Blockchain and how does it work?

Blockchain and how does it work?

Blockchain and how does it work?

Blockchain (or as it is commonly called, Blockchain) is a dynamic technology that is constantly evolving.

Its objective is to provide trust, transparency and traceability in information to transform processes and relationships between companies, administrations, users and citizens.

In this article we tell you what it is, how the Blockchain works and what its applications are (or could be in the future).

WHAT IS BLOCKCHAIN TECHNOLOGY?

Blockchain is a technology that allows information to be stored reliably and safely without intermediaries , guaranteeing that once registered it cannot be modified, and implementing business logic that cannot be influenced by third parties through what we call smart contracts .

HOW DOES THE BLOCKCHAIN WORK?

The information is shared in several independent nodes of a network and each of them keeps an updated copy of the chain.

In the case of public Blockchain networks, such as those that allow cryptocurrencies to function, when a user wants to send a payment to another, their wallet generates a transaction (signed with their private key) and issues it to the network of nodes. to which it is connected.

The transaction will eventually be incorporated into a new block by one of the network nodes in charge of this task ( the miners ), who compete with each other in this process of updating the network.

Once a miner manages to generate a block that meets the requirements (for which a high computing capacity is required), it is replicated in all the remaining nodes of the network, thus the transfer to the recipient is recorded in an unalterable way . This person will be the only one with the right to use the amount received.

All linked blocks have a hash (unique code generated from the information contained in the block) that connects them with the previous one, as well as data on all the transactions contained in this block . This makes it impossible to modify them without the blocks to which they are linked being altered as well, and also prevents anyone from fraudulently using the system. 

BLOCKCHAIN APPLICATIONS: MOST COMMON USES

Beyond financial and banking transactions, the truth is that this technology has a lot of potential, since it allows to verify, track and store all kinds of information .

This circumstance has made many companies and institutions belonging to other fields have given other more innovative Blockchain applications. Some of them are:

  • Document storage in the cloud
  • Verification of digital identity
  • Smart contracts for goods and services
  • Supply chain management
  • Electronic voting
  • Public / Government Services
  • Health management
  • Patent or intellectual property registration

If you want to learn more about this technology, do not hesitate to download our e-book Blockchain Fundamentals for free . This is completely free and has been written by Jorge Ordovás, director of the Master in Blockchain at the European University.

And if you want to go further, our academic offer also includes another specialized training in this matter: the Master in Fintech and Blockchain Online . Do not miss the opportunity to become a prestigious professional.

Read Previous

What is a community manager and what functions does it have?

Read Next

Teaching and Socio-Sports Animation and what is it and what are its professional opportunities?