By having several copies distributed on a large number of computers, making a change to one of the copies would be useless, but it will be necessary to make the change in all copies, since the database is open and public. We are thus in front of a very safe and transparent accounting book , which is serving to solve an Internet problem at its origin, such as trust in transactions and the possibility of launching asset exchange systems that do not require the procedures of traditional markets in order to function.
We can also consider blockchain as a decentralized application development environment based on a secure and public accounting data base, which allows it to use its own resources to self-finance its operation and which in turn enables the creation of companies or groupings of character totally digital with a very advanced sense of democracy and the participation of the users that compose them.
The really innovative blockchain is that as designed it allows you to write the movements of tokens (such as bitcoins) in a large virtual database that works as a large accounting file for a currency or for other types of properties . This technology has proven to be unassailable, thanks to the cryptography and the way of operation with which it has been designed. The block chain is completely distributed and is constantly updated with the new accounting entries that are produced with each transaction. These accounting entries are grouped by blocks before being written in blockchain.
The union of the blocks in which the accounting notes are grouped is what is known as a chain of blocks. In this way blockchain is a great accounting book that is increasing as movements are produced and is characterized because once you create a movement of tokens and enroll in it, this movement can never be modified by anyone, which It gives it legitimacy. This offers the possibility of managing transactions between people who do not know each other through networks that are insecure natively. Now thanks to the creation of blockchain, an environment of trust between peers is created that eliminates the need for intermediaries and is supported by the entire community. Through this trusted environment it is possible to exchange assets of any kind, not just virtual currency.
The best example of this is Bitcoin, the first application developed on blockchain, which enables the exchange of a token or virtual currency called bitcoin. In addition, as we will see throughout this article, other utilities are being developed for the exchange of other assets such as domain names, real estate, digital identities or precious stones. Initially blockchain has been used for the decentralization of money and for the realization of payments through the Internet. The next step is its use in the decentralization of markets and the transfer of practically any type of asset. And later it will serve to transform a large part of human activities covering aspects such as health, education and administrations.
LeewayHertz is a software development company that provides full-stack blockchain development services that are supported with experience of building blockchain applications for clients in different industries like Fintech, Banking, Healthcare and several more.