What is Blockchain Technology?

What is blockchain technology?

Blockchain technology is based on the use of databases distributed in different nodes within a computer network that share information between them. Thus, the blockchain is a chain of information blocks that store data electronically in digital format. These chains aim to improve security and decentralize the records of transactions made within the network.

The fundamental difference between a traditional database and the chains and blocks of this technology is in the way in which the information is structured. Blockchain technology collects information in groups, known as blocks. These blocks have sets of information and storage capacity. When it is filled, it is closed and linked to the previously filled block, forming what we call blockchain chains. As blocks are filled, they join the blockchain.

Traditional databases usually structure data in tables, while blockchain does so in fragments that are linked together through a network of computers.

Each block added to the chain is recorded and becomes a part of this timeline. Each of these data blocks receives an exact timestamp of when it was added to the blockchain. In this way, it is marked with a type of digital certificate that guarantees security and, in certain applications of this technology, serves to record the ownership of that block of data.

Thus, in conclusion, we can say that blockchain technology is a type of decentralized shared database that improves security when certifying the ownership of the information that is stored in its blocks. This is key, for example, in the use of this technology in the universe of cryptocurrencies. Thanks to the blockchain, bitcoin (the most popular crypto) no one person has control and all users collectively control the distribution of the currency.