Blockchain Technology
In 2008, Satoshi Nakamoto introduced two innovative ideas that had profound implications. Bitcoin is a decentralised digital cryptocurrency that operates without the need for a central network. The phrase “blockchain” is more prevalent than “cryptocurrency” (Nakamoto, 2009).
Blockchain refers to a distributed information structure that consists of a chain of blocks. It acts as a decentralised ledger, storing transaction logs. Blockchain involves conducting transactions over a peer-to-peer (P2P) network, where participants are not required to have knowledge of each other and there is no intermediary present. Blockchain is designed as a structured ledger, depicted in Figure 1, stored as a distributed database system, and connected to a preceding block. There are two essential parts of the block, the header and the transaction. It is divided into two main parts. The header of the previous block will include a real hash block and a link will be established between the two blocks. This is why a blockchain is named.
The transaction is the principal entity within the network of blockchains. A majority consensus system uses network nodes to validate each transaction before the blockchain is implemented. No data collected can be changed or removed, and it is possible to reinterpret the timeline of any transaction at any moment. A consensus must be achieved for verification and confirmation by individual miners, known as mining. Miners make mathematical consumer calculations and, in exchange, obtain rewards. This work can be hard to solve, but once it has been done, it can be easily checked.
Figure 1. The basic structure of the blockchain
Blockchain for IoV In the context of the IoV, blockchain refers to a decentralized and distributed ledger technology that securely records and verifies transactions related to connected vehicles and their associated data. The IoV involves the integration of communication technologies and smart devices in vehicles to enhance safety, efficiency, and overall transportation experience. Blockchain features for IoV serves several purposes as mentioned in in Table 1.
Table 1. Features of the blockchain and its impact on IoV
| Features | Impacts |
| Immutability | The transaction is duplicated on every node, ensuring fault tolerance. |
| Consensus | The decision-making process involves all participants. |
| Decentralised | IoV excludes third parties. |
| Security | To secure, utilise the cryptographic hash function. |
| Time Stamp | Sort the transactions in the correct order. |
| Non-repudiation | A sender cannot refuse a message. |