Lately, we haven't stopped hearing terms such as IoT, cryptocurrencies, or Big Data But do we really know what they are and what technologies they're based on?
Next, we'll explain What is Blockchain?, the technology behind cryptocurrencies, which is poised to revolutionize many fields.
How does blockchain technology work?
Without getting into technical details, blockchain can be compared to a distributed ledger or account book in which every member of the network has a copy of it that is updated to include new events as they occur.
However, what really makes this technology appealing is that No member of the network can add information without it being verified by the majority of the system and agrees. This, known as consensus algorithm, means that it is not possible to include false information because the other components would notice.
Within a block, validated transactions are responsible for modifying the data. Once all of them have been processed, seal the block with a hash which is determined based on the included transactions and the previous and subsequent blocks, by It is impossible to modify the internal information, since it would change the identifier of all the blocks.
Characteristics that define it
Blockchain technology has some properties that give it its enormous potential it has. Here are a few of them:
- Replication of Information
Blockchain can be likened to a distributed and secure database, in which all participants have the information, so even if someone loses it, the information is still preserved.
- Distributed Trust
A blockchain network is not governed by any agency, but rather, all nodes participate in the consensus process to ensure proper operation.
- Transparency
Since the information is shared with all nodes, it is tTransparent about everything that happens online enabling a comprehensive audit.
- Data Immutability
Once it has been entered The information cannot be modified. by any member of the network, since the network is immutable.
- Security
Since based on cryptographic primitives The information is immutable, and it is also possible to trace the author and the exact time of any transaction that has taken place on the network.
How is blockchain being used?
Although the technology Blockchain is still in its infancy and needs to mature To help it reach its full potential, there are already several projects that are applying it in a wide variety of fields:
- Supply Chain
The logistics industry It is one of the companies best suited to implementing blockchain technology in its processes. One example of this is the Blockchain Food Safety Alliance, created by IBM and Walmart in China to ensure food safety.
- Smart Cities
Smart cities, based primarily on new technologies and the Internet of Things (IoT), are a reality. In this regard, blockchain is becoming increasingly prevalent in these cities of the future.
An example of this is the the Taipei case, where a network of light, humidity, and pollution sensors has been deployed that They upload their data to a blockchain network that will help optimize processes in the city.
- Mobile Payments
The the strong connection between cryptocurrencies and blockchain technology This has led to mobile payments becoming one of the main applications already in use. Many cryptocurrency wallets already support this, and it is expected that in the future we will be able to make all kinds of transactions and payments.
- Digital Identity
The the Swiss municipality of Zug, in collaboration with two companies, has created a Blockchain-based electronic identity system. Through a mobile app where users enter and verify their information, it allows for the payment of fees, access to municipal services, and, in the future, electronic voting.
In conclusion, everything seems to indicate that in the near future, Blockchain, with its decentralized model, It will change the way we understand business and society. Don't wait any longer—learn about the technology of tomorrow!
