Blockchain: What is it and what is it for?
Get to know the workings of the technology that is revolutionizing not only worldwide business structures, but also your daily life.
The subject might even bring on some fear. And it makes sense. Understanding – and also trying to explain – what blockchain is, is always tough, even though it has been in operation for over 11 years. This occurs mainly due to the complexity of the technology, and how it is responsible for one of the biggest innovations of our time.
Blockchain has been transforming market structures, speeding up processes in different industries, and is present in your daily lives – we’ll get there. But before that, let’s look into how it works.
How blockchain operates?
To put it simply: blockchain is a decentralized worldwide network of thousands of computers working in an accelerated manner and on a large scale, verifying data and the transactions registered to it.
Each verification creates a block, which in turn works as a form of validation. For example, if you register a real estate sale contract data on blockchain, that data will run the network and be verified by the computers. This avoids, for instance, the same real estate being sold to more than one person – just to briefly mention one of blockchain’s aspects.
An accounting textbook wouldn’t cover the vast technological, agility and worldwide visibility aspects. This doesn’t also mean that the whole world would be able to see the data on your real estate sales contract. Only the validation verification is disclosed, with information such as time and date.
But is blockchain reliable?
The verified blocks are encrypted, which makes them inviolable. They cannot be corrupted or erased. And, since the network is interlinked, any likeness in a piece of data or code representing any transaction whatsoever, cannot be repeated. If it is repeated, the network won’t validate it.
That’s why, one of the most widely used words by specialists to describe blockchain is trustworthy.
This is where a doubt may occur: who performs these validations? Is there someone sitting in front of the computer verifying each piece of data? You know, logically there isn’t, it is humanly impossible.
Blockchain in my everyday life
If you found it strange when we said it at the beginning, that’s okay. Since the technology is tough to explain in a simple manner – even to those who work directly with it, blockchain goes by unnoticed.
Any company can use blockchain: to register employee data, internal processes and products, even to register operations with clients. The network is also used for financial transactions.
But how can I access it? There are several companies that offer blockchain usage platforms. Besides that, several structures of “blocks in a chain” derived from the first blockchain, which began operating with an open source code in 2009.
When blockchain is used by a store or factory for instance, the processes, in a general way, keep on being the same as they normally are. Such as client registration software, products, stock, services, etc. What changes, at blockchain, is that it is a worldwide network operating base, safe and efficient – which we hope to have helped you get to know better.
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