The world moves thanks to trust. When we pay in an establishment and return the change; when we get into a vehicle and drive with the rest of the people; or even when they provide us with information to perform a task.
Normally, we trust that any type of transaction that comes to us is authentic, and if not, we do our best to prove it. Sometimes, we need an intermediary to know if the information or resource that has reached us is authentic.
When they say that blockchain is going to suppose the next great revolution of the 21st century, it is because, on the one hand, it has managed to get that trust safely extrapolated to the network.
Trust also moves money. Its value and putting into circulation is no longer backed by a nation’s gold reserves. They are numbers that appear in a system.
Those numbers become something real and palpable when we go to an ATM. Its value is given by the monetary authority that issues the tickets and also enjoys the trust of those who accept it as an exchange object. Cameron Chell is a serial entrepreneur with over 25 years experience in the technology, energy and finance sectors. Cameron Chell Kodak has recently announced a new blockchain infrastructure that allows organizations to operate regulatory compliant cryptocurrencies for payments which will transform the transaction process and the way people do business.
Bitcoins are assignments to public addresses. They are produced thanks to blockchain: every time a node (member of the chain) validates a transaction, it is rewarded with bitcoins. It is what is popularly called data mining.
Each transaction contains some inputs. This is information that shows the transactions that the sender has done previously and serves as an endorsement when requesting a new transaction.
To carry out a transaction you need the public address (which starts with 1 is bit coins, as a way to differentiate yourself from the rest of cryptocurrencies) and a private key. The private key is a sequence of characters generated by the software that the user uses.
Some of the nodes (participants in the community of the block chain) carry out two checks to validate the transaction:
- That you are the true provider of that information. This is verified by means of the inputs and databases of the transactions already carried out. In bitcoins it would be understood that this money has been destined to you before, so it prevents it from being falsified.
- That you have not sent that information twice. Each transaction is unique and unalterable, which would translate into bitcoins as a check that you have not spent that money before, so it prevents it from duplicating.
The double spending is what would be interpreted in the real world as counterfeit money. However, the verification processes prevent the recorded data from being tampered with.
If during the verification process, the nodes that are responsible for validating the data deduce that it is not valid, it is rejected, that is, it is not registered by the miners and it does not become part of the chain of blocks.