The blockchain is generally associated with Bitcoin and other cryptocurrencies, but these are only the tip of the iceberg. And it is that this technology, which has its origins in 1991, when Stuart Haber and W. Scott Stornetta described the first work on a chain of cryptographically secured blocks, was not noticeable until 2008, when it became popular with the arrival of bitcoin. But currently its use is being demanded in other commercial applications and an annual growth of 51% is projected by 2022 in several markets, such as financial institutions or the Internet of Things (IoT), according to MarketWatch.
¿ What is blockchain?
The chain of blocks, better known by the term blockchain in English, is a single registry, agreed and distributed in several nodes of a network. In the case of cryptocurrencies, we can think of it as the ledger where each of the transactions is recorded.
Its operation can be complex to understand if we delve into the internal details of its implementation, but the basic idea is simple to follow.
In each block is stored:
1 a number of valid records or transactions,
2 information regarding that block,
3 its linking with the previous block and the next block through the hash of each block - a unique code that would be like the block's fingerprint.
Therefore, each block has a specific and immovable place within the chain, since each block contains information about the hash of the previous block. The complete chain is stored in each node of the network that makes up the blockchain, so an exact copy of the chain is stored in all participants of the network.
As new records are created, they are first verified and validated by the nodes on the network and then added to a new block that is linked to the chain.
¿ Why is blockchain so secure?
Being a distributed technology, where each node of the network stores an exact copy of the chain, the availability of the information is guaranteed at all times. In the event that an attacker wanted to cause a denial of service, they should kill all nodes on the network, since at least one of them is sufficient for the information to be available.
On the other hand, being a consensual registry, where all the nodes contain the same information, it is almost impossible to alter it, ensuring its integrity. If an attacker wanted to modify the information on the blockchain, he should modify the entire chain in at least 51% of the nodes.
blockchain technology allows us to store information that can never be lost, modified or deleted
Finally, since each block is mathematically linked to the next block, once a new one is added to the chain, it becomes unalterable. If a block is modified its relationship with the chain is broken. In other words, all the information registered in the blocks is immutable and perpetual.
In this way, blockchain technology allows us to store information that can never be lost, modified or deleted.
In addition, each node of the network uses certificates and digital signatures to verify the information and validate the transactions and data stored in the blockchain, thus ensuring the authenticity of said information.
In this way, we can think of blockchain as a scribe. A means to certify and validate any type of information. A reliable, decentralized registry, resistant to data manipulation, and where everything is registered.
Today we are used to centralized models. We give all our information to companies such as Google or Facebook to manage it, we send all our messages through the Telegram or WhatsApp servers so that they take care of sending them or we spend fortunes in notaries and institutions to certify and save our writings or important documents.
In blockchain the data is distributed in all the nodes of the network. As there is no central node, everyone participates equally, storing and validating all the information. It is a very powerful tool to communicate and store information in a reliable way; a decentralized model where the information is ours, since we do not depend on a company that provides the service.
What other uses is given to blockchain?
Basically, any type of information that needs to be preserved intact and that must remain available can be stored on the blockchain in a secure, decentralized and cheaper way than through intermediaries. Furthermore, if that information is stored encrypted, its confidentiality can be guaranteed, since only those who have the encryption key can access it.
Use of blockchain in healthcare
For example, health records could be unified and stored on the blockchain. In this way, the medical history of each patient would be safe and at the same time available to each authorized doctor, regardless of the health center where the patient has been treated. Even the pharmaceutical industry can use this technology to verify drugs and prevent counterfeits.
Using blockchain for documents
On the other hand, it would be very useful for the management of digital assets and documents. Until now, the problem with digital is that everything is easy to copy, but blockchain allows you to register purchases, deeds, documents or any type of digital good that cannot be forged.
Other uses of the blockchain
It can also revolutionize the Internet of Things (IoT) market, where the challenge lies with the millions of devices connected to the Internet that must be managed by the provider companies. In a few years, the centralized model is not going to support so many devices, not to mention that many of them are not sufficiently secure. With blockchain, devices can communicate through the network in a direct, secure and reliable way, without intermediaries.
Blockchain allows verifying, validating, tracking and storing all kinds of information, from digital certificates, democratic voting systems, logistics and messaging services, smart contracts and, of course, money and financial transactions.
Currently, there are already ongoing projects that are worth investigating:
HyperLedger Project
It is a consortium of large companies seeking to explore blockchain-based solutions. They have several active projects.
R3 Cev
In this case, the 40 largest banks in the world have come together to seek solutions to their financial processes based on blockchain. In addition, they have reports and research on this technology.
Storj
The first blockchain-based storage initiative available to anyone. User data is encrypted and stored on the blockchain for preservation.
Proof of Existence
An online certification service for any type of document. It offers the possibility of saving a document on the blockchain, which can never be altered or deleted.
According to a survey by the consulting firm Deloitte, 74% of the companies consulted see blockchain as an improvement for the business and plan to invest in this technology, while almost half of them already have some blockchain implementation in their business.
Without a doubt, blockchain makes the immutable and decentralized layer that the Internet has always dreamed of a reality. A technology that allows you to remove confidence from the equation and replace it with mathematical truth.