che cos'è la blockchain

What is the Blockchain

Among the current technological trends, it is easy to hear about the term “Blockchain”.

The future of finance, such as that of the preservation of relevant digital documents or crypto art, moves between decentralized blocks and nodes.

All the media, nowadays, are dealing with this topic with news and updates. However, none of them give precise explanations on the usage of this new technology.

What is the blockchain? Where did it come from? How does the blockchain work?

Let’s find out in this new article from the Moby Dick academy.

What is the Blockchain

What is the Blockchain? In a simple way, the term Blockchain literally means chain of blocks.

It is like a huge register made up of blocks connected to each other. A digital archive shared between the users who join it and who can consult the information.

This type of system does not have a central unit, but acts by recording data and information in a decentralized manner.

The peculiarity of Blockchains lies in their way of managing information, ensuring transparency, sharing and distribution between nodes and miners. The latter certify the transactions validations
and movements.

The Blockchain takes advantage of the peer-to-peer security protocol, adding further verification of information through Proof of Work or Proof of Stake systems.

History of Blockchain technology

Blockchain technology was developed, for the first time, by researchers W. Scott Stornetta and Stuart Haber in order to find a way to validate digital documents in a secure and free from
counterfeiting way.

A computational solution, designed to prevent third parties from altering the contents of the documents themselves.

The following year, in 1993, the Merkle trees were introduced and the technology improved even further. Not finding, however, its field of use, in 2004, with the expired use patent, it ended up in
oblivion.

Blockchains return on stage in 2008, with the release of Bitcoin. Under the pseudonym of Satoshi Nakamoto, in fact, the first Bitcoins were released on a dedicated Blockchain system.

How does the blockchain work?

The Blockchain, as mentioned several times, is a chain of blocks.

Each block can be divided into 3 parts:

  • Data stored in that block, with entities that change based on the type of Blockchain. For example, those used for cryptocurrencies will keep information on user/node transactions, the value
    exchanged and the addresses involved;
  • The HASH, or rather the identification code of the single block. Each block has a unique one. If the data within the block were to change, this code would also change;
  • The HASH code of the block that precedes it, so as to make the connection (chain) between
    blocks possible.

The very first block not necessarily possessing a HASH of its previous one, that’s why is called the Genesis Block.

This system is the first defense against hacker attacks, as the chain itself, having the codes of the blocks connected to each other, is difficult to sabotage.

Another way to be able to preserve the Blockchain is the Proof of Work or Proof of Stake system, which is a request a further validation calculations in the creation of new blocks.

This step makes the hacking attempt even more complex, as each block tampering entails a PoW/PoS for each single element of the chain with very extended timing for the conclusion of the
operations.

Each block that is added to the chain must be verified by most of the existing nodes. If this is rejected by the majority, the block does not enter the Blockchain shared at all.

Finally, two very important figures within the system are miners and stakers. Them, using their own devices, constantly check the movements in the blockchain, validating them if appropriate.

The voluntary service of miners and stakers is paid off in cryptocurrencies by the system itself.

The Blockchain can be used to store information securely, facilitating the sharing of:

  • Smart Contracts;
  • Medical records;
  • Cryptocurrency transactions;
  • Crypto-Art, or NFTs.

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che cos'è la blockchain
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What is the Blockchain

Among the current technological trends, it is easy to hear about the term “Blockchain”. The future of finance, such as that of the preservation of