As its name indicates Blockchain means “Chain of Blocks” and in this article, we want to explain what the new Blockchain technology is all about.
Blockchain is a huge network of united and encrypted users whose function is to provide security and privacy of transactions. In each one of these blocks, we will find users (nodes) that are in charge of verifying the transactions made.
What the new Blockchain technology seeks to provide is greater security and confidence to users when making transfers, transactions or payments, eliminating the dependence on a centralized data source, ensuring the user’s data security.
What is the new Blockchain technology for?
We know that some users do not have enough time to go to a bank to make payments or transfers. This new technology allows you to make payments, transactions or transfers over the Internet while only registering at the time you are making transactional movements.
Blockchain works in the following way.
“X” wants to send money to “Y”. The transaction is presented in the network as a block. The block is transmitted to all parts of the network, and only users who are in that block approve that the transaction is valid. This block is added to the chain generating a record and finally allowing “X” to pass the money to “Y”.
How does the new technology work?
If “X” wants to pass money to “Y” he or she must first inform the users of the block so that it is approved, bearing in mind that nobody knows who is who.
One of the great advantages of the new Blockchain technology is that it is public, i.e. everyone who participates can see the blocks and the transactions. This does not mean that all users can see all the information of the transaction because the transaction is protected by a private key.
In Blockchain there is no one who has the command and approves these transactions which makes it safer since all registered users are those who accept the transactions made.
What security does Blockchain provide?
In the new technology Blockchain all transactions are blocked including the dates, participants and volume of each transaction. Each block has a full backup.
If at any time Blockchain was affected by a malicious user, the nood would detect it immediately and reject any movement. Transactions are verified by members called “Blockchain miners” who are in charge of validating the status of the block transactions.
Blockchain does not take into account the value of cryptocurrencies since the users are the ones who give it the value they wish to transfer to another user.
What is the difference between Bitcoin and Blockchain?
The new Blockchain technology gives users digital coins in order to make transfers and transactions. This technology is very fickle and revolutionary, with the potential to adapt to any business model and provide immediate solutions to problems that may arise.
Bitcoin focuses on the execution and storage of transactions that are made with this currency. Registered users validate their operations by a method known as mining. In this Bitcoin method, users must use a protocol called POW.
This POW protocol knocks down all abuses similar or equal to SPAM that negatively attacks the service making the system perform non-authorized processes.
The use of the POW protocol improves the functions of the blocks of Bitcoin in spite of being a slow process because it helps each user to carry out their transactions in an efficient and easy way. POW has a function to protect and encrypt data.
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