What is blockchain and what is this technology for? – Telefonica | Jewelry Dukan

One of the most innovative technologies to be developed in recent years is the blockchain, not only for its versatility but also for the security and trust it offers. Combined with handling big data, it has transformed the way we transact, contract and buy art. Understanding what blockchain is and what it is used for will help provide a better understanding the security of the future.

The term blockchain is meant literally. In the chain, each block is filled with data, in other words, the information is recorded and grouped into blocks, and each block acts as a link.

What is blockchain?

In reality it is a huge database that collects and stores information together and decentralized. This creates a record that is uniquebut also creates synchronized copies that make it impossible to manipulate the data.

The idea of ​​the chain is linked to the reliability that this technology offers, like the blocks store information linearly and cannot be erased or manipulated, because each of them is connected to the previous one and thanks to the use of cryptography it is not possible to break the chain. This quality sums up the great innovation it brings in terms of the reliability of the data it then delivers.

All types of digital transactions can be recorded in this large database, from the sale of a property or the signing of a contract between companies to a patent, the acquisition of a digital work of art or an NFT, depending on whether they are tangible or physical transactions trades intangible assets.

The above is recorded in what is called a distributed ledger. These large databases are accessed by a certain number of authorized people for each network of blocks who are responsible for entering the data into the latter. In addition, the work is performed in multiple nodes, which means that the information is always available thanks to the ability of these points to decentralize and redistribute the data as needed. This guarantees the security, accessibility and transparency of each record.

What is blockchain for?

The digital transformation has made data an indispensable raw material for companies. And blockchain technology guarantees the fast and efficient transmission of information with the certainty that it cannot be tampered with or erased, like a digital signature.

Its ability to immutably record all types of digital transactions makes this easier Authentication, tracking and traceability such transactions and assets recorded using this technology. The creation of these digital fingerprints has meant their use has rapidly expanded from finance to a variety of other sectors including distribution, logistics, healthcare and manufacturing.

Businesses, regardless of size, can also use it as a service, blockchain-as-a-service, to ensure that the information they are working with is true and to understand the process that information has gone through ( who generated them, and where and when). Thus, the different methods can be improved and the protocols can be made more efficient.

It makes data exchange more reliable which helps build trust among end users and prevents problems like data duplication and fraudulent use of the data. In addition, the fact that the information is available at all times streamlines every process. The above is reflected in Cost reductions for companies and public administration.

Because it ensures that each annotation is unique, blockchain technology has been a powerful driver for the development of NFTs, for example, and has been the solution in cases of theft and fraud, as it eliminates the possibility of duplicating these assets and helps locate the stolen ones . Another area where this technology is becoming increasingly useful is in smart contracts, which are executed directly without the need for intermediaries and without the ability to change any of their requirements, as well as medical record storage and drug traceability.

The dynamism that cryptography brings to the blockchain

Understand what blockchain is, we must refer to cryptography because without the development of cryptography, blockchain technology would not be what it is today, nor would it have the applications it has. Why? Because of the properties that this mathematical discipline offers for the protection of information and communications.

There are different types of cryptos, and this one have the task of linking the blocks together and protecting their content. Thanks to the use of a number of algorithms, cryptographic keys can be generated, information can be hidden from the eyes of those who shouldn’t see it, and communications can be protected to ensure that only those involved in the blockchain have access to them.

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