What is blockchain and how does it work [2019]

Dear Reader, in this article I’m going to tell you what blockchain is and how it works.

What blockchain is and how it works

I leave you a brief summary of what you will learn in this article:

    1. What blockchain is.
    2. How blockchain.

works

  1. Why blockchain is safe.
  2. Uses that can be given to Blockchain.

What is blockchain?

caption id=”attachment_336″ align=”aligncenter” width=”600″]red blockchain with multiple nodes Red de nodos blockchain[/caption]

Blockchain, also called block chain, is a database distributed among several participants. Let’s simplify a little more: Blockchain is an immutable log book that contains all the transactions that have taken place in the network.

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The network is a set of computers that we call nodes, these in turn are connected to each other through a decentralized network, ie a network where there is no main computer. We call these networks P2P (peer-to-peer networks) and they are characterized because the nodes communicate between them through the same language (protocol).

The message transmitted by the nodes is called token. A token can represent any kind of information, such as money in the form of bitcoins, a car rental or a share purchase. The information travels in the encrypted token, so it can be distributed without revealing its content.

caption id=”attachment_353″ align=”aligncenter” width=”600″]blockchain y bitcoin Blockchain y Bitcoin[/caption]

Token transfers are grouped into blocks that are generated from time to time. Transfers that fit in a block are grouped in the next block, which is linked to the previous one and so on. For this reason it is called chain of blocks.

In the criptomonedas, the block chain is something similar to an accounting book where each and every transaction is recorded.

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SUMMARY:

  1. The block chain is composed of a known number of blocks.
  2. Each block has its specific and immovable place within the block chain.
  3. The position of each block within blockchain cannot be changed, it is immovable.
  4. Each block has the previous and subsequent block identified through an information called hash.
  5. A backup copy of the block chain is stored in each node of the network. In other words, an exact and updated copy of the string is stored in all participants of the network.

How does blockchain work?

Here’s a video explaining how the chain of blocks works.

 

Why is blockchain safe?

Blockchain is safe for 5 reasons that I will explain to you:

  1. Because it is a distributed technology where each node in the network stores an exact copy of the string, it is guaranteed that the information is always available.
  2. As it is a consensual record where all the nodes contain a backup copy of the information, it is impossible to modify the information of the block chain since it would mean modifying the whole block chain in at least 51% of the nodes of the network.
  3. As each block is linked to the next block through the hash, when a new block is added to the blockchain it becomes unalterable. When a block is automatically modified its relationship with blockchain is broken so the information recorded in the blocks is immutable and perpetual.
  4. Blockchain allows you to store information that can never be lost, modified or deleted.
  5. The nodes that make up the network use digital signatures and certificates to perform any operation (validate transactions, verify information) which ensures the authenticity of such information.

What’s the future of blockchain?

Blockchain is going to mean in the near future a change in our way of understanding business and society.
Today, thanks to blockchain we can buy bitcoins safely and store them in our cryptomoney purses.

One of the biggest blockchain potentials are the so-called smart contract or intelligent contracts because thanks to the blockchain technology transactions and agreements can be made confidently without disclosing any information from both parties and without the need for intermediaries.

But not only will be used in transactions between users, blockchain will be essential for secure communication between devices over the Internet. An example would be the communication of our refrigerator with a supermarket to make the purchase automatically and completely secure.

But the blockchain will not only be applied at home, it is also the technological basis to implement in electronic voting, a secure vote impossible to hack. Imagine voting in the following elections from your home using your mobile phone.

The future of the block chain is assured and its limitations will be marked by the developers’ own limitations.

Dear friend, the block chain is the future .

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