Blockchain for Business

3Business Use Cases of Blockchain Technology

Vasudha Arora¹*, Shweta Mongia², Sugandha Sharma² and Shaveta Malik³

¹GD Goenka University, Gurugram, India

²UPES, Dehradun, India

³Terna Engineering College, Navi Mumbai, India

Abstract

Exchange of cryptocurrencies using digital coins such as bitcoin has changed the model for transactions and lead us to enter an entirely new world of businesses. Bitcoins can be thought of as a digital currency through a digital wallet which does not requires any trusted third party such as a bank or any other centralized authority for making transactions. In fact this digital transaction model uses a blockchain technology and is based on the concept of ‘proof of work’ where users execute their transactions by signing their transactions using digital signatures. As there is no concept for trusted third party hence implementations also provide a solution for double spending problems. This chapter presents the detailed discussions about the bitcoin as a cryptocurrency which uses blockchain as its medium of transactions. The transaction using bitcoins before entering into a blockchain must be validated by miners using blockchain mining. The miners, for validating a transaction, are awarded incentives that make the business of bitcoins based on blockchain alive. A Bitcoin Initial Coin Offering (ICO) can be broadly explained in terms of mechanism of crowd raising funds for entrepreneurial firms for their innovative and promising ideas where they are able ...