Al-Mustaqbal Journal of Sustainability in Engineering Sciences

Volume 1 Issue 1 Article 3

2023

Sustainable development via blockchain technology

Salar Essa
Information Technology Department, Al- Mustaqbal University College, Babylon 51001, Iraq,
salaressa@uomus.edu.iq

Eslam Mohamed Husein Al-khateeb

Department of Biology, College of Education for Pure Science, Wasit University, Al-Kut, Iraq,
aslammoon1994@gmail.com

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Recommended Citation
Essa, Salar and Husein Al-khateeb, Eslam Mohamed (2023) "Sustainable development via blockchain
technology," Al-Mustaqbal Journal of Sustainability in Engineering Sciences: Vol. 1: Iss. 1, Article 3.
Available at: https://ajses.uomus.edu.iq/home/vol1/iss1/3

This Review is brought to you for free and open access by Al-Mustaqbal Journal of Sustainability in Engineering
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Al-Mustaqbal Journal of Sustainability in Engineering Sciences
Vol. 1, No. 1, June 2023, Article Review, pp. 9~15
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Sustainable development via blockchain technology

Salar Essa1*, salaressa@uomus.edu.iq , Information Technology Department, Al- Mustaqbal University
College, Babylon 51001, Iraq
Eslam Mohamed Husein Al-khateeb2, aslammoon1994@gmail.com, Department of Biology, College of
Education for Pure Science, Wasit University, Al-Kut, Iraq

Article Info ABSTRACT

Article historys: The use of blockchain technology provides a reliable system for
digital services, promoting trust and decentralization. It offers a range
Received Dec 22, 2022
of benefits such as automation, resilience, immutability, and trust,
Revised Feb 10, 2023
making it an excellent enabler for sustainable development. This
Accepted March 5, 2023
article aims to highlight the potential of blockchain technology in
supporting the transition to a sustainable society by explaining its
Keywords: fundamental properties and available options. It also outlines the
challenges that hinder blockchain technology's full potential.
blockchain Therefore, the article encourages professionals, enthusiasts, and
sustainable development researchers from various sectors to continue exploring blockchain
computing technology while raising awareness of its thoughtful and prudent
usage.
Copyright © 2023 Al-Mustaqbal Journal of Sustainability in Engineering
Science All rights reserved.

Corresponding Author:
Name of Corresponding Author, Salar Essa
Department, Information Technology Department
University, Al- Mustaqbal University College
Email : salaressa@uomus.edu.iq

1. INTRODUCTION
Many people believe that blockchain technology has revolutionized the digital computing industry
and is poised to become the "next Internet" for trusted services. The technology's foundation in trust has led
to the development of innovative multidisciplinary digital services across various aspects of life, such as the
economy, industry, smart cities, finance, society public, services, and organizations. The distinctive features
of blockchain technology, including trust, automation, decentralization, transparency, provenance, and
resilience, make it an effective tool for promoting sustainable development. It is noteworthy that building
new applications on a blockchain system is relatively simple, as long as the system is already established as a
ready-to-use platform or a black-box, as shown in Figure 1.

The widespread fascination with blockchain technology began with the excitement around
cryptocurrencies, which are the most well-known applications of blockchain. The global market value of
cryptocurrencies is now at approximately USD$2 trillion, and this interest is expanding beyond just financial
technology (Fintech). According to Bloomberg, a single cryptocurrency in the top-five will soon have a
market capitalization greater than 80% of the companies listed on the Standard and Poor's 500 stock
exchange. The Forbes Blockchain 50 list includes 50 high-value companies that have invested in various
sectors of the blockchain market, such as the Industrial and Commercial Bank of China, Facebook, Google,
Baidu, Amazon, Boeing, and Daimler, among others. There are currently approximately 3,000 blockchain
applications across different businesses on the Ethereum platform alone. It is evident that the interest in
blockchain is only increasing, and Gartner's predictions indicate that the technology's innovative business
value will surpass $3.1 trillion by 2030. Despite the significant investment in blockchain technology, it is still
not mature enough to be adopted widely in production systems outside of the financial technology (Fintech)
sector.

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Figure. 1. Blockchain for SDGs: main blockchain use cases for SDGs.

There are many challenges that must be addressed, such as the complexity of the technology, legal
and regulatory concerns, and technical obstacles. Additionally, there is a constant search for applications in
various sectors where the essential features of blockchain, such as trust and decentralization, are truly
necessary and justifiable. Furthermore, there are still legal obstacles related to governance, tax regulations,
and the management of illegal "black market" activities. Technical challenges, such as latency, are also
limiting the scalability of the technology [1]. Additionally, some controversies have arisen regarding the
sustainability potential of blockchain due to its high carbon footprint. The most popular variant of blockchain
protocols, known as proof of work (PoW), consumes an amount of energy equivalent to that of an entire
country like the Netherlands. The goal of this Primer is to promote the responsible and sustainable use of
blockchain technology across various fields. To accomplish this, we aim to simplify and clarify the most
prevalent blockchain designs and characteristics by highlighting the reasons for their existence [2]. Our
objective is to make it easier to evaluate the feasibility of utilizing blockchain for multidisciplinary
applications. We provide an overview of the primary blockchain variants and readily available platforms to
facilitate a seamless start. Additionally, we address the significant obstacles involved in progressing toward
more advanced blockchains that promote sustainable development. This article urges for further exploration
and investigation into the blockchain ecosystem. Specifically, there is a call to involve blockchain researchers
and enthusiasts from non-technical backgrounds in various fields to comprehend the complete range of
blockchain application possibilities and to pinpoint any current inadequacies. The trust, automation, and
decentralization feature of blockchain are certain to stimulate and empower fresh applications across
numerous sectors that have yet to be explored. This aids the blockchain technical community in closing the
current gaps and responding to the broader business and market requirements [3].

2. Rationale Behind Blockchain

A blockchain refers to a decentralized system that allows for trustworthy computing in environments
that cannot be trusted. In combination with "trusted computing," a blockchain creates distinct features that
benefit modern digital services, such as security, immutability, automation, traceability, and decentralization.
Thus, blockchain technology has the potential to enable sustainable development by fostering transparency,
digital transformation, provenance, and balanced development across diverse communities and services[4] .
To help understand why blockchain was created, we can compare it to conventional computing. As shown in

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figure 2A, Conventional computing involves creating a program in a digital form using programming
languages, which is then executed by the CPU when a user or stakeholder requests a service [5].
The outcome of the service is stored in a centralized database, which can be accessed at any point.
However, this centralized system requires stakeholders to trust the operators of the service, which can lead to
serious problems:
Availability: The stakeholders may not be able to access the system or it may be vulnerable to risks
such as damage or theft.
Integrity: If there are errors or malicious tampering in the execution of the program, the result will be
incorrect and can have harmful consequences.
Immutability: The database can be altered (changed) either by the operator of the system or by someone
who intends to cause harm (an attacker).
Due to illegitimate abuse or malicious actions, both the CC system and its operators are untrustworthy.
To address these problems, a potential solution is the implementation of a blockchain computing (BC) system
as shown in Figure 2B. The BC system relies on replication, in which numerous CC-like replicas execute
identical transactions simultaneously and maintain a uniform database copy. Replication is crucial since it
ensures a significant number of witnesses for both transaction execution and storage [6].
As shown in Figure 2A, each blockchain replica operates similarly to the CC system, but with a
replication aspect added to its components. The program code continues to execute transactions, but is now
referred to as a "smart contract." This is because it automates services in the same way a regular program
does, and has no connection to the concept of "smartness" in the Internet of Things or artificial intelligence
[7].
The local replica runs the smart contract, and its results (which are packaged in a block for efficiency)
are potential additions to the blockchain database. Unlike CC, the execution outcome (or block) is not
immediately trusted because the replica is untrustworthy. Thus, the block remains a "candidate" until it is
validated by enough witness replicas (typically a majority).
As depicted in Figure 2, the main distinction between the CC system and the blockchain system lies in
the "decision" component. This component involves replicas striving to come to a consensus on a potential
block that can be appended to the blockchain database. If agreement cannot be reached, then the database
copies on various replicas will diverge, with different transactions and blocks in different orders, which
undermines trust. For example, in the case of cryptocurrencies, a single resource (such as a coin) may be used
twice to buy two distinct items due to two concurrent transactions (this is known as double spending).
Because achieving agreement for each transaction is expensive, transactions are grouped together into larger
blocks, where reaching consensus is more efficient.

Figure. 2. Blockchain computing compared with conventional computing. Reproduced with permission
[8]. Copyright 2021, Elsevier.

In general, consensus can be reached by assigning a leader to the replicas who decides which block
will be added to the blockchain database next. However, there are two challenges to this approach. The first
is that achieving consensus is difficult in environments with hostile connectivity (such as the Internet) or

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unreliable machines (the replicas). The second challenge is that we cannot trust a single replica to be the
leader, so a fair, random scheme for electing a leader at any given time is preferable. The Bitcoin
blockchain's agreement protocol, known as PoW, is the first practical protocol to solve majority consensus on
a global scale, despite some assumptions being made to bypass theoretical "impossibility results."
Nevertheless, PoW requires significant computational resources, which has sparked the search for less
expensive alternatives, as discussed below.
Currently, the first two properties of the blockchain system have been largely achieved. These
properties are availability, which means that any replica can provide access to contract execution and
blockchain data, and integrity, which means that a majority of witnesses agree that the execution outcome is
the same. The final property, immutability, is addressed by the blockchain database itself [9].
The name "blockchain" is derived from the data structure of the blockchain database, which consists
of a chain of blocks [10]. Typically, each block has a distinct identifier in the form of a cryptographic
signature, and it contains a group of transactions as well as a reference to the previous agreed-upon block,
which is identified by its signature (as shown in Figure 2). The immutability of the database is ensured by
two aspects. First, the content of each block is secured against tampering by means of a cryptographic hash.
A cryptographic hash is produced through a mathematical function that only goes one way. This
function takes inputs i, j, and k and always generates a unique output [11]. However, it is almost impossible
to determine the input (i, j, and k) given the output y. This implies that any changes made to the content
would result in a different signature than the one previously agreed upon. Furthermore, the sequence of
blocks in the chain is secured from any tampering through cryptographic hashing and including the
signatures of the previous blocks in the current block. This ensures that the chain cannot be reorganized, a
block cannot be removed, and a new fraudulent block cannot be added to the middle of the chain. Keep in
mind that new blocks can only be added to the most recently approved block, which is at the top of the chain,
after performing a significant amount of computational work. Research has shown that an attacker needs
computational power greater than 50% of the entire blockchain system to forge a recent block. Thus, it is
almost impossible to tamper with earlier blocks in the chain [4]. Since any copy of the blockchain can
contain the entire database, stakeholders can now confirm its accuracy and guarantee that it cannot be altered.
The technical features mentioned above enhance blockchain systems with other features that have gained
attention in both research and practical settings, especially in the context of sustainable development. In
Table 1, we briefly list some of these properties that serve various purposes in promoting the UN Sustainable
Development Goals (SDGs).

3. Blockchain types
The wide range of blockchain features and applicability has led to the creation of several variants,
each tailored to specific circumstances. However, four primary categories of blockchain types exist,
categorized according to their openness and limitations. If blockchain access (usually read-only) is available
to any unknown user, it is considered public, while if it is restricted to certain known identities, it is
considered private [7] . Depending on whether the privileges of maintaining, hosting, and modifying the
blockchain are open to any user or known members (such as a consortium), the blockchain is considered
permissioned or permissionless. The most common and practical variants are the "public-permissionless" and
"private-permissioned" binary combinations. While we will focus on these two variants in this discussion as a
starting point, more variants can be found in the supporting material in the last section. We organize the
explanation of these variants into four main phases, which should be considered during the life cycle of a
blockchain project [12].
Preparation: The process of either defining or selecting the consortium and stakeholders.
Installation: Constructing the infrastructure, system, and protocols required for hosting the
blockchain.
Implementation: Putting into operation the application or service that runs on the blockchain.
Execution: The model of computation and anticipated performance of the service.

4. Public-Permissionless Blockchains
This is the original form of blockchain that was popularized and accelerated by cryptocurrency and
Fintech applications, and was initially introduced by Bitcoin [10]. It supports decentralization, transparency,
and a sense of 'democracy' by attempting to involve participants without restrictions, which is a characteristic
of community-based applications. Public-permissionless blockchains are typically the most efficient way to
create applications because there are numerous ready-to-use platforms available for public usage, thereby
avoiding the overheads of preparation and installation. However, starting a new platform necessitates
significant effort. Preparation necessitates community-based marketing and promotional campaigns, and
installation begins as simply as running an application on a basic computer, but quickly necessitates

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substantial computational and storage capabilities to keep up with system growth. Nonetheless, there are
open-source blockchain software suites that are recommended for installation and use instead of creating the
software from scratch, which can be highly expensive and complex [7].
The phase where the application logic is coded into a smart contract is known as the implementation
phase. This process is relatively simple as it doesn't require knowledge of the complex blockchain
infrastructure. Most modern smart contracts allow for "Turing-complete" implementations, which means they
can function like regular programs. For example, on the Ethereum platform, it's possible to create a new
cryptocurrency with a simple smart contract that only consists of one page of code. When it comes to a
public-permissionless blockchain, the execution phase requires careful consideration. This is because the
blockchain database and the execution of transactions need to be carried out on all system replicas, which
could number in the hundreds of thousands, through a peer-to-peer blockchain protocol. While this approach
provides high security and availability, it has two main drawbacks. Firstly, the common P2P protocols are
designed to impose high latency, which can be a problem for applications that require low latency. Secondly,
these protocols may require more computation and storage than necessary, which can make their carbon
footprint extremely high. While there are alternative approaches to proof of work, such as proof of stake, that
are gaining in popularity, they cannot guarantee the same level of security as proof of work.

5. Private-Permissioned Blockchains
This type of blockchain is primarily limited to a clearly defined private consortium with identified
members. Its use doesn't cause significant disruption to traditional business operations, policies, and expected
performance, aside from eliminating the need for a single trusted authority. Unlike public permissionless
blockchains, the preparation and installation phases cannot be skipped. During the preparation phase, the
consortium or federation of business stakeholders, such as supply chain partners, suppliers, or collaborative
research project entities, must be defined. The consortium then builds and hosts the blockchain infrastructure
and protocols as part of the installation phase. The infrastructure for private-permissioned blockchains can be
clearly defined beforehand because the business requirements of the consortium can be assessed. However,
it's more complicated than public-permissionless blockchains during the early stages because it often requires
a cluster of servers with significant computational and storage capabilities. To avoid the costs and complexity
of software development, it's recommended to utilize available open-source software projects. The
implementation phase for private-permissioned blockchains is quite similar to that of public-permissionless
blockchains since most private-permissioned blockchains support Turing-complete smart contracts.
The execution phase of a private-permissioned blockchain is the most attractive aspect because its
latency and carbon footprint are similar to those of conventional computing due to the use of "Byzantine
agreement" protocols, which have been extensively studied in academia for many years [13]. However, these
protocols are less secure than P2P PoW protocols, but they are potentially acceptable because it's reasonable
to assume more trust in a majority of business partners than in unknown participants, as is the case with
public-permissionless blockchains [14].

6. Challenges
Blockchain is an innovative technology that holds promise for sustainable and reliable development. It has
the potential to make a significant impact in various sectors, including technology, Fintech, humanities, and
public services, among others [15]. However, despite substantial efforts, the technology is still immature and
has not yet become a mainstream solution that effectively meets the desired goals for sustainable
development. In this section, we focus on the three most significant challenges that must be addressed to
promote the maturity and widespread adoption of blockchain technology. The purpose is to raise awareness
and encourage researchers to identify new gaps, interesting observations, and potential applications while
experimenting with blockchains.

7. Scalability
The most significant technical challenge in blockchains, particularly those based on the P2P model, is
scalability. The primary issue is the increase in latency as the number of participants grows [16] . While
cluster-based blockchains that rely on Byzantine agreement can achieve latency similar to that of
conventional computing, P2P-based variants can experience latency on the order of tens of seconds or even
minutes. This makes P2P-based blockchains impractical for modern applications that require low latency.
Recent P2P alternatives, such as proof of stake, have managed to significantly reduce latency at the expense
of some security guarantees [16].

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8. Carbon Footprint
From the standpoint of applications, blockchain is a critical facilitator of sustainable development aligned
with the UN SDGs. However, from a technical standpoint, the most secure P2P blockchains, specifically
those based on PoW, are incredibly energy-intensive [17]. This poses a significant problem in light of the
need to transition to a low-carbon economy. This issue has been the subject of extensive discussion and has
prompted research in several directions. The first approach is to use cluster-based protocols that rely on
Byzantine agreement when feasible. The second is to incorporate Byzantine-P2P hybrid protocols that
employ PoW only when necessary, such as to restrict abusers, secure hardware, or a reduced number of
storage or computational witnesses [18]. The third approach is to replace the cryptographic puzzle, or
"work," used in PoW with a more useful puzzle that can contribute to other orthogonal areas, such as
discovering new prime numbers or solving scientific problems, such as the structure of the genome.

9.Governance And Regulations

The use of blockchain technology requires both internal and external regulations to govern the
services provided due to its distributed, decentralized, and multinational nature. Internal regulations can be
established by the consortium, but conflicts of interest may arise as seen in the case of Facebook Libra
currency. On the other hand, external regulations are more difficult, particularly in the Fintech sector, where
blockchain-based applications like cryptocurrencies are difficult to control and thus, hard to regulate or
recognize by governments [19]. Despite these challenges, blockchain can be utilized in various areas,
including taxation, data privacy, accountability, and dark markets. These regulatory challenges can be
overcome alongside the technical challenges with more research dedicated to addressing these issues [19,
20].

10. CONCLUSION
Blockchain technology has the potential to enable trustworthy multidisciplinary services, but it faces several
challenges to achieve the desired maturity and sustainability goals, including latency and energy issues [19].
To overcome these challenges, there is a need for more interdisciplinary research and experimentation.
Blockchain may not be necessary for applications that can trust a service provider, but for other applications,
there are various blockchain variants to explore, with private permissioned and public-permissionless
blockchains being the most common. To reduce development efforts and ensure verified security, it is
advisable to start with existing open-source implementations [19].

11. REFERENCES
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