Blockchain, chainblock or block chain. It doesn’t matter how do you want to call it or write it. Let’s get deep and understand this concept.
What is the blockchain?Â Among other things, it is one of the buzzwords of recent times.Â The chain of blocks is also a concept thatÂ raises a huge revolutionÂ not only in our economy, but in all kinds of areas.
Understanding what this chain of blocks is not so difficult, and since this concept is being used more and more, we wanted to make a kind ofÂ quick introduction to the blockchainÂ , to explain what it is, how it works and what is the revolution that it poses the chain of blocks.
Good bye banker
Let’s get in situation.Â The normal thing is that if a person called for example Bob wanted to send 1,000 euros to another person called for example John, it is normal for the transaction to be carried out through a bank.Â That bank acts as an intermediary of that and many other transactionsÂ , effectively centralizing the movement of capital from one side to the other.
Bob would ask his bank to withdraw 1,000 euros from his account and transfer them to John’ account: in just a few hours (depending on the bank, of course)Â that bank will have written down in his account the transactionÂ , subtracting 1,000 euros in his account and communicating to the other bank that you must add 1,000 euros to John’ account.Â Someone in John’s bank (at this point, we already know that someone is a computer program) will note that in John’s account there are 1,000 euros more coming from Bob’s bank account.
This management has not needed a transfer of bills from one place to another, but simply there has been one or two banks that have been responsible for making the money pass from one to anotherÂ with a simple change in the balance of their accountsÂ .Â Everything great and fantastic, except for one problem:
That neither Bob nor John have any control over the processÂ , of which only those banks have all the information.Â Both depend on those banks and their way of doing things to complete that transaction.Â They are subject to their conditions (and their commissions, of course).
Blockchain or chain block – Let’s GO!
That’s where the chain of blocks comes in,Â which basically eliminates intermediariesÂ , decentralizing all management.Â The control of the process is of the users, not of the banks -we are talking about money, but the example can be extrapolated to other types of transactions-, and it is they who basically become part of a huge bank with thousands, millions of nodes , each of which becomes a participant and manager of the bank account books.
What then is the block chain?Â As a gigantic book of accounts in which records (blocks) are linked and encrypted to protect the security and privacy of transactions.Â It is, in other words,Â a distributed and secure databaseÂ (thanks to encryption) that can be applied to all types of transactions that do not necessarily have to be economic.
That chain of blocks has an important requirement: thereÂ must be several users (nodes) that are responsible for verifying those transactionsÂ to validate them and thus the block corresponding to that transaction (in each block there is a large number of transactions that yes, itÂ is variableÂ ) register in that gigantic account book.
NEW – This course is available in a new app – Blockchain app