Blockchain technology: what it is and how it is changing our lives
Every time more often we hear about cryptocurrencies, cybersecurity, and anonymity of transactions. All these topics are closely related to certain technological innovation that is already changing the market and our life. What is Blockchain technology? And what can we expect? Let’s find out in this article!
How Blockchain technology works
The first distributed Blockchain came out in 2008, though the first experiences on this field date from 1991. This database can be defined as an open and distributed register capable of recording data. It usually collects two-part transactions and is completely verifiable as well as permanent. When data is written in a block, it can not be changed retroactively without altering next blocks. Due to the characteristics of this technology, it would be needed the consent of the majority of the network to make the change, making it virtually impossible.
Each block in the chain contains transactions data, a timestamp and a hash pointer that links it to the previous block. Database records are growing and are protected by cryptography.
The first use: cryptocurrencies
To understand what Blockchain technology is, we can not only talk about cryptocurrencies. It’s true that the advantages of a system capable of providing valid guarantees against fraud have attracted financial institutions all over the world. But cryptocurrencies go beyond banks and financial institutions: in short, they are digital currencies that use cryptography to validate transactions. They are neither managed nor controlled by a central authority. This way they reduce commission costs and the validation time of the movements.
Where do these digital currencies come from? The anonymous known as Satoshi Nakamoto presented the Blockchain system at the end of 2008. The following year, they implemented it to create what became the most famous one among the cryptocurrencies: Bitcoin.
Some innovative applications
Thanks to the high security levels that it guarantees and to the total traceability of transactions, Blockchain technology is used in many fields related to the financial sector. Some startups are developing solutions to relate commercial loans with sale orders: when the goods pass through the transit point the transaction is released.
Other companies are working on anti-fraud systems to control the diamonds traffic, recording all the information that is related to each stone. Similar tools are also emerging in the real estate sector, to track the history of a property by eliminating notaries and agencies.
From the health sector to insurance companies, any industry can enjoy the advantages of this technology. And you? Now that you know what Blockchain is, do you want to find out how it can improve your business?