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5 keys to understand what blockchain is and how the digital world is revolutionizing

The concept of blockchain or chain of blocks began to circulate hand in hand Bitcoin and others cryptocurrencies, however, the concept goes much further than that.

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It is a technology that seeks to give reliability and traceability to different processes. To understand how this happens, it is necessary to know some characteristics of this system that, according to many experts, constitutes a true revolution that is opening the way to a new phase within the Internet.

1. What is blockchain

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Blockchain is a database distributed between different computers that are part of a network. Each computer or node, as it is called in these cases, has a record of every action that is performed.

Unlike a centralized system, such as the traditional one, where there is a system that controls all the information, here this happens in a distributed way, that is to say that all the computers or nodes have the information.

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2. Traceability

The fact that the information is housed in different nodes, which are linked together through cryptography, makes it easy to verify transactions.

There is a clear record of every move that is made. This is what gives traceability to the system.

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3. Security

The blockchain, as such, does not belong to one person, it is distributed. The fact that each node stores information gives the system security, since if a computer stops working or is compromised, the data does not vanish as all the other nodes or computers also have a record of the data or the transactions carried out.

Here it should be mentioned that the information is encrypted, this includes public and private keys that provide that layer of security that is so important (increasingly) in the digital world.

4. Cannot be modified

The blockchain is public, meaning everyone can see it, and it cannot be changed. If someone wanted to modify data, they would have to hack all the nodes or computers where the information is stored because, as has already been said, everything is distributed here, it is not a centralized system.

5. Multiple uses

in cryptocurrencies

The first of them is linked to the cryptocurrencies that are in fashion today. These currencies are not regulated by any central entity and provide a way to share money anonymously. They also constitute another form of financial investment that can be attractive but also more risky, especially in some cases in which large fluctuations in prices have been seen.

smart contracts

Although blockchain is often associated with cryptocurrencies, the truth is that this technology has given rise to something even bigger than smart contracts. They began to be talked about when Ethereum emerged, which was launched in 2015 and which precisely provides one of the bases to create them.

Smart contracts are agreements written in code that are automatically executed when certain predefined conditions are met. It is like a conventional contract only that it is validated through this technology.

In the blockchain, each movement leaves its digital mark. In the smart contracts the clauses are stipulated and the network certifies if they were fulfilled. It is also recorded what steps to follow in case of non-compliance (distribution of goods, returns or what corresponds).

digital identities

The blockchain can also be used for validation of digital identities. This is the case of Proof of Humanity, a project by Argentinean Santiago Siri, which seeks to associate Etherem addresses with real humans to realize that this person really exists in the analog environment.

This would be used as a step to achieve universal basic and digital income with the Ether cryptocurrency, to assist people without resources, without the intermediation of others.

Vote

The blockchain could also be used to regulate electronic voting. In this sense, it would grant a new process for the exercise of this democratic act. However, there are still detractors who believe that this methodology still does not offer sufficient guarantees to ensure reliable operation.

NFTs

NFTs are another use that has been made of the blockchain. NFTs are ownership certificates stored on a blockchain and backed by blockchain technology that are typically associated with a digital asset, such as visual art, video, music, or collectibles.

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