this barrier, initiatives promoting standardization and the development of cross-chain bridges that allow different blockchains to communicate could be pursued (Mackenzie, 2021).

5. Security Risks: While blockchain is generally considered secure, vulnerabilities exist, particularly at the user level. Phishing attacks, smart contract vulnerabilities, and51% attacks are significant concerns. Potential solutions include enhancing user education on security practices, conducting regular audits of smart contracts, and employing protocols that improve security resilience (Chen et al., 2020).

Future Perspectives on Blockchain Limitations

Considering the rapid advancements in technology, it is reasonable to expect that the limitations of blockchain will be reduced or mitigated in the future. As more stakeholders, including governments, businesses, and researchers, engage in addressing these issues, the technology will likely evolve. The collaborative efforts to standardize practices, improve regulatory frameworks, and innovate with alternative consensus mechanisms are promising steps toward alleviating existing challenges.

Emerging Concepts Using Blockchain and Big Data

As blockchain technology integrates with big data, several innovative concepts have emerged:

1. Supply Chain Management: Businesses are utilizing blockchain to enhance supply chain transparency and traceability. By recording every transaction on the blockchain, stakeholders can access real-time data, improving inventory management and reducing fraud (Kamble et al., 2020).

2. Healthcare: The combination of blockchain and big data is transforming healthcare by enabling secure sharing of patient records while maintaining privacy. Blockchain ensures that only authorized personnel access data, which fosters interoperability among healthcare providers (Kuo et al., 2019).

3. Identity Management: Blockchain-enabled identity management systems are emerging, allowing individuals to control their digital identities securely. By leveraging big data analytics, organizations can verify identities without compromising personal information (Zhang et al., 2020).

4. Financial Services: Financial institutions are exploring blockchain to create faster, more efficient payment systems. The ability to record transactions securely in real time is enhancing the delivery of services (Narayanan et al., 2016).

5. Energy Trading: Blockchain technology is paving the way for decentralized energy trading platforms, allowing consumers to buy and sell energy from renewable sources through peer-to-peer networks. This model leverages big data to optimize energy distribution (Savage et al., 2021).

Conclusion

In conclusion, while blockchain holds immense potential for various industries, several challenges hinder its widespread adoption. Key challenges include scalability, energy consumption, regulatory hurdles, interoperability, and security risks. However, collaborative efforts and innovative solutions are paving the way for the reduction of these limitations. Simultaneously, the integration of blockchain with big data is giving rise to exciting emerging concepts that enhance operational efficiency and security across sectors. The future of blockchain technology appears promising as it continues to evolve and adapt to meet the demands of an increasingly digital world.

References

  • Chen, T., et al. (2020). A survey on security and privacy issues in blockchain technology. IEEE Access, 8, 87589-87600.

  • Gans, J. S. (2019). The Case for an Open Blockchain. Harvard Business Review.

  • Kamble, S. S., Gunasekaran, A., & Sharma, R. (2020). Blockchain technology in supply chain management: A review of the literature and future research. International Journal of Production Research, 58(7), 2163-2178.

  • Kuo, T. T., et al. (2019). Blockchain distributed ledger technologies for healthcare: A systematic review. International Journal of Medical Informatics, 129, 154-162.

  • Mackenzie, I. (2021). The rise of blockchain interoperability. Cointelegraph.

  • Narayanan, A., et al. (2016). Bitcoin and Cryptocurrency Technologies. Princeton University Press.

  • Savage, J., et al. (2021). The Role of Blockchain Technology in Transforming Energy Trading. Energy Economics, 98, 105265.

  • Hsieh, Y. (2019). The future of blockchain and the challenges. Technology Review.

  • Zhang, P., et al. (2020). Blockchain technology in the digital identity. Journal of Computer Information Systems, 60(2), 198-206.

  • Zohar, A. (2020). The regulation of blockchain technology. Marquette Law Review, 103(4), 1457-1486.