Abstract

Blockchain is a revolutionary new technology that facilitates peer-to-peer transfer of value without the need for a centralised intermediary. It uses cryptographic hashing functions, consensus protocols and decentralised data storage to ensure security, decentralised trust, immutability and transparency of business transactions. Blockchain technology paired with smart contracts is a reliable method of automating business rules in an efficient and trustworthy mechanism. A smart contract is a self-executing piece of code that runs on a blockchain platform. Predefined rules between participating organisations are translated into smart contract functions to establish trust. Blockchain is undergoing rapid development and has revolutionary potential for application in Intelligent Transport Systems applications. Blockchain can be used to create a secure, reliable and decentralised autonomous system, creating the best use of legacy infrastructure and resources. One of the most important issues is security, caused by the evolution of ITS towards centralisation. Fast-growing technologies, including the Internet of Things (IoT) and cloud computing, allow most data processing, analysis and decision-making to be done by centralised systems. The distinguishing factor of Ethereum is that it is programmed according to user requirements, rather than providing users with a set of predefined transactions, such as Bitcoin transactions. As a result, it could theoretically be used to automatically and securely execute any transaction involving trust, security or persistence. Although Ethereum is a relatively new implementation of blockchain, it has sparked reaction because of its potential to change the way many businesses operate.

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