Technology

How is a blockchain built?

How is a blockchain built?

Blockchain

The blockchain or chain of blocks is a network whose distribution facilitates the development of technologies such as cryptocurrency and what is known as the internet of value.

The blockchain is a technology that offers us the possibility of creating an accounting book distributed through a computer network without needing a central server or database.

For this reason, the computing power presented by the nodes in the network is used to introduce information and to protect it against making modifications that have not been authorized. Consequently, the blockchain offers the possibility of reaching very high levels of security compared to other technologies.
How does blockchain technology work?

For blockchain technology to work, specific software needs to be created. The software allows computers to generate a network that works with the blockchain in a distributed way, as in the case of Bitcoin software and other cryptocurrencies. In general, the software is open and protected by free software licenses. This indicates that they are public, transparent, and can be used, reviewed, and contributed by anyone.

By not having a database or localized services, the blockchain network is attributed to the characteristic of being a distributed network. This means that the information is replicated on all the computers in the world that are connected to the same blockchain. More than 50% of the computers that make up the blockchain network are not from the same person or company; it can be said that the network is decentralized. With all this, we can affirm that it does not have a center of emission, control or power.

The blockchain network is just a database in which new records can be read and written. All this without being able to make modifications to what already exists. The records are stored in it so that a very advanced mathematical function links them. This makes it impossible to include something that is not consistent with the rest of the included records.

How is a blockchain built?

The construction and operation of the blockchain depend on a series of elements that we are going to proceed to analyze:
Blocks

A block is a set of confirmed transactions that include additional information included in the blockchain. Each block that is part of the chain is made up of:

An alphanumeric code that is linked to the previous block.
A package of transactions.
Another alphanumeric code is linked to the next block.
The block in the process tries to find out with calculations the third point that we have indicated. The code that follows certain rules to be valid and can only be obtained by testing without stopping.

The blockchain is distributed through a computer network without the need for a server.

Miners are dedicated specialized computers or equipment that bring computational power to the bitcoin network. The power is used to verify the transactions that are carried out. Once someone completes a block, they receive a reward in the form of bitcoins, and they also receive it for each transaction that takes place.
Nodes

A node is a computer connected to the bitcoin network used by software that stores and distributes a copy of the blockchain updated in real-time. Every time a block is confirmed and added to the chain, it is communicated to all nodes, and this is added to the copy that each one stores.

The greatest curiosity that we find in the protocol followed by bitcoin is that each unit is not a file sent as if it happens, for example, in the P2P protocol such as BitTorrent. In this case, a record of the change of ownership of a certain amount of bitcoins in the blockchain is generated. The most common node software on the Bitcoin network is the Bitcoin Core.

All cryptocurrencies use the structure of three parts, each with its peculiarities. But this simple way in which they work guarantees that the maximum security granted by the blockchain is established.
What is the usefulness of blockchain technology?

The blockchain has quite a few utilities. As it is about being implemented in different sectors, it is a technology that constantly changes essential aspects of our individual and collective lives.

In the same way that the internet revolutionizes creating, transmitting, and consuming information, blockchain technology offers us the so-called internet of value or the internet of money.

This technology is considered essential in the creation of cryptocurrencies. These can be used to transfer value between people around the world.
conclusion

Blockchain technology is one of the most powerful tools that we can use today. The capacity and utility it presents are being explored very little. Technology has proven its suitability for a variety of uses, radically transforming the way we do things.
Theme

The article offers a tour of the challenges in security and personal data protection posed by blockchain technology.
Summary

Blockchain technology is experiencing a promising moment in the field of investments (7,400 million in startups in 2018, according to the European Commission) and expectations (it will manage 10% of world GDP in 2025, according to the World Economic Forum), to which The use of cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Monero should be added. Despite this promising prospect, blockchain is a technology under construction that presents notable technological, jurisdictional, and legal challenges. Even though it is conceptually safe, its implementation does not have to be to the same extent, as evidenced by various incidents recorded to date, as well as the challenges that the interpretation and application of the regulation of personal data sometimes poses, such as the right to rectification or the right to be forgotten.
Analysis

Blockchain technology allows value transactions between users without intermediaries involved in the process; that is, it decentralizes the management of transactions and presents all its participants with the same registry book or decentralized database (distributed ledger). Transactions can be monetary (cryptocurrencies) or of another nature (goods, information, services, etc.) and take place on platforms whose nodes communicate through peer-to-peer networks (P2P1) through Internet connections. The blockchain offers a dynamic and unalterable representation or record of these transactions over time that replaces trusted intermediaries and centralized authorities (e.g. notaries, banks, insurers, etc.) that support transactions by the digital trust that users have deposited in this technology.

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