BLOCKCHAIN: The Technology of Connected Blocks Came to Stay

Crypto and Blockchain are the future! Information technology and telecommunications have changed people’s daily lives in recent years to such an extent that they have become absolutely necessary.

Much of what we do today in our private lives, in public and at work, could not be possible without them. The need for mobility was ideally covered by internet technologies in combination with smart phones and thus tasks are completed faster, outside the narrow confines of a business or a store.

Today, there are few people who are not familiar with web applications, for whatever reason they use them. Communication, work, entertainment, commerce, shopping, education, service of tax obligations, etc. At the same time, the recent health crisis (COVID-19) reinforced this trend and made it a one-way street in most areas of our lives.

So let’s look at one of these technologies, Blockchain, and how it is expected to change much of what we know so far.

What is Blockchain

And we come to Blockchain technology. The “chain with the cubes“, in absolute translation, is an exciting technology that came in recent years and brought about a revolution, especially in sectors where security was a necessary condition.

Blockchain technology is a chain of digital cubes containing data. It is so simple to give a quick definition, but we have so much to say to properly describe it, analyze its function and highlight its importance.

Each cube (block) of this digital chain is inextricably linked to the previous one, but also to the next one, by the method of cryptography. Essentially, its job is to distribute secure transactions to a community of nodes and, using cryptographic techniques, guarantee the immutability of those transactions.

A general description of Blockchain technology would define it as a sequence of blocks, which form a ledger of entities. The recording of the entities in the blocks and the placing of the blocks in the chain is done in such a way that any change in a single characteristic of the recorded entities is completely traceable.

Each block is created with such complex algorithms that it is impossible to analyze, while it is connected in a way to the previous block as well as to the next one in the series, where even a change in one of them is capable of causing incompatibilities throughout the Blockchain.

The complexity with which Blockchain technology has been built and how strong it is against any digital threat make it ideal against risks in matters of internet security in particular. It is enough to consider that in this case there is an absence of an authority capable of ensuring trust in critical procedures such as financial transactions.

The History of Blockchain

In 1982 cryptographer David Chaum in his thesis “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups” first proposed a Blockchain-like protocol.

Later, in 1991, work on a cryptographically secure blockchain was described by Stuart Haber and W. Scott Stornetta who wanted to implement a system where document timestamps could not be tampered with. However, the first decentralized Blockchain was created by a person (or group of people) known as Satoshi Nakamoto in 2008 who first created Bitcoin. Of course, it is still a mystery today who or what group is behind that name.

Blockchain is nothing more than a digital base where it belongs to a system and on this base transactions are recorded.

Access to the system is clearly controlled by other contractors. Each block of the chain integrates some transactions, while new records are added every time a new transaction takes place. Each block can accept a certain number of transactions and when this number is reached, the block ceases to be active and is placed in its turn in the chain, after being connected in a unique way to the previous block.

Blockchain is a database, the management and security of which is not the responsibility of a specific authority, but is distributed to all those who contribute to its development.

Distributed Ledger Technology (DLT)

Blockchain technology is based on Distributed Ledger Technology (DLT) which essentially stores a database in a network of computers, rather than in a central location.

The users, i.e. the members of this network, depending on the authorization they have, gain access to transactions and information, while at the same time they can add data.

Complex mathematical algorithms protect the sequence and ensure data integrity and maximum security.

Blockchain is the comprehensive record of all transactions included in the database.

The characteristics of DLT-based technologies are:

• Run automated and scheduled tasks
• Strong encryption
• Transparency in transactions since participating entities keep a copy of the logger
• Reliability in transactions as long as they are protected from possible malicious tampering attempts
• Ensuring privacy, but also anonymity for participants, as it is not necessary for traders to show their real identity
• Accuracy in the execution time of each transaction

Read more about blockchain and crypto:

• When Bitcoin will hit 100K and why?
• What is Ethereum 2.0 by Vitalik Buterin 2022?
• Best DeFi platforms for lending, borrowing and staking crypto
• What is Web 3.0 DApps, Defi?
• 10 Ideas to make money from crypto
• What is the blockchain?
• LYOPAY Company Meetup 11 September 2022: Important Insights and Future Roadmap
• Join LYOPAY at the Future Blockchain Summit 2022 Dubai for FREE!