How does the blockchain ?
A blockchain is a tool for the storage and transmission of information that is totally transparent and secure. It is in the form of a database in which we find the history of all the exchanges that have been made since its opening. In addition, this database is shared by all its users, without the slightest intermediary. Thanks to this, everyone can check the validity of this chain.
There are blockchains public and private. A blockchain is public, open to all and is similar to a general ledger accountant public, anonymous and that we cannot falsify. Everyone is therefore able to consult freely and free of charge. It is possible to add content, but it is impossible to erase or destroy the chain. A blockchain private remains much more confidential, as it is only viewable by authorized persons.
The operation of the blockchain
To work, the blockchain requires the use of a coin or a token (also called a token) can be programmed. For example, you can use the Bitcoin.
In the blockchain, all transactions are grouped together in the form of blocks. Each block must then be validated by the nodes in the network using a method of an algorithm. Once the block is validated, it is added to the chain of blocks, and thus, becomes visible to all users. Here is a diagram that will illustrate this definition.
This can make the blockchain
Due to its transparency and its security, the blockchain can be used in other frameworks than the currency field. In fact, it can be used for the transfer of assets, whether in a monetary context, or for transmission of shares, votes, shares and bonds. But it can also serve as a registry and to ensure a better traceability of products and assets. Finally, it can be applied within the framework of smart contracts. These are stand-alone programs that allow the automatic execution of the conditions and terms of a contract, without any human intervention being necessary.
The blockchain can be applied to many sectors, among which we can mention the banking, industrial, pharmaceutical, insurance and healthcare. It allows you to replace the trusted third party by a reliable system and fully automated.
What you must remember
- The blockchain is a tool that allows you to store and transmit information in a reliable, transparent and secure.
- It traces the history of all the exchanges that have been made since the opening of a blockchain.
- You will find the blockchains public and private.
- In a blockchain, all transactions are processed in the form of blocks which must be validated by network nodes before they appear in the blockchain and visible to all users.
- Its transparency and safety and to allow the blockchain to be able to be used in several applications outside the scope of the finance.