In this article we will talk about what is blockchain, in the simplest way possible so that you can understand exactly how it works, what it is based on, the types of blockchain and many other things related to this technology that will mark a before and after in many areas of our lives.
I don’t intend to flood you with theoretical and meaningless information, but on the contrary, so sit down and make yourself comfortable, why here, you will learn something that can change your perspective on many things or areas. In fact, believe me with this statement: The experts at Blockchain are going to be some of the most highly paid and sought-after experts over the next 20 years. In addition, being an expert in this facet added to good imagination and creativity will allow you to develop projects, tools or services or improve them in a way unimaginable a few years ago.
What is Blockchain?
Blockchain is a database distributed among different participants, cryptographically protected and organized into blocks of mathematically related transactions.
What are the basic elements of Blockchain?
A node: this can be a computer or, depending on the complexity of the network, mega servers. All nodes must have the same software/protocol to communicate with each other.
In a public network these nodes do not have to be identified, but in a private network these nodes must know each other.
A standard protocol: this could be called computer software so that the computer network (nodes) can communicate with each other.
This protocol provides a common standard that defines communication between the participating nodes in the network.
Peer-to-Peer (P2P) is a network of nodes (computers) connected directly to the same network.
A decentralized system: All computers are equal to each other; there is no hierarchy between nodes. Unlike centralized systems where all information is controlled by a single entity.
Difference between a centralised and decentralised network
In a centralized network (blue), we can observe how all nodes start from the same central node or single entity. On the other hand, in a one decentralized (red), no node (computer) is essential. The network is not dependent on a central unit. This is one of the main features offered by BlockChain. Decentralization and no need for a single node or centralized system to control everything, and the network or service is broken if this central unit fails or collapses.
The 3 keys that make BlockChain unique
Cryptography: is the procedure that uses a key algorithm to transform a message in such a way that it is incomprehensible or very difficult to understand for anyone who does not have the secret key or decryption key. In the blockchain, cryptography provides a foolproof mechanism for secure encryption in protocol rules.
The blockchain: is the database that stores the records made by the users that make up the network. All blockchains act under the same protocol rules to give validity to the block and the information they collect, in order to incorporate it into the chain of blocks.
A consensus: the consensus is based on a common protocol that confirms and verifies the transactions that have been made. Furthermore, it ensures their irreversibility and must provide all users with an invariable and current copy of all the operations carried out in this blockchain.
Differences between public and private blockchains
Public blockchain: anyone without the need to be a user can access the transactions that have been made.
Private blockchain: the data entered in the blockchain must not necessarily have access to third parties. Only users and participants will be able to view the transactions made.