Of so many definitions that we find, we like the one that says that “the blockchain is a set of technologies that allow a secure, decentralized, synchronized and distributed record of digital operations, without the need for third-party intermediation.”
Given that currently the most widespread application of these technologies are cryptocurrencies and financial decentralization (DEFI), we tend to believe that this is the only application they have, but the truth is that the applications are endless; register digital works of art (NFT), charge in your online store, even keep records of world maritime traffic.
An example to understand a little better:
Let’s imagine the registration of income kept by the security personnel of a building, they write down on each line of the same the people who enter with their identification number and the time of entry, to later also register the exit time. One afternoon, at 3:54 p.m., the packages that Amazon had left at the door of Mr. Rodriguez’s apartment in 2nd B disappear. After being alerted by the neighbor, the security personnel begin to review the book to see who had been inside the building at the time of the crime.
Suspenseful music…. they are getting closer to the data that will unveil the mystery… but when they find the page corresponding to that time, a cup of very black and strong coffee becomes an accomplice of the thief, staining and ruining everything written. The record was lost and with it the possibility of discovering the offender.
Now let’s imagine that every time someone enters any building on the planet, by writing the entry data, they are recorded in all the security books of all the buildings on the planet. If the same situation of the previous paragraph occurs, we should only go to look for the book of any other of the buildings and we could access the registry. In case of intentional sabotage, they should ruin or eliminate at least half plus one of all the books on the planet, sounds much more complex, right?
Characteristics of a blockchain
On the other hand, what this technology achieves is that the record book of transactions is distributed in countless computers throughout the world, in such a way that no one has control or the ability to manipulate or alter that record (we can discuss for a long time if all blockchains are decentralized, spoiler… they are not, but it will be the subject of another article).
Blockchain technology allows transactions between users without intermediaries involved in the process, that is, it decentralizes transaction management and presents all its participants with the same decentralized ledger or database (distributed ledger).
If we stop to think for a few seconds, all or almost all of the interactions that we carry out in our daily life depend on an intermediary. If we send an email, it does not reach its destination directly, but rather goes through a centralized mail server that routes and delivery to its recipient, the mail server depends on a company that maintains those servers and that one day for some reason they could be discontinued, be under maintenance, suffer an attack, etc, etc, etc, we can use the same example to hire insurance, request a loan, use the famous “cloud” or why not (I wanted to avoid this example because it is the most trite, it is one of the ones we understand best), transfer money… to transfer money to another person we need to depend yes or yes from a bank that routes that transfer, with all its rules, times, etc.
Synchronized and distributed:
When a transaction is created, for example the sending of a certain asset from user A to user B, it must be validated (we will also see at another time how these transactions are validated) by a certain number of computers on the network, and once the necessary number of validations is reached, said operation is recorded in the next block available in the book and transmitted over the network to all the computers in the network.
“The blockchain is a set of technologies that allow a secure, decentralized, synchronized and distributed record of digital operations, without the need for third-party intermediation.”
The blockchain is a distributed and decentralized database that allows transactions to be stored and verified in a secure and reliable manner without the need for a central authority. It is made up of blocks of information linked together and is characterized by being immutable, that is, once something is written to a block, it cannot be modified. The blockchain has become popular for its use in cryptocurrencies, but it is also being used in various industries to simplify processes and improve transparency and trust in transactions.
From NFT Smart Design we offer consultancies for those who want to enter the world of blockchain. From the most basic for beginners to specific consultancies for larger projects. Click here and register to get in touch and together we can see how we can help you
Disclaimer: The content of this web page is provided for general information only and should not be taken as investment advice. All content on the site, including, but not limited to: forum comments by the author or other users, articles and graphics, advice, and anything else found on this site, should not be construed as a recommendation to buy or sell. any financial asset or to participate in any trading activity or investment strategy. The author may or may not hold positions with any companies or advertisers that appear or are discussed on the site. Any action you take as a result of information, analysis, or advice on this site is your sole responsibility. Consult your financial advisor before making any investment decision.