Blockchain Technology What is it, and What is it for?

Have you heard of the blockchain? If you have, it has most likely been associated with cryptocurrencies. But its uses extend much further. This concept may be complicated, but it is a technology applied to numerous protocols. We will explain what blockchain technology consists of, what it is and what it is for.

What is Blockchain Technology?

Blockchain means “chain of blocks.” It is important to retain this concept to better understand what blockchain technology is and what it is for.

This technology allows us to transfer data or carry out transactions securely, with a structure that prevents manipulation of what is sent. This concept became popular with cryptocurrencies, especially Bitcoin. But, as previously commented, its use has been explored in many other territories.

This is how a blockchain transaction works

Let’s imagine that we make a transaction (cryptocurrency, data, etc.). The operation sets up a block sent over the Internet, verified, and sealed. In reality, this seal is a cryptographic value assigned to it and is absolutely impossible to manipulate.

The blocks store the information that travels in them over the Internet linearly. Each block is, in turn, connected to another since meta-information related to the previous block is added to reliably monitor the process. Since each of them has a cryptographic value that cannot be altered, it makes that transaction incredibly secure.

What is Blockchain Technology For?

Let’s see some of the spaces in which this technology is being implemented:

1. Cryptocurrencies: This is surely the use you know the most. And perhaps the most controversial, since its regulation is not yet well defined.

2. Feeding: Thanks to blockchain technology, we can perfectly track food from its origin to its final distribution point. This would not only help us to know the true origin of these (and thus avoid certain fraudulent practices) but would also contribute to more sustainable production.

3. Music: Blockchain technology would enable automating payments to musicians, who generate property rights and eliminate intermediaries who often collect the lion’s share of the profit. In addition, copyright would be better protected, and the problem of piracy would be reduced.

4. Fake items: In line with the above, the blockchain makes tracing an item from its origin possible, reducing the black market for illegal items considerably.

5. Insurance: Since each variable in consumer problems can be checked, the blockchain, through smart contracts, would resolve disputes more fairer.

6. Scientific investigation: The security with which the data travels would greatly facilitate the most sensitive data of this type of study.

7. Health: Tracking certain diseases (think, for example, of the COVID pandemic) would significantly reduce their impact on the population. The same can be said of any food item contaminated with some bacteria.

8. Logistics, agriculture, etc, will benefit from the infinite advantages of this technology. The future has only just begun.