The blockchain is the technology that not only supports cryptocurrencies, but is also the basis for other innovative solutions
The blockchain is the technology that not only supports cryptocurrencies, but is also the basis for other innovative solutions such as smart contracts NFTs (Non Fungible Tokens). The blockchain is responsible for supporting the movement and validation of transactions and information.
In this way, you can think of a blockchain as similar to a computer’s operating system, that is, a software platform – on which a variety of other software runs.
In this article, we’ll explore what blockchain technology looks like, how it works, and why it’s becoming so popular.
How a blockchain works
Blockchain is a software that tracks data, storing it in blocks that are then chained together chronologically.
Think of a blockchain as a ledger that records transactions or data that is validated and stored and can be viewed later.
Blockchain technology can be the foundation of many different applications, such as cryptocurrencies, smart contracts, NFTs, tracking information, and almost any other digital process that might require observation.
In the case of cryptocurrency, computers validate the movement of money from person to person over time, leaving a permanent record that can be accessed later, like a long receipt for all transactions already made. Bitcoin has brought blockchain technology into popular consciousness.
Blockchain technology is often decentralized, meaning that the ability to write to the database is provided to a network of computers, as is the case with cryptocurrencies. This distributed ledger, as it is often called, tracks data using the redundant power of networked computers to validate the data. Each computer has access to this public record, and as new transactions are added to the receipt or ledger, they are verified by networked computers.
NFTs, or non-fungible tokens, are unique assets that cannot be replaced by others and blockchain technology allows them to be verified and stored. They can include everything from music to a website domain, but the current craze revolves around digital collectibles such as those from AGBadolato’s Dodge Museum.
Due to this validation process and the encryption it uses, the blockchain is very secure, creating an almost irreversible record.
In the second part of this article we will talk more about the blockchain and how it differs from a normal database.
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