Blockchain, what is it and how does it work?

Currently being aware of emerging technologies is very important, the world has many payment systems and cryptocurrencies are part of it. Blockchain is an algorithm that works through decentralized servers and is responsible for protecting the money of people who make transactions in cryptocurrencies.

Blockchain technology works by means of chains of blocks. Each block contains information and its purpose is to create an unalterable digital record of everything that happens in said chains, that is, it stores information in a registration order and once the information is saved it is almost impossible to modify.

The information that this structure registers is the amount of money that is mobilized from one user to another, that is, transactions in cryptocurrency. Its operations are public, anyone can know how much money was transferred on that blockchain, but its users are encrypted, that is, no one knows who carried out the operation.

Anyone can carry out a transaction and continue with the chain of blocks, the person will be able to know by means of a code, that the money is legitimate, since each block has a code record, which is successive, that is, without in some I block the code that I emit, it is not the same as the one before that, it is considered fraud, but for this to happen it is difficult, because there are other security mechanisms.

Block chain

● Information:

Saves the record of issuer, receiver and amount of coins transferred.

● Footprint:

It forms a series of numbers and letters in order to identify the block and what is stored in it, that is, its content.

● Footprint of the previous block:

String of numbers and letters from the previous block.

These mechanisms provide security support. If the fingerprint changes, it is considered fraud, but for it to happen successfully all the previous fingerprints must be changed so that the system cannot detect it and this is something very difficult to conceive.

Should the previous security mechanism fail, the proof-of-work mechanism comes into play, which is intended to purposely delay the creation of a new block of information. If during the work test you detect any failure or fraud. The block would not be created.

There is another security guarantee for this system. Blockchain does not use a centralized server, on the contrary, it has servers all over the world. Every time a person issues a transaction under this system, his electronic device becomes a server, that is, every participant receives a copy of the information chain, becoming a node within the system. For each transaction to be approved there must be an approval from these nodes, that is, half plus 1 for the blockchain to continue. Otherwise, it is denied.

Blockchain benefits

-Secure your assets in cryptocurrencies
-You save money on transactions
-There are no intermediary banking entities
-You can do it anywhere in the world

Cryptocurrencies are the future and Blockchain is a system that gives you credibility and trust so that users can freely make transactions anywhere in the world.