Blockchain technology is called a revolutionary step in the digital age. So what is blockchain? What are their characteristics and applications in life?
I/ What is Blockchain?
Blockchain is understood as an absolutely secure information transmission and security system.
They have a structure quite similar to the accounting ledger, the system is encrypted, the following information block has a close connection with the previous block. They contain all information from warehousing, shipping, and delivery for the easiest management of businesses.
Blockchain is completely processed by modern, automatic machines. Therefore, fraud and data change cannot happen.
* Blockchain systems have 3 main types:
– Public: Users have the ability to record and edit data entered in the information block. Anyone with an account can share this benefit. However, the process of validating blockchain transactions will take a long time because they need many participating nodes.
– Private: In private mode, users are only allowed to read information. Transactions are fast because the system only requires a small number of participating nodes.
– Permissioned: Also a private form, but the user is provided with some other privileged features depending on the 3rd party provided.
Currently, blockchain has been developed based on user needs. To understand what blockchain is, you need to understand the versions it is rolling out:
– Blockchain 1.0: Currency and payments.
– Blockchain 2.0: Finance and markets.
– Blockchain 3.0: Design and monitor operations.
II/ Learn the characteristics of blockchain
Blockchain possesses great characteristics to become one of the technology chains promoting the global digital day:
– The data block recording system cannot be faked. Technology will only disappear if the global Internet is gone.
– The immutability of blockchain helps businesses not to worry about data loss. All inputs are almost non-editable and they are saved forever.
– High safety and security thanks to strict and absolute encryption system.
– Transparency: You can monitor data on the system since the date of import, export, detailed activity history page statistics.
– Digital contracts allow self-execution without 3rd party intervention.
III/ How does Blockchain work?
– Principle of encryption: All information entered on the blockchain is encrypted separately. Thereby the system works smoothly and can only be used when you have an e-wallet. E-wallet encrypts through a pair of keys: private key and public key. Only when you unlock this key pair will you decrypt and the contents of the message.
– Ledger principle: A special feature of blockchain technology is that it only records data when required, but does not track individual account balances. The account balance is considered as a “node” on the block data system, keeping a copy of the ledger. You need to confirm the authenticity of the information to view the current account balance.
* Principle of block generation: blockchain system will classify transactions based on algorithm, input time and linkage between the following block and the adjacent block. Transactions can form a block by active nodes, and they carry implications for the next block of data. Every 10 minutes, a new block of transaction data is generated. The node that solves the system-defined algorithm will have the right to write to the next block and send it to the master network.
* Principle of security: blockchain is said to be very secure, especially when you have recorded and used many blocks of transactions for a long time. Each block has an algorithm that is associated with the previous block, which creates a sequence of random numbers. Therefore, the security of blockchain is always absolutely guaranteed.
IV/ What is Blockchain in life used for?
After you have a better understanding of what blockchain technology is, you will surely be surprised because they are always applied around us:
– Automotive smart car technology.
– Communication and telecommunications.
– Financial banking.
– Smart real estate.
– Agriculture 4.0.
– Transport and logistics industry.
In addition, blockchain is also used to store data, predict markets, protect intellectual property rights, etc.