What it is and how do the Blockchain works
We have had a time in which hearing about Bitcoin has become commonplace. This crypto-discourse conceived in 2008 by the Japanese Satoshi Nakamoto is characterized by being decentralized, that is to say, that is not supported by any government nor emitted by any central authority. Its existence is based on a system of verification called test of work, with which it is possible to prevent falsifications by means of replicas of the whole chain distributed by a whole network of computers.
Regulating Bitcoin with Blockchain to avoid fraud
The Blockchain is the technology behind Bitcoin, a method for recording data. A digital accounting book of transactions, agreements, contracts; anything that needs to be independently registered and verified. The big difference is that this accounting book is not stored in one place, but is distributed through several, hundreds or even thousands of computers around the world. It can only be updated by consensus, when it is legitimately necessary to update something and, once introduced, the information can never be deleted. Also, anyone on the network can access an updated version, so it is very transparent.
The blocks of information are linked by hash pointers that connect the current block to the previous block and so on until the genesis block. The Blockchain is stored by all those nodes in the network that are kept in sync with the network.
Each block belonging to the Blockchain contains information regarding the transactions relating to a period, the cryptographic address of the previous block and a unique arbitrary number.
A hash function is any function that can be used to map data from an arbitrary size to a fixed-length data in a reasonable amount of time. The values generated by a hash function are called hash values, hash codes or simply hashes.
The information contained in each block is recorded in the form of a cryptographic hash, which allows its easy verification, but makes it unfeasible to recreate the entry date. Bitcoin uses the SHA-256 cryptographic hash function.
How do the Blockchain Works?
Digital records are stacked in blocks and then joined cryptographically and chronologically in a string that uses complex mathematical algorithms.
The encryption process, known in English as hashing, is done by many different computers.
If all match the response, each block receives a unique digital signature. Once updated, the book cannot be altered or changed; only things can be added, and it is updated for everyone on the network at the same time.
The Blockchain beyond Bitcoin
Current block-block technology has large companies, such as Microsoft, developing their own Blockchain technologies. As with any type of technology design, some of them are open to the public, while others restrict access to a select group of people.
Banks have also shown an interest in the Blockchain, as Blockchain said, keeping our money safe and a large computer keeps track of who has what. You can also register bonds, shares, transfer of properties and any type of right or obligation, including total or partial totals.