The term Blockchain is one of the most researched and debated in the last couple of years. The main problem for the vast majority of people who start to ask themselves about crypto is poor understanding of why these digital currencies and products have actual value; The Blockchain is the guarantee of this value, and today we explore its fundamentals.
WHAT IS A BLOCKCHAIN?
A blockchain is a chain of Blocks that contain information, as the name suggests; a distributed ledger that is open to virtually anyone. The technology is over 30 years old, and was mostly unused until Satoshi Nakamoto adapted it and gave life to Bitcoin. Its structure makes it practically impossible to tamper with, and it is the safest way to store any type of data.
HOW DOES THE BLOCKCHAIN WORK?
As mentioned, each blockchain contains a series of Blocks, which contain a series of data:
– Information of choice (in a Cryptocurrency’s case, its transaction history).
-A Hash, which is a string of letters and numbers specific to that block; it identifies its content, and it changes when the latter does.
-The previous block’s Hash.
Blockchains function in a decentralised manner via anonymous users.
To create a valid block, information is approved by a majority of Blockchain validators, also known as computer nodes. They gain this power by different methods, which all either take time or require you to stake many tokens produced by the blockchain. This allows the blockchain to have an incredible amount of safeness: if someone tampered with a block, all successive blocks would be invalid because the hash sequence would change.
To successfully modify a blockchain, you must individually tamper with each block. This is impossible for any current computer system.
Considering a new one is produced every few minutes in active ones, and that the blockchain system rewards people who work for it, this framework gives us unprecedented virtual data security.
This technology is much more valuable than any single cryptocurrency, and is the basis of why digital assets now have proven validity; The blockchain has all the prerequisites to be the revolutionary technology of the 21st century.
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