What is Blockchain?
Blockchain can be defined as one of the technologies behind cryptocurrency. How so? Well, it can be best understood when compared to a type of online, public, and decentralized database, where all information about cryptocurrency transactions is stored. And this information bank is accessible to all users; it is possible to view transactions between people from different parts of the world. Having been created with the aim of making all dissemination and publications of information increasingly transparent and reliable, blockchain made the creation of a decentralized digital currency possible. Therefore, the information provided by blockchain is stored and distributed across multiple computers to ensure data security. It is still not allowed to know details such as who is involved in the transactions due to the encryption applied throughout the process. However, it is possible to identify a transaction, know when it occurred, and that it is stored on the blockchain. Remember that there is no possibility of a transaction being undone, deleted, or altered after being entered into the data system. In other words, you need to be quite certain when selling or making any transaction with your cryptocurrencies!How Blockchain Works
As we have seen, blockchain is considered a chain of blocks that make up a collective recording system where all transactions are grouped into blocks. Therefore, each block is connected to the previous block by a chain (or 'hash'), serving as a digital signature that facilitates and provides greater security during transactions, forming a chain of blocks, or as the name itself says, forming a 'blockchain'. The hash acts as a link between the blocks, as each block also carries information from the previous block, thus forming a chain of blocks. All these chained blocks are very secure, as they carry content (or a financial transaction, in the case of cryptocurrency) along with a digital fingerprint. In the subsequent block would be the digital fingerprint that, together with the content of the previous block, forms the chain that generates its own digital fingerprint. Blockchain is considered inviolable, as any attempt to alter these transaction records can be easily detected by those responsible for validating the process, since all transactions are encrypted.The main advantages of this technology
It is worth noting here that, since all transactions carried out are encrypted, and the fact that it is an open system with records ('chains') that can be constantly validated, all of this only makes it more secure and transparent, as well as protected against fraud or malicious intent. Being excellent, for example, for financial activities. In a general sense, blockchain technology offers many advantages, in addition to those we have already mentioned. We have listed a few of the main ones below:- Self-sovereignty, by maintaining control over the storage and management of your personal data
- Trust, due to an infrastructure fully capable of carrying out transactions such as payments or certificate issuance
- Transparency, by allowing users to perform transactions with full knowledge
- Immutability, by not allowing changes to already recorded entries
- Disintermediation, through the elimination of the need for any internal or external agent to control transactions
- Collaboration, by carrying out transactions directly with each other.