ecosystem metaphor is used in order to denote an analysis that takes

into account multiple software systems.

Governance challenges: The lack of regulatory clarity is a significant

roadblock for the mass adoption of blockchain technology. One of the

challenges of this approach is that it reduces oversight. Organizations

use this technology as a means of transaction for which there are not

any specific regulations. It inhibits adoption as well as investment in

the blockchain industry in the areas requiring regulatory support, such

as smart contracts, if they are not covered by regulations. A strong

argument is thus forwarded for blockchain applications to work within

existing regulatory structures and not outside of them. The

government and extremely controlled sectors in order to get over this

challenge, may need to create regulations for blockchain, meaning that

the regulators in all types of industries have to understand the

technology and its impact on the businesses and consumers in their

sector.

Signature verification: Digital signatures are a fundamental building

block in blockchains used primarily for verifying the authenticity of

transactions. When users submit transactions, they must prove to

every node in the system that they are authorized to spend those funds

while preventing other users from also spending those funds. Every

node in the network will verify the conditions of the submitted

transaction and check all other node’s work to agree on a correct state.

If Anand wants to send 1 BTC to Bikram, he must sign a transaction

that will enable him to spend 1 BTC using his private key and send it

to the nodes on the network. The conditions of the transaction will

then be checked and validated for the authenticity of the signature by

the miners who have the knowledge of their public key. The block

containing the transaction will then be ready for finalization by a

validator/ miner once the validity is confirmed.

Consensus mechanism: In every 10 minutes, a block can be created

in the blockchain, and every transaction made must ensure that every

block in the blockchain network reaches a common consensus. A

considerable amount of time and resources can be consumed by the

back-and-forth communications involved to attain a consensus