Optimizing the Resource Consumption of Blockchain Technology in Business Systems

Juričić Vedran, Radošević Matea and Fuzul Ena
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Juričić Vedran: Faculty of Humanities and Social Sciences, University of Zagreb, Croatia
Radošević Matea: Faculty of Humanities and Social Sciences, University of Zagreb, Croatia
Fuzul Ena: Faculty of Humanities and Social Sciences, University of Zagreb, Croatia

Business Systems Research, 2020, vol. 11, issue 3, 78-92

Abstract: BackgroundBlockchain technology has gained a great public interest due to the appearance of cryptocurrencies, a digital asset used for exchanging funds. Although blockchain calculations offer the benefits of security and reduced costs, blockchain is still strongly criticised for its lack of usefulness and resource-heavy consumption. ObjectivesThe aim of this research is to provide different insights into blockchain technology and to propose NP-complete problems as a suitable alternative to the current consensus algorithm. Methods/approachThis research discusses the current state of proposed alternatives, projects such as distributed volunteering for scientific purposes and different consensus algorithms within cryptocurrencies but focusing on incorporating NP-complete problems as a secondary, more useful option. ResultsUsing the properties of NP-complete problems, it is possible to solve various problems in different areas, such as science, biology, medicine and finance, but also to improve business processes, optimize markets, payments and supply chains while decreasing environmental costs. ConclusionsThis paper shows that the alternative mechanisms are being developed and used to substitute an existing Blockchain algorithm with a more efficient one. It also suggests further investigation in this area because the alternatives greatly improve blockchain’s usability and efficiency.

Keywords: blockchain; proof of work; optimization; problem-solving; NP-complete problems (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:bit:bsrysr:v:11:y:2020:i:3:p:78-92:n:6

DOI: 10.2478/bsrj-2020-0028

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