IMPLEMENTATION OF BLOCKCHAIN TECHNOLOGY IN LIBRARIES OPPORTUNITIES, CHALLENGES AND BARRIERS

IMPLEMENTATION OF BLOCKCHAIN TECHNOLOGY IN

LIBRARIES: OPPORTUNITIES, CHALLENGES AND BARRIERS

Introduction

Blockchain is increasingly popular and has become the subject of conversation and study

from various parties in recent years. This is because Blockchain is a new technology that is

able to provide new alternatives in efforts to obtain and share information. The combination

of technologies owned by Block-chain in addition to cryptography (cryptography) as the main

basis for creating Blockchain, there is also peer-to-peer networks technology, smart contracts

(smart contracts) and consensus mechanisms to create new databases, making this Blockchain

increasingly loved because it offers various advantages in it, especially in terms of security.

Various groups are trying to conduct various studies and research to open up

opportunities for the possibility of applying this Blockchain technology in their fields.

Because, at least until now, especially in United States, the main applications of this

Blockchain technology are still limited to in the cryptocurrency sector. We may have heard of

Bitcoin. Bitcoin is one of the digital currencies (cryptocurrency) created based on this Block-

chain technology. Even personally, the author himself knows more about Bitcoin than

Blockchain technology. This is natural because in fact, Bitcoin, which was introduced by

Satoshi Nakamoto in around 2008, then made this Blockchain technology explode, popular

and became perbin- cangan and studies everywhere. However, Bitcoin and Blockchain

technology itself are not a completely new phenomenon. Indeed, bitcoin was the first digital

currency that later received very wide acceptance and adoption. But it also preceded many

other cryptocurrencies, as well as many failed attempts at distributed ledgers applied to

digitally encrypted credit cards online in the 1990s (Scott, 2017).

One of the keys to Bitcoin's success is the use of distributed ledgers as the basis of

Blockchain technology. And here is the "meeting point" between Blockchain technology and

libraries. The principle of distributed ledgers underlying blockchain technology is very

similar to a concept that is very familiar to libraries, namely LOCKSS (Lots of Copies Keep

Stuff Save). The concept first started at Stanford Library in 1999 (Rosenthal, 2018). This is

where various trials and studies on the potential application of Blockchain technology in

libraries began.

Theoretical Foundation

Blockchain Definition

Blockchain is a decentralized database that uses independent nodes to store and retrieve

data (LaFountain, 2021). Blockchain technology connects blocks of data sequentially in a

distributed ledger. Each block stores various content, including a "hash", which is the unique

identifier of the block itself. The hash identifies and links this block to all blocks, both the

previous block and also the block after it (Meth, 2019). So it can be concluded that

Blockchain is a collection of blocks (blocks) containing transaction data that are linked /

connected (chain = chain) and sorted with each other. Blockchain can be thought of as a

digital data storage system where each newer block or the most recently linked block, must

have hash information (hash = alphanumeric code representing words, messages, or data)

from the previous block. Each block will refer to the previous block and so on, forming a

chain.

Instead of relying on a central entity, the Blockchain database works on a global network

of many volunteer nodes. This also means that no single individual controls the data or the

network. All transactions are recorded, accessible and transparent (LaFountain, 2021). This is

because in principle, Blockchain technology can be analogized to a ledger. However, it is

different from a traditional ledger that records the amount of each transaction (amounts), the

parties involved transaction time (time) and other related information is only done by one

person or one party (centralized). This does not apply to the principles of Blockchain

technology. Blockchain, which is analogous to a distributed ledger, takes all the information

(amounts, parties involved, time of transaction, and other related information) to then place it

online and then distributes copies of the information authentically to all computers

incorporated in the system. So identical copies of the information are located in many places.

This is done so that this information can later be validated by each party in the system. Of

course, this aims to ensure the security and authenticity of the information and this is the

advantage of this blockchain technology. If we remember, this blockchain has something in

common with the concept that we have long known in the library world: LOCKSS (Lots of

Copies Keep Stuff Save).

How Blockchain Works

In Blockchain technology, in general, a block consists of 3 things, namely data, hash of

the block itself, and hash of the previous block. So to stay connected in a chain, each block

must have its own cryptographic hash as well as the hash of the previous block. The hash here

contains a unique alphanumeric number that is calculated based on the data from the block

itself, its timestamp, and the hash of the previous block (Hasan, 2020). Block-chain databases

store data in a grouped structure. Each data set or block stores a certain amount of

information. Once populated, each block will be connected to the previous block (the block

behind it) and also with the block after it (the block in front of it), thus forming a Blockchain

chain. Blocks that have been inserted into the chain serve as permanent data records (cannot

be changed or deleted), are stored with a clear timestamp, and are connected into an infinite

network.

To add a block to the chain, one must create a new wallet by generating a public key and

a private key. These keys are generated through asymmetric encryption, where, using a

complex algorithm, the private key is used as the basis for creating the public key. This public

key is later used to record every Block chain transaction. However, conversely, the algorithm

used to derive the public key from the private key cannot be reverse-engineered. In easier

language, the public key cannot be reverted back to a private key. Thus, even though the

public key is generated based on the private key and this public key is used in every Block-

chain transaction logging which also means that everyone in the system knows this public

key, they cannot know the private key, even if they try to decode the public key into a private

key, this will not work as long as this private key is kept tightly guarded by its owner. This is

called asymmetric encryption.

The public key can be shared to perform transactions, while the private key must be kept

secret. Why is this? Because in Blockchain when a transaction is initiated, the public key is

recorded with the block to provide accountability to the parties making the transaction. The

public address can be displayed, and the transaction can be traced back to the public key.

Whereas the private key ensures the owner of this private key to remain anonymous, unless

they unlock/reveal their private key. Due to this extreme privacy function, private keys cannot

be recovered once lost.

When a transaction occurs in the Blockchain system, the transaction will be recorded in a

block. This block must be validated first before it can be included in the chain. In this

validation process, all parties who are members of the system can do it, as we have mentioned

at the beginning discussion about the definition of Blockchain. The authenticity of a block

must first be verified through a consensus algorithm (proof of stack) where the majority of

nodes and nodes with the highest stack in this distributed network chain must validate the

block before the block is added to the chain. After the block is validated, a unique identifier

code will be generated, called the hash (Hasan, 2020). By doing this, we no longer need the

intervention of a third party to validate or make transactions.

Blockchain Features

Hasan (2020) explains that there are at least six features that characterize and excel this

Blockchain technology, namely:

 Validation/Consensus: There are many consensus algorithms that are commonly used

to validate blocks before they enter the chain. Some examples of such algorithms are:

Proof of Elapsed Time, Proof of Stack (POS), Proof of Capacity, Proof of Work (POW)

and others.

 Immutable: Once a block is added to the Blockchain chain, it is impossible to make

changes/modifications or delete the block. This is because the block is connected to the

block before and after it. A small change to a block (be it modification or deletion of a

block) will cause changes to all blocks in the chain, and this is impossible to do.

 Replicate/Peer to Peer Network: Blockchain uses a distributed network commonly

referred to as a public ledger. In this system, each node/participant has an identical copy

of every transaction that occurs in the blockchain network.

 Transparency: Every transaction that occurs can be seen by everyone in the system,

and all participants can know about who took what action at that moment.

 Secure: Blockchain systems have no central authority which means data is stored on

many computers identically. In order to hack, a hacker would have to hack every node

on every network at the same time, and this would require a lot of time and effort. It is

impossible to do and even if it is done, it will be very expensive and even then it will

not necessarily be successful.

 Smart Contracts: These Smart Contracts are peace of code agreements between two

people on the Blockchain network that contain specific terms and conditions.

Transactions will only occur when these specific terms and conditions are met between

two nodes, without involving any intervention from third parties. This can happen

because the entire process of the Smart Contract is carried out automatically in the

Blockchain system.

Types of Blockchain

Meth (2019) in his book entitled Blockchain in Libraries provides an implicit

explanation that Blockchain can be grouped into two types, namely:

 Public Blockchain: Public Blockchain allows everyone to join. As the name suggests, public,

this Blockchain is intended for the public. It is open to everyone, where anyone can become a

node, can read, write and update the blockchain by creating their own personal address.

Using a private key that has been converted into a public key allows anyone with an internet

connection and a computing device that can run Blockchain software to participate.

A Public Blockchain is essentially a distributed ledger of all transactions, so no single

user can tamper with the data. When a transaction occurs in the Block-chain network, a new

block is created. However, the block will not be added to the Blockchain chain until the

majority of participants verify the block. The duration of this verification process varies, it

can take place in real time or may take longer, depending on the number of participants as

well as some other factors. One thing is certain, however, that the consensus required to verify

the Blockchain is done to ensure that the security, privacy and integrity of the Blockchain are

maintained.

 Private Blockchain: In the Private Blockchain scheme, the scheme,) the owner of the

Blockchain owner has the influence that is significant influence on design and subsequent

operations. In this type, if anyone wants to become a node, they must obtain permission from

the Blockchain authority (owner). Only genuine members are allowed to access and store data

in the Blockchain. As a result, this Private Blockchain is a less secure and private type of

Blockchain. Here, participants in the Blockchain network can be known, and blocks can be

changed at the owner's discretion. While this poses a privacy challenge, it does not mean that

these Blockchains cannot be maintained with strict privacy controls, therefore Block-.

The Private chain can still be used as long as the authority (the owner of the Private

Blockchain) guarantees its security.

Research Methods

The method used in this paper is a literature study with a qualitative descriptive

approach. Literature study is a study whose data sources are obtained from written materials

such as books or manuscripts, documents, photographs, and so on (Moleong, 2021). In this

case the author collects data, reads and records, and manages research materials by examining

various journals, books and websites related to Blockchain and its utilization opportunities in

the library.

Discussion

Blockchain Implementation Opportunities in Libraries

It is undeniable that the Covid-19 pandemic that has swept the world has resulted in a

huge leap in the application of information and communication technology in libraries. The

Covid 19 pandemic is believed to encourage the library world in United States to move their

databases and all services online more quickly (Utomo, 2020). In the not too distant future,

we will most likely see the era of library decentralization. Libraries will no longer concentrate

their services in one physical library building or in one central library database. All library

records will be stored on the Blockchain instead of a centralized library database. Patrons will

have full control over their circulation records, as well as manage their borrowing history.

From The economic side also allows for new economic potential to emerge, namely in the

form of rewarding users for sharing their data with the library. Here are some examples of the

utilization of Blockchain technology in libraries:

Procurement and Maintenance of Library Materials

Procuring and maintaining collections is one of the most important things in library

management. Blockchain technology allows libraries to run smart contracts between libraries

and vendors. This Smart Contract will provide assurance to both parties, both libraries and

vendors to fully comply with the agreed contract. Because once the contract is established

using the blockchain system, it cannot be changed or deleted forever. Changes to the contract

agreement that occur in the middle of the process, can only be done by renewing the contract

by being known, agreed upon and carried out by both parties. The record of the previous

contract is still well documented. The next benefit is that Blockchain technology also allows

libraries to make payments using cryptocurrency. With cryptocurrency, libraries can make

transactions with vendors from anywhere in the world.

In terms of maintenance of library materials, Blockchain allows each item of library

material to be tracked individually. The block created for each holding will include data about

the original acquisition, the item itself (either in MARC, RDA, or a new metadata scheme),

and also transaction data. So that all the data and information collected can be analyzed to

take appropriate actions to maintain and care for library materials.

Library Circulation Service Innovation

Blockchain technology can be applied to innovate library circulation services. Users can

borrow every library collection without having to come to the library, even further, users can

directly borrow library books directly between users. Likewise, members of a library can

borrow books from other libraries without having to come to the library (Hasan, 2020).

Block-chain technology allows libraries to build a distributed library management system and

design modern procedures for lending books from libraries. So that users can directly give a

library book that they have borrowed before, directly to other users who want to borrow the

book, without having to return the book to the library first. Blockchain technology enables

libraries to expand library services and create a library ecosystem where users will get a new

experience of modern, efficient, safe and convenient services.

Cataloging

In recent times, librarians have continued to make various innovations to update methods

and techniques to increase the speed of online catalog software and library database

structures. LaFountain (2021) explains that the opportunity to invade the field of cataloging

library collections using blockchain technology is very large. This is of course because

Blockchain has decentralized characteristics. An easy example of this is the creation of a

Shared Catalog. With the development of a Shared Catalog based on Blockchain technology,

libraries can further simplify tracking materials, update the list of partners who are members

of the network, and release updates on the availability of library collections.

Guaranteed Protection of Personal Data and Library Member Card

The issue of personal data security has recently become a crucial issue that has been

discussed around the world. Even recently, United States was also shocked by the breach of

hundreds of millions of United Statesn residents' personal data from the BPJS Health data

center. In addition, there are many other cases such as the spread of President Joko Widodo's

NIK, until the latest is the spread of thousands of personal data of Polri members as a result of

hacking by hackers from Brazil. Blockchain technology can be the right solution to answer

this problem. As we know, once a data is entered into the Blockchain system, it is impossible

for hackers to hack the data as we discussed at the beginning of this paper. With this, the

security of library members' personal data can be guaranteed.

In addition, Blockchain technology also opens up enormous opportunities for innovation

in library membership cards. The concept of block-chain-based library cards is starting to get

attention, especially among university libraries in various parts of the world (LaFountain,

2021). This is of course, apart from the guarantee of data security (security), also because of

the opportunity to create an integrated library member card that can authenticate users with

Blockchain. For example, a library member in one province who is traveling to another

province can access library services in that province automatically without the need to register

as a member of that library. And this concept can also be applied to various types of libraries

and with more diverse conditions.

Electronic Book Publishing

Usually, using e-books requires the intervention of a third party (publisher) or even a

fourth party (digital library application provider - if the library does not build their own digital

library application). Libraries are "forced" to pay more than they should. In addition, authors

are also unable to gain full control over their work due to interference from third and fourth

parties.

This platform has a way of working where the author can create a smart contract by

stating specific terms and conditions to be able to use the book he published. Furthermore,

this smart contract creates an etherum network where anyone can buy books through book

tokens. The Publica platform has also developed a new feature in the form of crowd-funding

books (Book ICO). This feature allows book authors to pre-sale their book tokens so that

potential buyers can raise funds in advance to make an advance payment. All of this is done

directly between the first party (book author) and the second party (book buyer:

library/individual) without any intervention from a third or fourth party.

Scientific Publication and Digital Rights Management

In addition to storing information, Blockchain technology also allows libraries to apply it

in terms of scientific publications. Blockchain can be used to create a version of a journal

article that can be verified using a time stamp. In addition, Blockchain technology can also be

used in terms of library Digital Rights Management. This is very possible because Blockchain

creates a unique record that can be verified using time stamps can be verified and can be

accessed by anyone. One example of the application of this technology is the NFT or Non-

Fun- gible Token which has recently become a hot topic of conversation among observers of

Blockchain technology. Although the issues discussed are heavier in terms of trading,

auctions and appreciation of the value of a digital work of art, NFTs actually have strength in

NFTs are a practice of asset tokenization that works in the blockchain ecosystem. By

designating a digital work as an NFT, we are essentially providing protection in the form of a

digital certificate for the work (Faradise, 2021).

Library Special Collections Management

Blockchain technology also allows for the development of various innovation

opportunities in library collection management through NFTs. Libraries that have unique,

rare, high-value collections, and have a strong history, can be transferred and then displayed

in digital form with NFT (Non-Fun- gible Token). For example, during the construction of the

Islamic University of United States Library, a Hindu temple building that is estimated to date

back to the 9th century AD was discovered. This temple was found buried at a depth of 2.7

meters below ground level and then this temple was preserved and managed by UII Library.

This temple is located inside the UII Library Building and has become an advantage of the

UII Library. In addition, UII Library also has various historical artifacts that accompany the

temple. Kimpulan Temple discoveries such as Ganesha statues, phallus and yoni, pripih

boxes, pripih contents consisting of gold and silver plates, and so on. All of them are very

possible to be displayed digitally by using NFT. This is because the NFT ecosystem

prioritizes the curation of collections with specific themes, such as local historical artifacts

and community cultural arts.

Support for Research

Libraries can develop Block-chain technology to support the advancement of research

institutions. In the context of higher education libraries, for example, libraries can develop

private blockchains to provide support for the research development of their universities.

Hasan (2020) states that this Blockchain can be used to share research results between

research institutions, such as publishing gray literature, lab papers, and sharing important

research documents (in addition to documents that will be published as papers or books).

When researchers find something from the research they do, they can share that research

through Blockchain, so that everyone (other researchers) who are members of the Blockchain

network can access the research without having to do parallel research. In addition, they can

also enrich/improve the research. This Blockchain technology guarantees that researchers no

longer need to worry about digital rights issues, data falsification, and no one will be able to

delete data in all these processes. As also explained in the explanation of Scientific

Publication and Digital Rights Management in the previous point.

Financial Literacy

One of the results of the development of Block-chain technology is cryptocurrency.

Cryptocurrency is a digital currency built using Blockchain technology. Cryptocurrency is

different from fiat currencies because crypto-currencies are not issued by a central entity such

as a governing body or central bank of a country. It operates on a distributed ledger that tracks

and verifies every transaction. Cryptography ensures the security of transactions and the

blockchain database keeps a record of these transactions. Some examples of the most popular

cryptocurrencies are Bitcoin, Athereum. Cardano, Neo, and Litecoin.

Libraries can conduct financial literacy programs for their users through education and

training, seminars, workshops, and workshops on cryptocur- rency. For example, seminars on

cryptocurrency from an investment point of view, safe storage for cryptocurrencies,

cryptocurrency exchange platforms, and various other cryptocurrency best practices. In

addition, libraries can conduct guidance programs on retirement planning, pension planning,

taxes, etc. through cryptocurrencies.

Library Analysis

Every year the library must evaluate, create new work programs, and produce

performance reports. Libraries must meet performance metrics and provide statistics to

provide evidence of the quality of library services. However, it is often the case that analyzing

and assessing libraries remains a challenge. The evidence and metrics that libraries collect are

limited, often focusing only on counting physical items such as total collections and simple

measures such as circulation data and visitor counts. While there should be more data that

libraries should be collecting.

Blockchain can help with analytics in libraries by providing a database infrastructure that

allows more complex data such as patron history, patron behavior, most browsed books, etc.

to be collected, stored, and accessible to authorized participants. Through smart contracts,

permissions can be granted and only trusted members can access selected data, while other

data can be made more widely available.

Challenges and Barriers to Blockchain Implementation in Libraries

In addition to the enormous potential of utilizing Block-chain technology in libraries as

we have reviewed in the previous discussion, it turns out that like two sides of a coin, there

are also challenges and obstacles in the application of Block-chain technology chain in the

library. At least until now, most Blockchain applications are still at the level of cryptocur-

rency. As a result, it remains to be seen and studied how this Block-chain is implemented in

other spaces, especially in this context is the library. The transition of existing processes in the

library into Blockchain technology is clearly not without challenges. In the following, we will

also describe some of the challenges in the implementation of Blockchain technology in

libraries as well as these can also be obstacles that will be faced by libraries related to the

application of this Blockchain technology.

Limited Knowledge of Blockchain Technology

We cannot deny that Blockchain technology is a new technology that has become

popular in recent years through the emergence of Bitcoin, which was introduced by Satoshi

Nakamoto through his work entitled "Bitcoin: A Peer to Peer Electronic Cash System" in

2008 (Hasan, 2020). Although in principle, Blockchain technology has existed since 1980

through the Merkle Tree scheme and the LOCKSS (Lots of Copies Keep Stuff Save) principle

introduced by the Stanford University Library in 1999 (Meth, 2019).

Choosing the Right Blockchain

As we have explained earlier, Blockchain is not a simple system, which can simply be

applied in libraries without rigid calculations and considerations. Currently, there are indeed

many supplier vendors and also Block-chain platforms, both from national and international.

However (once again) there are not many vendors who specialize in building Blockchain-

based applications/platforms for libraries. This is where the library's challenge is to be able to

determine and choose the right platform. Furthermore, after choosing the right platform, there

are still several questions that the library must be able to answer, namely: will the library

develop the application independently through the platform, subscribe to a vendor, or buy a

finished product that is already on the market? In addition, the library must also ensure that it

has enough information and knowledge to develop the application on its own choose between

Public Blockchain or Private Blockchain in its implementation in the library.

Implementation Cost

It is common knowledge that every implementation of new technology always requires a

lot of accompanying costs. Not only the cost of procuring the technology, but there will be

additional costs that come with it. For example, the cost of training library staff who will

spearhead the operation of this Blockchain technology in the library. Furthermore, it is also

necessary to consider whether the application of this technology is carried out in full or in

stages, which of course the longer the process of implementing this technology, the greater

the additional costs that must be incurred.

Maintenance and Development Costs

No less important than a technology implementation is maintenance and development.

After the library decides to implement Blockchain technology, maintenance and development

costs must also be a major consideration. This is because the maintenance and development

costs are continual and long term.

Privacy and Security Issues Not Fully Resolved

On the one hand, Blockchain technology offers a guarantee of privacy because what can

be tracked is the public data of the transaction itself, while the personal identity of the Block-

chain user is maintained / anonymous (see back to the explanation of How Blockchain

Works). However, on the other hand, it turns out that quite a number of computer experts who

have studied the Block-chain warn about the issue of personal data and security in this

Blockchain technology which is not yet fully perfect.

Conclusions

We cannot deny that the development of Block-chain technology is happening so fast

and rapidly. Only in the last few years Blockchain has increasingly become a conversation in

various circles, including many library circles who are talking about this Blockchain

technology and the various potentials it has to be applied in libraries. Various potentials that

can be applied from Blockchain technology for libraries include procurement and

maintenance of library materials, innovation in library circulation services cataloging,

personal data protection guarantees, library membership cards based on Blockchain

technology, e-book publishing, support for scientific publications and digital rights

management, special collection management, research support, financial literacy, and can be

applied to library analysis.

However, on the other hand, there are also challenges and obstacles that accompany the

efforts to apply this Blockchain technology in the library, including: knowledge of Blockchain

technology that is still very limited, the challenge of being able to choose the right Block-

chain if you want to apply it in the library, the considerable costs that must be incurred by the

library starting from implementation costs, maintenance costs to the cost of developing the

Blockchain system itself, and the last and quite a sensitive issue is that there are still some

people among scientists who argue that the issue of personal data security in the Blockchain

system is not fully secure, which is still a big PR among developers and users of this

Blockchain technology.