What is blockchain?

if you like technologyand finance, you have certainly heard of blockchain. But do you know what the term means?

In short, blockchain is a system for sending and receiving information. Thanks to this technology, it is currently possible to carry out digital currency transactions such as the Bitcoin.

Check it out below what is blockchain, how it works and why it is so innovative.

What is blockchain?

The word blockchain is formed from the English terms block (“block”) and chain ("chain"). In this way, the blockchain meaning in Portuguese it is “chain of blocks”.

This technology assembles codes generated online that contain connected information. This data is gathered into blocks that form a chain, as the name suggests.

Also known as a “trust protocol”, the blockchain is a kind of ledger, in which all information related to the transaction of cryptocurrencies is recorded in a safe and reliable.

That is, it informs the amount of digital coins transferred, who made the transaction, the destination account, when it was carried out and even the location of the blockchain in which the operation is registered.

How does blockchain work?

In blockchain, all information is stored in blocks. Each of them has a summary of the data, called a hash.

In this way, a block is formed by the information contained in it, its hash and the hash of the previous block. You hash must be compatible to form the chain, therefore, they are dependent on each other.

Those responsible for verifying all transactions and recording them on the blockchain are called miners.

All information must be considered legitimate before being entered into the system by miners, by consensus of the simple majority of the network.

Advantages of Blockchain

Check the main ones blockchain advantages:

• Network decentralization;
• Data immutability;
• Security;
• Transparency;
• Reliability regarding the data;
• It is not controlled by people or companies;
• Speed ​​in operations.

Is Blockchain Secure?

Blockchain technology is highly secure. This happens because the network only exists in the cloud, that is, over the Internet, without being centralized in one location or device.

In addition, the system has several layers of security, leaving it protected from intrusions or any type of attack. If there is any attempt, the blockchain automatically locks, preventing data breach.

What is the difference between blockchain and Bitcoin?

Blockchain is a technology that makes it possible to create digital currencies and carry out operations with them. However, it is not restricted to this functionality, and can be used for other purposes, such as document validation and elections.

Bitcoin is one of the digital currencies, that is, it exists only on the Internet and can be sent and received without the intermediary of banks or credit card companies.

That is, with blockchain, it is possible to make transactions both in Bitcoin and in other cryptocurrencies, such as Litecoin and Ether.

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