What is Blockchain? The definitive guide.
In recent years and especially in recent months the word blockchain has been on everyone’s lips, but if you still do not fully understand what this technology means, what it is for, or why it is revolutionizing the global economy, don’t worry, in this article, we will explain everything you need to know about it. Next, we will see what blockchain is and some key issues to fully understand the concept and its possible uses.
What is Blockchain?
The literal translation of the word “blockchain” in Spanish means, literally, blockchain, in short, a system in which secure transactions can be made between people from anywhere in the world without the need for a mediator. This idea is already changing the world economy and supporting all existing cryptocurrencies, driving their development.
The superbull Blockchain technology allows the creation of an account book via a computer network without the need for a central database. The digital navigation system is based on the distribution of information, whether it is a bank transaction, or finance, in a number of independent nodes (user computers) that record and validate that information anonymously, removing agents and protecting sensitive information. . The basis of this technology is agreement because if all nodes have and share the same information, they regard it as functional. In short, easy, fast, and without representatives.
Once what blockchain is and its possible uses have been defined and explained, it is necessary to know the main advantages of what is considered the technology of the moment.
Security is both the main feature and advantage of blockchain systems, this is because the data transmitted by this system is encrypted, making it much safer than standard systems that only use usernames and passwords.
In addition to encryption, this system has decentralized data that makes it extremely difficult to hack. Documents are stored on thousands of different hard drives so it is unlikely that data will ever be lost. For this to happen, hackers would have to overwhelm more than 50% of the network in less time than it takes to create a new block. Apart from this, it is very easy to detect when a block has been modified thanks to hash functions.
Decentralization and smart contracts
The second benefit is based on the ability of blockchain to automate transfers and payments, being able to pay a gas bill, for example, when consumption reaches a certain amount.
Thanks to this, there would be no additional charges for late payments and the possibility of possible theft of financial information would also be eliminated. As more transactions are automated using smart contracts, the need for third-party intermediaries and organizations will decrease.
Speed And Efficiency
Finally, blockchain systems, their speed, and efficiency stand out. With blockchain, all the registration information for the performance of different tasks is stored and verified as it is generated.
The speed of verification also brings great benefits as there is no need for third-party verification or track because all the information needed to complete and verify the transaction is included in the system itself.
Other uses for the Blockchain
As previously mentioned, the use of blockchain is currently revolutionizing the world of cryptocurrencies, focusing on their transactions.
However, its use does not have to be suitable only for that area. After knowing all the main advantages of having a blockchain system, it is understood that it can be beneficial for other completely unrelated fields.
Social security and health
The use of this system in the field of health would allow the unification of health records deposited in a blockchain. In this way, the history of the patients would be available to all authorized doctors in a totally secure way, regardless of the health center or hospital in which they are treated.
It is another area in which the use of blockchain would be beneficial. If this system is implemented in public services, they could thus have absolute transparency, in addition to providing greater security for all documents and data of public administrations, being able to prevent data theft from the population.
The use of this system could end the great security flaws that currently exist, providing a safe place to store all personal data and giving rise to a single system with which digital identities can be securely validated.
Internet Of Things (Iot)
Most of the ICO platforms that have electronic devices that are part of the Internet of Things have centralized models, in which the control of the devices rests with a single company.
Blockchain in companies
The implementation of a blockchain system in companies would bring great benefits, in addition to important competitive advantages for them. It is a tool that provides total confidence in commercial and financial transactions.
The 4 most notable benefits of blockchain in a company are:
All data is digitized, so blockchain participants can access it remotely and immediately. An auditable footprint is also created, with which to follow a record of the data.
- Less risk in operations
The blockchain is a decentralized and incorruptible process, so the risk of personal or operations data being leaked almost completely disappears. In addition, the implementation of this technology together with smart contracts will allow transactions to be encrypted and programmed.
- Reduce losses and save costs
Being a digitized and shared network, it reduces human error to a minimum, since each new block that is created is based on the previous block, thus automating the processes.
- Opportunity for new markets
This technology opens up endless possibilities for new markets within the internet, all of them with the security provided by the Blockchain.
In conclusion, the blockchain is a highly secure digital data transfer system with multiple applications, in all kinds of fields, aimed at improving information processing.