This article was translated from our Spanish edition. Opinions expressed by Contractor the contributors are theirs.
“Blockchain” , as its English name suggests, means block chain . The information is stored in these groupings; The goal of the Blockchain is to keep unique and unalterable records of the data stored in each chain.
The origins of Blockchain can be traced back to 1991 when Stuart Haber and W. Scott Stornetta described the early work on a cryptographically secure blockchain. In this study, Haber and Stornetta sought to create mechanisms to create digital seals and order recorded files in a unique and secure manner. This represented a convenient IT solution for ordering and processing digital documents so that they could not be changed or manipulated. However, its boom intensified in 2008 with the arrival of the Bitcoin cryptocurrency, although it is already used for other commercial applications, to such an extent that an annual growth of 51% is estimated for 2022. .
Applying it to the world of crypto, you could say that it works like an accounting record sheet, except that once the information is entered it is very difficult to change (for example, Bitcoin is built under the technology Blockchain).
How does a Blockchain work?
A Blockchain stores the data of each transaction, making it public, however, the data of the participants is protected anonymously, since the identity of the participants is encrypted.
The veracity of the data is due to the fact that each block created consists of three elements:
- Block information
- The chop of each block (a unique code that would be like the fingerprint of the group or cluster of data)
- The information of the previous block and the next block via hashing
In the case of information, the block stores the corresponding data of the application that was built on it, in the case of Bitcoin, the block contains the details of the operation between the sender and the recipient, as well as the amount of rooms .
The chop or fingerprint consists of a series of numbers and letters that are used to identify the block and its content, we could say that it is like a fingerprint since in theory it cannot be changed, through the fingerprint they can be Identify modification attempts in the block, because if the fingerprint changes, it means that it is not the same block originally created.
The footprint of the previous block is the one that reaffirms the security in this case of Bitcoin, because if someone tries to change a block, they would change their footprint invalidating the rest of the blockchain, since everyone has the block’s footprint. precedent and they would recognize any changes.
Even with these security locks, it would be possible that someone using a computer capable of calculating hundreds of fingerprints per second could change the front and back block fingerprints, and thinking about this possible problem, the Blockchain has a mechanism called “proof of work”, which consists in deliberately delaying the process of creating the new information block, that is to say that before creating a new block the system would audit the entire chain initially created , and if it detects tampering with the fingerprint, the block would not be created, so the intruder would not only have to calculate the fingerprints before and after the block, but would also have to calculate all the fingerprints during the entire proof of work. .
Blockchains date back to 1991, 20 years before cryptocurrencies / Image: Depositphotos.com
In addition, the Blockchain does not use a centralized server, everything is done via a distributed system, via the computers of each of the people around the world who decide to participate, each computer is called a “node”, each node of the network stores exact copy of the blockchain, information availability is guaranteed at all times.
If an attacker wants to cause a denial of service, he must cancel all the nodes of the network, since at least one is enough for the information to be available, all the nodes contain the same information, it is necessary therefore almost impossible to modify it, ensuring its integrity.
If an attacker wanted to modify information on the blockchain, he would have to modify the entire chain in at least 51% of the nodes, which is difficult and expensive to do.
The Blockchain makes it possible to distribute data in all the nodes of the network. Since there is no central node, everyone participates equally, storing and validating all information. It is a very powerful tool to communicate and store information reliably; a decentralized model where the information is our own, since we do not depend on a company that provides the service, unlike the centralized system to which we are accustomed.
This new technology has enormous potential for practical applications, it enables and will allow streamlining some of the most common but also the most complex processes, providing and generating trust between all parties involved in these processes.
In conclusion, we have before us a new technology with enormous evolutionary potential, such as electricity or the Internet at the time, and what do you think, is this one more step towards the future?