Blockchain: principle and definition

by Alex Musk

Little known, the blockchain is a technology thanks to which it is possible to keep in a decentralized way the trace of a group of transactions. Operating without a central control body, it offers a high level of security and transparency when sharing data. For those who still don’t understand what it is, here’s what to know.

The Topic of the Post

  • Blockchain: definition
  • Blockchain: principle 
  • The advantages of blockchain

Blockchain: definition

Blockchain is what we call in French an easy block chain. More simply, it is a question of a large virtual registry that takes the form of a peer-to-peer sharing network. Very secure, it transmits and keeps track of all the exchanges made between users since it was created. 

It is a database that is distributed and shared without intermediary by the various users. It is thanks to this peculiarity that each user can check the validity of the string. It is therefore important to understand that when information is entered into the blockchain it remains so for life and cannot be falsified.

Generally speaking, blockchain is used in three different ways. The first which is the most used is the transfer of assets (shares, securities, currency…). It is then used to trace products and assets because it offers better traceability. 

Finally, it allows you to automatically carry out contracts. Besides, it should be noted that the blockchain is either public or private. The public blockchain is an anonymous, tamper-proof ledger open to anyone. The private blockchain, on the other hand, is only open to a certain number of users.

Blockchain: principle

Concerning the principle of the blockchain, it should be noted that more entirely, user A carries out a transaction towards user B. Before the transaction is sent to B the network takes the time to group several transactions in one single block. 

This newly created block is validated by nodes of the system using cryptographic techniques. It is then dated and added to the blockchain that all users can access. It is after this that B finally receives the transaction from A. Generally, you have to wait about 10 or 15 minutes, depending on the operation performed, for the blockchain to be set up.

The advantages of blockchain

Far from being surprising, the advantages presented by the blockchain are innumerable. However, the most interesting are transparencysecurity, and independence.

 For transparency, you should know that although the exchanges on the platform remain and remain anonymous, they are accessible to everyone. The positive point here is the fact that thanks to this transparency nobody is being hijacked. As for security, it makes transactions tamper-proof and secures using protocols established on asymmetric cryptography.

Unlike other sharing platforms, the blockchain is autonomous from any trusted third party. The authentication of transactions is therefore carried out by the entire network using the cryptography used. Therefore, it can be used to vote electronically, send money, sign a marriage contract. This independence allows it to provide users with considerably reduced deadlines and prices.

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