April 29, 2019

Blockchain

What is Blockchain

The word blockchain has spread widely with the boom of the bitcoinone of the most famous digital currencies, among the first to apply and exploit this revolutionary technology. There blockchain born to have a secure information system linked to transactions and exchanges. In fact, it is about a "public register" in which the transactions that occur between users of the same network are stored in the databases safely and permanently.

The Blockchain is based on a peer to peer protocol so anyone can download it from the internet and install it on their computer. Once installed it becomes part of the network becoming a "block" of the chain. Transactions saved in blocks are managed via encryptionby all network participants. Thus, the same information is present on all the blocks and it becomes impossible to change it.

The real revolution of this technology consists in decentralization, there is no institution, government that can intervene on the information that is stored within the blockchain. Bitcoin creation and exchange are just one of the possible applications of the Blockchain.

The blockchain is not only involved in the recording of transactions made through the cryptocurrencies but it is a mechanism applicable also outside the sphere for which it was born. For example, it is possible to hypothesize a use for transactions linked to the public administration, this would allow every citizen to have a secure and immediate digital identity.

How it works?

Created since 2008 by Satoshi Nakamoto, the Blockchain is a secure protocol that allows you to exchange information on the internet of various kinds..

When a transaction is executed, a block is created containing all the information regarding, for example, information on the price and on the actual ownership of the property. This block is inserted into the network for approvation of by members of the Blockchain. Once verified the block is added to the chain. Before this transaction be successfulit must be approved by a majority of all the nodes of the network. Each operation is confirmed by all participants through encryption software. These software guarantee the digital identity of individual nodes thanks to the private key that each participant uses to sign transactions.

After the transaction has taken place all transaction information is retained in the archive of every single block in the chain.

In this way, in fact, a huge is created decentralized database and at the same time accessible to all participants, so everything becomes virtual and immutable. If only one of the knots of the chain suffers an attack and is damaged anyway it comes keeping track of all changes made and all other nodes will continue to keep track of all the operations performed.

Why Blockchain is really important?

You know why Blockchain technology it's important? This new form of storage and control of properties could really be the future and it is therefore essential to know all its features. The blockchain is:

  • Safe: It is a secure database thanks to the encryption process that characterizes it. This model is based on the combination of the digital signature which guarantees that the sender and the recipient of the transaction are identified;
  • Trusted:Being a time stamp or “timestamp” the blocks are added in chronological order. The time stamp uses a sequence of characters that identify a certain date and time to ascertain the occurrence of the operation;
  • Reliable:Being a decentralized system it is safer and more reliable, because even if one of the nodes were damaged the other members would still retain the information. Against this there would be no data loss;
  • Transparent:Transactions made through the blockchain are open and transparent. Participants can see everything at any time. In this way the transparency of the operations is guaranteed.
  • Decentralized:Thanks to this decentralization system, transactions are cheaper than conventional ones because there are no intermediaries like banks;
  • Immutability:The blockchain is an immutable database able to guarantee the irrevocability of information. This ensures traceability and the transactions become traceable;
  • Fast:It does not require a central entity that verifies its congruity and validity. Thanks to the consent of the network, it is not necessary an entity that verifies its validity and the connected risks.
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