It seems that something normal when we enter the world of digital transactions is to make many mistakes due to the lack of information that the user faces. When we refer to Blockchain, we define it as a set of advanced technologies that allow information to be managed centrally and decentralized.
If we go back in its importance, we discover that it was created to allow secure and anonymous cryptocurrency transactions, although it soon became clear that it had many other possible uses. With the advent of smart contracts, its development has dramatically accelerated as it has become a key element on the road to business adoption of the technology.
As its name (blockchain) implies, blockchain is a network with a single set of data, of which each connected node has its own copy. The information from the previous block is stored in these blocks and the data is transmitted to the next block using cryptographic techniques.
It is characterized by the fact that the information transmitted by this technology is transmitted and stored with an extremely high level of security thanks to a sophisticated cryptographic system. The records made with this technology are unalterable, which favors transparency. It also prevents data from being changed at will and guarantees confidentiality.
There are four basic types of blockchain and, depending on the intended use, some are more suitable than others for each case. There is public Blockchain: also known as permissionless blockchain, in which anyone can participate without restrictions, this is generally the most common in cryptocurrencies; Private Blockchain: it has who can have access either in an organization.
Also hybrid Blockchain: it combines the characteristics of the previous two. Organizations can set up a private, permissions-based system alongside a public, permissionless system; and finally, federated Blockchain: which has a consensus process and is controlled by a group of pre-selected nodes or actors.
Similarly, Blockchain offers great business benefits that help companies in many ways: such as creating greater trust between parties by offering reliable and shared data, thus reducing the need for external intermediaries. It provides greater security, since all the participants in the network must accept the accuracy of the data and the validated transactions cannot be altered.
Produces a tamper-proof record in real time. Improves efficiency by avoiding time-consuming reconciliation activities. And it allows the traceability of goods or services throughout the supply chain.
We have explained the basic structure of blockchain. But when we talk about blockchain technology, we are probably not talking about the database itself, but rather the ecosystem that is built around it.
As an independent data structure, blockchain is only useful for very specific applications. It becomes interesting when used as a tool to coordinate strangers with each other. Combined with other technologies and some game theory, blockchain can function as a distributed ledger that no one controls.
This means that no participant has the right to change the tickets and thus circumvent the rules of the system. In this sense, it could be said that the accounting book belongs to everyone at the same time: the participants agree at all times with the appearance of the book.
As such, it is the case of PP23PROJECT that has its own PP23 Token, which is part of a blockchain. This means that anyone can see the transactions it contains, and all that is needed to access it is an Internet connection and the necessary software.
As soon as a transaction is added to the blockchain, all nodes can see that it has been executed. And based on that action, they will update their copy of the blockchain to reflect it. From this moment on, one person cannot send the same units to another, because the network knows that they have already spent them in a previous transaction.
There is no concept of “username” and “password” here: public key cryptography is used to confirm ownership of funds. So to get the money, a private key must first be generated. This is just a very long random number.
From a user point of view, blockchain-based file storage solutions work like other cloud storage solutions: files can be uploaded, stored, and accessed. However, in the background something completely different happens.
When we delve into the handling of uploading a file to the blockchain, it is easy to notice that it can be distributed and replicated across multiple nodes. In some cases, each node will store different parts of the file, but it’s still hard for them to do much with partial data, though it is possible to ask nodes to provide each part so you can merge them and get the full file.
It is somewhat confusing to hear about the systematization that each process has, because it is not common to find something that seems so simple and fast that actually contains incredible complexity. So when we talk about storage, we find that it comes from participants who provide their own storage and network bandwidth. Typically, these participants are financially incentivized to provide these resources and financially penalized if they fail to comply with standards or fail to store and maintain the files.
What makes it quite clear to us is that nothing we do in these procedures is a game, even though many industries downplay it because they are focused on creating these blockchains, without emphasizing how much trust and stability they contain. And they do not emphasize the importance of being well informed and knowing those details that could mean everything for the development of our finances.