What is the Blockchain?

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What is the Blockchain?

Blockchain means ‘blockchain’ in Spanish, which will help us understand a fairly complex concept. In summary, one could say that it is a distributed database with encryption that guarantees its security and which can be applied to any type of transaction, economical or not. Its main advantage, besides security, is that it eliminates intermediaries in transactions and decentralizes transactions.

When we talk about blockchain, we may feel like we are creating something new, but we are not. He has been working and facilitating all types of transactions for over ten years. Its strong growth has been driven by the increase in virtual currencies. It is generally associated with the use of Bitcoin, it is the most widely used and well-known currency today.

How does it work?

It might be a little complicated to understand what Blockchain is because it is a very technical subject.

For a blockchain to take place, several users must first be responsible for verifying transactions and therefore validating them so that the corresponding block ends up registering. These users are called minors.

Put more simply; We have two friends who want to make a transaction. Let’s call them A and B.

A wants to send the concert ticket money to B so that the transaction begins at that time. This money when it is sent over the Internet is packaged in a block form and remains “in the air” until it is received by the miners in charge of validating the transaction. Once they receive it and the transaction is evaluated and verified by the miners, the block is ready to be part of the chain. After this process, B would receive the money from the tickets that A sent him.

Blockchain security

After this explanation, you have probably been more clear about what a chain of chains is, but you may continue to dodge ideas like security.

By introducing more technical terms, we will solve this question.

The money from the banknotes that A wanted to send to B will be transformed into Bitcoin (the virtual currency that works as a means of payment but there is no way to monetize it) and it is the exploitation of bitcoin that is responsible for the processing. of this transaction. What makes this virtual currency safe is the cryptocurrency that provides you with personal encryption. All transactions are recorded in a database, they are certified and this means that they cannot be duplicated or falsified.

Know more about Blockchain

  1. Today we do not know his creator, he uses a false identity.
  2. Having no limit, you can carry out the desired transaction amounts.
  3. It will be the most used payment method, thanks to which any type of transaction can be carried out.
  4. Even if the banks participate directly, the blockchain will not put them at risk.
  5. Information remains secure thanks to the blockchain because it cannot be deleted or changed.
  6. A company doesn’t need to use this new technology, every user has access to it.
  7. Although only 5% of the population uses it, very shortly more than half of the population is expected to use blockchain for their transactions.
  8. In education, it will be easier to protect user information.
  9. Specialized jobs will be offered to manage this new technology.
  10. It encourages the creation of new virtual currencies, which will encourage online shopping.
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