The blockchain is a booming technology. Generally known for cryptocurrencies like Bitcoin or Ethereum, because they follow the Blockchain model. However, there are companies that use this technology as a database or to make transactions and avoid intermediaries. What sector uses blockchain? What companies can work with this technology? Whatever your blockchain question is, you have to understand how blockchain works first.
Blockchain is a secure database with open access
The blockchain is a decentralized database technology. There is no central system through which information must be passed in order to be accepted. So you can say that the blockchain is a big book, a kind of information note that is fully open to all.
How is security guaranteed on the blockchain?
In the event that the security system for making hashes is not enough, there is also proof of work or Proof of Work (PoW). Work tests require computers to solve mathematical problems from a high degree of difficulty before being allowed to edit or block variations. After the problem is resolved, the resolution of your problem is shared as “proof”. Other computers are responsible for verifying the response generated for the problem. If validated, people who want to change or make blocks can do it.
If someone who is not a member of the chain tries to access the block, they must begin to solve the problem. To solve mathematical problems, it is necessary to make guesses up to 16⁶⁴ before getting the correct answer.
In fact, connections between different users of the blockchain are Peer-To-Peer Network (P2P) or peer networks, eliminating intermediary agents by enabling peer communication between the parties. In P2P, the device is directly connected and each computer is known as a node or node. The network of nodes validates the state of the transaction (exchange or variation of information) and the user uses an algorithm that is set to reach consensus.
Namely, to reach an agreement produced with agreement among all blockchain members. After the transaction is validated, it is combined with another and a new block with information for the ledger created, recording with block information. Adding transactions to the existing ledger is known as mining or mining. This process is responsible for creating transaction block hashes, ensuring the integrity of the entire chain.
Therefore, some companies use block chains for the purpose of: optimizing business transactions and processes with suppliers, partners and customers; and reduce risk. This risk is limited thanks to the creation of transactions using ledgers that are distributed among members of different, official and practically unchanged chains.
In the blockchain, records of data can be accessed by everyone, but also protect against unauthorized access. There are three types of blockchain:
– Public: fully open to the public. That is, anyone can join the network as a participant.
– Hybrids: open to the public, but access to available information is limited to the level of authorization.
– Personal: limited to parties involved in the creation of certain networks or for those who have been given access by the author. Participants can become administrators, decide who enters the block chain, or the observer, they can consult the chain information.
Depending on what is needed for this blockchain, one type or another will be needed. For example, public libraries can have a public blockchain so that each user can access the system to find out whether a book is borrowed or available and where. Hybrids can occur in cases of land disputes where two people claim several meters of plots. If the data is in a chain, they can access information and see who it is, but not modify it. This consultation will be carried out without involving intermediary agents, in this case, the city government.
The third type can help companies with travel costs and employee benefits. Even though the company has now set an expenditure policy so that employees do not do it excessively, it is always difficult to manage it. With blockchain, companies can change their money, that is, turn it into a block. By converting it into blocks, they have information about how much money can be spent and for what. So employees will still have access to money, but if you want to spend it on a computer or want to spend more money than you are assigned, you can’t. To make the transaction, you must request validation from the company where you work, and this is guaranteed. This programmed transaction is known as a smart contract or smart contract. If there is an error in the chain programming code, because the nature of the chain block is impenetrable, this error will continue to exist throughout the life of the chain.