What is the Blockchain?

Learn what Blockchain consists of, a technology thanks to which it is possible to create blockchains with public and decentralized management; through which it is possible to store a large database shared by those who have access to them and within which they are programmed in turn to be able to track and closely follow any transaction made by their participating user, do not miss it.

What is meant by Blockchain technology?

Blockchain technology is the one used for the handling and management of cryptocurrencies, Bitcoin or other similar digital assets, in order to store their transactions safely, without the need to use financial intermediaries for their control or guarantee.

It is a system that is being explored by large companies and banks, due to its innovative technology and the extensive business opportunities it offers.

In a few words, the Blockchain is practically a digital ledger, within which financial operations are recorded and monitored so that this serves as a means of trust and protection for those users who choose to make payments through the use of these virtual assets. .

They are basically a chain of blocks in which each transaction from option to modification is registered; the one that is shared with those who have access to it and written on a large number of computers at the same time.

For example, if a member of this network decides to make a movement with their digital assets or cryptocurrencies; this generates associated data that is stored in one of its blocks; which once complete, is automatically coupled to a chain formed by them; thus giving rise to a Blockchain.

What is the Blockchain?

The Blockchain as a chain within which the information that serves as the basis for sharing digital information is stored; whose registration attends to the function for which this online database has been created; because it can be a system used for payments through cryptocurrencies or be used with logistical, medical, food traceability information or for the transmission of electoral data.

The Blockchain, as indicated above, is a decentralized network and to which all authorized users to manage it have access; whose technology allows it to be executed on multiple computers located throughout the world.

On the other hand, its use gives users a series of advantages such as having privacy within their transactions, which, being decentralized, do not depend on any executor or intermediary.

These Blockchain have a programmable and open character; which is one of the most attractive benefits for the financial sector and that within its execution efficient and transparent administrative processes are achieved.

The technology used in the development of the Blockchain is the same used during the creation of Bitcoin, or the famous cryptocurrencies; that they are intangible virtual assets; used to make payments within the transactions that support this digital currency.

The good thing about Blockchain is that its processes are more agile than those followed as part of traditional financial technology, transaction costs are reduced and they are much more transparent as they lack intermediaries.

Although the records within this Blockchain cannot be deleted, this generates trust at the level of its users; allowing people dedicated to activities such as mining, verify the entry of their virtual money in these records and all this in the form of a sequence chain that is distributed to all the nodes that make up this network.

Where each block is added to another forming a chain; and linking based on an alphanumeric code; while its content is made up of transactions or specific information, so that each of these links is linked to the next; allowing users to easily find what they are looking for.

What you should know about Ethereum

Ethereum is an open source digital platform that allows you to create decentralized applications, which are especially useful for the cryptocurrency market and more. Learn more about this topic below.

What is Ethereum?

As we mentioned before, it is a digital platform that allows you to create independent applications, which can become security programs, voting systems, and even payment gateways for cryptocurrencies.

Similar to Bitcoin, Ethereum is not regulated by any bank, government, or central authority.

The creator of this platform is Vitalik Buterin and he developed his first version in 2015, with the collaboration of others. Since then, it has been rapidly gaining in popularity, which has resulted in the emergence of other cryptocurrencies that are seen as rivals to bitcoin itself.

The price of Ether, as the Ethereum cryptocurrency is known, can become very high, because it is one of the most popular resources in the sector, which is why it is chosen by investors before Bitcoin or other options.

How does Ethereum work?

This is an open source platform that works under the Blockchain methodology, with which many computers in the world can be linked, since it is a decentralized system.

The point is that each computer has a copy of the Blockchain and a general agreement is required to make any changes to the network.

The Ethereum blockchain works in a similar way to that of Bitcoin, as it also includes a record of transactions. However, developers can create decentralized applications with Ethereum, which are known as “dapps” and are stored on the Blockchain in the same way as transactions.

Knowledge about this network and its cryptocurrencies is essential to get the most out of it, recover your investment and make a profit. You can learn more about it on our blog.

About dapps

Under the name of dapps are open source computer programs that use Blockchain technology and, unlike conventional applications, do not require an intermediary to function.

Among their common characteristics, it can be highlighted that they are decentralized and open source applications, despite the fact that it is a very new concept that is difficult to define.

Dapps are created from groups of smart contracts which correspond to code scripts that allow you to exchange money, shares, content or anything else that has value.

These smart contracts are made with a virtual machine identified as Ethereum Virtual Machine and when one of them is active in the Blockchain, it is automatically executed as a computer program.

Of course, said execution is carried out freely according to what has been programmed, without censorship, restrictions or any type of influence by third parties.

Is Ethereum a cryptocurrency?

Not really, since the term “Ethereum” refers to the digital platform, while the currencies used to carry out transactions on the network are called ethers.

This means that the ethers are the cryptocurrencies that are used in the Ethereum network and therefore they are the ones that appear in the operations.

Even so, users often refer to them as “Ethereum”, which is why this confusion has been generated.

Ethereum vs Bitcoin

In this last section we will point out some key differences between Ethereum and Bitcoin:

• On Ethereum developers can raise their own funds for applications, create contracts and ask for collateral from members.
Relative inflation decreases each year because there is a finite amount of bitcoins available.
• Unlike bitcoin mining, people are dedicated to getting ether on the Ethereum network.
• The costs of bitcoin transactions compete with each other for equality and are limited to the size of their blocks.

Remember that if you are interested in knowing more about trading, cryptocurrencies and other popular techniques today, you will find useful content in our blog posts.

How can you buy cryptocurrencies today?

Discover How can you buy cryptocurrencies today? as a resource for the acquisition of goods and services today; those that simply represent a digital asset that is used to carry out financial transactions, through a cryptographic encryption with which its ownership is guaranteed and it is prevented from being susceptible to the creation of additional units and more; Do not miss it.

What are cryptocurrencies in general terms?

It is an asset that users can acquire in digital format; unlike physical currencies and that is stored as part of an online wallet; counting for this with characteristics that differentiate them from other traditional payment systems, within which the fact that they are not controlled or regulated by any institution stands out.

In addition, intermediaries are not required to make the financial transactions covered with them effective and they are dispensed based on the records maintained by their users within a decentralized database, also identified as a blockchain or shared accounting record; in which its control is carried.

Within the legal field, cryptocurrencies are not considered a means of payment that have the support of a bank, nor do they have the endorsement of public authorities; therefore, they do not enjoy customer protection like other types of money that fall within the Deposit Guarantee or Investor Fund programs.

In this sense, it should be noted that when a user carries out an operation with them, whether they buy or sell them, it is not possible to go back on this operation; due to its registration within the blockchain; the one that does not allow the entered data to be reversible; a reverse transaction is only possible if necessary.

Precisely due to the fact that they are not available in physical format but are part of a digital wallet.

How can you buy cryptocurrencies today?

The most popular cryptocurrencies are identified under the names of Bitcoin and Ether; used to make payments, through these cryptocurrencies or virtual currencies, after whose use the charges inherent to transactions made with traditional money are generated.

To acquire cryptocurrencies, you can use a credit card or earn them through processes called “mining” where the user of a processor makes their computer resources available to a special network to find the solution to a mathematical problem, among others.

Each of the cryptocurrencies assigned to a user through mining or acquired on their own account in exchange for physical money; are stored in a digital wallet; which is considered as a wallet, within which your cryptocurrencies are available through an online transaction or any other digital medium.

It is possible to buy cryptocurrencies directly with different providers, but you need to take into account that they do not have the same protections offered to the use of physical US dollars; so many scammers are found at the house of dupes; who wish to do business within their platforms, in which payments are also irreversible.

In addition to this, it should be considered that the value of the Cryptocurrency changes constantly, even from one hour to another; so it is necessary to know when it is appropriate to invest in them and know how to detect when it is a real transaction or a scam.

Not all companies promoting this digital asset are the same; Therefore, it is advisable to study each company’s prestige and history before choosing to do business with it.

It can be very useful to search for them on the internet, using their name accompanied by the word review, complaint or scam; where you will undoubtedly find the comments in favor or find, left by other buyers.

What is bitcoin?

In this article we are going to explain clearly what Bitcoin is, so that you understand once and for all what it consists of, what it is for and why it has become so popular in recent times. If you want to be aware of all this, continue reading.

What is Bitcoin?

With the name of Bitcoin, a virtual currency has been identified that serves as a means of electronic exchange in the purchase of products and services, just like conventional money.

However, this currency is not regulated like conventional money, since it is decentralized. This means that there is no authority or entity in charge of controlling it, who is also dedicated to its issuance and the registration of the movements that are made with it.

As it is a virtual element, it works through a cryptographic key that is associated with a digital wallet, which can be used to collect and issue payments.

How is Bitcoin used?

In order to use this type of currency, you must comply with a series of steps that we will indicate below.

1. Get a wallet

You require a system to store and mobilize Bitcoin that is known as an electronic wallet, it contains pairs of cryptographic keys that are made up of a public key and a private key.

2. Download the app

You will need a suitable application to access your virtual wallet from your computer or mobile devices with an Internet connection, this is used to carry out all kinds of operations easily.

3. Make transactions

Now you only have to use Bitcoin to pay for services and acquire everything you want with other users who also have virtual wallets.

Aspects to consider about Bitcoin

There are some aspects that should be taken into account before starting to use Bitcoin as a payment method, because although there are similarities, it is a system quite different from the conventional one.

1. Cryptocurrencies traded on web platforms have high volatility in the market due to their lack of regulation.
2. The Central Bank of China has warned about such volatility, because in a single day it devalued by 15%.
3. In Colombia, Bitcoin has not been made official as a currency before the Banco de la República, which is why it is not considered a legal payment method and there is no obligation to accept it in exchange for products and/or services.
4. According to the Superfinanciera, virtual currencies lack the backing of physical assets and reserves of central banks, so that their exchange value with respect to real currencies could depreciate to zero.
5. In Supersociedades, emphasis has been placed on the statement that investors need to be aware of the existence of numerous risks when investing in virtual currencies that have not yet been accepted as legal in certain countries.
6. In this same order of ideas, virtual currencies are not considered currencies either because they lack the backing of a Central Bank and cannot be used as a payment method in an exchange operation.
7. Due to the fact that Bitcoin is not regulated by any law in Colombia, for example, it is difficult for investors to recover the resources they have deposited to acquire this type of currency and that is an important risk that must be taken consider.
8. The platforms in charge of trading virtual currencies are located in various countries, which makes their control and regulation difficult.
9. Transactions made with cryptocurrencies are anonymous, so they cannot be traced to determine if they come from illicit activities.

If you want to find out about the cryptocurrencies that are currently being used, the trading techniques and other methods that are trending today for the world economy, we invite you to visit the articles that are published on our website, you will surely find them very interesting.