In 2008, a person or group known as Satoshi Nakamoto introduced Blockchain, a technology designed to track transactions, exchange, and store information in the form of block chains.
In this article, we aim to understand Blockchain technology: how it works, its benefits, challenges, and future.
1 – Definition of Blockchain
Blockchain is a technology that enables the secure and transparent storage and transmission of information through a chain validation system. It operates on a decentralized network of nodes: each node holds the history of exchanges between users. Transactions are grouped into blocks and added to a chain — hence the word “chain” in “Blockchain.”
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2 – Specific Features of Blockchain Functioning
Unlike conventional systems, there is no central point where all data converges. During the validation process, each transaction must first go through anonymous network members, or “nodes,” before being recorded in a block. These members are identified through cryptography — a system that uses algorithms to secure and obscure the exchanged information, enhancing security. Once the data is validated, it is added to the chain and replicated across all nodes.
This system makes it extremely difficult to alter a recorded transaction, thereby minimizing the risk of fraud.
3 – The Different Categories of Blockchain
There are different categories of Blockchain:
Private Blockchain allows information to remain inaccessible to the public, with access validation limited to preselected individuals. These are often used in businesses to protect data circulation.
Public Blockchains, in contrast, are not controlled by anyone and are freely accessible — like Bitcoin, for example.
Hybrid Blockchain is a mix between private and public Blockchain. It allows both controlled and authorized access, facilitating communication with external company stakeholders. This is useful, for instance, for companies with international partners or operations.
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4 – The Advantages of Blockchain
Blockchain offers many advantages:
Faster processes: Block validation happens within seconds or minutes, making exchanges quicker.
Enhanced security: With cryptographic validation, users remain anonymous while each transaction is still visible to all participants — enhancing trust.
Better return on investment: Fewer intermediaries and more automation reduce exchange-related costs and boost productivity.
5 – Blockchain Applications by Sector
Blockchain is designed to save time while providing increased security, and can be used in many fields for information sharing. A few examples:
Finance: Blockchain allows faster verification and validation of information, facilitating exchanges and the sharing of commercial and competitive data in a discreet way, while automating agreements without intermediaries.
Logistics: It acts like a supply chain, enabling product traceability — from manufacturing to delivery.
Blockchain is also used in sectors like real estate, healthcare, and energy. For instance, it can simplify medical data management or secure real estate transactions.
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6 – Challenges of Blockchain
Blockchain remains too complex to understand for many, which can be a barrier for small and medium-sized enterprises (SMEs). It also consumes a huge amount of energy, making it globally polluting.
Governments also struggle to establish appropriate regulations for this technology, slowing its growth. Additionally, the process itself raises ethical concerns, especially regarding access to individuals’ personal data.
While the network is secure, the possibility of a large-scale cyberattack cannot be entirely ruled out.
In the coming years, Blockchain technology could become part of our daily lives. However, it is essential to make progress to reinforce user trust and reduce the ecological footprint of the technology. Despite the challenges it still faces, its advantages and potential make it a standout technology.
In various sectors, especially finance and logistics, Blockchain offers a secure, efficient, and ever-improving solution for storing, sharing, and protecting information.
