Blockchain explained

Blockchain explained

At its most basic level, blockchain is just a chain of blocks. When we say the words “block” and “chain” in this context, we are talking about digital information (the “block”) stored in a public database (the “chain”). A blockchain is essentially a record, a digital event ledger that is distributed and shared among many different parties. It can only be updated based on the consensus of the majority of participants in the system and, once entered, the information can never be deleted. This is something that has been trying to solve for decades and Bitcoin has been achieved by its creator, Satoshi Nakamoto.

Elements:

BLOCKS
A block is a set of committed transactions and additional information that has been inclued in the blockchain.

MINERS
They are dedicated computers/chips that bring computing power to the network to verify the transactions that are carried out. Every time someone completes a block, they receive a reward in the form of bitcoins.

NODES
They are computers/chips connected to the bitcoin network using software that stores and distributes a real-time updated copy of the blockchain. Every time a block is confirmed and added to the chain, it is communicated to all the nodes and it is added to the copy that each one stores.

Applications:

Payments and transactions

Possibility of speeding up payments and transfers and sending remittances, considerably lowering their cost. Many banks and financial institutions are already studying how to implement blockchain technology to their systems.

Cloud storage

Blockchain technology offers the possibility of storing data or files in a P2P network (peer-to-peer), that is, they are saved by multiple members of the network. In current centralized systems, all information or files are stored in the same space, making it much easier for a hacker to attack them or for information to be lost due to a technical problem or natural catastrophes, such as fires or floods.

Cryptocurrencies

A cryptocurrency is a digital means of currency exchange. Cryptocurrencies are a type of alternative currency that have decentralized control, as opposed to centralized currencies and central banks.

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