Blockchain, the not so well known technology behind bitcoin

Blockchain Network, Depositphotos

Bitcoin has become in its own right one of the most valuable and coveted assets of the moment, to such an extent that it even begins to be considered as legal tender in countries like El Salvador and has been used in experiences of salary payments in cryptocurrencies in countries like New Zealand to check their viability in this regard. But what is perhaps not so well known is the technology behind bitcoin and the rest of crypto assets, which is the blockchain or chain of blocks in Spanish.

Disruptive technology

In a few words, we can define blockchain technology as the ledger in which all the members of the network in question participate, in this way all accounting entries are public for each participant, which makes it practically impossible to falsify a transaction, or hack it. , since the entry would have to be changed for fifty percent plus one of the participants. In addition, each chain in the block matches the previous and the subsequent only, so it cannot be fraudulently substituted.

Thanks to the fact that everyone participates in the same accounting book, security is maximum, as is transparency, and for this reason the need for intermediaries such as notaries and other notaries is eliminated, another thing is that there is resistance to this happening.

In addition to streamlining and making any contract much more transparent, the process is also much cheaper, since thanks to the blockchain a huge amount of bureaucracy is dispensed with.

Cryptocurrencies, a by-product turned into a coveted asset

But as much as the blockchain can streamline and lower the bureaucracy that citizens and companies do not see directly but suffer every day, invest in cryptocurrencies It has become the most attractive face for many citizens, in fact they can be traded even without a single cryptocurrency passing through the hands or the crypto wallet of the investor, with online trading, in which the trader uses leveraged operations, They allow you to invest with a lower initial capital in exchange for assuming greater risks, since the losses can be very high and happen quickly, especially with assets as volatile as the popular cryptocurrencies.

Bitcoin is a derivative of the blockchain network, it cannot exist without it, since the characteristics that make it so secure are those that allow an asset such as bitcoin to exist, which was born with the aspiration of becoming a decentralized currency and therefore therefore without a central bank to back it up, and despite this it has so far shown that it is capable of arousing more confidence than many fiat currencies, supported by states.

The best cryptocurrencies that the blockchain has given

There are not a few examples of cryptocurrencies that have experienced great growth since its inception. If you consult the social channel of a broker It can be seen how not only bitcoin but also cryptocurrencies such as ethereum or the most humble cardano have multiplied their capitalization in percentages that few could expect.

But if an investor is not carried away by the big numbers and focuses on the growth percentages of cryptocurrencies, it will be possible to verify that many semi-unknown projects are those that occupy the first positions in the growth rankings of exchanges, the problem is that on many occasions this growth occurs during its birth, and even for a time it was tried to imitate in cryptocurrencies the modus operandi of the group of small investors that artificially made the price of the shares of the retail company grow of GameStop video games, and on many occasions after a period of euphoria the price collapses again, leaving the invested capital trapped indefinitely.

The best way to choose a good cryptocurrency to invest is to investigate the project behind it since it is not the same as a cryptocurrency was born with the vocation of a meme that has done so hoping to occupy its niche in a market that is increasingly integrated in more and more sectors of the traditional economy, beyond the obvious financial sector and transfers.

 

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