Write 2 page Practical Connection Assignment

7

Blockchain in Business

Manchoopaporn Boonchoo

Department of Computer and Information Technology, University of The Cumberlands

ITS 831- B01: InfoTech Import in Strat Plan

Dr. David Filer

July 11, 2021

Introduction

With the introduction of blockchain systems in many businesses, information and communication technology has altered dramatically. Numerous changes will occur in the industry over the next five years, affecting many professional employments in information technology departments. It will have an influence on the type of work as well as the expert recruiting process. The blockchain technology is well known for its core operating principles of transparency, integrity, decentralization, and equality. Blockchain technology may be offered as a novel concept in information technology on a regular basis. It is a vital resource in businesses that must not be overlooked. However, in order to provide effective solutions, blockchain technology must be accompanied by specific security precautions. The paper goes through how blockchain technology will influence information technology professionals in the next five years, as well as the sectors that will be impacted, how it will affect me as an information technology expert, and blockchain training techniques.

The industry that will be most affected by Blockchain Technology

Today, every sector is embracing internet services such as social media engineering, cloud services, and others to expand their business geographically. But blockchain arguably could affect the banking and finance sector most significantly, in the following ways:

· By providing great security at cheap costs for a peer-to-peer payment systems; blockchain is threatening the commercial banking sector.

· There is no governing authority, and users are not required to pay for it. This eliminates the need for a third party to facilitate a transaction.

· A transaction to a colleague will be recorded in a database that can be accessed and examined by all bitcoin users, providing them complete control over the transaction. Peer-to-peer money transfers are available, for example, by using the Abra cryptocurrency platform (Burns, 2019). Users may use Abra on their PCs or cellphones to save, send, and receive money digitally. A receiver can withdraw cash from an Abra teller.

· A distributed ledger technology, such as blockchain, might allow for immediate settlement of bank transactions while also keeping a better record of them than current systems, such as SWIFT (Waldo, 2019). The central SWIFT mechanism is only used to handle payment orders. The actual money has been stored through a succession of middlemen.

The internet world cannot be totally safe. On numerous websites on the internet, there are always a large number of online fraudsters. They frequently cause chaos for both individual users and businesses, and if their risks are not addressed quickly, the impacted party may suffer losses (Tarzey, 2019). To achieve this aim, blockchain technology will influence every business that surrounds internet services. Although all companies rely on data to make choices and carry out day-to-day operations, Blockchain Technology will have an impact on all of them. Each organization's most valuable asset is its information. The financial industry will be the most influenced by Blockchain technology since it is the major source of financial data. Every transaction element is determined by financial information, making it a critical and delicate activity (Carson et.al, 2018). Blockchain technology is being used in the banking sector to protect client information and transactions. Any information pertaining to financial transactions is sensitive and must be kept private.

Blockchain Technology (BT) should be adopted by an IT management as expertise as a service. Blockchain technology should be seen as expertise as a service to protect the organization's data block (Stoyanovich & Tanz, 2019). It fortifies the organization by safeguarding it against illegal information access, data breaches, and information abuse. The concept expertise refers to the fact that BT becomes effective if the IT team's specialists are well-versed in implementing BT so that a business may profit.

The Strategies for the Training of Blockchain Technology

Blockchain corporate trainer training: A professional blockchain trainer trains IT professionals for BT. An organization should invest in a training program to employ a qualified BT specialist who can correctly teach IT personnel to execute crypto-security initiatives in the firm.

Awareness of the fundamental idea of cybersecurity: Prior to receiving professional training, the firm can conduct security training programs for IT professionals to investigate, test, and improve their cybersecurity knowledge (Burns, 2019). The IT expert will be able to study BT more effectively if they have a basic grasp of cybersecurity principles.

Training in three aspects of information technology: BT is founded on the core three principles of cybersecurity, which are the CIA (Confidentiality, Integrity, and Availability) (Tarzey, 2019). To use BT in the company, it is necessary to understand what the organization's data integrity standards are, how access permissions are assigned to employees, and which pieces of information are to be regarded most sensitive and require secrecy.

Cryptography training: The foundation of BT is cryptography. Cryptography training should be provided to IT personnel (Waldo, 2019). IT personnel should be familiar with the concepts of public and private keys.

Blockchain Technology in Financial Industry

The term BT refers to a data chain. These data blocks are linked via cryptography via key, hash value, index, and so on. Cryptography makes it impossible to gain access to the block: Today, every sector is embracing internet services such as social media engineering, cloud services, and others to expand their business geographically (Tarzey, 2019). The internet is not a fully secured platform. 

Intruders are always displayed on the internet. The blockchain technology will have an impact on every industry that uses the internet's services. The banking industry would be the one most affected by blockchain technology. As financial transaction information is private and requires secrecy, BT can be used in the banking industry to safeguard client data and transactions. Blockchain technology should be considered as expertise as a service since it secures the organization’s data blocks (Waldo, 2019). It offers the company power by preventing unwanted access to information, information theft, and information abuse. The word expertise refers to the fact that BT becomes effective when the IT team's specialists are well-versed in how to deploy it so that a business may reap the advantages.

Security Methods for Blockchain Technology

Security frameworks are always changing. This is owing to technological advancements, changes in a company's requirements, legal compliance, and regulatory regulations. As a result, the security mechanism should be updated as needed, or the company will not be protected.

Recommended methods

Cryptography using public and private keys: an encryption algorithm computes two sets of keys in this form of cryptography. The public key is used to encrypt the data block, while the private key is used to decode it. Another method is cryptographic hashing. Cryptographic hashing is a technique that employs the usage of a hash function or cryptography. It can hash any size of data (Waldo, 2019). It converts the data into a distinct string of text. Lastly is the elliptic curve digital signatures method. Digital signatures with elliptic curves are an improved form of the digital signature (Carson et.al, 2018). An invader will find it difficult to break even the strongest cryptographic algorithm.

Conclusion

Banks provide a variety of services to its customers in the commercial banking industry. They set up accounts for customers so that they may pay their bills with a single paper, which is safer and more efficient. In addition, the client may easily transfer and receive money from other bank accounts. A blockchain is a decentralized, digitalized, and open ledger of all cryptocurrency transactions. The most recent transactions, known as blocks, are stored in chronological order in blockchain technology, allowing market players to easily trace their digital currency transactions. However, without the use of an intermediary, blockchain technology allows untrustworthy parties to agree on the status of a database. A blockchain may deliver specialized financial services such as payments or securitization without the need for a bank by providing a ledger that no one manages.

References

Burns, S. (2019). Blockchain: Hype Vs Reality. Computer Weekly, 21-24.

Carson, B., Romanelli, G., Walsh, P., & Zhumaev, A. (2018). Blockchain beyond the hype: What is the strategic business value? McKinsey Quarterly, (4), 118–127

Stoyanovich, M., & Tanz, F. E. (2019). Coming to Grips with Blockchain. Benefits Magazine, 56(5), 20-25.

Tarzey, B. (2019). Inside Blockchain and Its Various Applications. Computer Weekly, 16-20

Waldo, J. (2019). A Hitchhiker’s Guide to the Blockchain Universe. Communications of the ACM, 62(3), 38–42. https://doi.org/10.1145/3303868