Blockchain technology is a common electronic record system financial transactions, contracts and physical assets, supply chain information, etc., no one person or one entity is responsible for the whole chain It is open and everyone in the series can see the details of each record or what is known as a block, Tracking information via a secure network does not require third-party verification
Blockchain technology helps maintain anti-manipulative lists of ever-growing data records, and enables a secure exchange of valuable materials such as money, stocks or data access rights. Contrary to traditional trade regulations, there is no need for a broker or central registration system to follow the exchange movement, but all parties deal directly with each other.
Blockchain technology is defined according to Webopedia as a type of data structure information ", which allows the digitization and tracking of transactions, and the sharing of such information through a distributed network of computers technology ", leading to the establishment of a distributed and documented network and providing this technology with a transparent and secure means of tracking the ownership and transfer of assets, Blockchain technology was initially used as a technology for transactions resulting from cryptocurrencies or bitcoin. and then started values after taking their way towards companies, allowing enterprises to conduct and verify transactions over the network without the need for central authority in addition to tracking and transferring assets across supply chains, Companies are also looking to use Blockchain technology to market and apply contracts electronically.
Webster's dictionary defines blockchain technology as a digital database containing information such as financial transaction records that can be used and shared simultaneously within a large decentralized public network, as the technology used to create a database, and blockchain is an open register and distributor that efficiently and verifiably records transactions between two parties.
Uses of blockchain
Blockchain is a technique that has begun to be used in many different fields, including government transactions, elections, digital commerce, fishing and many others. Blockchain has helped to develop business mechanisms and improve business. It has made individuals highly trusted in technology and the most important uses and applications of blockchain are
Cryptocurrencies
Cryptocurrencies such as bitcoin and cryptocurrency are one of the most popular blockchain applications, and cryptocurrencies may have been credited with detecting blockchain technology at the outset. They are one of the forms of digital funds for high security and reliability for use in our daily financial transactions so that it is difficult to manipulate and fake cryptocurrency, i.e. this system meets a range of conditions:
The system does not require central authority. It maintains its status from a distributed consensus.
Retains an overview of cryptocurrency units and their ownership.
Determine whether new cryptocurrency units can be created.
Determine the conditions of origin of the new cryptocurrencies and determine the units' own ownership.
Ownership of cryptocurrency units is proven exclusively through encryption in an official manner.
The system allows transactions where ownership of encryption units changes.
Smart Contracts
Smart contracts are one of the most popular applications for blockchain technology Smart contracts are generally used to automate business operations, payments and remittances, Electricity bills can be paid automatically when electricity consumption reaches a certain limit The transaction is also sent securely to the company to verify the process using blockchain, Hence, it saves a lot of effort, time and costs to carry out the same tasks that were costing as much time and effort.
Games
The wealth of blockchain grows enormously only through gaming as companies seriously study the possibility of investing from blockchain technology And the companies' investment in this technology also contributed to their growth and push them forward with confident steps, When asked about their views on these radical changes that have taken place in the world, more than 62 percent of them are happy with these distinctive changes. This is due to the awards and things they can get from playing.
Electoral Voting
Digital currencies in banks are a great safety where voters can express their opinions very freely. Registered votes cannot be rigged, giving legitimacy to all election systems around the world. This was used for the first time in Denmark during a political party's election process.
Fine Arts
The art industry generally relies on ownership of artworks and emphasis on artworks whether or not they are original works of high quality. Although Blockchain cannot prove whether the work is original or not, it can prove the previous owner's ownership of the artworks and their work ratios.
Tourism Sector
Blockchain in the hospitality sector uses unprecedented levels of efficiency and openness to new and promising horizons through blockchain technology. Perhaps the most important use of this technology in the hotel and travel industry is related to payment, and here its applications can range from serving as a global account book, making bank payments simpler and safer.
How blockchain works
Blockchain technology includes three technical principles: encryption using private keys, distributed network and shared account book, and there is a mechanism for these technologies to work together to achieve better protection of digital relationships that can be explained in
Encryption keys
It is one of the components of blockchain and its purpose is to find a safe reference for digital identity Who owns this set of private and public encrypted keys is the identity holder, These keys are used as a means of verifying digital identity, thereby updating a digital fingerprint of great importance. In return, ownership of this digital fingerprint can be managed only through the digital fingerprint allocated to it.
Identity
The relationship between ownership and digital footprint is not enough to protect digital data, as transactions must be approved and powers verified by keys validators, hence the role of the distributed network.
Distributed Network
The importance of blockchain and bitcoin is to describe it as a huge network with a large number of observers They use mathematical verification to prove a particular event, and we all increased the size of the network, increased the degree of security with it, This network aims to eliminate the idea of centralization, where there is no single destination, server or device controlling the block chain, The series is even distributed among all the individuals involved around the world. where anyone in the world can upload, view and participate in the series This principle is one of the safety elements of the chain, and if a pirate wants to manipulate and penetrate the chain A, it must penetrate all the individuals present therein, which is highly unlikely.
Registration System
Digital interactions that are important to everyone between the encrypted keys and the massive network, this process begins when A takes its own key and makes an announcement, for example, in the case of bitcoin, which sends a set of cryptocurrencies.
Protocol or mechanism of action
which is done by sending a block containing the digital footprint, time seal, and other information to all computers on the network.
Network Service Protocol
Blockchain becomes open and public by excavation, when computer processing capabilities are employed in network service, The award can be obtained through a financial incentive that can be assisted in servicing the network In Bitcoin, the aim of the Protocol is to eliminate the likelihood of using Bitcoin in different transactions simultaneously, It's hard to detect, and that's why bitcoin is a unique and expensive currency that makes it so valuable and pushes everyone to own it. To achieve this, the elements that serve the network create and maintain each bitcoin's transaction history individually by resolving mathematical dilemmas.
