Blockchain: Everything you need to know
Blockchain is a technology that offers security, transparency and traceability in business operations. Find out how it works and where to apply it in your business.
The term blockchain has gained a lot of space in conversations about technology , innovation and digital security.
But, despite being closely associated with cryptocurrencies, this technology has applications that go far beyond the financial market.
Today, blockchain is used by companies from different sectors, public bodies and even institutions that need more security , transparency and traceability in their operations.
If you want to understand what blockchain is, how it works, what it is for and what impacts it has on business, this content was made for you.
Here, you will find an objective explanation, with practical examples applicable to the day-to-day running of companies.
What is blockchain?
Simply put, blockchain is a technology that allows the registration and validation of information in a decentralized, secure and transparent way.
Imagine a digital logbook that, instead of being stored in one place, is shared by multiple participants.
Each new recorded piece of data creates a block, which is connected to the previous ones, forming a secure chain of information.
Changing a single block would require changing all the others, which makes fraud practically unfeasible.
This structure allows transactions and data to be validated by all network participants, without relying on a single central entity.
How does blockchain work?
Blockchain is based on three main pillars that ensure its safe, efficient and reliable operation. They are:
Decentralization
Unlike traditional systems, which depend on a central server to store and validate information, in blockchain data is distributed across a network of computers (nodes).
Every network user has a copy of the ledger, which keeps track of all transactions and modifications.
This eliminates the need for intermediaries and reduces the risk of failures, fraud or data loss by relying on a single point.
Immutability
Each new block carries with it a unique code ( hash ) and the reference of the previous block, forming a sequence protected against any attempt at alteration.
This ensures that data remains intact, auditable and protected against any type of fraud.
Transparency
All transactions recorded on the blockchain network can be viewed by authorized participants, depending on the model adopted (public, private or hybrid).
This transparency generates more trust between the parties involved, as all movements are documented, accessible and secure.
In public models, such as cryptocurrencies, anyone can verify the records.
In private models, transparency is restricted to authorized parties, without compromising security and traceability.
What is the process like?
The process follows some well-defined steps:
- Someone makes a request
Whether it's a financial transaction, a data record, a supply chain movement or any other type of information that needs to be validated and recorded on the network. - Several computers (called nodes) check that the data is correct. This is done through algorithms that validate the information.
- Information becomes a block
When validated, the information becomes a block with data such as time, participants and transaction details. - The block is linked to previous ones
This block connects to those that already existed in the network, forming a chain of blocks. Each block has its own code and a reference to the previous one, which prevents any changes. - The record is visible on the network.
Those who are part of the network can follow this record, which is available for consultation, ensuring security, traceability and transparency.
A simple example
Think of a cooperative, an association or even a condominium that wants to record assembly decisions in a public and unchangeable way.
Each minute could be recorded on the blockchain as a block, validated by network participants.
This ensures that no changes can be made later and that the decision history is always accessible and transparent to those participating in the network.
Although in practice many of these organizations opt for simpler solutions, blockchain becomes interesting in scenarios where there is a need for high transparency, public traceability and total elimination of intermediaries.
Blockchain applications beyond cryptocurrencies
The use of blockchain has expanded rapidly, reaching companies from different segments.
Here are some examples:
Digital identity and data security
Blockchain is used to validate identities and protect sensitive data, providing an extra layer of security against fraud.
Supply chains
It enables you to monitor a product's whole lifecycle, from the point of origin to the final customer. More control and transparency are thus guaranteed.
Legal sector and public records
Blockchain can be used as an integrity and date authentication layer , ensuring that records, certificates and acts are preserved and immutable since their creation.
Health area
Allows you to store medical records securely and accessibly, ensuring data privacy and controlled access.
Benefits of blockchain for businesses
Implementing blockchain in operations brings a series of advantages, which directly impact the efficiency, security and governance of companies.
See some of the main benefits that make this technology increasingly popular in business:
Data integrity
Once information is recorded on the blockchain, it cannot be altered, which ensures that data is preserved exactly as it was entered, creating tamper-proof records that are protected against fraud or manipulation.
More credibility in transactions
Being a distributed and collectively confirmed network, blockchain removes the use of intermediaries.
This creates greater transparency and security among the parties concerned, as all can view and confirm the transaction or record history.
Automation and agility in processes
Blockchain allows the creation of smart contracts, which execute rules automatically as soon as conditions are met.
This reduces bureaucracy, eliminates manual steps and speeds up operations that, in traditional models, could take days or even weeks.
Transparency with traceability
Each recorded transaction forms a link in the blockchain, allowing the entire timeline of that data or product to be tracked, generating security and clarity for audits, logistical processes, negotiations and validations.
Reduction of operational costs
By eliminating intermediaries and making processes faster and more automatic, blockchain directly contributes to reducing costs .
Companies gain efficiency without sacrificing security.
Types of blockchain: which one makes the most sense for each scenario?
Not every blockchain works the same way.
There are different models, each with its own characteristics, which adapt to the specific needs of companies, organizations and even governments.
Public Blockchain
Public blockchain is completely open and decentralized. Anyone can participate in the network, view records, validate transactions, and even create new blocks.
This transparency ensures that all data is auditable by any member of the network, which generates more security and trust, especially in environments where the parties do not know each other.
Private Blockchain
It is generally managed by a company, consortium or entity, which defines who can access, insert and validate information on the network.
The focus here is on control, security and privacy, maintaining the benefits of blockchain but without opening up the information to anyone outside.
Hybrid Blockchain
In it, some information remains open and visible to the public, while sensitive or strategic data is restricted to certain network participants.
This model seeks a balance between transparency and confidentiality, offering flexibility in information management.