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- 7 common characteristics of the Blockchain technology
- Blockchain as the basis of Bitcoin and other cryptocurrencies FAQs
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Today there is a lot of talk about Blockchain technology. Bitcoin has become a trading commodity, followed by the emergence of popular trading tools such as the Bitcoin Era. We are in a historical moment in which this innovation is attracting a lot of attention. But too often we remain stuck in a still quite generalized confusion, between cryptocurrencies, Bitcoin, and Blockchain Platforms.
What is Blockchain?
The Blockchain (literally “chain of blocks”) exploits the characteristics of a computer network of nodes and allows to manage and update, in a univocal and secure way, a register containing data and information (for example transactions) in an open, shared, and distributed way without the need for central control and verification entity.
Blockchain applications, which are expected to be relevant in numerous sectors, are often characterized by the need for disintermediation and decentralization. This innovation allows, potentially, to do without banks, notaries, financial institutions, and so on.
Blockchain technologies are included in the broader family of Distributed Ledger technologies, i.e. systems that are based on a distributed ledger, which can be read and modified by multiple nodes of a network. To validate the changes to be made to the register, in the absence of a central body, the nodes must reach consensus. The ways in which consensus is reached and the structure of the register are some of the characteristics that characterize the various Distributed Ledger technologies.
The Blockchain is therefore a sub-family of technologies, or as it is often specified, a set of technologies, in which the ledger is structured as a chain of blocks containing transactions and the consensus is distributed over all the nodes of the network. All nodes can participate in the transaction validation process to be included in the ledger.
From the definition of Blockchain, we can start to explore the most interesting aspects related to this technology. The digital revolution of the Blockchain, born from the Bitcoin and cryptocurrency world, is in fact only at the beginning. The applications are many, the potential is enormous, much of it still to be explored and not only in the financial field. The task of this guide will be to explain the Blockchain in a simple way while focusing on the opportunities for the business and the benefits to be seized.
7 common characteristics of the Blockchain technology
The relationship between Blockchain and Bitcoin is as close as it is crucial. Released in 2009, Bitcoin was the first cryptocurrency to use a new type of distributed ledger. Among the innovations introduced by Bitcoins. The fact that each transaction was legitimized by a decentralized network. And not by the central authorities. Although short, the history of this cryptocurrency has marked and stimulated the evolution of Blockchain technologies. Between experiments, perplexities, and unprecedented media hype.
There are over 1,000 platforms today, and more are emerging every day. Each is characterized by different configurations, however, it is possible to identify 7 common characteristics of the Blockchain technology. The first obviously refers to the digitization and transformation of data into digital format. Here are the other six:
Decentralization: Information is recorded by distributing it among multiple nodes to ensure IT security and system resilience.
Traceability of transfers: Each element on the register is traceable in its entirety. And can be traced back to the exact origin.
Disintermediation: The platforms allow transactions to be managed without intermediaries, i.e. without the presence of trusted central entities.
Transparency and verifiability: The contents of the register are transparent and visible to all and are easily accessible and verifiable.
Immutability of the register: Once written to the register, the data cannot be changed without the consent of the network.
The programmability of transfers: Ability to program certain actions that are carried out when certain conditions occur.
Finally, the Blockchain technology is a part of a complex and constantly evolving universe that can be defined as the “Internet of Value”, that is, those systems that make it possible to exchange value on the Internet with the same simplicity as today’s information. This is the basis of what we know as cryptocurrencies, including the most popular one, Bitcoin!
Bonus video: How does a blockchain work – Simply Explained
Blockchain as the basis of Bitcoin and other cryptocurrencies FAQs
Can blockchain be hacked?
It can be, but this hack is very difficult for hackers
Who is the biggest blockchain company
IBM is the biggest blockchain company. It has over $200 million invested in development and research.
Who is the owner of blockchain
Nicolas Cary is the owner of the blockchain