While in the past it seemed like something out of a science fiction movie, today, Blockchain has become a digital revolution. It is a technology that is changing the way of managing and securing information within a virtual environment.
Blockchain is a decentralized database, that is, it is not governed by any central authority, single server or intermediaries and, in addition, it encrypts the information that is recorded in its base so that it is completely transparent and immutable.
To ensure that information is safe and not tampered with, Blockchain organizes data in a chain of blocks (hence the name). However, the main attraction of this technology is that it is capable of working without intermediaries, which translates into benefits such as greater security, reduced costs and faster transactions.
Thus, currently, the pillars of Blockchain are: decentralization (no central authority controls this technology), transparency (any user can see their transactions), immutability (the recorded data cannot be modified) and security (it has an advanced cryptographic system).
The properties of Blockchain have made it directly related to cryptocurrencies, although its applications go beyond the financial sector and cryptocurrencies, since the technology can be adapted to multiple sectors.
How Blockchain works
Although the operation of Blockchain at the programming level is extremely complex, its main function can be explained simply because its job is to be a free digital accounting system, although with unique qualities due to its great security and transparency.
To understand how the blockchain works, you must understand it as a global record where each operation carried out is recorded permanently and unalterably. The process to make this possible consists, first of all, of initiating a transaction, that is, a network operation is generated and the activity is added to a "pool" of temporary operations.
Then, when the pool has enough transactions to activate, the data block is generated. Thus, each block in the chain contains all the information about the transaction in question, such as the type of operation and the moment in which it was validated.
When generating the database, the chaining process begins. Each of the blocks that make up the chain are connected to each other to create an exact chronological sequence of each of the transactions.
Subsequently, to avoid errors, Blockchain is responsible for analyzing the state of each block and processes it to obtain a consensus on the authenticity of the operations. When the block has been qualified and approved, it is permanently added to the chain. Thus, each new block reinforces the integrity of the previous blocks.
Finally, when the information has been validated and processed, it is recorded and becomes immutable so that it cannot be manipulated by third parties. In this way, if an attempt is made to change the data of a block, this would cause the following chain to be invalidated, which prevents the information from being altered.
Types of Blockchain
Blockchain technology is extremely versatile, to the point that it has the ability to adapt to the specific needs of the field in question. Now, one of the most used is the public Blockchain, a chain that is open to any user, as is the case with the cryptocurrency Bitcoin and Ethereum.
There are also a large number of private Blockchains where an organization controls the chain. A common example of this is “smart contracts”, agreements that are automatically validated when pre-established conditions are met. Thanks to the support of Blockchain, these contracts are unalterable and do not require third-party approval, which is useful for real estate and insurance companies.
Another common Blockchain is the hybrid because it allows combining public and private parameters in one place and there is also the consortium Blockchain, which is managed through a group, organization, company, corporation, etc.
Use of Blockchain
In addition to the world of cryptocurrencies, the blockchain can be applied to an immense variety of sectors. Currently, finance and banking are one of the areas that have benefited the most from Blockchain because it allows them to speed up international transfers and is supported by smart contracts.
The healthcare field has also benefited because blockchain makes medical record management and medication traceability more secure and effective. The logistics sector should not be left aside, since Blockchain allows complete tracking of products from their creation to their delivery.
Thus, the growth and rapid implementation of Blockchain in various fields demonstrates that it is an efficient and profitable technology when an operation requires managing and sharing information in a secure, transparent and immutable manner.
Leave a Reply