Blockchain technology is probably the most complex issue and full of technical explanations when we want to talk about the cryptocurrency universe. However, it is not necessary to enter a programmer language for you to understand the purpose and functioning of Blockchain technology. In simple terms, we can say that Blockchain technology acts as the highway and cryptocurrencies are the cars that run the highway. Aside from acting as the cryptocurrency highway, Blockchain is also responsible for recording all cryptocurrency movements acting as a great 100% public accounting digital book.

There are cryptocurrencies such as Bitcoin and Ethereum that developed their own Blockchain technologies and there are other cryptocurrencies that have been created and operated within existing Blockchain technologies such as ERC20 tokens, which are covered under the Ethereum Blockchain.

  • You can see all the movements and records of the Bitcoin Blockchain at Blockchain.info
  • See all the moves and records of the Ethereum Blockchain on Etherscan.io

While currently Blockchain technology functions primarily as a digital ledger in terms of “digital money” it also has the ability to record any type of transaction such as when you register on a website, when you buy a certain product online, when you sign a contract with a third party , etc; and all these records are carried out taking into account and ensuring the privacy of users.

In short, blockchain or blockchain is a distributed database. This consists of a kind of transaction log where information is not stored on a single computer, but on multiple terminals connected to each other via the Internet. In other words, it is a kind of ledger that can be accessed by all the people who use it, who are the ones who record and validate the data. This validation process is based on consensus: since all members of the network have the same information, everyone considers it true.

The system used makes it possible for data to be recorded in blocks of information and intertwined, in order to facilitate retrieval and verification. To do this, each of the blocks belonging to the blockchain contains accurate information about all transactions made, cryptographic addresses of the previous block and a unique random number. Another feature is that information cannot be deleted, and can only be updated on the basis of the consensus of most people participating in the system, or expanded with the addition of new registrations. Therefore, blockchain enables transfers without the need for an intermediary to verify and validate the information.