A critical approach to technology-based risks in blockchain system

Abstract

The blockchain technology has given a new shape to the world and disrupted a wide variety of technology-based industries. The disruptive characteristics of blockchain technology have molded the way of doing things. Since the importance of blockchain technology in business and social environment is increasing day by day, this study aimed to underline risks of blockchain technology within the network. Two strategies were made to infer the technology-based risk in the blockchain ecosystem. First, the study examined to find the technology-based risk at the point where a user executes the transaction from his/her computer ‘Node’. Second, this study attempts to figure out the security concerns within the web of the blockchain. After assessment of benefits and risks of this technology, this study concluded with the findings that blockchain is very much secure and trustable system which provides peer-to-peer transactions without needing any trusted third party, besides, once the information of the transaction is recorded, the system stores multiple copies of it, so there is no chance to change or delete it from the system. In the case of negligence, there is a possibility of forgery at the node, but numerous software has been developed for protecting the computer. The approach of the study is grounded in the literature review of journal articles, reports, and conference proceedings from authenticated sources via content analysis of the keywords such as blockchain, security, trust, technology-based risks. Blockchain technology is not associated with finance but it has high usage in other areas like health, education, supply chain, the music industry and many more to explore.