Blockchain, also known as "chain of blocks" in Portuguese, is a technology that allows the transfer of digital data with a very sophisticated coding and in a completely secure way. This technology is the basis of all cryptocurrencies, including the most famous of them, Bitcoin.
To understand how the Blockchain works, it is essential to first understand what a block is. A block is a list of recorded transactions, like a ledger, which is linked to other blocks, thus creating a chain. Each block contains a code called a hash that serves as a unique fingerprint for each block. It is created from the transactions included in the block and is what connects one block to the next in the chain.
Blockchain is a type of distributed database. This means that the information it contains is not stored in one place, but is spread across many computers, called nodes, around the world. Each node has a complete copy of the Blockchain and works to maintain its integrity and security.
When a new transaction is made, it is verified by a computer network and, once verified, is added to a block. Once the block is complete, it is added to the blockchain. The transaction is then considered complete. This process is called mining and this is how new coins are created in a cryptocurrency.
One of the main characteristics of Blockchain is its security. As each block is linked to the previous and next block, any change in one block requires changing all subsequent blocks, which is almost impossible to do. Furthermore, as the Blockchain is distributed across many computers, there is no single point of failure. This means that even if one computer is compromised, the integrity of the Blockchain as a whole is not affected.
Another important feature of Blockchain is its transparency. Every transaction is publicly recorded on the Blockchain, which means anyone can verify the veracity of a transaction. This makes Blockchain a powerful tool to fight fraud.
In addition to cryptocurrencies, Blockchain has many other potential uses. For example, it can be used to create immutable records, such as property records or medical records. It can also be used to create smart contracts, which are contracts that execute themselves when certain conditions are met.
In summary, Blockchain is a revolutionary technology that has the potential to transform many aspects of our lives. With its security, transparency and ability to eliminate middlemen, it has the potential to create more efficient and fair systems.
Although Blockchain technology is complex, its basic concept is quite simple: a chain of blocks containing information. The way this information is added to the chain, however, is what makes the Blockchain so secure and reliable.
As we move into an increasingly digital world, it is likely that we will see more and more applications for Blockchain technology. From medical records to electronic voting, Blockchain has the potential to make our digital systems more secure, efficient and transparent.
Therefore, Blockchain is more than just the technology behind cryptocurrencies. It is an innovation that has the potential to change the world.
