NORMALIZATION THEORY IS THE FOUNDATION OF BLOCKCHAIN

The purpose of this article is to explain that Normalization Theory is the foundation of Blockchain technology. Blockchain is a partial barter system. An entire barter system facilitates the trade directly between participants without using a medium of exchange, such as money. However, there is a need for an administrative entity with the Blockchain system to guarantee a seller will get credit and the buyer will receive promised delivery such as goods or services. Thus, the organizational entity's role is minimal and promotes trust among transaction parties by guaranteeing the sellers' and buyers' promises. While some researchers focused on describing Blockchain mechanics, others concentrated on the benefits of Blockchain technology. One common characteristic of most writing on Blockchain is that Normalization Theory discussions are neglected or marginalized or completely absent. Such an omission is mysterious; a cursory glance at the literature reveals the need to understand Normalization Theory's role as the foundation of Blockchain is lacking. Without Normalization Theory, there are no Blockchain applications. The central assertion of Blockchain is that contracts could be executed faster than processed by a Bank, which is the middle institution between the two parties. The direct contract between the sellers and the buyers would eventually strengthen the relationship. The security is enhanced since any change in a contract would trigger creating a new agreement. The premise of Blockchain is that all parties in a contract fulfill their obligations. Blockchains are decentralized transactions, and a trade could be initiated by a member of the group, which requires certification by most of the members. Along with diminishing the cost of a transaction, Blockchain reduces the role of Banks. It accelerates contract creation, execution, completion, or cancellation through Database tables' design using Normalization Theory.