what is blockchain

Whenever we talk about cryptocurrencies, the term blockchain comes up. But more and more people talk about the system of block chain outside the crypto economy.

This technology has the potential to revolutionize many areas of social, political and productive life, just as the way in which we transfer value, record information or store documents has already changed.

It is even possible to elect a president or carry out any type of vote or election safely and transparently using blockchain technology.

Blockchain, a new digital revolution

The blockchain concept was developed in 2008 by Satoshi Nakamoto, the pseudonym chosen by him or the creators of Bitcoin, who described the functioning of this “blockchain” in the Bitcoin white paper.

A blockchain is a digital form of book or accounting record, whose objective is to record all the transactions of a certain cryptocurrency, which are carried out and validated within a gigantic peer-to-peer, collaborative and decentralized network.

This unique open source technology is supported by the use of cryptography. Every time an operation is performed, it is recorded in a block. When a block is full, nodes called “miners” try to solve cryptographic puzzles to find a key that allows them to consider that package of information closed and add it to the chain.

On a blockchain, each block is connected to the previous one, so that this database can be explored and traced from the first of its movements to the most recent.

Are blockchains secure?

It is unfeasible to alter a blockchain record. Moreover, it could be said that it is impossible. It is that if someone wanted to make a change in an old block to get a benefit, they would force to do a new validation of its content (if not, the changes could not be “saved”) and the entire network would find out about this fraud.

On the other hand, the ingenuity protocol developed by Nakamoto offers the opportunity to get a reward from the network working for her. This work is known as mining and involves putting some computing capacity to carry out the validation tasks that the accounting base needs.

In this way, trust in the validity of a transaction is not given by a third party, but by the network itself. Thus, delays and commissions are avoided, and each user can maintain control of their economy.

Bitcoin and blockchain are not the same

Is a quite common question when someone starts digging into the crypto ecosystem. Bitcoin is the currency and Blockchain is a company? Nothing of that.

Blockchain or chain of blocks is a protocol, that is, a series of guidelines that indicate what form a certain thing has and how it works. In this case, it is a protocol for a computer accounting system, particularly the one that allows Bitcoin to work and bitcoins to be mined, sold, bought and used.

The Bitcoin network is «mounted» on a blockchain. And the records of the operations are integrated into that chain, they are recorded in it with the strength and irrefutable solidity of DNA.

But although the first successful practical application of a blockchain was Bitcoin and its decentralized system for the transfer of value, the uses of the blockchain model go far beyond.

the big impact

Blockchain technology has the potential to have a positive impact in the most diverse areas: supply chains, digital identification systems, medical or property records, travel and tourism services, electoral processes.

All the trust put into the blockchain ecosystem has to do with its transparency. In fact, the more trust and adoption of blockchain technologies, the more transparency.

Blockchain networks have various actors, where each fulfills its role and helps the overall efficiency of the networkas well as your protection.