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State-of-the-Art of Blockchain
State-of-the-Art of Blockchain Kibae Kim  2019-09-11 
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This report overviews the response of industries and academic societies to the blockchain.

 

First, the report identified the technological and business/economic features of blockchain. On a peer-to-peer network, the blockchain operates based on a decentralization algorithm, in which the socio-economic interaction among machines is distributed across the system after encrypting their identities, and their contract-based activities are automated. These technological features bring cryptocurrency, or a reward scheme that is used as currency, and build the trust in the algorithm so that machines are able to exchange the cryptocurrency. This opportunity to allow businesses to open up to automate finance transactions in sharing economies; trust is the last area of automation in the platform.

 

Second, the report conducted surveys with industries, governments and local societies about blockchain. Industries applied open platforms of the blockchain (i.e., Bitcoin, Ethereum, Hyperledger, Corda and Quorum) to their business: e.g., software services for Amazon, banking services for Citigroup, and logistics for Samsung SDS. Governments investigated in blockchain adoption in public services such as border protection and post-office services, and developing technologies to sustain their economic growth next generation. Local societies considered blockchain as a platform that will promote their local economy entangled with the social welfare of local governments.

 

Third, the report summarized academic issues on blockchain in the areas of engineering, business and economics. Engineers have developed the technologies of mitigating the trade-off between incompatible features of blockchain, i.e., adaptability, efficiency, scalability, etc (Sharma, Singh, Jeong, & Park, 2017). Business scientists designed the use of cryptocurrency, especially in sharing economy, and suggested that organizations and finance transactions evolve to become democratic and autonomous. Economists suggested that aging societies demand automation in their intelligence for trust in order to sustain the economic growth, and this will inevitably result in severe economic diversity and the change of meaning of labor.

 

The report has also raised economic issues on the ground of this survey results. Engineering completeness of Blockchain might become a weak point from the socioeconomic perspective. The new way of economic activities introduced by blockchain might be in conflict with the institutions that modern economic societies have built for several decades. The diffusion of blockchain into our society might shake the belief. Adopting blockchain in industries, therefore, requires cooperation with business, sociological and humanitarian studies.