Understand the relationship between digital signature and blockchain!
The relationship between digital signature and blockchain is a not so well-known union, but very important for different sectors. These tools are the result of constant technological progress that has been gaining space in the business sector. It goes far beyond the improvements of machines that optimize production and improve the quality of the products offered. More and more ways are being created to facilitate the work of managers. That “office service” that does not always have the deserved recognition is gaining new ways of being performed with less strain on the team and digitally. To stay on top of one of the key management trends, read on!
In this post we will explain blockchain technology, how it works and what is its relationship with electronic signatures and certificates! Encryption is more part of your routine than you might think!
Understanding what blockchain is
Blockchain is nothing more than a tracking network capable of identifying information transactions separated by blocks. It doesn't matter if the content of that code is images, videos, contracts, documents, actions, or other data: they are grouped, validated, and passed on securely to a new group. Each of these transfers is registered on this network. When a computer or other device releases certain data into the virtual environment, that data is transformed into a code - with a unique identity, called a code Hash. This technology identifies and records this sending of data between encrypted blocks in the digital medium., ensuring safety in this process. To be simpler, let's look at a practical example with a step by step of how this operation works:
- Person 1 sends an amount to Person 2 (the term “amount” can be replaced with text and images. );
- The value is transformed into a data, corresponding to this operation, and is inserted into the network;
- The system validates the transaction;
- The data is grouped together with a block connected to a chain of other blocks;
- Person 2 gets the amount.
Blocks are sets of information grouped by the date and time that were added to the system. Every 10 minutes new data is inserted and a new block is created, containing the old and new content. Between one creation period and another, the verification takes place that maintains the security and fairness of the operation. Blockchain is a form of validation that first appeared in 2008. That was the date when Satoshi Nakamoto published the article called “Bitcoin: a peer-to-peer electronic financial system”. In this document, he talks about the technology that allows cryptocurrencies to exist and work, since it does not allow information to be tampered with. This is another form of digital tools modifying the business sector, the economy, and other areas. We talk more about the topic in the post”Understand what automation is and how it can revolutionize your company”.
How does blockchain technology work?
The operation of the blockchain is based on the provision of data, the information blocks and the validations carried out. When information is entered in this tool, it is included in a block and gains an identity - a unique certificate called hash.
Hashtags are like human fingerprints, meaning that no two are the same. It allows the identification of those who own it (or, in this case, sent it). These records are encrypted and prove where the content came from, not allowing it to be changed, which in turn ensures that source records and all other data are kept.
When a new transaction involving that hash occurs, another block of information is created and a new one of these certificates as well.. This second set contains what the first one had, as well as new data added. It is a process that, as we have already mentioned, is repeated every 10 minutes. The method is called “block chain” precisely because it maintains this connection with the previous cluster. Blockchain is a tool that uses the system called Peer-to-Peer, where each computer acts as a server, as well as a user of the network in which it is inserted. that It makes the existence of a central server unnecessary to store all the data provided. New transactions can only occur when the network where they are inserted validates them. That is, the set of peer-to-peer servers verify the hash presented, and if the majority consider that it is not corrupted, the operation continues. Thus, new information is added, a new record is generated and the chain is assembled. It is because of this operation that it is considered a validation system, being a reference in information security today.
Digital signature and blockchain: understand the relationship between them
There's a very intimate relationship between blockchain and digital signature — which we bet you've already noticed! —, since the first could not happen without the second. The issuer must certify their willingness to carry out that particular transaction for the information to enter the blockchain. In other words, data is only included in a group if it is signed. Digital signatures prove that the person who made the transaction is aware of the content added there. Thus, when this data is placed on the blockchain, a digital validation is generated that identifies it and blocks the alteration of its content - this validation is carried out by hash codes. Through this functionality, validations are made between transactions in the blockchain system. The procedure consists of Take the information from that code and compare it with that contained in the system. That is, to check if, from one data block to another, the content referring to that file has been modified. This operation is what happens when we check the validity of a digital document. We talk more about it in the post” Veracity of the document: how to consult the signature”.
Advantages of using blockchain in documents
Those who follow the Clicksign blog already know how secure digital signatures are. They allow the submission of documentation and processes to be simpler and more protected. The blockchain system adds a lot to this type of operation! The main reason why this is an outlet for those who need to send files, contracts, and reports securely is that validations take place every 10 minutes. Thus, the already low chances of a problem occurring regarding the integrity of the content become non-existent. Even so, there are still other reasons to become adept at this tool, these are:
- cost reduction;
- optimization of internal operations and with partners;
- create a chronological record of the passage of information;
- more reliable transactions;
- decentralization of the database due to the use of peer-to-peer.
We hope that this content about digital signature and blockchain has helped you understand how the technological trend that is so used by cryptocurrency investors works. Also, since it is not far from the business sector, either because of the possibilities of use it has, or because it is a fan of digital certifications. Clicksign's blog contains content on the main subjects that address technology and business management. Follow our posts and learn much more!
