5 keys to understanding what blockchain is and how the digital world is revolutionized

The concept of blockchain or blockchain began to circulate hand in hand with Bitcoin and other cryptocurrencies , however, the concept goes much further than that.

It is a technology that seeks to give reliability and traceability to different processes. To understand how this happens, it is necessary to know some characteristics of this system, which, according to many experts, constitutes a real revolution that is opening the way to a new phase within the internet.

1. What is blockchain

Blockchain is a database distributed among different computers that are part of a network. Each computer or node, as it is called in these cases, has a record of every action that is performed.

Unlike a centralized system, such as the traditional one, where there is a system that controls all the information, here this happens in a distributed way, that is to say that all computers or nodes have the information.

2. Traceability

The fact that the information is hosted on different nodes, which are linked together through cryptography makes it easy to verify transactions.

There is a clear record of every move that is made. This is what gives traceability to the system.

3. Security

The blockchain, as such, does not belong to a person, it is distributed. The fact that each node stores information gives the system security because if a computer stops working or is compromised, the data does not vanish that all other nodes or computers also have records of the data or transactions performed.

Here it should be mentioned that information is encrypted, this includes public and private keys that provide that layer of security that is so important (increasingly) in the digital world.

4. Cannot be modified

The blockchain is public, meaning that everyone can see it, and it cannot be modified. If someone wants to modify a piece of data, they should hack all the nodes or computers where the information is stored because, as already said, everything is distributed here, it is not a centralized system.

5. Multiple uses

In cryptocurrencies

The first of these is linked to cryptocurrencies that are in fashion today. These currencies are not regulated by any central entity and provide a way to share money anonymously. They are also another form of financial investment that can be attractive but also riskier, especially in some cases where there have been large swings in contributions.

Smart contracts

Although blockchain is often associated with cryptocurrencies, the truth is that this technology has given rise to something even bigger than smart contracts or smart contracts. They began to be talked about when Ethereum emerged, which was launched in 2015 and which just provides one of the foundations for creating them.

Smart contracts are agreements written in code that are automatically executed when certain predefined conditions are met. It is like a conventional contract only that it is validated by this technology.

On the blockchain every movement leaves its digital mark. Smart contracts stipulate clauses and the network certifies whether they were complied with. It is also recorded what steps to take in case of non-compliance (distribution of goods, returns or whatever applies).

Digital identities

The blockchain can also be used for the validation of digital identities. This is the case of Proof of Humanity, a project by Argentinian Santiago Siri, which seeks to associate Etherem addresses with real humans to realize that this person really exists in the analog environment.

This would be used as a step towards achieving basic and digital universal income with the Ether cryptocurrency, to assist people without resources, without the brokering others.

Vote

Blockchain could also be used to regulate electronic voting. In this regard, it would grant a new process for the exercise of this democratic act. However, there are still detractors who believe that this methodology still does not provide sufficient guarantees to ensure reliable operation.

Go NFT

NFTs are another use that has been given to blockchain. NFTs are certificates of ownership stored on a blockchain and backed by blockchain technology that are often associated with a digital asset, such as visual arts, videos, music, or collectibles.

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