A Survey on Blockchain and Cryptocurrency-Based Systems

Introduction

Blockchain technology is attracting the attention of people and government organisations across the world. It has the ability to significantly modify how citizen records are maintained, enabling improved information management and quicker data exchange, much like a shared ledger that is absolutely safe and available as more than simply many clones continuously altered in real time. Above all, that innovation, by allowing certification of specific acts or conformity to formal standards without such engagement of a centrally controlled admin or an external independent party (Belchior et al., 2021), foretells the Government's and government workers' inevitable exit from the area. Cryptocurrencies like Bitcoin, that are non-fiat, unregulated online payment systems work outside of the traditional finance industry, are also having an impact on the shifting landscape. Despite the reality that Bitcoin was designed as a payment system and a form of asset storage, it is unlikely that banking system currencies would be replaced given the volatility of Bitcoin's market price. The rigidity of the proof-of-work-based, fixed Bitcoin supply schedule is what causes the instability. The blockchain, on which Bitcoin's fundamental protocol is based, symbolises a development capable of transforming investment instruments and arousing existing financial, public, and safety regulations and policies, despite the fact that Bitcoin has drawn a lot of attention for its position in illicit behaviour such as financing terrorism, money laundering, the trafficking of firearms, tax avoidance, and digital ransomware (Deshmukh et al., 2022).

The rise of misunderstanding about the use of technology, the benefits and challenges it presents, has coincided with the new wave of blockchain and cryptocurrency systems. There is a lot of speculation regarding which coin or system will succeed. Due to its varied functions that are applicable worldwide, this has an impact not only on the business sector, but also on the rest of the globe. These modern technologies pose a threat to well-established business structures, eliciting a great deal of criticism, concern, and a sense of being in unfamiliar territory (Hewa, Hu, Liyanage et al, 2021). Enthusiasts also have a tendency to exaggerate this information, focusing on short-term goals and situations in order to inflate the value of the blockchain and cryptocurrency systems. Overestimating short-term rewards while underestimating long-term benefits is a common problem. They fail to consider market demand, existing frictions, and the societal consequences. Border control, government identity, insurance, shipping, real estate, advertising, waste management, energy, tourism, and a variety of other challenges can all be solved using blockchain technology. It is made up of numerous algorithms that are kept in the ledger and are used to detect faults. This even identifies the block in which the problem occurred. Several nations, namely Estonia, has experimented with blockchain in a range of fields and therefore have discovered positive outcomes that have aided its development (Zuo, 2021). Other important feature is anytime an issue arises, it leaves behind a footprint, that decreases the work required to locate the block where the problem happened. As a result of this aspect, the process becomes decentralised. Cryptocurrencies based on blockchains are becoming a new form of money in the last few years. Instead of depending on centralized authorities like the bank to manage money, cryptocurrencies depend on mathematical design and complex cryptographic protocols. Since most cryptocurrencies are fully decentralized, no individual or organization can keep track of or prevent the transfer of funds. Cryptocurrencies grew from just being an idea and model to being a worldwide prodigy with millions of individuals and organizations investing in them (Alharbi & Hussain, 2021).