What is Blockchain? Understand how a blockchain works!
As a wise man said: knowledge does not take up space! And in the digital age the same could be said of information. The Library of Alexandria would fit on a flash drive. Throughout the digital transformation process we have witnessed the advancement of the ability to archive and organize information.
We are talking about billions of data processed per second. That power has amazed the world, but it has also… frightened it.
It was in this climate of expectation and distrust that bitcoin emerged, an “encrypted currency” that is considered the evolution of the transfer of values. But we have an analog distrust of everything new and that is where blockchain comes in saying: I am the guarantee!
Today we will talk about the algorithm that works with cryptography, which is the one that makes it possible for bitcoin to work and that is already beginning to be used in the world. digital marketing . Keep reading because today you will know the secrets of blockchain !
Reliable is the main word for an anonymous startup whose business model is to create a digital currency, without borders, without intermediaries and without an owner. Something that is only possible thanks to the internet.
What is blockchain?
It’s an algorithm that guarantees the security and reliability of the events it records. It is a log of movements in which once a data is entered it cannot be adulterated.
It is called blockchain because the basis of its security is based on being a chain of blocks with data of all the transactions carried out since the emergence of bitcoin until now. These blocks are created every 10 minutes and accessible, in real time, to all bitcoin owners.
What is it for?
To carry out data transfers through digital means, without the need for third parties as witnesses or guarantors and in an extremely secure manner.
This reliable, unalterable, and verifiable recordkeeping method is what makes the bitcoin algorithm usable in other areas, from contracts to presidential elections.
How does it work?
The concept that supports this idea is that of distributed consensus . and it works in a network in the 2P2 system, which means that all participating computers have the same value and receive the same information at the same time. The information is received in blocks that are added every ten minutes.
The nodes are all the connection points of a network, in this case they are the computers and the internet servers.
Mining is the process of creating data blocks and earning the right to record them. They are large companies that during this period and at the super speed of the algorithms are compiling, with mega data processors, the information of the transactions carried out.
Once the ten minutes have passed, a kind of tender is opened between the companies in which the right to register the block is awarded to the one that manages to decipher a mathematical enigma. It is a phase of a process called proof of work .
The puzzle maker
It seems like a profession that a child would like to be when they grow up, but believe me, there is an algorithm that works from that. That algorithm has to create a puzzle every ten minutes. The answer to that riddle is called a hash and it is the code of an interface between one block and another.
In this way, the company that wins the right to register the information in that block does not know the access code to the previous block, thus causing an irreversible flow of information, you can only go to the next block, never to the previous one. Before registering the block, the algorithm verifies the veracity of the information in all the nodes of the network.
If I already know, don’t tell me so far it hasn’t seemed so safe to you and you’re under the impression that someone can hack it! The best is yet to come…
more is more
Get ready because now comes the part where smoke will come out of your head, because blockchain development is a startup concept put at the service of a business model .
When A transfers a value to B, that transaction is validated consensually, that is, it is only recorded if all the network nodes recognize it as correct and this update, when replicated at the same time in all the computers, makes it incorruptible.
If someone wanted to alter the list, they would have to alter all the copies at the same time. In other words, the great secret is that the larger the network, the more secure it becomes .
Marketing and blockchain
You can already imagine how this will affect marketing.
Contracts : we will not need more witnesses or intermediaries to carry out contracts as these will be registered and cannot be changed.
Monetization: not to mention all the options for buying and selling online. Today 1 bit coin is worth approximately USD 5,500, but from now on crypto currencies will be part of the navigation, we will be able to monetize on landing pages and every time we click on a link.
Identity: The idea of virtual identity to reduce anonymous attacks is already circulating. With the blokchain system it is possible to create a record of navigators and their actions, at the same time any user will be able, in case they need it, to demonstrate unequivocally what their movements were during navigation.
Surely the future that the digital age puts in front of us is impressive. We have reached the end of the article in which we wanted to show you a little more of this amazing technology that recovers the feeling of security that we were already missing. Blockchain development the strength of transparency and the unalterable record of the facts.