Unveiling the basic concepts of Blockchain technology.
We’ll introduce the concepts on which Blockchain technology is based, such as distributed archiving, decentralized peer-to-peer networks, transparency and irreversibility of transactions.
The ability to store data within a distributed database allows each participant to access the complete transaction history.
In addition, distributed archiving prevents a single entity from taking full control over the archived information.
Distributed archiving allows individual nodes to directly and independently verify the integrity of the information stored.
It is therefore not necessary to use third parties or intermediaries to carry out the verification of transactions.
To implement distributed storage, the blockchain uses Peer-to-peer (P2P) networks.
In this type of network, no node assumes the role of central server.
Each transaction and its associated value are publicly visible to all network participants.
The counterparties of a transaction are identified by their respective addresses, consisting of alphanumeric sequences.
After being entered into a block and added to the blockchain, transactions are no longer modifiable.
This result is achieved by concatenating togheter the different blocks that make up the blockchain.
Any modification to the transactions already archived in the ledger would in fact lead to the alteration of the calculated previously hashes.