BLOCKCHAIN

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DEFINITION

Blockchain, is a distributed digital ledger that stores data of any kind. A blockchain can record information about cryptocurrency transactions, ownership of NFTs, or DeFi smart contracts.

While any conventional database can store this type of information, the blockchain is unique in that it is fully decentralized and does not depend on any agency. Instead of being kept in one location by a centralized administrator (such as an Excel spreadsheet or bank database), many identical copies of a blockchain database are kept on multiple computers called nodes that are spread across a network.

The name blockchain is not accidental: the digital ledger is often described as a chain that is made up of individual blocks of data. As new data is periodically added to the network, a new block is created and attached to the chain. This involves all nodes updating their version of the blockchain ledger to be identical.

BLOCKCHAIN ADVANTAGES

1) Increased transaction accuracy: Because a blockchain transaction needs to be verified by multiple nodes, this can reduce error. Plus, each asset is individually identified and tracked on the blockchain, so there's no chance of spending it twice.

2) No need for intermediaries: Using the blockchain, two parties to a transaction can confirm and complete something without the need for a third person or entity to mediate, saving time and money.

3) Additional security: In theory, a decentralized network, such as a blockchain, makes it almost impossible for someone to carry out fraudulent actions. To make forged transactions would have to hack every node and change every ledger. While this is not necessarily impossible, many cryptocurrency blockchain systems use proof-of-stake or proof-of-work transaction verification methods that make it difficult to conduct fraudulent transactions.

4) More efficient transfers: These operations can be carried out from anywhere and at any time, due to the uninterrupted and unlimited operation of the block chains.

BLOCKCHAIN APPLICATIONS

Although this technology has become better known through the popularization of Bitcoin, and then other cryptocurrencies, it is actually used in many more areas. In fact, there are blockchains to, for example, make the supply chain of different products visible.

Without going any further, it is also used in scientific or political fields. Within the latter, in terms of the electoral process, it can be very beneficial, since it serves to generate a decentralized and, consequently, objective vote count.

Here is a list of the areas where this technology is applied:

*Food industry, especially in meat-type turns;

*Logistics, in the area of merchandise transport;

*Tourism, for identification of passengers, luggage and passports;

*Insurance, especially in the syndication of risks among professionals;

*Music industry, associated with the copyright market;

*Health, medical records and medical records;

*Electoral processes, to avoid electoral fraud;

*NGOs, in anonymous fundraising;

*Social networks, to create a decentralized buying/selling system.

Knowing this, we can conclude that this type of technology is not only one of the most innovative in recent times, but also reliable, transparent, democratic, and secure.