# Towards Practical Applications in Modeling Blockchain System
###### Abstract  
Like multiservice networks, blockchain technology is currently experiencing significant development because of its decentralization and ability to organize secure, seamless, reliable data exchange and storage. Due to the significant demand for the technology, there is a need to analyze the impact of these technology processes on network characteristics to predict traffic behavior and ensure required quality indicators, as well as on the stability of public communication network elements when blockchain technology operates. Conducting a full-scale experiment is a time-consuming task that cannot always be accomplished, so in this paper, the authors propose considering approaches to modeling these systems and, as an example, propose to use a simulation system to assess the performance of the network and its elements. blockchain; distributed ledger; decentralized systems; simulation; analytical modeling 22 April 202  
Blockchain created new forms of interaction, where network participants use a large network of untrusted participants for transactional data exchange without relying on a central hub [1]. However, it is important to note that this technology could have a significant impact on telecommunications. Blockchain technology is a specialized information and communication technology with some specific features. Nodes, transactions and consensus algorithms are the key objects of the system that define the new capabilities. Depending on the algorithms and protocols for communication and data dissemination, different network effects may emerge. The technology involves many nodes on the network to deal with the additional volume of service traffic and constant data exchange. This makes it necessary to consider its impact on the network and determine the current network infrastructure design for the new requirements, as the actual deployment phase may be adversely affected [3; 6; 7; 8]. The current lack of unified tools for evaluating blockchain technology performance, but the number of blockchain applications in use has already reached a high level of quantification [7]. The work of blockchain technology can be divided into several stages:  
1. Network discovery. The first time a node is connected to the network, it is booted and connected to the initial boot node to get a list of neighbor's nodes, synchronize and get the current version of the blockchain, subsequently disconnected;
2. Transaction creation and verification. All nodes in the network can initiate transactions to transfer digital assets to available peers in the network. The creation of a new transaction implies that certain conditions are fulfilled by the exchange participants, so the transaction specifies the amount and the addressee and may additionally specify the terms of the transaction. Once the transaction has been created, the sender signs it with their electronic key and sends it to the network. The transaction will be rejected if it is incorrectly generated, invalid or does not contain all the information required for execution, or if the user does not have sufficient funds to complete the transaction;
3. Mining. When a new transaction is received, the node initializes its addition to the block. The block is generated based on information about the past block received and the information collected. The miners try to find a solution; the block is checked, added to the registry and sent to the network to other nodes. If a solution is found by the second node, it is discarded to avoid branching;
4. Checking the block for correctness. Checking the block before adding it to the register implies that the previous block exists, that the data structure is intact, that the sender has sufficient funds, that the signature is correct, that the syntax is correct, that  
Figure 1: Blockchain market growth dynamics. the inputs and outputs are within acceptable values, that the transaction size is not higher than the maximum, that the transaction has not yet been processed.