What is Blockchain and how Blockchain technology works

Blockchain technology or chain of blocks is one of the most innovative and disruptive concepts in recent years. However, sometimes it is difficult to understand what is a blockchain? What differentiates it from Brazil Phone Number List cryptocurrencies? How does Blockchain work? What advantages does it have? How does a node work on the network? . Don’t worry because we have prepared this complete guide on what Blockchain is and how this technology works so that you don’t have any doubts. Let’s start!

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If we analyze Google Trends we will see that searches for the term “blockchain” have been Brazil Phone Number List increasing since 2013, thus representing a trend that is stabilizing and in the process of maturing.

And according to the report published by MarketsandMarkets this 2022, the global blockchain market is expected to grow to almost 40 billion in 2025. This represents a compound annual growth of 67% year after year until 2025.

What is Blockchain and how Blockchain technology works — blockchain market12

Blockchain is the technology behind Bitcoin and allows you to eliminate intermediaries and store transactions securely. For this reason, large Brazil Phone Number List companies and banks (and some startups too) are already exploring its possibilities. Do you want to know what this innovative technology consists of?

What is Blockchain or chain of blocks?

Blockchain is a technology based on a decentralized and public blockchain of operations. This technology generates a shared database to which Brazil Phone Number List its participants have access, who can track each transaction they have made. It is like a large, unmodifiable, shared accounting book that is written by a large number of computers simultaneously.

What is Blockchain and how Blockchain technology works — BTY 2
Every time a member of the network makes a digital transaction, said transaction Brazil Phone Number List generates associated data that will be stored in one of the blocks . When that block is complete with information, the block is coupled to the already existing chain of blocks or blockchain.

The information that is stored on said network will depend on the purpose for which it was created. It may be a network that stores payment data (cryptographic currency or cryptocurrencies), medical information, logistics or food traceability data, and even electoral data counts.

The difference between blockchain and a centralized network (a traditional server that stores data) is that the blockchain network runs on multiple computers distributed around the world and not in a single location. This Phone Number List makes the blockchain network present a series of advantages such as privacy, decentralization or non-dependence on a centralized executor or security . However, it presents a series of challenges that we will assess later in the advantages and disadvantages section.

The programmable and open nature of this technology allows the financial sector and administrative processes to innovate so that they are more efficient and transparent. In addition, bureaucracy is reduced. Blockchain is the technology that developed Bitcoin , the virtual and intangible cryptocurrency that is supported by the protocol and the P2P network.