Blockchain: what is it?
This technology, which has become increasingly important in the world of virtual transactions, proves to be truly impactful for global development.
But do you know exactly how it works? What is she? What are the advantages of using it? Are blockchain and bitcoin the same thing?
Today, let’s unravel these questions once and for all, have a great technology education class and clear all your doubts about the subject!
After all, what is blockchain technology?
Let’s start by conceptualizing, exactly, what blockchain technology is. So how about doing it in a simpler way?
Blockchain is, in short, a large database, shared between users that stores information about transactions carried out in the online environment.
This data is completely immutable. Once registered in the blocks, they will be recorded eternally. And that’s one of the features that make this technology so safe.
How does blockchain work?
Now, let’s complement the concept, explaining exactly how it works. But still in our proposal to simplify to understand.
Imagine a line of blocks, held together by a kind of padlock. Each of these blocks brings specific information about its user, which is transactional data recorded on the network.
Therefore, each of these blocks has a kind of individuality, as they keep a particular detail and we call it a fingerprint.
When this block connects with the next one, it will transmit this information that is stored inside. The receiving block will therefore aggregate this data and merge it with its own, which already existed. This will create a new fingerprint from the two blocks.
And ready. This is how a chain of data blocks is created, generating a huge bank of information.
Considering the main premises of the blockchain, which would be the immutability of data and the decentralization of information, since every block contains the core of the proposal, several types of threads emerged.
However, these new models will always be inserted in two alternatives: either they are public or they are private. See the details of each of these different types.
A public blockchain, as the name leads us to deduce, anyone can enter and participate, entering their data in blocks that will integrate the large information network.
But this is not the only characteristic that justifies the fact of being “public”. In it, all participants can see the movements – but not modify them.
In addition, there is no entity that controls the insertion of this data, such as a public agency or bank, for example. She rules herself.
The other type of blockchain alternative is private models. They emerged after institutions realized the validity of their proposal: a huge, immutable and extremely reliable database.
However, for them, the other characteristics that the public blockchain provides were not interesting: they did not want the participation of anyone and they did not want anyone to have access to the information on the blocks.
To solve this, private blockchains emerged, in which there is greater control of access and, therefore, more privacy.
In short, they use the proposal of linked information blocks, but there is no opening for anyone to insert.
Is blockchain technology secure?
It can be said that blockchain technology is one of the safest there is and you will understand why with a very simple explanation.
Assuming that it is essentially a line of connected blocks and that all blocks have the same information, plus another one, and that this information is replicated, so that any changes can be made to these data, the work it would be immense.
After all, this change would have to be made in absolutely every block in the sequence!
Surely someone would notice this intrusion attempt before the malefactor achieved any significant results.
Another detail that guarantees the reliability of the system is that every “owner” of a block has a copy of it on their computer. Understand: one is on the network, the other in your file. But, both are connected and serve as a kind of rebuttal.
Assuming someone makes a modification to only one of the versions, it is automatically discarded.
Now multiply that by thousands of blocks and thousands of versions. Is it or isn’t it a very safe technology?
Advantages of using blockchain
Blockchain technology has become a benchmark when it comes to transactional reliability and data security.
Therefore, it, which emerged to make cryptocurrency transactions credible, especially bitcoin, migrated from mining platforms and, today is already part of government systems around the world.
Its advantages are undeniable and considerable:
- It allows everyone connected in the sequence of blocks to verify the veracity of the recorded information;
- Reduces the incidence of fraud;
- Ensures greater security in transactions;
- Facilitates the creation of “smart contracts”, which cannot be changed once written.
Furthermore, its decentralized character greatly reduces bureaucracies. It is because of this type of technology that, today, international transactions are made so easily.
And this goes far beyond money itself. The premise of secure information exchange allows people from different places to create connections and transfer data without risk of it falling into the wrong hands.