What is Blockchain Technology

Blockchain is a technology that allows the transfer of data in a completely secure way thanks to a very sophisticated coding. It is usually compared to a company ledger where all the inflows and outflows of money are recorded. Of course, in this case, we would be talking about a digital event book.

Talking about Blockchain is talking about the technology (the information coding system) that is behind Bitcoin. However, its function goes further. It is also used to create other cryptocurrencies that are based on the same principles but have other properties (policy, algorithm, etc.).

The Blockchain contributes to a great novelty. And it is that this transfer does not need an intermediary to verify and approve the information, but it is distributed in several independent nodes that register and validate it. Thus, once the information is entered it cannot be deleted, only new records can be added. Furthermore, it will not be legitimized unless the majority of them agree to do so. The latter is considered mission impossible.

How does the Blockchain work?

1. Transaction

Two parties, Maria and Juan, decide to exchange a unit of value (a digital currency, such as bitcoin, or another digital representation of some other asset, such as an educational/professional degree) and start a transaction.

2 blocks

The transaction is sent with other pending transactions creating a "block". The block is sent to the network of computers participating in the system.

3. Verification

These computers (also called "miners" in the Bitcoin blockchain) value transactions and, through mathematical calculations, indicate whether they are valid, based on agreed rules. When they reach a “consensus” the transactions will be considered verified.

4. Hash

Each verified block of transactions is temporarily sealed with a cryptographic “hash”. Also, all blocks contain references to previous block hashes, thus creating a chain of records. This chain will never be classified, it is considered impossible.

5. Execution

The unit of value is moved from Mary's account to John's account. 

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What other users is given to blockchain? 

Basically, any type of information that needs to be preserved intact and that must remain available can be stored on the blockchain in a secure, decentralized and cheaper way than through intermediaries. Furthermore, if that information is stored encrypted, its confidentiality can be guaranteed, since only those who have the encryption key can access it.

Use of blockchain in healthcare

For example, health records could be unified and stored on the blockchain. In this way, the medical history of each patient would be safe and at the same time available to each authorized doctor, regardless of the health centre where the patient has been treated. Even the pharmaceutical industry can use this technology to verify drugs and prevent counterfeits.

 

Using blockchain for documents

On the other hand, it would be very useful for the management of digital assets and documents. Until now, the problem with digital is that everything is easy to copy, but blockchain allows you to register purchases, deeds, documents or any type of digital good that cannot be forged.

Other uses of the blockchain

It can also revolutionize the Internet of Things (IoT) market, where the challenge lies with the millions of devices connected to the Internet that must be managed by the provider companies. In a few years, the centralized model is not going to support so many devices, not to mention that many of them are not secure enough. With blockchain, devices can communicate through the network in a direct, secure and reliable way, without intermediaries.

Blockchain allows verifying, validate, track and store all kinds of information, from digital certificates, democratic voting systems, logistics and courier services, smart contracts and, of course, money and financial transactions.