This section introduces Blockchain technology the results of a literature study that aims to further scope this research and describing Blockchain technology. Blockchain technology was unveiled in 2008 by the pseudonym, Satoshi Nakamoto (The Economist, 2015). The first and possibly the most significant difference distributed ledger technologies have, compare to other value-transferring enabling services is that they are not subject to one centralized and trusted intermediary nakamoto 2008; kotilainen 2017. Blockchain-the first distributed ledger was presented as a service technology enabling shared transactions which would make the trust-creating intermediary redundant nakamoto 2008.
The motivation behind why the distributed nature of the blockchain was and still is changing is that it removes the possible disruption of the central counterparty which would influence all the transactions occurring. The single point of failures could be deliberate, for example corruption or criminal actions; or accidental, such as a global economic crisis. In spite of the intermediating third parties; for example banks, are intended to be trusted and function under difficult times. They are vulnerable particularly to things not related to them and in this way not able to maintain trust in all conditions. As the intermediaries always have numerous vulnerable attributes and risks that required to be covered by regulation, there is unquestionably room for some different method to process transactions. The solution offered by distributed ledger technologies is that there is an unlimited amount of copies of the transaction history continuously distributed to all the people participating in the ledger, with the aim that the consortium has access to the same information all the time fridlmaier et al. 2016.
the reality of having as many copies of both historical and current transactions as there are nodeslimits the possibility of history being changed or deleted close to zero as there is always a consensus of the real version of the transactions available mattila 2016. Additionally, it strengthens the community against intentional or inadvertent disturbance as the information is protected by each node fridlmaier et al. 2016.
In the distributed ledger model the acceptance of transactions is very different compared to the intermediary-model. While the central party can accept transactions as it likes, most of the network holding copies of a distributed ledger must achieve an agreement if the transaction can occur or not crosby et al. 2016. Nonetheless, this is not as difficult as it might appear as all the nodes which have identical duplicates of past are almost simultaneously offered the newest proposals to be accepted nakamoto 2008. Therefore, the decision of accepting the transaction or not is already made when the transactions are occurring as the consensus is reached simultaneously: every party knows whether the value was owned by the party which eventually tries to spend it.