Blockchain emerged in 1968. It was created as an encrypted string, where transactions are recorded I Bitcoin virtual currency conversion, to be decentralized design (see the patterns of the decentralized network in the center of Figure 13.1 dating back to 1967 when Paul Bara published it illustrate the system of distributed centralized and decentralized systems) so transactions are allowed to be directly between users without having to have third parties [3].

Decentralized network pattern. Source

FIGURE 13.1 Decentralized network pattern. Source: Ahmed, 2018 [4].

Blockchain technology has created real infidelity in the digital economy, as well as various sectors such as E-commerce, remittance, and smart city infrastructure, real estate sector such as property registration, commercial exchanges documentation of equations, brokerage, education, health, and other fields.

Blockchain is the largest distributor and opens digital record that allows the transfer of the asset of ownership from one party to another at the same tune in real-time, without the need for a broker, with a high degree of security for the conversion process in the face of fraud or manipulation attempts. Everyone around the world participates in this register. Blockchain can now be considered the largest database distributed globally among individuals [5].

Blockchain technology is a long series of encrypted data distributed to millions of computers, and people around the world, allowing many parties to enter and verify the information [6]. Each computer or entity in this series has the same information, and if part of it is broken or compromised does not affect the rest of the series [7].

Blockchain technology is based on two basic concepts: (i) a business network and (ii) a ledger thought which members exchange valuable goods through the ledger; each member has its content and agreed with others. Blockchain is an open-source, decentralized database based on mathematical equations and cryptography to record any transaction or information, such as cash transactions, goods transport, general information, or even electoral votes.

Blockchain is a term for the process of producing successive blocks in a virtual configuration process that is modified sequent any accounting record of the year in the financial sector and is currently exploring another user of it in many other sectors such as the logistics sector as takmg the delivery of goods and trashing their progress.

Blockchain assets in virtual currency, it was a database to track online mining traffic. To calculate the virtual currency of each user, the mining and bitcoin extraction in this database was documented as a series of documented blocks extracted worldwide. It is, therefore, impossible to falsify a mass or add another untrue to the public register blockchain without being approved by all concerned parties and operating on the internet [8].

It should be noticed that Bitcoin, which is an encrypted digital currency, can be traded in a decentralized maimer without relying on a central source such as banks to issue the currency and monitor its prices. Initially, many bitcoins could be purchased in one-do liar until, in October 2017, the value of bitcoin per bitcoin rose to more than $6,000 to set a new record to double its value in 2017 only more than six times the beginning of the year.

However, in reality, it is not just innovation in bitcoin; it’s in the technology that Bitcoin originated on, which is the blockchain [9].

According to the latest available reports, there is a shift of 15% of the largest banks in the world in the launch of products based on the technology of SharePoint IBM announced, which has investments in the IoT which works with technology Blockchain about 2000 million dollars, the global market value of blockchain technology is expected to reach around 20 billion dollars in 2024, technology, and financial companies invested 1.4 billion dollars in blockchain technology in 2017.

In addition, about 90% of global banks in Europe and North America are exploring an investing in Blockchain technology, which can reduce bank infrastructure estimated to 30% [3].

In 2013, Vitalique Putin introduced Ethereum, which is based on block- chain technology but not only as a virtual currency but also as a currency that offers smart contracts to eliminate the need for a thud party.

The idea of smart contracts in the use of blockchain technology is to document infonnation between parties within the database and is open to viewing. Smart contracts replace the third party where you first document the ownership of the first person of the place of the sale by reviewing the contract book registered in the blockchain and then verifying that the second party owns the required value of the object in the sale and then documents the transfer of ownership from the first party to the second party in DFTT contracts constantly updated with the adoption of blockchain technology [7].

Bitcoin is the world’s first virtual currency that does not need a central party to control it, as is the first currency through which smart contract software can be developed. Blockchain uses to open up prospects for a new type of governance.

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