What is Blockchain Technology and how
does it work?
What Is Blockchain Technology? As its name implies, 'blockchain' is a chain of
blocks, which contain encoded information of a transaction on the network.
And, being intertwined (hence the word string), they allow the transfer of data
(or value) with a reasonably secure encoding through the use of cryptography.
To illustrate this idea, it would be convenient to imagine an accounting book
where all the inflows and outflows of money are recorded.
What is genuinely new is that the transfer does not require a third party to
certify the information but is distributed in multiple independent and equal
nodes that examine and authenticate it without the need for them to know
each other. Once entered, the data cannot be eliminated; only new
information can be added. The blocks are connected through cryptographic
encryption, so modifying data from a block before the chain is impossible since
you would have to alter the information in the previous blocks.
What applications does it have?
Blockchain technology has transformed processes in different economic
sectors. Some platforms use 'blockchain' technology to make the supply chain
of the products we eat visible, managing us to follow the path that food travels
from when it is harvested until it reaches our table.
Electoral processes can also benefit through 'blockchain' technology since
decentralized accounting for vote counting can be an excellent option to
overcome the flaws in the existing audit systems in elections. In Colombia, the
possibility of using this type of technology to systematize property titles or
carry out validation of studies abroad has already been studied.
What are the benefits of Blockchain?