what it is, how it works and what are the impacts on marketing – WAU
Blockchain an encryption algorithm that guarantees the security and reliability of the events it records. Understand how this method works and its usefulness in Marketing!
As a sage said: knowledge does not occupy space! And, in the digital age, the same could be said of information. The Alexandria library would fit on a USB stick.
Throughout the digital transformation process, we witness the progress of the ability to archive and organize information.
We are talking about billions of data processed per second. This power surprised the world, but it also scared him.
It was in this climate of expectation and suspicion that bitcoin emerged, an “encrypted currency” that is considered the evolution of value transfer. However, due to our analog suspicion to everything new, blockchain was born saying: I am the warranty.
Today we will talk about the algorithm that operates with cryptography, which is what makes bitcoin work and which is already being used in Digital Marketing. Continue reading to know the blockchain secrets!
What is blockchain?
It is an encryption algorithm that guarantees the security and reliability of the events it records. It is a movement log in which, once the data is entered, it cannot be tampered with.
It’s called blockchain because the basis of your security is based on being a chain of blocks with data of all transactions carried out since the emergence of bitcoin until now. These blocks are created every 10 minutes and accessible, in real time, to all bitcoin owners.
Reliable is the main word for an anonymous startup whose business model is to create a digital currency, without borders, without intermediaries and without owners. Something that is only possible thanks to the internet.
The Nobel Prize in Economics Milton Friedman, in 1996, already said, referring, at that time, to the new internet “the only thing they forgot, but that they will soon develop, is a reliable“ e-cash ”, a method by which , without intermediaries other than the internet, A will be able to transfer money to B without necessarily having A know B or B know A ”.
What is blockchain for?
To carry out data transfers through digital media, without the need for third parties as witnesses or guarantors and in an extremely secure way.
This reliable, unalterable and verifiable method of registration at any time is what makes the bitcoin algorithm usable in other areas, from contracts to presidential elections.
How does it work?
The concept that supports the idea is that distributed consensus and works on a network in the 2P2 system, which means that all participating computers have the same value and receive the same information at the same time. Information is received in blocks added every ten minutes.
Nodes are all connection points on a network – in this case, they are computers and internet servers.
The process of creating blocks with data and the right to register them is called mining. They are large companies that, during this period, and at the super speed of the algorithms, collect, with mega data processors, the information of the transactions carried out.
After ten minutes, a type of bidding is opened between the companies in which the right to register the block is granted to which they can decipher a mathematical puzzle. It is a phase of the process called proof of work.
The riddle maker
It looks like a profession that a child would like to grow up with, but believe me: there is an algorithm working for that. This algorithm needs to create a puzzle every ten minutes. The answer to this puzzle is called a hash and is the code for an interface between one block and another.
Thus, the company that has the right to register the information in this block does not know the access code to the previous block, causing an irreversible flow of information, it is only possible to go to the next block, never to the previous one. Before registering the block, the algorithm checks the veracity of the information on all nodes in the network.
Yes, I know it hasn’t looked so safe so far and you’re getting the impression that someone might be hacking. But the best is yet to come.
Blockchain is a startup concept in the service of a business model.
When A transfers a value to B, this transaction is consensually validated, that is, it is only registered if all nodes in the network recognize it as correct. This update, when replicated at the same time, on all computers, makes it incorruptible.
If someone wanted to change the list, they would have to change all copies at the same time. That is, the big secret is that the bigger the network, the more secure it becomes.
How does blockchain impact Marketing?
You may already imagine how it will affect marketing. The union of blockchain with Digital Marketing promises to bring changes in several instances. Understand more below:
- contracts: we will no longer need witnesses or intermediaries to make contracts, as they will be registered and cannot be changed;
- monetization: think about all the options to buy and sell online. Today, the 1-bit coin is worth about USD 5,500, but in a while, encrypted coins will be part of the navigation, we will be able to monetize on landing pages and whenever we click on a link;
- identity: the idea of virtual identity to reduce anonymous attacks is already circulating. With the blokchain system it is possible to create a registry of users and their actions. At the same time that any user can, if necessary, demonstrate unambiguously what their movements were during navigation.
Without a doubt, the future of the digital age is impressive. We reached the end of the post in which we wanted to show a little more of this incredible technology that is recovering the feeling of security that we were already missing. Blockchain is the force of transparency and the unchanging record of facts.
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