Estefanía Aristizábal Santamaría

Code: 1320182011
International Business Program
Uniagustiniana

ABSTRACT

The traditional financial sector has always been supported by an intermediary who

is a financial institution that provides traceability to transaction processes between

users, as is the case with banks and other institutions.

In this way, the operation of banks provides users with a trust factor when making

payments or leaving their money in their hands with the security that these

institutions provide guarantees.

However, in the case of the new financial sector or specifically of cryptocurrencies,

this intermediary agent between transactions does not exist, but rather is believed

more in the act of good faith. Furthermore, security in this new system is provided

by all the blockchain participants, who approve or disapprove the confirmation of

nodes and new hashes in a peer-to-peer system.

Thus, to carry out electronic transactions, each user must register a type of digital

signature to carry out an act of approval and mitigate cyber fraud within

cryptocurrencies. However, there can be problems when the payee cannot verify

that one of the owners did not spend the coin twice, so they could choose to

implement a history with the expenses of all the users and then verify them.
In the same way, timestamp servers help classify hass into day, month, and year,

which can feed into the previously mentioned history.

Also, the ceiptcurrencies sector has a proof-of-work system where it also solves the

problem of determining the representation in decision-making by the majority of

users.

In this sense, the steps to generate trust in these electronic transactions and provide

traceability and security to this process are:

1) New transactions are broadcast to all nodes.

2) Each node collects new transactions in a block.

3) Each node works to find a difficult proof of work for its block.

4) When a node finds a proof of work, it broadcasts the block to all nodes.

5) Nodes accept the block only if all transactions in it are valid and have not been

spent yet.

6) The nodes express their acceptance of the block by working on the creation of

the next block in the

string, using the hash of the accepted block as the previous hash.