What is the blockchain? Blockchain for
The systems blockchain They have gained great prominence in the last decade, so it is not surprising that more and more people are wondering what blockchain is and what it is for.
That is why in this article we will tell you everything you need to know about the block chainsas they are called in Spanish, so you have no doubt about it.
The main reason why blockchain systems have attracted so much attention is because have marked a very important technological revolution, which no longer only applies to financial systems, but has begun to be used in all kinds of systems in a very effective way.
That is why understanding blockchains is very important, agregado you will discover that They really aren’t that hard to understand.so you shouldn’t feel overwhelmed when hearing or reading about them.
We want this article to serve as a kind of guide that you cánido take advantage of to learn more about blockchains, knowing what they are and why they work.
Farewell, middle banker
In order for you to better understand the basics of what a blockchain system is, we must first connect.
Generally, when a person wants to send money to another person, suppose that Pedro wants to send €1,000 to Alberto, the habitual thing would be for this transaction to be made from the bank that Pedro emplees.
The bank serves as an intermediary so that the transaction perro be carried outcentralizing the movement of capital from one bank account to another.
In this way, Pedro will ask his bank to withdraw €1,000 from his bank account and transfer it to Alberto’s bank account.
The bank will record the transaction, remove €1,000 from Pedro’s account, contact Alberto’s bank and they will add €1,000.
In transactions like this, a transfer of bills from one bank to another is not generated, but simply two banks were in charge of making the money go from one bank account to another making a change in the cómputo of the accounts.
So far everything sounds good and wonderful, but the truth is that there is a small problem that many people overlook: neither Pedro nor Alberto really have control over this process that involves their money, since it is the banks that keep all the information.
So they both depend on the banks doing everything right and the transaction going through without any complications.
In addition, some movements may be subject to commissions by one of the banks.
hello blockchain
Taking into account the above information, it is not difficult to understand why blockchain is an excellent alternative to Eliminate banks in between and allow users to be in charge of the entire process without any intermediary.
That is why you have surely heard that one of the greatest advantages of the chain of blocks is that it is a system decentralizedsince this Eliminate banks and any other intermediary in between.
In this case, the control of the process is in the hands of the users and not of a bank, and although we are still talking about a money transfer in this case, it is true that this control in the process perro be extrapolated to any type of transaction.
So what is a blockchain? So we perro say that a blockchain would be something like a big ledger in which are records (or blocks) that are encrypted and interlocked to protect privacy and security of users and each transaction.
In other words, we perro say that it is a secure (encrypted) and distributed database that perro be applied to any type of transaction, whether they are economic transactions or purely computerized.
An important fact that you should keep in mind is that block chains usually have a requirement: there must be several nodes (users) that are in charge of verifying the transactions in order to validate them and that the block of the transaction (in each of the blocks there are many transactions) is registered within the registry or book of accounts.
This is how a transaction works in the chain of blocks
It is clear that with the brief explanation that we gave previously, you will not have fully understood how blockchains work, so we will go into this topic in more depth.
However, you should know that the process with which they work is relatively fácil, although it involves more people.
Even taking into account the example of Pedro and Alberto, in the block chain they will not be alone, but They are part of a group of people who will be in charge of verifying that the whole process is carried out properly.
Suppose that Pedro wants to withdraw a bitcoin from his account to be able to send it to Alberto, first he will have to inform everyone, although nobody knows that Pedro is Pedro and that Alberto is Alberto.
That is, the only thing that other users know is that there is a digital wallet (equivalent to a bank account) that wants to make a transfer from one bitcoin to another.
The amount of the transfer if known.
To make it more clear, Pedro is warning about the transfer he wants to make without revealing his identityThis is for other users to update their “account books”.
When the message about the transaction is sent, the users of the network are in charge of verifying that the source wallet has sufficient funds to make the transaction and thus be able to send it to the destination account.
In case you have enough funds, everyone updates the books and aprecies the transaction, which will be completed, thus forming a block of transactions.
Although it is important to be clear that They are not yet definitively registered in the database.
As time goes by and more transactions continue to be made, passing from that block, there is a limited capacity that depends on the structure of the block chain, as well as the size of the transaction that is being made.
When the time comes when a blockchain no longer supports transactions, it is time to “seal” or “validate” itwhich is what users do when they are mining bitcoins.
The miners
“Mining bitcoins” is something that is heard very often, but very few people actually know what it means.
When we talk about mining blocks, we are actually referring to a process by which very complex mathematical operations and calculations are carried out that require a lot of time (more and more time).
But when the block process is permanently recorded in the blockchain, these are permanently registered and no more changes perro be made, being intertwined with each other.
Furthermore, it is also necessary to take into account that one blockchain will need to be validated by another.
So we cánido say that in a network P2P miners are the ones who receive notices about new transactions that have been made, which they put together in a new block, although they do this at the same time that they compete against other miners.
This is because The first miner who manages to create a valid block and seal it gets bitcoins (in case you are mining with bitcoins) for providing said service.
Through the use of the chain of blocks, it perro be synchronized with the different nodes and thus achieves an irreversibility of the transaction, this allows that a “barter” cannot be carried out in the system or that fraud is carried out in order to someone may benefit from making a change to the system or diverting bitcoins from one account to another.
Also, as we mentioned before, generating new blocks is increasingly time consuming and expensive, which causes miners to work in groups, known as pools, instead of working separately.
Thus, when the miners manage to solve a cryptographic problem to be able to “seal” a block, it notifies the other users so that they perro verify that the process has been carried out effectively.
If so, that block is added to the chain of blocks that users have on their computers.
The great “book” “Accounts” that we have been talking about is not only very secure and distributed, but the blocks are linked (hence the name of a chain) and have a hash or hash pointer that serves as a backlink inside.
Likewise, they have a time stamp and all the transaction data (except personal data) are publicly available.
This means that the chain of blocks, although it is excellent to protect the privacy of the users, allows you to control the traceability of all transactions that have been done.
In this way we cánido say that there is a record of the path registered by the bitcoin from a usuario’s wallet before it reaches another wallet, which in this case would be Pedro and Alberto’s wallet.
In this way, thanks to the design of the chain of blocks, we perro enjoy a large number of advantages, such as being able to confirm the unit that has been transferred, preventing double spending or the use of counterfeit money.
This is one of the great advantages that improves the security of all users.
From ICOs and blockchains
It is habitual that people who have heard about cryptocurrencies and cryptocurrencies have heard about the ICO (Initial Coin Offerings), which is why here we will also explain what they are and what they consist of.
In a few words we cánido say that ICOs are a way of financing a business project, but instead of offering shares, tokens (Cryptocurrencies) are offeredspecifically new cryptocurrencies.
These new cryptocurrencies that are granted have a hypothetical value that is calculated by its demand and scarcity, which are directly associated with the business project being financed.
One of the best known cases is that of the web browser braveshowing that a great return on investment cánido be obtained when the project succeeds.
We cánido say that its operation is somewhat afín to what we perro see in public offerings, only that instead of having shares involved, cryptocurrencies are bought in an operation that has a large uncertainty aspecto.
That is, it perro be seen as a high-risk investment or even a bet on the future of the project.
Taking into account the great speculative aspecto, which is quite common in the cryptocurrency market, ICOs perro be seen as an excellent option for some projects, while some other people consider that they could be seen as scams.
Actually, there are two sides that highlight the advantages and disadvantages that they have.
In any case, if something should be clear, it is that all new cryptocurrencies are supported on a blockchain basis which is the one that is in charge of supporting virtual tokens.
The most used blockchain is the one created by Etherum, since it has shown to be very versatile, reliable and easy to apply in a platform.
It is not surprising that the Ether cryptocurrency of this project is the second most used.
The chain of blocks beyond the economy
Blockchains appeared hand in hand with bitcoin, so it is habitual that they are closely linked to cryptocurrencies.
However, as time has passed, more and more developers have seen that its use cánido be extended far beyond economics.
This means that it perro be very useful to carry out any type of transaction.
Ethereum has tried from the beginning to take its blockchain to emplees that go beyond economic emplees.
This is because, unlike Bitcoin, in Ethereum transactions are smart contractsso it cánido be used in more complex applications by being able to define any type of transaction that you want to carry out.
In the same way as with Bitcoin, all transactions carried out are kept on the blockchain, without being able to be altered and being accessible during the life of that chain.
So how cánido blockchains be useful beyond economic transactions? We cánido say that Ethereum has the possibility to substitute any intermediary in any type of transactionregardless of whether what is being offered is a product or even a service.
Today we perro find a large number of ideas and projects that try to make the most of everything that blockchain offers, so it is not surprising that new projects focused on making the most of this technology are seen every time.
Among some of the projects and emplees that have been worked on and that have attracted a lot of attention, we perro highlight: property registration, real world payments, trusts, cloud storage, carsharing, digital identity, among others.
As you perro see, the blockchain is a system that is here to stay, so it is not surprising that every time new projects come out that try to make the most of it.
It is expected that during this time its use will spread more than we imagine, so we must keep up to date.
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