Blockchain here, blockchain there. In recent years, you have surely heard this word many times.
And if you have started reading this article, you may be wondering: what does it mean and why is everyone talking about it? Don’t worry, you’re not the only one to ignore all about this fantastic new technology. 😀
In this article, we will explain what blockchain is, how it works and how it will affect your life if you decide to get involved.
And it is that, even if you do not believe it, this technology is going to change the world as we know it in practically all areas; finance, telecommunications, health, public administration, etc. A real madness!
Therefore, we invite you to join me in this complete article on blockchain.
We are sure that, after reading it, you will have discovered endless great opportunities that could give you new perspectives for your future. 😉
What is Blockchain?
The blockchain is an invention that is related to bitcoin and cryptocurrencies, but since its appearance, it has become something much bigger. All this has led people to wonder what the blockchain is.
Blockchain can be defined as a mathematical structure capable of storing data in a way that is almost impossible to falsify.
Putting it simply: it’s a public e-book that can be shared openly between disparate users and creates an immutable record of your transactions.
This “digital ledger” can store data of any kind. For example, you can record cryptocurrency transactions, NFT ownership, or Defi smart contracts.
Although any database like Kolkata ff can store information of this type, the blockchain is unique because it is totally decentralized and does not depend on anybody.
Instead of being stored in one location by a centralized administrator (as is the case with an excel sheet or a bank database), copies of a blockchain database are stored on multiple computers, which are called nodes and are distributed in a network.
Let’s simplify this last paragraph: the blockchain database is not stored in one place. This means that all the records it keeps are public and easy to verify. There is also no centralized version of this information, so a hacker cannot break it. 😎
One thing should be clear: the blockchain can be compared to a spreadsheet duplicated thousands of times on a network of computers.
The network in question is designed to regularly update the spreadsheet and have a basic understanding of the technology.
This is What a Blockchain Transaction Looks Like
There is no better way to define something than by explaining in detail how it works. So, below I will make an effort to show you the real workings of an online-hosted blockchain.
To exemplify in a more correct way, imagine that person A wants to send money to person B. Doing it through the blockchain, this transaction is represented as a block of data and is transmitted to each of the parties that make up the network.
The latter is responsible for approving the validity of the operation performed. The money is then moved and the block is added to the chain, creating an immutable, public and transparent registry. 🙂
Blockchain technology fulfills, in this way, its function of registering, preserving, and protecting the information of any type of operation carried out digitally. There is no chance of a third party intervening or anything like that.
In practice, blockchain technology can be used in a large number of industries and in tasks that go beyond the exchange of money: it can be used in accounting records, product traceability in a supply chain, history management clinics, and identities, among others.
Now we are going to explore, in more detail, the use that can be given to the blockchain.