Blockchain' is one of the most innovative technologies developed in recent years . Just as it happened with the arrival of the Internet, this technology is repeating patterns and changing the way we interact within the digital world, especially within banking. So, you've probably heard of this term, but perhaps you're still not sure what it's used for exactly. We'll tell you!
What is blockchain?
'Blockchain' is, in essence, a decentralized database that is updated in real time through a network of interconnected nodes. It has the peculiarity of offering the possibility of storing and sharing information in a secure and transparent manner . Thanks to its versatility, but above all to its security and transparency, the use of 'blockchain' is mostly related to the management of large amounts of data , which is why it has radically changed the way of carrying out transactions of any kind.
The blockchain's interconnected block structure ensures that the information stored on it is fixed, as any modification to one block would affect the entire chain. In addition, the blockchain uses cryptography to ensure that information is kept secure and private.
The most well-known use of blockchain is in bolivia whatsapp data cryptocurrencies , such as the already famous Bitcoin, where it is used to record all transactions of the currency. However, blockchain is also being used in other areas, such as digital identity management, product traceability in the supply chain and electronic voting.
What is blockchain technology used for?
The main characteristic of the blockchain is its decentralized nature, which means that it is not controlled by any central authority, but is managed by the network of nodes that make it up. This makes it very secure and resistant to attacks and fraud , since each node in the network has a complete and updated copy of the blockchain, which makes it practically impossible to manipulate or falsify the data stored in it.
Types of blockchain
Blockchain technology has a wide variety of applications in different industries and sectors . Its use is limited only by the imagination and creativity of the developers and users who use it.
There are several types of blockchain, each with unique characteristics that suit different needs. We can distinguish four types: public, private, hybrid and federated .
Public blockchain: The information stored in the blockchain is completely transparent and public , meaning that any user can see all the transactions that have been recorded in it.
Private blockchain: Management and control of the network is in the hands of a centralized entity, usually a company or government , which has the authority to decide who can join the network and how the data stored on this blockchain is used. Although private blockchains do not offer the same transparency as public ones, they also have their advantages, such as greater control over data .
Hybrid blockchain: The idea behind a hybrid blockchain is to combine the transparency and decentralization of public blockchains with the privacy and efficiency of private blockchains.
Federated blockchain: In a federated blockchain, multiple organizations come together to create a shared blockchain network. Each organization has its own private blockchain instance , which is managed by them and controlled centrally. However, these private blockchain instances are connected by a consensus protocol , allowing communication and transactions between them.