What is Blockchain?
Have you ever wondered what blockchain is and why it is generating so much interest in recent times?
Blockchain technology is a system where information is recorded and used to store data and verify transactions in a secure, transparent and immutable way.
Below we present some key aspects of the blockchain.
The accounting of your book is unchangeable and shared.
The blockchain has a ledger that records each and every transaction that takes place on the network.
This ledger is unchangeable, meaning that every time a transaction is made, it is recorded and can no longer be modified or deleted.
Also say that this transaction book will be shared publicly, so all those who wish can see it. Always maintaining the anonymity of the person who made that transaction.
How is data stored on the blockchain?
The blockchain uses a mathematical structure to store data in such a way that it is practically impossible to hack.
Each of the transactions is recorded in a block, and these blocks are linked together as in a chain, hence the name blockchain.
Decentralization and validation by the community.
Differentiating it from traditional transaction recording systems, in which a central authority validates and maintains the ledger, blockchain is based on validation by the community.
This means that validation and verification of transactions are performed by multiple participants in the network, increasing trust and security in the system.
Security.
Blockchain is a secure and reliable technology due to its ability to protect the integrity and privacy of user data, thus avoiding fraud and information theft.
Its transparency and the impossibility of modifying the data, once it has been registered in the blockchain, give the user security and confidence when using the network.
Governance in Blockchain.
Blockchain governance refers to a set of rules that are defined and organized by a social structure.
This governance can be of two types:
On-chain governance.
This governance seeks to directly democratize fundamental and important aspects such as decision-making within the blockchain.
This is done through on-chain voting mechanisms, which are optimized for that network.
As examples we can put Uniswap and MakerDAO.
Off-chain governance.
This type of governance continues to maintain a relatively centralized and traditional aspect.
The best-known cryptocurrencies that use this type of governance are Bitcoin and Ethereum, using balance governance between miners, users, core developers, and the business entities that are part of the community.
Blockchain governance is essential in the context of decentralized systems, as it allows us to address aspects such as decentralization, inclusion of all parties in decision-making, and adaptability to changing circumstances.
Blockchain use cases.
Below we present the most relevant use cases of this technology:
Cryptocurrencies.
This is the most well-known use case, as it is used to secure cryptocurrency transactions and maintain anonymity, as well as to use it in a decentralized manner.
Asset tokenization.
Another use is the tokenization of real estate assets, eliminating intermediaries and reducing costs, allowing this type of investment for a broader audience.
Medicine and pharmaceuticals.
Blockchain technology also has its place in health, allowing information to be stored securely, improving the traceability, transparency and efficiency of the information collected.
Decentralized finance.
This technology allows users to access financial services without the need for any intermediary.
The DeFI ecosystem also allows us to track transactions, providing security, transparency and allowing audits to be carried out.
Logistics and supply chain.
In this case it is used to guarantee the traceability and efficiency of the products from the origin to the final consumer, benefiting, as we have said on previous occasions, from intermediaries and reducing costs. Improving the traceability and transparency of processes.
Education.
Blockchain technology can improve the management and verification of academic titles, doing so quickly and securely.
Other use cases where blockchain has a place are in voting systems, video games, digital identity, digital art and collectibles, travel, real estate, etc.
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