How Blockchain Works?

How blockchain works, It’s advantages, applications, prospects from Coding compiler. Recently, many of us are increasingly faced with such a thing as a blockchain. What is this system? Unfortunately, not everyone is aware of this, although it has very promising chances for development and introduction into everyday life. Let’s try to describe what blockchain is, in simple words. To top it off, several examples of the use of the new technology will be given, as well as the advantages and disadvantages of the global information structure.

Blockchain: what is it?

The system itself appeared relatively recently. If you do not yet delve into the main technical aspects of the operation, the blockchain technology is a clearly structured database with certain rules for building chains of transactions and access to information that exclude data theft, fraud, violation of property rights, etc.

In addition, when working with it, only two parties are involved, without the involvement of intermediaries for conducting transactions of any type. If we talk about what blockchain is, in simple words, the technology can be compared to a kind of transparent safe, say, from impenetrable glass, into which each registered client (user) can put something.

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At the same time, everyone else sees what exactly goes there. But you can pick up something from the safe only if you have certain access rights, roughly speaking, a key known only to those for whom it is intended. As it is already clear, it is impossible to crack or break the safe. But, in fact, this is a rather primitive comparison.

In a sense, the blockchain system can be represented as a kind of global book, in which mathematical tools describe the basic rules for storing and distributing information, excluding access from outside, even at the level of registered customers or administrators. It is not difficult to guess that this system does not have any one manager as such.

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How does the blockchain work?

The basic principle of the functioning of the new technology is the transparency of the operations performed with the impossibility of their changing by persons who do not have authorized access to it. The ancestor of the blockchain technology is considered to be the Bitcoin system, once created in the form of a self-regulating cryptocurrency that does not require servicing by financial organizations or banks. She used the blockchain platform to account for transactions of any type. Any blockchain wallet works in a similar way, for example, the same Qiwi system.

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Understand the basic principles of the global database can be an example of the structure of DNA. It has its own chain of transaction blocks (transactions, payments, etc.). At the same time, after completing and confirming any transaction (according to established mathematical rules), a new block is added to the chain.

And each such block, like a DNA cell, contains information about the entire network as a whole. Thus, the blockchain technology initially predetermines the impossibility of adding a fake block or removing an existing one, since this will be immediately visible throughout the entire system. Roughly speaking, it is impossible to add to the structure what should not be there. When a block is deleted, the system reacts in the same way to a change in the global structure. So it turns out that fraud.

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Main applications

At the stage of its emergence, the blockchain technology was used exclusively for cryptocurrency, and later adopted by some banking institutions. However, today, in its development, the new system penetrates our daily life deeply enough.

Platforms for developing business applications based on blockchain technology can even control copyright compliance, track production processes of a product for its compliance with the stated standards, not to mention absolutely all financial transactions.

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The main platforms for building business applications

Among the most advanced and frequently used platforms on the basis of which business software can be created, the following can be noted:

  • EmcSSH.
  • EmcSSL.
  • Emc InfoCard.
  • EmcTTS.
  • Emc DPO.
  • Emc Atom.
  • Emc DNS.

Consider each of them separately.


From the point of view of the EmcSSH platform, which is an additional extension of SSH technology for network administration, the blockchain is some kind of specialized repository of public keys (passwords) and lists of users eligible for authorized access.

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For example, a network user has access to several machines. To do this, use a password-protected secret key file stored in the blockchain, which eliminates the manifestation of hacker attacks, called MIM (“man in the middle”). If the impossible happened – the file is stolen, the user can instantly change it to a new one or block access.

This technique is most effective when you need to manage a large number of servers, an ATM network, remote computer terminals, etc. What is most interesting, such global control can be carried out regardless of geographic location, and with the same simplicity as during in the usual local area network.

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This platform is an extension of the custom SSL protocol. For him, the blockchain is a place for storing the so-called digital fingerprints of certificates of individual users or organizations.

When entering, for example, the bank’s website, and the exchange of information between the user and the Internet banking system, user authentication is based on such certificates, which makes it impossible for third parties to steal passwords, codes or keys. If a client loses a certificate, its recovery procedure is simplified quite strongly, although it does have some inconveniences in terms of restrictions imposed (recovery service is paid, and the process itself takes a lot of time).

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Emc infocard

This platform basically uses an electronic business card system that is inextricably linked with custom SSL certificates. Unlike the latter, such business cards are convenient because the information contained in them can be changed.

When you enter a certain Internet resource that supports this technology (for example, a blockchain wallet), authorization takes place on the basis of a virtual business card, and information is automatically loaded from it.

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The convenience of such a system is that when data changes in a business card, it changes on all resources where it is registered, simultaneously and fully automatically. So the user eliminates the need to re-fill the registration fields on a huge number of sites manually.


The TTS system is a means of fixing placed documents of any type in time with the creation of a print of the moment of their publication. Such technology is indispensable in legal matters when you need to prove the authenticity of a document, contract, patent, or even the publication of copyright. By the time stamp, you can easily check not only the date of issue or publication, but also the time to the nearest second. And in law it can sometimes play a key role.

For example, there are two companies that have entered into an agreement for the provision of some services. The first after signing the contract made his publication using TTS technology.

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The second firm did not know about it, and after some time began to make changes to the contract without authorization, referring to the allegedly lost own copy, and even stating that some of the points were spelled out in the current wording it proposed. There is nothing easier than to prove the correctness of the first company on the temporary imprint of the publication.

Emc dpo

A DPO system is another branch of the underlying technology used to prove the rights to any property in physical or intellectual terms. Simply put, on the basis of unique numbers or characteristics, the use of such technology can confirm, for example, the right to own a car, house or apartment, land, software development, etc.

Cadastral numbers, registration certificates, serial numbers can be equally used. software licenses, and in some cases, for example, for real estate – the location, etc. With such a system and re-registration of property rights is very simple. It is enough to perform the simplest data modification operation in the blockchain. As is already clear, access to such processes can be obtained only by persons entitled to it, and outside intervention is excluded.

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Emc atom

Atom is a system designed to conclude transactions between two parties without the participation of a third party or intermediaries. To be clear, in some cases, when transferring property rights or concluding contracts, the two parties are forced to turn to a notary, a law office, a bank, and other organizations. In this situation, their participation is not required. Registration in the case of a property transaction, when the seller received the money, and the ownership right was reissued to the buyer, and confirms the legality of the operation with a preliminary check of the seller’s ownership of the property, and later also confirms the ownership of the new owner. However, such an approach can be used only when both parties trust each other unconditionally.

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Finally, another platform, which is an alternative system for distributing domain names in networks, that prevents intruders who are attacking the DNS. It is believed that with the use of such technology, any distributed network tied to the Internet becomes virtually invulnerable.

Speed ​​transaction

This type of technology is designed for micropayments with minimal costs and costs. Such calculations may have ultra-small sums (even for fractions of kopecks). Since all transactions performed are virtual, the system allows removing any restrictions on speed in the so-called TPS metric, despite the fact that any calculation has its own value, expressed either in monetary terms or in resources consumed for its performance.

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Advantages and disadvantages of the system

Finally, it remains to say that the blockchain system has advantages quite vividly. The most important thing in technology is impeccable reliability and, as stated, absolute security. Despite this, today there is an active debate about the feasibility of the widespread introduction of such technology. Bankers, by the way, are in no hurry to use it because of the low speed of work, initially dependent on traffic, although they recognize that speed has a lower priority than reliability and security of operations.

But any consumer with the help of the blockchain technology can even independently verify the quality of the purchased goods by tracking the entire production and supply chain in order to make sure that the purchase really meets the specified standards.

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However, it’s too early to talk about the global introduction of this technology, the emergence of which, in the opinion of many experts, is comparable only to the emergence of the global Internet. And the applications created on its basis, not to mention the organizations that use them, are not as many as many would like.

However, most experts are inclined to believe that the blockchain has a great future. Like it or not, time will tell. It remains to hope that this system will not suffer the fate of cryptocurrency Bitcoin, which was recently decided to refuse.

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