Updated: Jun 1, 2019
For a few weeks, I have been studying this subject very intensely, I must confess that for some years ago I am a one more fan-lover of crypto-coins but I wanted to go a little further due to my specialty of data. That's why I've done several courses and I've read a lot. If you are interested, this summary is also the best option to start.
There is a new technology to store and manage data through the Internet and other computer networks, called blockchain or distributed accounting technology, DLT, and was created as a result of the introduction of Bitcoin cryptocurrency. Nowadays, the application of blockchain and its potential far exceeds its genesis in Bitcoin. It not only supports digital money and the movement and storage of reliable data, but also the exchange of value, an Internet of value. At a fundamental level, it is not a complex technology, but it can allow complex solutions. Today, the Internet plays an important role in the way we communicate, learn, work and play, and much more. It has decimated industries such as the newspaper business, reinvented others, such as the way we manage our money, and has created new industries, such as social networks, but this vast network of networks has some stubborn problems. We are faced with constant questions like, is it really the person with whom you are doing business online who they say it is? Is it a real service? And only authorized people have access to private systems.
It is here where the essential begins with data and database.
An essential characteristic of a traditional database is that it has the essential authority that governs it. For example, typically any database created and owned by an organization has full rights over that database. They can decide who has access and what kind of access they can have. They decide what is stored in it, what is deleted and what is stored. However, this has at least two potential flaws. In the first place, with a master database with an Administrator for each organization, this could be a point of failure, since at some point anybody can make an error.
To understand the blockchain and how, for example, it enables Bitcoin, we first have to cover the basics of a database. If you already know what a traditional, excellent relational database is, you will understand the information better. Fundamentally, a database is a place where we store and manage many aspects of the data of a computer system. We can store data in a structured or unstructured way. First, let's look at a structured database. Let's use the example of a contact database, a place where we could store the names and phone numbers of people.
How does Blockchain do it?
The Blockchain is a new type of database. Instead of a centralized or decentralized database on one or more servers, a blockchain database is installed on the individual computers used by the people using the database. In fact, a copy of the same database is installed on each computer of each user that uses that database. As I have already demonstrated, in a central database we have the database on a server in the center. In the decentralized database, it is distributed among several servers. However, a distributed blockchain database is copied to each client computer in this network. There are no database servers.
What happens when a hacker wants to alter data? As we explained earlier the database is distributed the data is confirmed by each member of the network and must have exactly the same chain of blocks, in case a data is altered without the due authorization or surveillance of ALL the community this data it will not be replicated and the intruder will be expelled or the data NOT confirmed.
Fundamentally, it's not a difficult concept, but sometimes the implementation gets hairy. Blockchain solves old problems with confidence and security. Fixing these problems could only help usher in the next phase of the Internet. But it goes much further.
Blockchain technology completely reinvents the way we think about organizational processes and even the way organizations should be organized.