What blockchain is explained in simple words
In recent years, this technology has stopped being solely associated with cryptocurrencies and has expanded to various fields.
In October 2008, "Bitcoin: A Peer-to-Peer Electronic Cash System" was published, the white paper of bitcoin. For those who are not familiar with the term, it is a document that presents the plan in detail for an asset, in this case, the project.
In the case of this project, the idea of generating a distributed accounting system and a decentralized cryptocurrency was proposed for the first time. That is, an asset whose issuance does not depend on a central entity like the central banks of countries.
In this way, people could carry out transactions without the need for intermediaries, using cryptography and the implementation of a decentralized network of computers that validate and record transactions in a digital blockchain, similar to a public ledger.
Thus, the foundations of blockchain technology were established. Since then, this technology has enjoyed significant advancements that go beyond the crypto market.
For example, they are currently used for the tokenization of real assets, functioning similarly to stocks. Another use occurs in smart contracts, which are agreements that allow for automatic execution between parties. In short, it is a concept that is revolutionizing finance.
What blockchain means in simple words
For those who are not familiar with these concepts, we at iProfesional will explain how it works with a daily example. A simple way to see it would be to imagine a shared digital notebook where all the transactions made by people are recorded.