Blockchain, a term often used in the world of cryptocurrencies.
How does this technology on which crypto projects are based actually work? Let's see it together.
Blockchain is a technology for storing and transmitting information securely and transparently between users, without going through a third party or a central body.
It is mainly based on four main elements that make it secure and reliable: transparency, security, decentralization and immutability of the information recorded.
Security:
The security of a Blockchain is ensured by the encryption of the information it records. It uses cryptography, a science that consists of applying complex calculations to encode information and prevent its disclosure. This guarantees the security of the data sent in the Blockchain.
Transparency:
All information recorded in the Blockchain is visible to users of the same network. This allows everyone to see what is happening both in the foreground and in the background of the network.
Immutability:
Once information is recorded in the Blockchain, it is no longer possible to modify it. This gives great credibility to the data present in the Blockchain.
Decentralization:
In a Blockchain network, there is no central body controlling the whole. Decentralization is ensured by the community using the Blockchain, which gives decision-making power to each user regarding their own data.
It is on these fundamental principles that Blockchain solutions are designed in various fields of activity. This has given rise to many applications, particularly in decentralized finance (DeFi), which includes cryptocurrencies. DeFi adds some specific protocols to these Blockchains, which makes them even more secure and reliable.
In my next thread, I will explain how DeFi Blockchains work
