How does the Blockchain work, the technology that makes Bitcoin possible? | News from El Salvador

Although its use is strongly associated with cryptocurrencies, this technology can also be used for other types of digital assets, such as NFTs, contracts, among others.

Bitcoin is a crypto asset that could not function without Blockchain technology, a complicated concept to understand, but which is basic for these digital operations.

Generally this technology is associated with Bitcoin and other cryptocurrencies, but these are only the tip of the iceberg. The Blockchain has its origin in 1991, when Stuart Haber and W. Scott Stornetta described the first work on a chain of cryptographically secured blocks, but it was not noticeable until 2008, when it became popular with the arrival of bitcoin. Currently its use is being demanded in other commercial applications and an annual growth of 51% is projected by 2022 in various markets, such as financial institutions or the Internet of Things (IoT), according to MarketWatch.

According to the site specialized in technology, TN Tecno, Blockchain is a chain of blocks that is located within the world of virtual operations, but mainly it is a technology for the transfer of digital data and, thanks to a very sophisticated coding, it does it in a completely safe way. It had its emergence as a supporting player in the Bitcoin revolution.

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Although in its beginnings it made possible the operation of cryptocurrencies, the Blockchain in a short time exceeded that area, because its effectiveness led it to seduce different areas and became an alternative to do business.

According to TN Tecno, this chain allows a collective custody to avoid fraud in transactions. In this way, it was expanding its field of action and it began to be related to financial operations until it reached the public administration, passing through agriculture and medicine, to name more relevant cases.

“The Blockchain is the information coding system that takes care of their backs to cryptocurrencies. In general terms, it is behind a digital credit (such as Bitcoin or Ethereum, to name the two most recognized and supports its entire structure, because it gives you extreme security when working with a shared registry that cannot be modified once it is verify, ”the site explains.

According to Cecilia Pastorino, a specialist in networks and telecommunications from Argentina, the blockchain or chain of blocks is like a notary’s book. What is written on the blockchain is recorded and certified and its integrity and availability are guaranteed.

Although its use is strongly associated with cryptocurrencies, this technology can be used for other types of digital assets, such as NFTs, contracts, etc. That said, the blockchain allows you to record transactions and track an asset within the network without the need for intermediaries, since the thousands or millions of nodes that make up the network (distributed teams) are those that are in charge of verifying and validating those transactions that are they will register in a new block that is added to the chain.

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The characteristics of the Blockchain
TN Tecno affirms that a simple way to understand the scope of the Blockchain is to see it as a technology that carries a master list of all the people who at some point interacted with it. In that sense, it resembles a job done in Google Docs because many can access those documents to make changes to them. The program creates a record, with the modification made and the name of its manager.

All parties to the operation, as well as a significant number of third parties, keep a copy of the registry and see the changes that have occurred. That means that it is practically impossible to modify each one of the copies to falsify it. This characteristic transforms the Blockchain into a digital mechanism that strengthens the business structures of various sectors.

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How does the Blockchain work, the technology that makes Bitcoin possible? | News from El Salvador

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