However, for many people It is still a distant concept and difficult to comprehend.. Terms like B are often confuseditcoin, tokens or smart contractsconsidering them synonymous, when in fact they are not.
Although blockchain technology has a particular vocabulary, it su operation is actually quite simple. This concept originated about 30 years ago, when the idea of creating a technology that would guarantee the persistence of data on the web was proposed.
In short, after ruling out what it’s notyou could define the chain of blocks as a technology that allows information to be stored on the webgenerate decentralized networks, establish consensus mechanisms and guarantee the immutability of the data recorded in it.
Currently, Millions of people transact with cryptocurrencies in real time using only your account on an exchange platform or Exchange. In factnone of this would be possible without a backup that validates each transaction and maintains a historical record of these movements.
This is where the blockchainsince it allows to store and transfer information and that is changing the way people They are related to finances.
Blockchain: the revolution of digital transactions
Blockchain can be understood as a gigantic ledger which records all money transactions, but in this caseit does so using a completely secure encryption system for users who execute operations with cryptoassets.
Although blockchain was born as the coding system behind the creation of Bitcoin (BTC), the first cryptocurrency that emerged in 2009 and which has become widely known and usedits potential was quickly evident.
Today, its main attribute is that, unlike traditional bank-based methods, which rely on intermediaries to verify and record each movement, This technology allows these steps to be carried out directly and without the need for third parties. In this sense, it is important to understand how this technology It can benefit personal finances.
Blockchain: security and protection
This technology uses advanced cryptographic techniques to safeguard each transaction. Through this resourcedigital assets, such as cryptocurrencies, are safely protected in each digital wallet, with an additional layer of security. ANDThis is because all operations must be checked by the network before being confirmed.
Blockchain: greater transparency and traceability
One of the fundamental benefits of blockchain technology is that every purchase, sale or transfer made becomes public and verifiable by anyone. This means that users can easily review any movement, providing greater internal control.
In addition, provides complete traceability of operations, which means that the history of a cryptocurrency can be followed from its issuance to its final destination. This makes it difficult money laundering and other similar crimes.
Eliminate intermediaries and reduce costs
By dispensing with intermediaries in transactionspeople can send and receive payments directly, without the intervention of banks or other financial institutions. This not only reduces costs, but also waiting times.
Thus, this technology is transforming financial management by providing greater security, transparency and global access to financial technology (Fintech) services.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
