Blockchain is a technology that is gaining popularity and achieving many application possibilities around the world. It was developed with a very sophisticated encryption to transfer digital data and guarantee its security. Cryptocurrencies were the first to use it, the term in Spanish means block chain and refers to a database that records information in blocks that intertwine and provide various solutions. It uses various cryptographic algorithms for its operation without the need for intermediaries, guaranteeing distribution, transparency and preventing counterfeiting. It is usually illustrated as a large accounting book where all the transactions carried out are recorded.
The participating computers form a decentralized network that stores all the information of all the transactions -something like a public database- generating an unalterable, inviolable and permanent record. As long as there is only one node, even if the network went down, the information would never be lost because it cannot be erased.
Blockchain is producing changes in many areas such as business, finance, education, administration, economy and society. It is transforming the roles of many professions and greatly facilitating the lives of individuals and companies. There are many projects in which the implementation of this technology is being analyzed because this new technological revolution shortens deadlines, increases competitiveness and will completely transform the operation and way of seeing the world.
The most important features of blockchain
Decentralization
Thanks to decentralization, users have greater control over their properties and do not have to depend on third parties to maintain and manage their assets. The decentralized nature of this technology means that two people can carry out a transaction without the need to place their trust in the other and without the need for any central entity to approve or authorize said transactions.
Security
The distributed and encrypted nature of the blockchain provides security on the information that is stored in the blockchain and the information shared between the nodes of the network, so to operate in the network, it is necessary to have a set of keys. Not all of them use the same asymmetric key format, but all transactions are signed by the sender’s private key, which means that it will be difficult to hack.
Traceability
It allows you to take a tour of the block chain, being able to know all the operations that have been carried out on a certain address using a blockchain explorer. In addition, you can go back in time to review the transactions that were made by exploring all the blocks generated from a certain date.
Transparency
Transparency is given by the rules with which the operation of the blockchain is defined. The information is visible to all participants so it reduces risk and fraud and cannot be tampered with. This is achieved by making the necessary software code public, generating a community of nodes and developers that follow this principle of transparency.
Privacy
Privacy is one of the main characteristics of the public blockchain, this quality was initially valued by some people to carry out operations considered illegal. It is one of the reasons that made some countries reject its use and do not accept it as a means of payment.
Information cannot be deleted
The information of the block chains, even if they are made with the user’s consent, cannot be rectified or deleted, once the transaction is made, it cannot be deleted. This is known as data immutability.
Reduced transaction costs
The cost of the commissions is minimal and in some cases they are free, avoiding the user having to pay other companies or intermediaries. This is undoubtedly a great advantage.