What is blockchain?

Blockchain is an information storage and transmission technology that is transparent, secure and operates without central control. It allows the storage of records in a permanent and tamper-proof manner, making it a very useful tool for recording financial transactions, votes, digital assets, etc.

Blockchain technology is primarily used in the use of cryptocurrencies, but it also has many other features in other areas such as finance, online identity and asset management. the supply chain.

The history of blockchain

Blockchain was designed in 2008 by a person known as Satoshi Nakamoto. The first blockchain application was launched in 2009, as part of the Bitcoin network.

Originally, blockchain was designed to enable the creation and transfer of Bitcoins, a form of decentralized digital currency. However, since then, blockchain technology has been adopted for many other applications, including data, identity and supply chain management.

Today, blockchain is considered one of the most promising and disruptive technologies of our time, with the potential to revolutionize many industries.

The constitution of the blockchain

The blockchain is made up of many elements that work together to allow the recording and validation of transactions.

Transactions

Each transaction represents a record that describes the exchange of value between the different parties.

Blocks

Transactions are grouped into blocks. These blocks are linked to each other chronologically to form the different forms of the blockchain.

The hash

Each block includes a unique hash that allows it to be uniquely identified and its integrity verified

Proof of work

Proof of work is a calculation process that secures the blockchain by making it complex to modify recorded data.

The network of nodes

The blockchain is made up of nodes, which run the blockchain software and participate in the validation of transactions and the creation of new blocks.

These elements together create a secure, transparent and reliable distributed ledger system, making it a very efficient technology.

Uses of blockchain

Cryptocurrencies

Blockchain mainly derives its popularity from its usefulness in cryptocurrencies. It makes it possible to store them and secure the transactions carried out with these virtual currencies.

The supply chain

Blockchain can also be used to track the origin and final destination of products within a supply chain. By using this blockchain, users ensure the quality and integrity of products, while considerably reducing fraud attempts.

Intellectual property management

Blockchain also allows the registration and protection of intellectual property rights such as copyrights. It ensures both monitoring and remuneration of creators.

Online elections

It is also possible to use blockchain to set up secure and transparent online voting systems. With the reputation and reliability of blockchain, some people use it to ensure votes are not tampered with.

Issues linked to blockchain

Scalability

Scalability is one of the main limitations of blockchain. If we take the example of popular blockchains, like Bitcoin for example, it has certain limits in the transactions it can process each second.

Energy-related costs

In order to validate certain transactions on certain blockchains, an algorithm requiring a large amount of computing power is used, however, this power required by the algorithm consumes a lot and represents a high energy cost.

Confidentiality

Some blockchains are public, like Bitcoin. They are designed to be transparent, meaning that all users have access to transactions carried out on these chains. This may therefore affect the confidentiality of some users wishing to protect their privacy.

Regulation

Blockchain technology is still new and no clear regulatory framework exists to date. This can potentially pose certain problems for professionals who would like to use this technology.

Adoption

Currently, this technology is still poorly adopted worldwide. There is a lot of awareness work to be done in order to convince people of the advantages of this technology.