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Blockchain technology: concept and applications

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Blockchain technology: concept and applications

Surely many of you have heard of Bitcoin and even Ethereum. Bitcoin was the first implementation of Blockchain technology , developed by Satoshi Nakamoto, whose pseudonym is still unknown today. In 2009, Nakamoto launched the concept of Bitcoin, as a P2P (peer to peer) system of digital money.

And what do we mean when we talk about Blockchain technology? Imagine that you have a series of data stored on a server in your home. But they are so important that you decide to save them also on your work server and on that of a friend’s house. To ensure the integrity of this Germany Phone Number List , you connect the three databases so that they are kept updated as you add information, but with a method that verifies that each change that is made is valid and legitimate.

What is the Blockchain network?
Schematic illustration of a Blockchain network made up of different nodes (users).

Now imagine that you agree with someone who has organized the same system to save the data together and thus increase the number of nodes and consequently security. Now imagine it on a large scale: this is, more or less, a Blockchain.

 

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Why “blockchain”?
The concept of blockchain arises from the structure of this system. The database that makes up the Blockchain is made up of different blocks (also understood as records or information inputs) that are added in temporal order and in which each block contains a certain amount of information.

The decentralization of the system
This chain of blocks has a unique and very relevant characteristic: the decentralization of the control of transactions . And it is that this technology dispenses Betting Email List with intermediaries that verify and validate transactions, but this network is distributed in different independent nodes (servers that store information), which are in charge of registering the information and validating it.

A practical example would be Bitcoin transactions in which user X sends a certain amount of Bitcoins to user Y: user X will give a send order that will be transmitted to all nodes on the network. Each of the nodes must verify that this transaction is legitimate and when there is consensus among all the transaction will be executed and added to the chain of blocks, where it will be recorded forever.

This is how the BlockChain works
Blockchain operation diagram step by step.

This is how we can say that this system acts as a gigantic account book , which remains open to everyone, offering a totally transparent and free system to any query.

The use of this network of independent nodes allows the synchronization between the entire system, which provides the irreversibility of any transaction. This is achieved since all the data is replicated throughout different nodes that make up the network, so that if a data is modified by a user, it does not affect in its entirety until its validity is approved in the entire system. .

Information traceability in Blockchain technology
Another of the properties of this technology is the traceability of the information : the database that makes up the Blockchain intertwines the blocks to facilitate the retrieval of the information and to ensure that it is not modified or altered. This is achieved through a cryptographic function (called a hash ) that allows you to encode the data to form these unique and immutable data strings.

Blockchain blockchains
Scheme of the structure of the block chain.

Therefore, Blockchain technology allows us to know all the path that certain information has followed since it was created until now.

To better understand it, the Bitcoin Blockchain is the history of all the transactions that have been carried out so far, which can be consulted at any time and see details of the transactions of any user (that if, private identity) .

This could be transferred to other areas such as the property market, public administration and even the digital marketing sector. Next we will see several examples.

Beyond the economy
As we have already seen, the blockchain is closely related to cryptocurrencies such as Bitcoin or Ethereum. But, is it possible to transfer this concept to other types of transactions? Clearly the answer is yes and now we will see how.

Transferring the use of Blockchain technology to other sectors would be a way of granting transparency to any type of process and of eliminating any type of intermediary (such as banks or notaries), substituting products and services that depend on third parties in order to be fully decentralized.

We are going to see different alternatives that use (or could use in the near future) Blockchain technology as a protagonist:

Public administrations
One of the most interesting areas of blockchain usability is public administration, which could thus boast absolute transparency. Some of the applications in this sector could be property registries : thus solving the problems of slowness and bureaucratic procedures by unifying the entire property registry with this technology. Japan is one of the pioneer countries in this initiative, which has been working on it since 2017.

Another case could be applied in the context of connected cities : with the use of Blockchain technology for the integration and management of urban furniture, parks, traffic signals, water, electricity, etc.

Social security and health
Although it could be included within the public administration, health could also undergo a real revolution with the integration of this technology that would allow recording all kinds of medical records and solving one of the classic problems of health management.

Electoral use
The use of Blockchain technology has the ability to provide an impossible to tamper with electronic vote counting system. This system could ensure voter identification, election during vote registration, and certify that votes cannot be tampered with at a later date.

Contracts
Better known as smart contracts , they are contracts in the form of code that are self-executed if certain conditions are met. For example, if an apartment is sold through this technology, the nodes execute the smart contract function, thus changing the property title to the buyer user and making a transfer with the sale value to the former owner in an automatic and transparent way.

As you can see, the versatility and applications of Blockchain technology is so extensive that it is difficult to think of an area that cannot be transformed through it. Its infinity of applications suggest the replacement or updating of roles such as those of banks or notaries. That is why the banks themselves are the entities that are investing the most in the use of this technology and its applications for fear that their site will be taken away.

Blockchain and Digital Marketing
Now that we know what Blochchain technology is and how it works, let’s see what are the applications and usability that Digital Marketing can give to this new and revolutionary technology.

Online shopping
One of the practical applications of this technology, which has already come into operation, is to provide full confidence in the online shopping and e-commerce process . The reason is that it would allow the final recipient to know the entire production process of the product or service, from its manufacture to its final distribution. This is how, thanks to the Blockchain, we could say goodbye to counterfeits or online scams that thousands of consumers encounter every day.

Use of data
Until now, the irregular treatment of personal data by different companies and / or advertising and communication agencies is in the spotlight for the entire digital community. The use of Blockchain technology in this field could be the solution to all these irregularities, since the user remains the sole owner and total responsible for their data.

The idea that arises from here is to offer total traceability of what is being done with the user’s data, with which no actor could benefit irregularly and without prior permission from the user. The debate that appears here is whether the user could charge for offering their data or for receiving an advertisement, something that, perhaps now, seems totally impossible.

Contracts
Another aspect that would affect agencies, brands, influencers and different actors in digital marketing could be the implementation of the smart contracts that we have talked about previously. With this application, compliance with the conditions previously agreed by the two parties would be ensured, which would automatically process the contract once the conditions are met.

These are just some of the possible uses that Blockchain technology could have in our sector. However, this can go much further.

What is clear is that Blockchain technology has come to stay, to democratize any flow of information and to offer a decentralized network free of intermediaries, thus providing any process with greater security, speed and economic savings.

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