Fundamentals of Blockchain Technology...

Some examples of applications with a strong foundation on blockchain technology...

Blockchain applications are all the rage these days. The literal translation of this anglicized term, Blockchain, is blockchain.

Blockchain is the technology that eliminates the usual intermediaries that exist in classic economic transactions. The process liberalizes controls and it is the users themselves who supervise the exchange.

What is the process that emerges with the blockchain revolution?

For example: An individual wants to send money to another individual, this transaction is represented as a block in the network. This block is then transmitted to all nodes or users in the network and is approved by all users in the same network. This block, finally, is added to the blockchain that exists in that network which provides an immutable and transparent record of the transactions, concluding the process with the arrival of the money to the individual in question, of course, that this is one of the many examples.

Why is blockchain technology generating so much interest?

The possibility of blockchain technology being applied to other aspects beyond the economy has increased the interest in this technological revolution. In addition, the fundamental characteristics of immutability, transparency and de-centralization that the Blockchain provides, give it that character of robustness and security, which makes this new technology more reliable, while calling into question the usual and spurious methods of banking institutions.

At first this process was seen as a threat by the banks. But the commitment to a transformation in the logic of transactions has forced banks to pay more attention to the development of this technology. This is why the usual transaction methods, characterized by strong centralization and the need for the bank to act as an intermediary, are losing interest with the arrival of a technology that will revolutionize the way we know today's economy.

Open and decentralized system

The fact that it is an open and decentralized system where security is a necessity that must take precedence above all else generates an increase in confidence among users and a clear commitment to the use of this method.

Leading companies are starting to use these applications for different utilities; from the consolidation of a fully public, transparent and digitized ledger to the efficient storage of data or the tracking of shipments are just some of the most innovative applications that blockchain provides.

The development of blockchain technology is still to be seen, the main applications that we can observe today are those related mainly to the so-called cryptocurrencies, the proliferation of Bitcoin or Ethereum as alternative payment methods to ordinary money is already a reality. By 2017, it was estimated that virtual money moved more than $100 billion which indicates that economic and financial digitalization is here to stay.

Some examples of applications with great foundation on blockchain technology.

There are many applications that can be given to the blockchain, the possibilities can be endless. Although at present its functionality is highlighted by the use that is made of it for economic transactions, it is true that different institutions or companies find in this applicability some novel ideas that can be practiced in other areas. The following are seven examples of technological applications that are being used from blockchain.

1. Cloud storage

Cloud storage from blockchain, for example, allows the creation of nodes in different geographical locations that are able to withstand the failure of any server. This decentralization of information allows an integration of data that constitutes the overcoming of one of the most challenging challenges of technologies: the longevity of data.

2. Digital identities

In addition to the danger of digital identity theft in recent times, the blockchain provides a single, secure and immutable system that is the optimal solution to the problem of identity theft.

3. Data registration and verification

Another important point is registration and data verification. This process, often subject to hacking, could be decentralized to prevent other interests from interfering, thus establishing a new, more secure registration method for users.

4. Smart contracts

With the emergence of cryptocurrencies, there is also the rise of so-called smart contracts. These agreements can be fulfilled automatically, since they are implemented by means of a computer program and their fulfillment is not subject to interpretation by any of the parties. This reduces time and costs.

5. Supply chains

Blockchain will also be important in logistics management. The interest it poses for supply chains is focused, above all, on the possibility of an improvement in the supervision of food chains or in the tracking of production. This is why countries such as the United Kingdom already use 22% of such applications.

6. Automated security

The same goes for automated security; the incorruptibility of the blockchain allows the information required to be obtained without paying attention to security flaws that can result in data theft. In addition, the surveillance system can be used throughout the day without the possibility of the server going down.

7. Voting system

Finally, in an increasingly digitized world, some nations consider the blockchain as a new way of approaching democracy; obtaining from this application a new framework on which to regulate, for example, the voting system. Although some cybersecurity experts believe that blockchain cannot yet ensure the security of electronic voting, U.S. states such as West Virginia have already implemented this methodology.

(The fundamental characteristics of immutability, transparency and de-centralization that the Blockchain brings, give it that character of robustness and security, which makes this new technology, more reliable, while calling into question, the usual and spurious methods of banking entities)...

Alejandro O. Asharabed Trucido

Neura.Blockchain@aol.com

+54911 5665 6060

Buenos Aires, 2021, 28 de julio

What is Blockchain and how does it work?...

From one day to the next, Blockchain technology seems to have appeared in our lives and promises to revolutionize everything as we know it. But, beyond the promising practical application it offers us, this blockchain-based technology has not appeared out of nowhere.

Before even considering its feasibility, cryptographic technology (as a security method based on encrypting data to unauthorized recipients) has been researched for years: at first exclusively by the military and governments, later in algorithm research that developed the public key signatures and electronic signatures we know today. Thus, we arrived in the 1990s, a time when various computer projects appeared that sought interaction between users without the need for intermediaries and preached freedom of information.

What is Blockchain?

Blockchain is, by way of simplification, a digital ledger (ledger in English) that allows, through the use of computers, the storage of updated information permanently, with all copies of all computers being synchronized with each other.
A blockchain is a registry, like a ledger containing digital data, which is distributed or shared among many people at the same time. It can only be updated by the consensus of the majority of participants in the system.

When one person sends money to another, that transaction is represented in the Blockchain network as a block, which is transmitted to very diverse places within this financial network. At that moment, other users appear on the scene, who are the ones who approve that that transaction is valid, and automatically after it is approved it is added to the chain, making its transparency clear. Once the block has been correctly tied up, the receiver has his money.

Does it really give confidence that a group of strangers inspect and validate the transactions you make?

It may raise concerns that there is no centralized institution that organizes it. Currently all the platforms we make use of over the internet are backed by a central authority that we trust (bank accounts, Whatsapp, Google, etc.). In Blockchain, in order to forge an entry in a blockchain it would be necessary to simultaneously convince more than half of the people involved in the digital record we are referring to. Which is complicated to say the least.

No one knows who is who within the Blockchain network, only a transfer from one digital account to another is observed. In addition, as it is a decentralized network without a main computer, called P2P networks, everything is accounted for without the ability to be hacked.
In short, Blockchain represents a collaborative ledger written by consensus. The distribution of this consensus results in an incorruptible record of events that are recorded.

The Blockchain network is not always linked to money. There is, for example, the token, which is the representation of an information hosted on the network, so it can be any asset, good or service, not necessarily financial. Token transfers travel encrypted, so their distribution is secure and their content is not revealed, whether they are bitcoins or a car rental.

What characterizes the Blockchain system

A main feature of the Blockchain system is based on privacy, respecting identity thanks to the use of cryptographic keys. Moreover, since it is not allowed to be altered, it is a system that provides transparency in its operations. For this reason, it is considered to be the most important trust-giving technology in history, to the point of making it possible to dispense with the use of intermediaries in the registration of transactions.
This leads us to the decentralization it implies, as it does not require any type of institution to regulate or approve its operation. 

Moreover, this feature has always been one of the ideological pillars that have accompanied this project. Jeff Garzik, a renowned developer, said about Satoshi Nakamoto, who is credited with the creation of the Bitcoin system, "Satoshi published an open source system so that no one needed to know who he was or what knowledge he had. Open source software makes it impossible to hide secrets. The source code speaks for itself."

At the same time, it reduces logging and data control tasks. Blockchains avoid duplicate logging, only one log regardless of the number of participants.
Decentralization and not having a central node where all the information is agglutinated means that the intervening parties have full confidence in this technology. Its immediacy minimizes the counterparty risk produced in other transactions, where the payment commitment takes several days to be executed, thus avoiding risks of non-payment, bankruptcy or fraud during the payment process.

On the other hand, Blockchain has a scalability problem, the transaction speed is slow (due to the time it takes for each block to close) and the size of its database is growing exponentially. Currently the size of the blocks is over 100Gb, which makes its use at a domestic level not viable.
At the same time, we find a lack of regulation by legislative systems, giving rise to uncertainty in its use as it is not known what kind of regulations States and Central Banks will undertake in the future regarding this technology.

#Blockchain #Criptos #DeFi #Altcoins 

Alejandro O. Asharabed Trucido

Neura.Blockchain@aol.com

+54911 5665 6060

Buenos Aires, 2021, 28 de julio