Cryptocurrency is increasingly present in our modern life. And when it comes to cryptocurrency, talking about blockchain is inevitable. But we talk about it without really knowing what it is. So the question is: what is blockchain?
A technology that has been popularized thanks to cryptocurrency
Put simply, technology blockchain – or blockchain – is defined as a decentralized and distributed ledger that records the provenance of a digital asset. Blockchains are best known for their crucial role in blockchain systems. cryptocurrencyin particular the bitcoin. Indeed, the blockchain is critical to the existence, integrity and security of cryptocurrencies. In fact, due to its inherent design, data on a blockchain cannot be changed.
Simply put, blockchain is a logging technology designed to make it impossible to hack into the system or tamper with the data stored in it, thus making it secure and immutable. As the name suggests, a blockchain is made up of a growing list of block records, and these blocks are securely linked together using cryptography. Note that encryption is a method of securing information and communications through the use of codes.
Thanks to encryption, only those authorized to access protected information can read and process it. This technology derives in particular from mathematical concepts and a set of rule-based calculations called algorithms to transform information and make it difficult to decipher. In other words, this means that cryptography is one of the guarantees that ensure that the information contained in blockchains is perfectly secure.
How is a blockchain formed?
Furthermore, it should be understood that the blocks, being intended to collect information, therefore have maximum storage capacities. When the blocks are filled, they are closed and linked to the previously filled block, forming a data chain. This is how a blockchain is formed. Any new information following these newly added strings is compiled into another newly formed block which will then be appended to another string when completed.
It is this structure that allows you to create an irreversible timeline of data when implemented in a decentralized way. In addition, each block in the chain receives an exact timestamp, a device that links an exact date and time to information or computer data, when it is added to the chain. Furthermore, each new block is also associated with an identifier called a hash. Each block has its own hash and each hash created references the previous block’s hash.
In other words, all blocks are immutably linked together, and this is what makes them inviolable. Therefore, the blockchain can simply be described as an almost foolproof technology for ensuring the protection of digital data. However, there are not only benefits to blockchains. Blockchains are particularly harmful to the environment, because their use requires the use of super powerful and energy-consuming computers.